Sandvika, October 27, 2010: Renewable Energy Corporation ASA (REC) reported revenues of NOK 3,783 million in the third quarter 2010, an increase of 37 percent from the second quarter 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 827 million in the third quarter, up from NOK 455 million in the second quarter. The EBITDA margin increased to 22 percent from 16 percent in the previous quarter.
Adjusted for restructuring costs related to the close down of the module plant in Glava preliminary estimated to NOK 93 million and reversal of NOK 37 million of the provision for junction box repair, the underlying third quarter EBITDA was NOK 882 million.
REC saw continued strong demand across all product areas in the third quarter, however there were only minor changes to the average selling prices compared to the previous quarter.
Operational results in the third quarter were positively affected by higher sales volumes and continued ramp-up of the new Singapore production facility.
Furthermore EBITDA was in third quarter negatively affected by the power outage in REC Silicon with an estimated negative EBITDA impact of NOK 50 million.
Operating profit (EBIT) was NOK 155 million in the third quarter, compared to a negative NOK 146 million in the previous quarter.
Net financial items was negatively impacted by changes in currency rates and fair value adjustments of convertible bond and amounted to a negative NOK 1,158 million in the third quarter compared to positive NOK 1,012 million in the second quarter.
Profit before tax was thus a negative NOK 1,003 million in the third quarter, compared to NOK 866 million in the second quarter.
Basic EPS from continuing operations was a negative NOK 0.90 for the third quarter, compared to NOK 0.65 in the second quarter.
For more information, please see the attached documents.
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 make sure to dial in 10 minutes prior to scheduled start time on one of the following numbers:
Conference code: 2084065
Norway Toll Free: 800 19 640
UK Toll Free: 0800 028 1243
USA Toll Free: 1888 935 4575
International dial in: +44 (0)20 7806 1953
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:
Norway free call: 800 80 119
International dial in: +47 2318 4501
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:
Mikkel Tørud, VP and Investor Relations Officer, Tel: +47 976 99 144
REC is a leading vertically integrated player in the solar energy industry. REC is among the world's largest producers of polysilicon and wafers for solar applications, and a rapidly growing manufacturer of solar cells and modules. REC is also engaged in project development activities in selected PV segments. Founded in Norway, REC is an international solar company, employing more than 4,100 people worldwide. REC had revenues in excess of NOK 9 billion in 2009. Please visit www.recgroup.com to learn more about REC.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
REC Q3 2010 report
REC Q3 2010 report