First quarter 2011

Sandvika, May 4, 2011: Renewable Energy Corporation ASA (REC) reported first quarter 2011 revenues of NOK 4.1 billion, EBITDA of NOK 1.4 billion and EBIT of NOK 0.8 billion. Net debt was reduced by NOK 0.6 billion in the quarter to NOK 7.4 billion.

The positive trend in demand in the solar market continued in the beginning of 2011. However, seasonal effects and uncertainties relating to the subsidy scheme in Italy led to reduced growth in demand and price pressure towards the end of the first quarter.

Revenues were down 16 percent from a strong fourth quarter 2010, mainly explained by reduced sales volumes of all products. Average selling prices for polysilicon were fairly stable, while average selling prices for wafers and modules were down four percent compared to the previous quarter.

EBITDA was NOK 1,449 million in the first quarter. Excluding special items, EBITDA amounted to NOK 1,402 million, down from NOK 1,503 million in the previous quarter. The correspondingly adjusted EBITDA margin improved three percentage points to 34 percent, reflecting operational improvements which more than offset reduced average selling prices.

EBIT was NOK 772 million in the first quarter, compared to NOK 1,134 million in the previous quarter.

Interest expenses were reduced compared to the previous quarter. However, accounting effects of convertible bond at fair value, currency adjustment of embedded derivatives and internal loans contributed to negative net financials of NOK 856 million.

Negative net financial items contributed to a loss before tax of NOK 84 million in the first quarter, compared to a profit before tax of NOK 1,226 million in the previous quarter.

Basic EPS from continuing operations was NOK -0.11 in the first quarter, compared to NOK 0.78 in the previous quarter.

For more information, please see the attached first quarter 2011 report and spreadsheet with detailed financial information.


Morning program:

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 H�yres Hus, Stortingsgaten 20, 0161 Oslo (

The presentation, held in English, will be broadcasted live over the Internet, and can be accessed from:

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: 3934043

Norway Toll Free: 800 19 640
UK Toll Free: 0800 028 1243
USA Toll Free:  1888 935 4575
International Toll: +44 (0)20 7806 1953

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 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 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 more information, please contact:

Mikkel T�rud, VP and Investor Relations Officer, Tel: +47 976 99 144
Peder Poulsson, Investor Relations analyst, Tel: +47 950 26 311

About REC
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 3,900 people worldwide. REC had revenues close to NOK 14 billion in 2010.  Please visit to learn more about REC.


This information is subject of the disclosure requirements acc. to �5-12 vphl (Norwegian Securities Trading Act)
REC Q1 2011 report
REC Q1 2011 report