Sandvika, October 24, 2012: Renewable Energy Corporation
ASA (REC) reported third quarter 2012 revenues from
continuing operations of NOK 1,510 million and negative
EBITDA of NOK 184 million.
Very challenging market conditions led to quarterly
sequential reduction in both selling prices and sales
volumes. Third quarter polysilicon sales were about 4,800
MT, silane gas sales about 360 MT and modules sales about
170 MW. Average selling prices were down ten percent for
polysilicon, four percent for silane gas and ten percent
for modules compared to the previous quarter. These
effects, as well as writedowns of NOK 254 million for
inventory still in stock, gave an EBITDA of negative NOK
184 million in the third quarter, compared to positive NOK
267 million in the previous quarter.
EBIT from continuing operations was negative NOK 451
million in the third quarter, compared to negative NOK 3.7
billion in the previous quarter. The second quarter EBIT
included impairment charges of NOK 3.6 billion.
Net debt was reduced by NOK 2.2 billion to NOK 1.9 billion
at the end of the third quarter. Net debt including the
convertible bond at par value amounted to NOK 2.4 billion.
The debt reduction mainly reflects new equity of gross NOK
1.7 billion and a positive effect of the insolvency of REC
Wafer Norway AS of NOK 0.4 billion. With the insolvency,
REC recognized a net gain of NOK 0.8 billion as part of
discontinued operations in the consolidated statement of
income.
Loss after tax from continuing operations was NOK 452
million in the third quarter, compared to loss of NOK 3.7
billion in the previous quarter. Profit after tax from
total operations was NOK 408 million, compared to loss of
NOK 4.1 billion in the previous quarter. EPS for total
operations was NOK 0.23 and NOK -3.02 for the same
periods.
"Current solar market conditions are unsustainable
with spot prices below cash cost for all market
participants. Solar energy is a very attractive source of
electricity in many areas of the world. With the right
frameworks and regulations in place, I am convinced that we
will see strong demand growth in the years to come. REC
continues to aggressively reduce costs and improve our
product quality, together with our partners we will weather
the current industry turmoil and capture the opportunities
that lie ahead", says Ole Enger CEO.
For more information, please see the attached third quarter
2012 report and presentation as well as a spreadsheet with
detailed financial information.
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 Oslo
Konserthus, Munkedamsveien 14, 0250 Oslo
(www.oslokonserthus.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:
Confirmation code: 9314607
Norway Toll Free: 800 56 054
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 7136 2055
Afternoon program:
REC will further host an analyst conference call with
possibilities for questions and answers later the same day
at 14:30 CET. Please make sure to dial in at least 5
minutes ahead of time to finalize your registration:
International dial in: +47 2318 4540, please state your
name and company.
Immediately after the call, a replay of the conference call
will be made available. To access, please dial +47 2318
4502 and use the following procedure:
- Type pincode 1524 followed by # (pound-sign)
- Continue by typing reference number 524 followed by # (pound-sign)
For more information, please contact;
Mikkel Tørud,
VP & IRO, REC ASA
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 2,400 employees worldwide
generated revenues of more than NOK 13 billion in 2011,
approximately EUR 1.7 billion or USD 2.4 billion. To see
more of what REC can offer, visit www.recgroup.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
Attachments:
REC Q3 presentation
REC Q3 financial information
REC Q3 report
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