REC's third quarter 2013 results
Sandvika, October 24, 2013: Renewable Energy Corporation ASA (REC) reported third quarter 2013 revenues from continuing operations of NOK 705 million and EBITDA of NOK 36 million. Nominal net debt was NOK 2.6 billion, while net debt will be reduced by NOK 800 million through the proceeds from the sale of REC Solar to be completed on October 25, 2013.
Reported revenues and EBITDA are re-presented for REC Solar as discontinued operations. The table below illustrates revenues, EBITDA and EBIT for the segments and other ("total segments"). The revenues and EBITDA for "total segments" are illustrations of the financial results before loss on sale of REC Solar and comparable with earlier reported financial figures.
| Q3 2013 | Q2 2013 | |||||
| Revenues | EBITDA | EBIT | Revenues | EBITDA | EBIT | |
| REC Silicon | 738 | 80 | -135 | 498 | 106 | -78 |
| REC Solar | 917 | 59 | 26 | 1070 | 75 | 49 |
| Other & Eliminations | -33 | -33 | -33 | -23 | -28 | -28 |
| Total segments | 1,621 | 106 | -142 | 1,544 | 153 | -57 |
| Sale of REC Solar | 0 | -182 | -1,251 | 0 | 0 | 0 |
| Total operations | 1,621 | -75 | -1,393 | 1,544 | 153 | -57 |
| Adjustment discontinued operations | -917 | 111 | 1,214 | -1,070 | -94 | -68 |
| Continuing operations | 705 | 36 | -179 | 474 | 60 | -125 |
REC Silicon reported third quarter revenues of NOK 738 million up from NOK 498 million in the previous quarter. EBITDA in the third quarter was NOK 80 million down from NOK 106 million in the previous quarter. The second quarter EBITDA was positively affected by reversal of expenses recognized in the first quarter, and hence the underlying third quarter EBITDA was broadly unchanged from the previous quarter. Strong sales volume growth for both polysilicon and silane gas was offset by price declines for both product categories in the quarter.
Despite the introduction of preliminary anti-dumping duties on solar grade polysilicon in China, strong demand for granular polysilicon led to an increase in polysilicon sales volume of 56 percent compared to the previous quarter. Polysilicon selling prices came down three percent reflecting reduced prices for electronic grade polysilicon and a larger share of solar grade polysilicon in the sales mix partly offset by increased prices for solar grade polysilicon.
Silane gas sales increased by 73 percent while the selling prices decreased by 18 percent, compared to the previous quarter. Silane gas prices decreased due to deliveries under some large contracts at low prices. Some industry rationalization has begun and REC Silicon increased its silane gas market share in the quarter.
REC Solar reported third quarter revenues of NOK 917 million down from NOK 1,070 million in the previous quarter. EBITDA in the third quarter was NOK 59 million down from NOK 75 million in the previous quarter. The reduction from the previous quarter mainly reflects lower shipments and selling prices, partly offset by continued cost reductions.
Solar panel sales volume was down eight percent compared to the previous quarter as panel inventory was slightly below the normalized level in the previous quarter. Selling prices decreased by five percent mainly reflecting currency effects and lower realized prices in Japan. REC Solar continues to hold a strong market position, in particular in Asia and Europe.
REC Solar increased solar panel production and continued reduction of cash cost based on operational improvements. Cash cost for producing solar panels was in the third quarter 49 Eurocents/Watt.
Financial items for continuing operations were negative NOK 155 million, mainly reflecting interest expenses and fair value adjustments of the convertible bonds.
Loss after tax from total operations was NOK 1,578 million in the third quarter, compared to a loss of NOK 447 million in the previous quarter. The increased loss mainly reflect the impairments on Group level of REC Solar, as the segment is accounted for as held for sale at the end of the third quarter.
Basic EPS from total operations was negative NOK 0.68 in the third quarter 2013, compared to negative NOK 0.20 in the previous quarter.
For more information, please see the attached third quarter 2013 report. A spreadsheet with detailed financial information can be found on the investor section of www.recgroup.com.
Morning program:
On the release day, President and CEO Ole Enger of REC will give a presentation together with other members of the management team. The presentation will take place at 08:00 hrs Norwegian time/CET at the conference centre Høyres Hus, Stortingsgaten 20, 0161 Oslo (www.hoyreshus.no).
The presentation, held in English, will be broadcasted live over the internet, and can be accessed from: www.recgroup.com.
It will also be possible to listen to the presentation through a conference call. Please make sure to dial in 10 minutes prior to scheduled start time on one of the following numbers:
Norway Toll Free: 800 56 053
UK Toll Free: 0800 279 5004
USA Toll Free: 1877 280 1254
International Toll: +44 (0)20 3427 1901
Confirmation code: 2005859
Afternoon program:
REC will further host an analyst conference call with possibilities for questions and answers later the same day at 15:00 CET. Please make sure to dial in at least 5 minutes ahead of time to finalize your registration.
International dial in: +47 2316 2729.
Please enter confirmation code 2526271 and state your name, company and country of residence.
Immediately after the call, a replay of the conference call will be made available. To access please dial +47 2100 0498 and type replay passcode 252671.
For further information, please contact:
Mikkel Tørud,
SVP Investor Relations & Business Development, REC
Telephone: +47 976 99 144
Email: mikkel.torud@recgroup.com
About REC
REC is a leading global provider of solar electricity solutions. With nearly two decades of expertise, we offer sustainable, high-performing products, services and investment opportunities for the solar and electronics industries. Together with our partners, we create value by providing solutions that better meet the world's growing electricity needs. Our 2,300 employees worldwide generated revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD 1.3 billion.
To see more of what REC can offer, visit www.recgroup.com.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE
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