REC Silicon - Third quarter 2015 results
Fornebu, Norway - November 3, 2015: REC Silicon ASA (REC Silicon) reported third quarter revenues of USD 87.5 million, compared to USD 93 million in the previous quarter. The corresponding EBITDA during the third quarter was negative USD 14.1 million compared to USD 5.8 million in the previous quarter. The decrease in EBITDA can be attributed to lower sales prices and higher costs in the third quarter.
Third quarter production was in line with guidance given during the last quarter at 3,580 MT. The company realized a better than expected FBR cash cost of $13.8/kg, compared to guidance of $15.2/kg. The better than expected cash cost can be attributed to a one time property tax benefit.
Finished goods inventory decreased by 1,026 MT, compared to a 1,248 MT inventory build in the previous quarter. Further inventory reduction is expected in Q4.
Pricing for silicon gas sales volumes in the third quarter increased an average of 17% over the previous quarter. Silicon gas sales declined in the third quarter by approximately 35%, reflective of above average sales in the previous quarter.
REC Silicon also announced today that it has implemented numerous cost cutting and deferral measures in order to strengthen its cash position. The company has taken the necessary actions to reduce headcount from the previous 720 down to 675. REC will also defer maintenance outages and limit capital expenditures to critical maintenance. Tore Torvund, REC Silicon CEO said, "While we remain hopeful that the trade war between the US and China will be resolved, uncertainty remains and we must plan our business around the current conditions. These cost cutting measures, while difficult, are necessary to help REC Silicon remain competitive while we continue to grow sales outside of China."
The company continues with its plans to resume operations of the Silane III unit at the beginning of 2016 if market conditions allow.
For more information, please see the attached second quarter 2015 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=25724194
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 scheduled start time on one of the following numbers:
Norway: +47 2316 2729
UK: +44 (0)20 3427 0503
USA: +1 212 444 0481
Other international: +44 20 3427 0503
Please provide confirmation code 4985758 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 5-10 minutes ahead of time to complete your registration.
Norway: +47 2316 2729
UK: +44 (0)20 3427 0503
USA: +1 646 254 3364
Other international: +44 20 3427 0503
Please provide confirmation code 8204704 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
Nils O. Kjerstad
IR Contact Europe
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gases to the solar and electronics industries worldwide. We combine 30 years of experience and best-in-class proprietary technology to deliver on customer expectations. Our two U.S. based plants have a capacity of more than 20,000 MT of high-purity polysilicon. Listed on the Oslo Stock Exchange (REC.OL), the company is headquartered in Moses Lake, Washington.
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.
REC Silicon Q3 2015 report
REC Silicon Q3 2015 Presentation
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: REC Silicon ASA via GlobeNewswire
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