REC ASA - Operational disruptions negatively affect Q3 financials
Høvik, October 16, 2006. REC has in the month of September experienced unusual operational disruptions in REC Silicon and REC Wafer which will have a negative impact on the financials for third quarter 2007.
REC Silicon experienced power outage in both the Moses Lake and Butte plants. This has negatively impacted the September production of both silane gas and polysilicon, and the negative effect on EBITDA in the third quarter of 2007 is expected to be above 30 MNOK. The October production has also been affected and the full year production volumes have consequently been reduced from 6.000 towards 5.700 metric tons. The main portion of the operational challenges have now been identified and corrected.
In REC Wafer, the tight polysilicon supply situation has motivated a higher use of internal recycled material. This change has, especially during September, created a number of operational challenges, and the negative effect on EBITDA in the third quarter of 2007 will amount to more than NOK 40 million. This change in production practice has now been adjusted and immediate improvements have been seen. REC Wafer's 2007 production targets stand firm.
REC will release its third quarter results for 2007 on Friday October 26, 2007 at 08:00 AM CET. Please view www.recgroup.com
for more details.
REC is uniquely positioned in the solar energy industry as the only company with a presence across the entire value chain. REC Silicon and REC Wafer are the world's largest producers of polysilicon and wafers for solar applications. REC Solar produces solar cells and solar modules. REC Group had revenues in 2006 of NOK 4,334 million and an operating profit of NOK 1,574 million. Please also see www.recgroup.com