REC ASA - 2nd quarter 2009

Oslo, August 11, 2009: Renewable Energy Corporation ASA (REC) reported revenue of NOK 2,308 million in the second quarter 2009, an increase of 9 percent from NOK 2,121 million in the second quarter 2008. For the first six months of 2009, revenue increased by 11 percent to NOK 4,321 million.
 
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 218 million in the second quarter 2009.
 
The significant decline in EBITDA mainly relates to; (i) weaker market demand and reduced capacity utilization in REC Solar and REC Wafer, (ii) expansion cost and negative contribution from the ramp-up of new plants of NOK 198 million, (iii) a provision in REC Solar of approximately NOK 308 million for repairs of malfunctioning junction boxes, and (iv) loss on sales and write-down of cell and module inventories of NOK 107 million.
 
When adjusting for junction box, expansion/ramp-up cost and inventory write-downs (total of NOK 613 million), the underlying EBITDA margin was 36 percent.
 
The operating profit (EBIT) was NOK -97 million in the second quarter, compared to NOK 716 million in the same quarter in 2008.
 
REC reported net financial items of NOK -624 million in the second quarter, including net loss on derivatives of NOK 499 million. In the same quarter last year, net financial items were a negative NOK 8 million, including net losses on derivatives of NOK 28 million. Net financial items for the first six months 2009 were NOK -326 million, compared to NOK -259 million in 2008. 
 
Including these effects, loss before tax was NOK 721 million in the second quarter 2009, compared to a profit before tax of NOK 708 million in the second quarter 2008. Loss before tax for the first six months in 2009 was NOK 121 million compared to NOK 1,036 million in 2009.
 
Earnings per share for the quarter was negative NOK 1.38, compared to positive NOK 1.00 in the second quarter 2008 and positive NOK 0.80 in the first quarter 2009. The earnings per share is calculated on the base of the average number of shares of 494.3 million in the second quarter 2009.
 
For more information, please see the attachments on www.newsweb.no
 

Morning program:
REC will release its second quarter results for 2009 on Tuesday August 11, 2009 just after 07:00 AM CET.
 
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 the conference centre Oslo Konserthus, Munkedamsveien 14, 0250 Oslo (www.oslokonserthus.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 use one of the following numbers (conference ID, 9458710):
 
Norway free call: 800 19 641
UK free call: 0800 032 3808
USA free call: 1866 602 0258
International dial in: +44 (0)20 7138 0844
 
Afternoon program:
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 inn at least 5 minutes ahead of time to finalize your registration:
 
Norway free call: 800 80 119
International dial in: +47 23 00 04 00
 
Immediately after the call, a replay of the conference call will be made available. To access, please dial +47 67 89 40 91 and use the following procedure:
  1. Type account number 1524 followed by # (pound-sign) and press 1
  2. Continue by typing the conference number: 524 followed by # (pound-sign) and press 1 to play
 
For more information, please contact:
Jon André Løkke, SVP and Investor Relations Officer, Tel: +47 907 44 949
 
About REC
REC is the leading vertically integrated player in the solar energy industry. REC Silicon and REC Wafer are among the world's largest producers of polysilicon and wafers for solar applications. REC Solar is a rapidly growing manufacturer of solar cells and modules, and are also engaging in project development activities in selected segments of the PV market. REC had revenues of NOK 8 191 million and an operating profit of NOK 2 529 million in 2008. Close to 3 000 employees work in REC's worldwide organization. Please also see www.recgroup.com.
Q2 2009 results
Attachments:
Q2 2009 results