REC Solar ASA Announces Its 1Q14 Financial Results

REC Solar ASA unveiled its results of first quarter 2014, representing a slight QoQ decrease in revenues, EBITDA, module production. Also, REC has approved a module capacity expansion up to 1.3GW by 2H15 to cover the stronger demand from Europe and Japan.

Key highlights

• Revenues of USD 175.4 million, down 3.9% from Q4 2013
• EBITDA of USD 16.2 million, down 11.0% from Q4 2013
• Closing cash balance of USD 86.5 million
• REC's selling price for solar panels in Q1 2014 were in line with Q4 2013
• Solar panel cash cost up USD 3 cents/W from Q4 2013
• The increase is due to phase in of new equipment, furnace upgrade and the fire at the cell plant in March 2014
• Target cost reduction for full year 2014 remains unchanged. However, more likely to be in the lower range
• 216 MW of module production, down 5.3% from Q4 2013
• Capacity expansion approved, module capacity to increase to 1.3 GW by 2H 2015

Øyvind Hasaas, CEO of REC Solar ASA said: "We are experiencing good demand in our main markets in Europe and Japan. Together with our partners, we are continuously working to improve our product offering and improve our market presence. Our expansion of 300 MW module capacity through two new module lines will facilitate introduction of new technologies and broaden our product offering to our client base. This is an important step for us to strengthen our position in the "high end" market segment"