Renewable Energy Corporation ASA (REC) reported third quarter 2012 revenues from continuing operations of NOK 1,510 million and negative EBITDA of NOK 184 million.
Very challenging market conditions led to quarterly sequential reduction in both selling prices and sales volumes. Third quarter polysilicon sales were about 4,800 MT, silane gas sales about 360 MT and modules sales about 170 MW. Average selling prices were down ten percent for polysilicon, four percent for silane gas and ten percent for modules compared to the previous quarter. These effects, as well as writedowns of NOK 254 million for inventory still in stock, gave an EBITDA of negative NOK 184 million in the third quarter, compared to positive NOK 267 million in the previous quarter.
EBIT from continuing operations was negative NOK 451 million in the third quarter, compared to negative NOK 3.7 billion in the previous quarter. The second quarter EBIT included impairment charges of NOK 3.6 billion.
Net debt was reduced by NOK 2.2 billion to NOK 1.9 billion at the end of the third quarter. Net debt including the convertible bond at par value amounted to NOK 2.4 billion. The debt reduction mainly reflects new equity of gross NOK 1.7 billion and a positive effect of the insolvency of REC Wafer Norway AS of NOK 0.4 billion. With the insolvency, REC recognized a net gain of NOK 0.8 billion as part of discontinued operations in the consolidated statement of income.
Loss after tax from continuing operations was NOK 452 million in the third quarter, compared to loss of NOK 3.7 billion in the previous quarter. Profit after tax from total operations was NOK 408 million, compared to loss of NOK 4.1 billion in the previous quarter. EPS for total operations was NOK 0.23 and NOK -3.02 for the same periods.
"Current solar market conditions are unsustainable with spot prices below cash cost for all market participants. Solar energy is a very attractive source of electricity in many areas of the world. With the right frameworks and regulations in place, I am convinced that we will see strong demand growth in the years to come. REC continues to aggressively reduce costs and improve our product quality, together with our partners we will weather the current industry turmoil and capture the opportunities that lie ahead", says Ole Enger CEO.