Rec Silicon ASA : third quarter 2014 results

Fornebu, November 4, 2014: REC Silicon ASA reported third quarter 2014 revenues of USD 126.5 million and EBITDA excluding special items from continuing operations of USD 44.9 million. In addition, the Company recognized special items of USD 101 million related to the sale of its silane based FBR-B technology to the joint venture in China. REC Silicon ASA reported total EBITDA of USD 145.9 million.

Debt has been reduced by USD 55 million to USD 228 million, primarily due to the repayment of an NOK 196 million bond (REC01).

REC Silicon Segment reported third quarter revenues of USD 126.5 million, compared to USD 126.8 million in the previous quarter. Lower polysilicon sales volumes were offset by record silicon gas sales volumes and resulted in revenues broadly in line with the previous quarter. The corresponding EBITDA excluding special items during the third quarter was USD 45.5 million compared to USD 33.1 million in the previous quarter. The increased EBITDA can be attributed primarily to lower costs driven by stable operations and high production levels.

The Segment also reported record silicon gas sales volumes. Sales volumes were driven by a combination of improved end use demand and by competitive capacity being offline.

The Company is announcing a 3,000 MT granular polysilicon expansion at its Moses Lake facility and an agreement to investigate the development of a 20,000 MT granular polysilicon plant in Saudi Arabia. 

Additionally, the Company reported the receipt of the final technology transfer payment of USD 99 million from the Joint Venture in China.  Front End Engineering Design (FEED) has been delivered and the project has relocated to China to begin detailed engineering.

"Increased EBITDA in the third quarter is primarily the result of stable operations and continued focus on production efficiency. The results demonstrate the value of REC Silicon's superior FBR technology," commented Tore Torvund, CEO of REC Silicon.  "I am pleased that our FBR technology is being recognized as the leading polysilicon manufacturing technology which has resulted in the announcement to expand our Moses Lake facility, the Yulin JV in China, and a potential expansion in Saudi Arabia." 

Net financial items resulted in income of USD 45.7 million, mainly reflecting net currency gains, and fair value adjustment of convertible bonds offset by interest expense.

Profit from continuing operations was USD 119.5 million in the third quarter, compared to USD 24.6 million in the previous quarter. The improved result mainly reflects higher EBITDA, special items, and positive net financial items.

Basic and diluted EPS from total operations was USD 0.05 in the third quarter 2014, compared to USD 0.01 in the previous quarter.

For more information, please see the attached third quarter 2014 report. 

Morning program:
The Company will give a presentation at 08:00 a.m. CET today at Konferansesenteret Høyres Hus, Stortingsgaten 20, 0117 Oslo, Norway. The presentation will be held in English.

There will be a live webcast from the presentation which can be accessed from: www.recsilicon.com:
http://www.recsilicon.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 56 054
UK Toll Free: 0800 279 5004
USA Toll Free:  1 877 280 2296
International Toll: +44 (0)20 3427 1915

Please provide confirmation code 5650922 and state your name, company and country of residence.

Afternoon program:
REC Silicon will host an analyst conference call with possibilities for questions and answers later the same day at 3:00 p.m. CET. Please make sure to dial in at least five minutes ahead of time to complete your registration.

International dial in: +47 2316 2729

Please provide confirmation code 1513752 and state your name, company and country of residence.

For further information, please contact:
Mitra H. Negård, Investor Relations
REC Silicon ASA
Phone: +47 957 93 631
Email: mitra.negard@recsilicon.com:
mailto:mitra.negard@recsilicon.com

About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine 25 years of experience and proprietary technology with the needs of our customers, and annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: REC), the company is headquartered in Moses Lake, Washington and employs 710 people.
For more information, go to: www.recsilicon.com:
http://www.recsilicon.com/