First quarter 2012

HIGHLIGHTS

• Compared to the previous quarter, REC’s average selling prices for polysilicon were down 15 percent, wafer prices were down 24 percent and module prices were down 18 percent.
• With prospects of continued negative operating results, REC decided on April 24 to close down the 650 MW multicrystalline wafer plant at Herøya currently in operation. Production at the plant is expected to discontinue in the second quarter. This comes in addition to the decision on March 20 to close the monocrystalline wafer plant in Glomfjord. About 640 employees are affected. REC will explore alternatives for potential future use of the facilities. 
• REC’s first quarter revenues were down 25 percent from the previous quarter, while EBITDA was NOK 455 million in the first quarter, up from NOK 178 million in the previous quarter. In the first quarter REC recognized income of NOK 795 million from terminations of polysilicon and wafer sales contracts partly offset by costs of NOK 366 million related to permanent shutdown of the mono wafer production capacity in Glomfjord, Norway.
• EBITDA adjusted for these effects were NOK 27 million, compared to an adjusted EBITDA of NOK -178 million in the previous quarter. The improved adjusted EBITDA mainly reflects reduced inventory write downs and reductions in the overall cost base after close down of wafer production capacity in Norway.
• EBIT was NOK 59 million in the first quarter, compared to negative NOK 2.7 billion in the previous quarter that included impairment charges of NOK 2.5 billion on fixed assets 
• Loss after tax was NOK 209 million in the first quarter, compared to loss of NOK 2,482 million in the previous quarter.
• EPS was NOK -0.21 in the first quarter, compared to NOK -2.49 in the previous quarter.

 For more information, please see the attached first quarter 2012 report and presentation as well as a spreadsheet with detailed financial information.