REC Silicon ASA ­ Fourth Quarter 2016 Results

REC Silicon ASA (REC Silicon) reported fourth quarter revenues of USD 80.4 million, up from USD 50.9 million in the previous quarter. The corresponding EBITDA during the fourth quarter increased to USD 4.9 million compared to a loss of USD 7.9 million in the previous quarter. The company also reported a December 31, 2016 cash balance of USD 65.8 million. Q4 polysilicon sales of 3,801 MT were above expectations and finished goods inventory decreased by 585 MT during the fourth quarter. Silicon gas sales volumes increased to 882 MT compared to 772 MT in the prior quarter.

Efforts to maintain liquidity and reduce costs have proven successful, with the company reporting Q4 FBR cash cost at $11.2/kg and similar cash cost expected in the first quarter. Tore Torvund, company CEO commented, “our efforts to decrease costs and better align FBR production with sales volumes have been successful in the fourth quarter. We will continue to be cost conscious and diligent at managing cash levels so that REC Silicon remains a low cost leader in the polysilicon industry even when operating at reduced capacity.” The Yulin joint venture plant remains on target for start­up in the second half of 2017. JV employees from China have completed their training in Moses Lake and Butte. The company has successfully negotiated a deferral of the $15 million capital contribution in the JV until at least July 2017, with ongoing negotiations with the company’s JV partner to defer the company’s remaining $154 million capital contribution until after 2018.

For more information, please see the attached fourth quarter 2016 report.
Morning Program:
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 the following link:
http://webtv.hegnar.no/presentation.php?webcastId=44471820
It will also be possible to listen to the presentation through a conference call. Please make sure to dial in 5­10 minutes prior to scheduled start time on one of the following numbers:

Norway (Toll Free): 800 51084
Norway (Local): +47 2100 2610
UK (Toll Free): 0800 358 6377
UK (Local): +44 (0)330 336 9411
USA (Toll Free): 888 349 9618
USA (Local): + 1 719 325 2202
Other international: +44 (0)330 336 9411
Please provide confirmation code 2502782 and state your name, company and country of residence.
Afternoon Program:
REC Silicon will host an analyst conference call later the same day at 3:00 p.m. CET. Please make sure to dial in at least 5­10 minutes ahead of time to complete your registration.
Norway (Toll Free): 800 51084
Norway (Local): +47 2100 2610
UK (Toll Free): 0800 358 6377
UK (Local): +44 (0)330 336 9105
USA (Toll Free): 800 347 6311
USA (Local): +1 719 457 2086
Other international: +44 (0)330 336 9105
Please provide confirmation code 8985294 and state your name, company and country of residence.
For further information, please contact:
Chris Bowes, Investor Relations
REC Silicon ASA
Phone: +1 509 793 8127
Email: chris.bowes@recsilicon.com