Renewable Energy Corporation ASA : REC's fourth quarter and year 2012 results
Sandvika, February 8, 2013: Renewable Energy Corporation ASA (REC) reported
fourth quarter 2012 revenues from continuing operations of NOK 1,687 million
and negative EBITDA of NOK 34 million. EBIT was negative NOK 2,178 after NOK
1.8 billion impairment on fixed assets related to the REC Silicon operations
in the USA. Net debt remained unchanged at NOK 1.8 billion from the previous
Solar demand improved somewhat in the fourth quarter 2012 compared to the weak
third quarter. However, the slowdown observed in the largest solar markets in
Europe were only partly offset by growth in other markets, like the US, China
and Japan. Continued excessive global production capacity and inventory
clearance led to significant downward pressure on selling prices, in
particular for polysilicon. The low prices continue to put severe pressure on
margins for all solar component suppliers and production capacities continue
to be reduced.
REC's fourth quarter revenues from continuing operations were up 12 percent
from the previous quarter, while the negative NOK 34 million EBITDA was an
improvement from negative NOK 184 million in the previous quarter. The main
reasons for the improved EBITDA are increased sales volumes, cost reductions
and NOK 80 million of net positive items in REC Silicon, partly offset by
continued price declines. Compared to the previous quarter, REC's average
selling prices for polysilicon were down 14 percent, while solar panel prices
were down 11 percent.
For the year 2012 revenues from continuing operations amounted to NOK 7,145
million, down 25 percent from 2011. EBITDA in 2012 amounted to NOK 360
million, down from NOK 2,043 million in 2011. The decrease is explained by
sharp price declines for all products, only partly offset by cost reductions
and increased sales volumes. Price declines also led to increased inventory
EBIT before impairment charges was negative NOK 315 million in the fourth
quarter, compared to negative NOK 466 million in the previous quarter. The
weak market conditions led to impairment charges of NOK 1.8 billion on fixed
assets in REC Silicon in the fourth quarter.
After impairments of about NOK 5.4 billion in 2012, EBIT from continuing
operations for the year was negative NOK 6,426 million down from negative NOK
4,108 million in 2011.
Loss after tax from continuing operations was NOK 1,455 million, compared to a
loss of NOK 452 million in the previous quarter. For the year 2012, REC had a
loss after tax from continuing operations of NOK 5,908 million, compared to a
loss of NOK 4,295 million in 2011.
Basic EPS from total operations was negative NOK 0.69 in the fourth quarter
2012 and negative NOK 3.23 for the year.
"REC continued to focus on operational improvements and capital discipline in
the fourth quarter. Cut backs on the supply side across the industry have led
to price stabilization recently, but demand visibility is low. The solar
market is diversifying geographically and I am convinced that the improved
competitiveness of solar will continue to create attractive opportunities for
REC going forward. ", says Ole Enger CEO.
For more information, please see the attached fourth quarter 2012 report and
presentation. A spreadsheet with detailed financial information can be found
on the investor section of www.recgroup.com.
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
Shippingklubben, Haakon VII's gt. 1, Vika, Oslo (www.shippingklubben.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:
Confirmation code: 9342165
Norway Toll Free: 800 56053
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 3364 5381
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:
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
1.Type pincode 1524 followed by # (pound-sign)
2.Continue by typing reference number 524 followed by # (pound-sign)
For further information, please contact
SVPInvestor Relations&Business Development,
Telephone: +47976 99144
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.
Thisinformation is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
REC Q4 presentation
REC Q4 report
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.