Sandvika, April 25, 2012: Renewable Energy Corporation ASA (REC) reported first quarter 2012 revenues of NOK 2,138 million and EBITDA of NOK 455 million. REC reduced net debt by NOK 0.5 billion in the first quarter to NOK 4.2 billion.
Attractive return on PV-investments for the end-users in key markets, expected feed-in tariff cuts in Germany as well as growing demand from a number of emerging markets led to high module installation volumes in the first quarter of 2012. Despite the high volumes, industry wide overcapacity continued to put pressure on market prices throughout the quarter.
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.
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: 1546702
Norway Toll Free: 800 56 053
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 3140 8286
REC will further host an analyst conference call with possibilities for questions and answers later the same day at 15:00 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; +47 976 99 144
REC is a leading vertically integrated solar energy company. REC produces polysilicon, wafers, cells and modules for the solar industry, and silicon materials for the electronics industry. REC also engages in project development in selected PV segments. Founded in Norway in 1996, REC employs around 3,200 people globally with revenues of more than NOK 13 billion in 2011. Please visit www.recgroup.com to learn more about REC.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)