Renewable Energy Corporation ASA (REC) reported second quarter 2011 revenues of NOK 3,391 million and EBITDA of NOK 871 million. REC made improvements in operations, and current cost position is below the year-end target set for FBR polysilicon and in line with the target in Singapore. REC Silicon continued to deliver solid results with 55 percent EBITDA margin and FBR cash cost below USD 15 per kg. Strong capital discipline led to reduced net debt by NOK 0.6 billion to NOK 6.8 billion. Significant price decline in the quarter led to reduced revenues and impairment charges on fixed assets of NOK 6.5 billion, mainly in Norway.
Late clarification of the subsidy scheme in Italy and slow demand growth in Germany combined with continued strong supply growth, led to a very weak solar market in the second quarter. The market imbalance led to inventory build-up throughout the industry and strong price pressure.
HIGHLIGHTS
- Revenues of NOK 3.4 billion, down 17 percent from the previous quarter
- EBITDA of NOK 871 million, down from NOK 1,449 million in the first quarter - price decline led to inventory write downs of NOK 115 million
- Strong improvements in operations – current cost position below year-end target for REC Silicon and in line with target in Singapore
- Steady delivery of strong results in REC Silicon - 55 percent EBITDA margin and FBR cash cost below USD 15 per kg
- Strong capital discipline - net debt reduced by NOK 0.6 billion in the quarter to NOK 6.8 billion
- EBIT before impairment charges of NOK 202 million
- The solar market weakened significantly in the second quarter
- Impairment charges of NOK 6.5 billion, mainly in Norway
- EBIT of negative NOK 6.3 billion, down from NOK 772 million in the previous quarter
- Cell and wafer production in Norway to be temporarily shut-down in the third quarter
Second quarter 2011
July 19, 2011