REC's second quarter 2013 results

Sandvika, July 18, 2013: Renewable Energy Corporation ASA (REC) reported second quarter 2013 revenues of NOK 1,544 million and EBITDA of NOK 152 million. EBIT was negative NOK 58 million. Nominal net debt improved by NOK 0.3 billion to NOK 2.2 billion.
REC Silicon reported second quarter revenues of NOK 498 million and EBITDA of NOK 106 million. Polysilicon production was stable with unchanged production volumes compared to the previous quarter, solar grade yield at 91 percent and FBR cash cost down to 12.5 USD/kg. Solar grade polysilicon sales volume was reduced by 30 percent compared to the previous quarter. REC built some inventory to better serve its Asian customers and based on anticipated increase in selling prices. Selling prices were up 19 percent compared to the previous quarter reflecting increased prices for solar grade polysilicon and higher share of sales of electronic grade polysilicon. Silane gas overcapacity continues to put pressure on prices and volumes.
REC Solar reported second quarter revenues of NOK 1,070 million and EBITDA of NOK 75 million. Production of solar panel increased reflecting low production in the first quarter. Solar panel shipments and selling prices increased 24 percent and six percent respectively compared to the previous quarter. REC experienced improved demand for solar panels in the second quarter 2013 compared to the previous quarter. The slowdown observed in the largest solar markets in Europe is being offset by growth in other markets, in particular in Asia.
Overall, REC's second quarter revenues were up 21 percent from the previous quarter, while the NOK 152 million EBITDA was an improvement from NOK 46 million in the previous quarter. In the previous quarter other income of NOK 115 million from termination and settlement of parts of a silane gas contract was recognized. The improved adjusted EBITDA mainly reflects higher shipments and prices in REC Solar and reduced FBR cash cost, higher sales of electronic grade polysilicon relative to solar grade polysilicon and reversal of expenses recognized in the first quarter in REC Silicon.
Financial items was negative NOK 609 million, mainly reflecting a significant increase in the fair value of the 2014 convertible bond that was partially re-financed in the second quarter.
Loss after tax was NOK 447 million in the second quarter, compared to a loss of NOK 209 million in the previous quarter. Basic EPS from total operations was negative NOK 0.20 in the second quarter 2013, compared to negative NOK 0.10 in the previous quarter.  
For more information, please see the attached second quarter 2013 report. A spreadsheet with detailed financial information can be found on the investor section of www.recgroup.com.
Morning program:
Today, 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 Høyres Hus, Stortingsgaten 20, 0161 Oslo (www.hoyreshus.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:
Norway Toll Free: 800 56 053
UK Toll Free: 0800 279 4992
USA Toll Free: 1877 280 2342
International Toll: +44 (0)20 3427 1900

Confirmation code: 1696656
Afternoon program:
REC will further host an analyst conference call with possibilities for questions and answers today at 14:00 CET. Please make sure to dial in at least 5 minutes ahead of time to finalize your registration.
International dial in: +47 2318 4540. Please state your name and company.

Immediately after the call, a replay of the conference call will be made available.
To access, please dial +47 2318 4502 and use the following procedure:
1.         Type pincode 1524 followed by # (pound-sign)
2.         Continue by typing reference number 524 followed by # (pound-sign)

For further information, please contact:

Kjell Christian Bjørnsen
EVP & CFO, REC
Telephone: + 47 917 02 097
Email: kjell.bjornsen@recgroup.com

Mikkel Tørud,
SVP Investor Relations & Business Development, REC
Telephone: +47 976 99 144
Email: mikkel.torud@recgroup.com
About REC
REC is a leading global provider of solar electricity solutions. With nearly two decades of expertise, we offer sustainable, high-performing products, services and investment opportunities for the solar and electronics industries. Together with our partners, we create value by providing solutions that better meet the world's growing electricity needs. Our 2,300 employees worldwide generated revenues of more than NOK 7 billion in 2012, approximately EUR 1 billion or USD 1.3 billion.
To see more of what REC can offer, visit www.recgroup.com.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
REC Q2 2013 report
Attachments:
REC Q2 2013 report