Fornebu, Norway - February 12, 2019: REC Silicon ASA (REC Silicon) reported fourth quarter 2018 revenues of USD 48.9 million, compared to 43.7 million in the third quarter. The corresponding EBITDA during the quarter was a loss of USD 3.8 million compared to a loss of USD 6.1 million in the previous quarter. Polysilicon sales volume for the quarter was 1,270 MT compared to 658 MT in the prior quarter, while inventory decreased by 26 MT.
REC Silicon reported a cash balance of USD 31.8 million on December 31, 2018. This represents a decrease of USD 9.2 million compared to September 30, 2018. Cash outflows from operations was USD 8.7 million for the quarter which included interest payments of USD 6.3 million.
Silicon gas sales volumes for the fourth quarter were 920 MT compared to guidance of 850 MT. Silane gas prices decreased by 1.6 percent compared to the third quarter. Fourth quarter semiconductor polysilicon production was 313 MT compared to guidance of 340 MT.
The FBR facility in Moses Lake continued to operate at approximately 25 percent. FBR production was 1,209 MT in line with guidance of 1,190 MT. FBR cash costs were USD 14.6/kg compared to guidance of USD 15.3/kg.
REC Silicon's Board of Directors will consider a 2-month curtailment of production at the facility in Moses Lake near March 1, 2019 to reduce FBR inventories. At that time, REC Silicon's Board will consider whether trade negotiations between the United States and China are likely to result in REC regaining access to the China market for solar grade polysilicon and the overall outlook for the polysilicon market. A decision to temporarily curtail production at Moses Lake will not result in a workforce reduction. Customer demand will be met through the sale of REC Silicon's existing inventories.
For more information, please see the attached fourth quarter 2018 report and presentation.
A presentation of the results will be held at 08:00 a.m. CET at Høyres Hus Konferansesenter, Stortingsgaten 20, Oslo, Norway. The presentation will be in English.
The company will give a presentation at 8:00 am CET today at Høyres Hus Konferansesenter, Stortingsgaten 20, Oslo, Norway. The presentation will be in English.
A live webcast from the presentation can be accessed at www.recsilicon.com or with the following link:
It will also be possible to listen to the presentation through a conference call. Please make sure to dial in 5-10 minutes prior to the scheduled start time on one of the following numbers:
Norway Dial-in (Tollfree/Freephone): 800 51 084
Norway, Oslo (Dial-in Local): +47 2100 2610
United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377
United Kingdom (Local Dial-in Local): +44 (0) 330 336 9125
United States (Dial-in Local): +1 929 477 0324
United States/Canada (Dial-in Tollfree/Freephone): 800 458 4121
Other international: +44 (0) 330 336 9125
Please provide confirmation code 4787028 and state your name, company and country of residence.
For further information, please contact:
James A. May II, Chief Financial Officer
Phone: +1 509 989 1023
Nils O. Kjerstad
Phone: +47 9135 6659
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 over 30 years of experience and proprietary technology with the needs of our customers, with 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 Fornebu, Norway.
For more information, go to: www.recsilicon.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.