Sandvika, February 9, 2011: Renewable Energy Corporation ASA (REC) reported revenues of NOK 4,874 million in the fourth quarter 2010, an increase of 29 percent from the third quarter 2010. Revenue for the full year 2010 amounted to NOK 13,776 million, an increase of 56 percent from 2009.
The revenue increase compared with the third quarter 2010 is explained by growth in polysilicon, wafer and module sales and sale of accumulated off-spec. products. Fourth quarter average selling prices for polysilicon were up nine percent, for wafers up four percent, and for modules down three percent compared to the previous quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 1,836 million in the fourth quarter, up from NOK 827 million in the third quarter. The EBITDA margin increased to 38 percent from 22 percent in the previous quarter.
The EBITDA result includes NOK 332 million in special items, mainly related to a cancellation fee received for a wafer sales contract.
In addition, the results were positively affected by a stronger than expected market and improved operational performance in REC Silicon. The strong market enabled sales of accumulated off-spec. products and sales of extra polysilicon volumes at attractive prices in the spot market. Higher than expected FBR production and product quality in REC Silicon was due to fewer than normal maintenance close-downs and more stable operations.
For the full year 2010, EBITDA amounted to NOK 3,532 million, up from NOK 1,803 million in 2009, and the EBITDA margin increased to 26 percent from 20 percent in 2009.
Operating profit (EBIT) was NOK 1,134 million in the fourth quarter, compared to NOK 155 million in the third quarter 2010. EBIT for the full year 2010 was NOK 1,018 million, compared to a negative NOK 829 million in 2009.
Net financial items amounted to NOK 92 million in the fourth quarter compared to a negative NOK 1,158 million in the third quarter. The negative result in the third quarter was affected by changes in currency rates and fair value adjustments of the convertible bond. For the full year 2010, net financial items amounted to NOK 801 million, up from a negative NOK 472 million.
Profit before tax was thus NOK 1,226 million in the fourth quarter, compared to a negative NOK 1,003 million in the third quarter. For the full year 2010, REC has a profit before tax of NOK 1,818 million, compared to a loss before tax of NOK 1,301 million in 2009.
Basic EPS from continuing operations was NOK 0.79 in the fourth quarter, compared to a negative NOK 0.90 in the third quarter. For the full year 2010, basic EPS from continuing operations was NOK 0.96, compared to a negative NOK 1.63 in 2009.
For more information, please see the attached fourth quarter report and spreadsheet with detailed financial information.
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: 3854710
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 1951
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 23 18 45 02 and use the following procedure:
1. Type pincode number 1524 followed by # (pound-sign)
2. Continue by typing the conference number 524 followed by # (pound-sign)
For more information, please contact:
Mikkel Tørud, VP and Investor Relations Officer, Tel: +47 976 99 144
Peder Poulsson, Investor Relations analyst, Tel: +47 950 26 311
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 4,200 people worldwide. REC had revenues close to NOK 14 billion in 2010. 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 Q4 2010 report
REC Q4 2010 report