REC Expects Polysilicon, Solar Wafer Prices to Drop 5% in First Quarter
Renewable Energy Corp. ASA, a Norwegian maker of solar energy components, expects polysilicon, wafer and module prices to drop in the first quarter while plant maintenance will reduce polysilicon production.
“REC’s average selling prices for polysilicon, wafers and modules are expected to decline approximately 5 percent from the fourth quarter 2010 to the first quarter 2011,” the Oslo-based company said today in an e-mailed statement.
REC has struggled amid increased competition from China and cuts in state support for solar energy in Germany and Spain.
Scheduled maintenance at its Silicon III and Silicon IV silane gas facilities will reduce polysilicon production volumes in the first quarter from the previous quarter, REC said. Siemens rods and granular production is estimated at 4,000 metric tons in the first quarter.
Stronger-than-expected demand helped the company boost its fourth-quarter profit to 783 million kroner ($136 million) from a year earlier loss of 1.05 billion kroner. The profit beat the 574.4 million-krone average of 12 analysts. REC said last week that its results would be “significantly” above market consensus.
Multi and Mono wafer production will be about 350 megawatts in the first quarter and 1,650 megawatts in 2011, while module production will be about 170 megawatts in the first quarter, including contract manufacturing and 750 megawatts this year.
Revenue rose to 4.87 billion in the quarter from 2.55 billion kroner in the same period last year, while earnings before interest, taxes, depreciation and amortization rose to 1.84 billion kroner from 595 million kroner.
To contact the reporter on this story: Josiane Kremer in Oslo at jkremer4@bloomberg.net
To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net
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