Oslo, February 12, 2007: Renewable Energy Corporation ASA (REC) reported revenue of NOK 1,874 million in the fourth quarter 2007, an increase of 42 percent from NOK 1,320 million in the fourth quarter 2006. For the full year 2007, revenue increased by 53 percent to NOK 6,642 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 848 million in the fourth quarter 2007, which was an increase of 25 percent from NOK 676 million in the fourth quarter 2006. The EBITDA margin of 45 percent in the fourth quarter 2007 compares with 51 percent in the same quarter last year.
For the full year 2007, EBITDA increased by 61 percent to NOK 3,172 million, and the EBITDA margin increased by three percentage-points to 48 percent.
The operating profit (EBIT) was NOK 677 million in the fourth quarter, compared to NOK 552 million in the same quarter in 2006, and the EBIT margin decreased to 36 percent from 42 percent. For the full year 2007 the EBIT was NOK 2,588 million, compared to NOK 1,574 million in 2006, representing an increase of 64%.
Embedded derivatives related to certain sales contracts were previously accounted for as hedge instruments, and changes in the fair value (losses) were thus included in the statement of recognized income and expense. At year-end 2007, these embedded derivatives were concluded not to fulfill all the formal requirements for hedge accounting, and the changes in fair value have thus been recognized in the 2007 Income Statement as a part of financial items.
A total change in fair value (loss) of NOK 642 million has been recognized in 2007, of which NOK 55 million relate to the fourth quarter 2007. Previous quarters of 2007 have been restated accordingly. These non-cash losses will be reversed in the Income Statement over the contract periods.
Including these effects, profit before tax was NOK 616 million in the fourth quarter 2007, compared to NOK 510 million in the fourth quarter 2006. Profit before tax for the full year 2007 was NOK 1,977 million, compared to NOK 744 million in 2006.
Earnings per share were NOK 0.84 in the fourth quarter 2007 and 2.70 for the full year. This compares to NOK 0.68 in the fourth quarter 2006 and NOK 1.03 for the full year 2006, on both a basic and diluted basis.
REC will host an analyst conference call with possibilities for questions and answers today Wednesday February 12, at 15:30 Norwegian time/CET. Please make sure to dial inn at least 5 minutes ahead of time to finalize your registration:
Norway free call: 800 80 119
International dial in: +47 23 00 04 00
Immediately after the call, a replay of the conference call will be made available. To access, please dial +47 67 89 40 91 and use the following procedure:
- Type account number 1536 followed by # (pound-sign) and press 1
- Continue by typing the conference number: 536 followed by # (pound-sign) and press 1 to play
For more information, please contact;
Jon Andre Løkke, SVP & Investor Relation Officer, +47 907 44 949
REC is uniquely positioned as one of the most integrated company in the solar energy industry. REC Silicon and REC Wafer are the world's largest producers of polysilicon and wafers for solar applications. REC Solar produces solar cells and solar modules. REC Group had revenues in 2007 of NOK 6,642 million and an operating profit of NOK 2,588 million. Please also see www.recgroup.com