REC ASA - 2nd quarter 2006: Continued strong organic growth

Oslo, August 4, 2006: Renewable Energy Corporation ASA (REC) reported revenues of NOK 1,003 million in the second quarter 2006, an increase of 111 percent from the NOK 474 million reported in the second quarter 2005. Adjusting for acquisitions, this represents organic growth of approximately 30 percent.
 
Earnings before interest, taxes, depreciation and amortization (EBITDA) was NOK 387 million in the second quarter 2006, compared with NOK 131 million in the second quarter 2005. The EBITDA margin was 39 percent, compared with 28 percent in the same quarter last year. The operating profit (EBIT) was NOK 303 million in the second quarter 2006, compared with NOK 88 million in the second quarter 2005. The EBIT margin was 30 percent, compared with 19 percent in the same quarter last year.
 
Profit before tax was NOK 270 million in the second quarter 2006, compared with a loss before tax of NOK 73 million in the same quarter 2005. The quarterly results were negatively affected by NOK 5 million, reflecting changes in fair value assessment and foreign exchange of convertible loans. In the same period in 2005, the corresponding effect was a negative NOK 172 million.
 
The reported net profit after tax was NOK 157 million in the second quarter 2006, compared with a net loss of NOK 61 million in the second quarter 2005. 
 
The year-on-year growth in revenues can partially be explained by the acquisition of REC Advanced Silicon Metals (ASiMI) in August 2005, and the acquisition of the ingot producer REC SiTech AS in July 2005. In August 2005, REC also increased its stake shareholding in REC Solar Grade Silicon LLC (SGS) to 100 percent from 70 percent. Excluding the acquisitions, overall revenues increased by approximately 30 percent.
 
Q2 2006 report (PDF)Q2 2006 presentation (PDF)
Attachments:
Q2 2006 report (PDF)
Q2 2006 presentation (PDF)