REC Silicon ASA-First Quarter 2015 Results
REC Silicon ASA (REC Silicon) reported first quarter revenues of USD 68.8 million, compared to USD 74.9 million in the previous quarter. The corresponding EBITDA during the first quarter was negative USD 13.4 million compared to negative USD 29.6 million in the previous quarter. First quarter polysilicon production was 1,937 MT. The company realized an FBR cash cost of $24.8/kg for the quarter. The high cash cost can be attributed to reduced efficiencies due to lower production on account of the curtailment in Moses Lake. REC Silicon’s average solar grade polysilicon sales price during the first quarter increased 6% from the previous quarter.
Finished goods inventory decreased by 1,925 MT during the first quarter, compared to a 131 MT inventory reduction in the previous quarter. Further inventory reduction is expected in the second quarter as well.Pricing for average silicon gas sales volumes in the first quarter slightly decreased by 1% over the previous quarter. Silicon gas sales were 531 MT compared to guidance of 600 MT.
REC Silicon also announced today that it will restart its Silane III unit and half rate FBR production later this month. The Silane IV unit and full rate FBR production will restart in June. Tore Torvund, REC Silicon’s CEO, said, “We have reduced our inventories and market conditions have improved to the point to enable us to restart production in Moses Lake, with FBR cash costs near $10/kg. Further, the maintenance work that has been completed during the curtailment period should allow us to run the FBR unit as well as Silane III and IV for two years without an extended outage.”
REC Silicon thanks Washington Governor Jay Inslee and U.S. Senators, Patty Murray and Maria Cantwell, for their continued efforts seeking a resolution of the solar trade war between the U.S. and China. REC Silicon remains hopeful that a resolution of the solar trade war will be achieved, and therefore that the risk of further detrimental impacts on the U.S. solar industry will be avoided.
