REC Silicon ASA reported third quarter 2014 revenues of US$126.5 million and EBITDA excluding special items from continuing operations of US$44.9 million. In addition, the company recognized special items of US$101 million related to the sale of its silane based FBR-B technology to the joint venture in China. REC Silicon ASA reported total EBITDA of US$145.9 million.
Debt has been reduced by USD 55 million to USD 228 million, primarily due to the repayment of an NOK 196 million bond (REC01).
REC Silicon Segment reported third quarter revenues of US$126.5 million, compared to USD 126.8 million in the previous quarter. Lower polysilicon sales volumes were offset by record silicon gas sales volumes and resulted in revenues broadly in line with the previous quarter. The corresponding EBITDA excluding special items during the third quarter was US$45.5 million compared to US$33.1 million in the previous quarter. The increased EBITDA can be attributed primarily to lower costs driven by stable operations and high production levels.
The Segment also reported record silicon gas sales volumes. Sales volumes were driven by a combination of improved end use demand and by competitive capacity being offline.
The company is announcing a 3,000 MT granular polysilicon expansion at its Moses Lake facility and an agreement to investigate the development of a 20,000 MT granular polysilicon plant in Saudi Arabia.
Additionally, the company reported the receipt of the final technology transfer payment of USD 99 million from the Joint Venture in China. Front End Engineering Design (FEED) has been delivered and the project has relocated to China to begin detailed engineering.
"Increased EBITDA in the third quarter is primarily the result of stable operations and continued focus on production efficiency. The results demonstrate the value of REC Silicon's superior FBR technology," commented Tore Torvund, CEO of REC Silicon. "I am pleased that our FBR technology is being recognized as the leading polysilicon manufacturing technology which has resulted in the announcement to expand our Moses Lake facility, the Yulin JV in China, and a potential expansion in Saudi Arabia."
Net financial items resulted in income of US$45.7 million, mainly reflecting net currency gains, and fair value adjustment of convertible bonds offset by interest expense. Profit from continuing operations was US$119.5 million in the third quarter, compared to US$24.6 million in the previous quarter. The improved result mainly reflects higher EBITDA, special items, and positive net financial items.
Basic and diluted EPS from total operations was US$0.05 in the third quarter 2014, compared to US$0.01 in the previous quarter.