Sandvika, February 8, 2013: Renewable Energy Corporation ASA (REC) reported
fourth quarter 2012 revenues from continuing operations of NOK 1,687 million and
negative EBITDA of NOK 34 million. EBIT was negative NOK 2,178 after NOK 1.8
billion impairment on fixed assets related to the REC Silicon operations in the
USA. Net debt remained unchanged at NOK 1.8 billion from the previous quarter.
Solar demand improved somewhat in the fourth quarter 2012 compared to the weak
third quarter. However, the slowdown observed in the largest solar markets in
Europe were only partly offset by growth in other markets, like the US, China
and Japan. Continued excessive global production capacity and inventory
clearance led to significant downward pressure on selling prices, in particular
for polysilicon. The low prices continue to put severe pressure on margins for
all solar component suppliers and production capacities continue to be reduced.
REC's fourth quarter revenues from continuing operations were up 12 percent from
the previous quarter, while the negative NOK 34 million EBITDA was an
improvement from negative NOK 184 million in the previous quarter. The main
reasons for the improved EBITDA are increased sales volumes, cost reductions and
NOK 80 million of net positive items in REC Silicon, partly offset by continued
price declines. Compared to the previous quarter, REC's average selling prices
for polysilicon were down 14 percent, while solar panel prices were down 11
For the year 2012 revenues from continuing operations amounted to NOK 7,145
million, down 25 percent from 2011. EBITDA in 2012 amounted to NOK 360 million,
down from NOK 2,043 million in 2011. The decrease is explained by sharp price
declines for all products, only partly offset by cost reductions and increased
sales volumes. Price declines also led to increased inventory writedowns.
EBIT before impairment charges was negative NOK 315 million in the fourth
quarter, compared to negative NOK 466 million in the previous quarter. The weak
market conditions led to impairment charges of NOK 1.8 billion on fixed assets
in REC Silicon in the fourth quarter.
After impairments of about NOK 5.4 billion in 2012, EBIT from continuing
operations for the year was negative NOK 6,426 million down from negative NOK
4,108 million in 2011.
Loss after tax from continuing operations was NOK 1,455 million, compared to a
loss of NOK 452 million in the previous quarter. For the year 2012, REC had a
loss after tax from continuing operations of NOK 5,908 million, compared to a
loss of NOK 4,295 million in 2011.
Basic EPS from total operations was negative NOK 0.69 in the fourth quarter
2012 and negative NOK 3.23 for the year.
"REC continued to focus on operational improvements and capital discipline in
the fourth quarter. Cut backs on the supply side across the industry have led to
price stabilization recently, but demand visibility is low. The solar market is
diversifying geographically and I am convinced that the improved competitiveness
of solar will continue to create attractive opportunities for REC going forward.
", says Ole Enger CEO.
For more information, please see the attached fourth quarter 2012 report and
presentation. A spreadsheet with detailed financial information can be found on
the investor section of www.recgroup.com.
On the release day, President and CEO Ole Enger of REC will give a presentation
together with other members of the management team. The presentation will take
place at 08:00 hrs Norwegian time/CET at Shippingklubben, Haakon VII's gt. 1,
Vika, Oslo (www.shippingklubben.no).
The presentation, held in English, will be broadcasted live over the internet,
and can be accessed from: www.recgroup.com.
It will also be possible to listen to the presentation through a conference
call. Please make sure to dial in 10 minutes prior to scheduled start time on
one of the following numbers:
Confirmation code: 9342165
Norway Toll Free: 800 56Â 053
UK Toll Free: 0800 279 4841
USA Toll Free:Â 1877 249 9037
International Toll: +44 (0)20 3364 5381
REC will further host an analyst conference call with possibilities for
questions and answers later the same day at 15:00 CET. Please make sure to dial
in at least 5 minutes ahead of time to finalize your registration:
International dial in: +47 2318 4540, please state your name and company.
Immediately after the call, a replay of the conference call will be made
available. To access, please dial +47 2318 4502 and use the following procedure:
1. Type pincode 1524 followed by # (pound-sign)
2. Continue by typing reference number 524 followed by # (pound-sign)
For further information, please contact
SVPÂ Investor RelationsÂ &Â Business Development,
Telephone: +47Â 976 99Â 144
REC is a leading global provider of solar electricity solutions. With nearly two
decades of expertise, we offer sustainable, high-performing products, services
and investment opportunities for the solar and electronics industries. Together
with our partners, we create value by providing solutions that better meet the
world's growing electricity needs. Our 2,300 employees worldwide generated
revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD
1.3 billion. To see more of what REC can offer, visit www.recgroup.com.
ThisÂ information is subject of the disclosure requirements acc. to Â§5-12 vphl
(Norwegian Securities Trading Act)
REC Q4 presentation:
REC Q4 report:
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(i) the releases contained herein are protected by copyright and
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originality of the information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE