REC Silicon - First quarter 2019 results

Fornebu, Norway - May 9, 2019: REC Silicon ASA (REC Silicon) reported first quarter 2019 revenues of USD 45.0 million, compared to USD 48.9 million in the fourth quarter of 2018. EBITDA for the first quarter of 2019 was USD 4.7 million and included the impact of implementing IFRS 16 regarding leases which resulted in a USD 3.4 million smaller EBITDA loss for the quarter.

REC Silicon reported a cash balance of USD 25.4 million on March 31, 2019. This represents a decrease of USD 6.4 million compared to the cash balance on December 31, 2018. Cash outflows from operations was USD 3.5 million for the quarter which included interest of USD 0.7 million associated with leases. Cash outflows from financing activities consisted of USD 2.8 million payments of lease liabilities.

Polysilicon sales volume for the quarter was 2,004 MT compared to 1,664 MT in the prior quarter, while inventory decreased by 496 MT.

Silicon gas sales volumes for the fourth quarter were 829 MT compared to guidance of 850 MT. Silane gas prices decreased by 3.3 percent compared to the fourth quarter 2018. Fourth quarter semiconductor polysilicon production was 285 MT compared to guidance of 290 MT.

The FBR facility in Moses Lake operated at approximately 25 percent throughout the first quarter. FBR production was 1,091 MT compared to guidance of 1,180 MT. FBR production costs were USD 13.5/kg compared to guidance of USD 12.8/kg.

President and CEO, Tore Torvund said, "First quarter results are far below our potential due to restricted access to Chinese markets. We are hopeful that REC Silicon's access to polysilicon markets in China will be restored and we can return to 100% capacity utilization in our FBR facility."

The Board of Directors has initiated a plan to curtail the operation of the FBR facility beginning on May 15, 2019 to reduce spending and to maintain liquidity. Unless access to polysilicon markets in China is restored, the facility will be placed in a long-term shutdown by June 30, 2019. The timing and length of the shutdown are dependent on whether REC Silicon is able to regain access to Chinese markets for polysilicon as a result of trade negotiations between China and the United States or other significant positive developments in solar grade polysilicon markets.

For more information, please see the attached first quarter 2019 report and presentation.

A presentation of the results will be held at 08:00 a.m. CEST at Hotel Continental, Stortingsgata 24/26, 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: https://webtv.hegnar.no/presentation.php?webcastId=97815703

It will also be possible to listen to the presentation through a conference call. To join this event, use one of the following access numbers. Please make sure to dial in 5-10 minutes prior to the scheduled start time.

 

Norway Dial-in (Tollfree/Freephone): 800 51 084
Norway, Oslo (Dial-in Local): [phone]
United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377
United Kingdom (Dial-in Local): [phone]
United States (Dial-in Local): [phone]
United States/Canada (Dial-in Tollfree/Freephone): 800 458 4121
Other international: [phone]

Participant Passcode: 5632920

For further information, please contact:
James A. May II, Chief Financial Officer
Phone: [phone]
Email: [e-mail]

Nils O. Kjerstad, IR Contact
Phone: [phone]
Email: [e-mail]

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, and 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.

REC Silicon Q1 2019 presentation
REC Silicon Q1 2019 report

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Source: REC Silicon ASA via Globenewswire