May 9, 2014 - REC Silicon ASA reported first quarter 2014 revenues of USD 113.4 million and EBITDA from continuing operations of USD 17.5 million. Net debt has been reduced to USD 212 million, down from USD 307 million at December 31, 2013.
REC Silicon Segment reported first quarter revenues of USD 113.3 million, down from USD 124.8 million in the previous quarter. The corresponding EBITDA during the first quarter was USD 19.5 million, down from USD 31.3 million in the previous quarter. The reduced EBITDA is due to lower production volumes caused by a planned outage in Silane IV. The outage was extended as a result of conditions identified during regular maintenance. As a result of lower production, FBR cash cost increased to USD 13.6/kg.
On February 26, REC Silicon signed a joint venture agreement with Shaanxi Non-ferrous Tian Hong New Energy Co., Ltd. to build a 19,000 MT polysilicon plant in the Shaanxi province in China. This joint venture will utilize REC Silicon's proprietary FBR technology and silane experience and represents a strategic step forward in REC Silicon's ambition to be a leading supplier of high quality semiconductor materials.
"The formation of the Yulin Joint Venture has secured REC Silicon's position as leader in the industry, while significantly improving our financial strength," commented Tore Torvund, CEO of REC Silicon." I'm pleased with the continued market acceptance of our granular polysilicon and the slight recovery in prices. Although the planned outage of Silane IV resulted in lower production, it was completed without any adverse material findings."
Silicon gas sales volumes continued to be strong. Sales were driven by a combination of improved PV, TFT, and Semiconductor demand and by competitive capacity being currently offline.
Net financial items were expenses of USD 54.6 million, mainly reflecting interest expenses and fair value adjustments of the convertible bonds.
The loss from continuing operations was USD 49.7 million in the first quarter, compared to a loss of USD 3.2 million in the previous quarter. The increased loss mainly reflects lower EBITDA and fair value adjustments of the convertible bonds.
Basic EPS from total operations was negative USD 0.02 in the first quarter 2014, compared to USD 0.0 in the previous quarter.
Despite anti-dumping duties on solar grade polysilicon imported to China, polysilicon demand and prices increased compared to the prior quarter.