Rec Silicon announces stable profits in Q4 2014
Fornebu, Norway -REC Silicon ASA reported fourth quarter 2014 revenues of USD 126.2 million compared to USD 126.5 million in the third quarter.
EBITDA for the fourth quarter was USD 38.0 million. Third quarter EBITDA included the recognition of USD 101 million associated with the transfer of technology to the Yulin JV. The underlying comparable EBITDA decreased by approximately 17 percent compared to the prior quarter, primarily due to lower polysilicon prices.
The polysilicon and silane gas loading expansion projects at Moses Lake and Butte are proceeding according to schedule. Building permits have been obtained and construction activity has commenced. The Yulin Joint Venture is also progressing according to plan. The contract on detailed engineering has been awarded and the work has commenced. REC Silicon made the first capital contribution of USD 75 million to the JV in October 2014.
"Continued focus on efficient and stable operations resulted in record high production volumes and secured REC Silicon's competitive cost position. Although challenging market dynamics and the uncertainty created by the US/China trade dispute led to pressure on solar grade polysilicon prices during the quarter, REC Silicon's financials remain strong," commented Tore Torvund, CEO of REC Silicon.
Net financial items resulted in income of USD 112.8 million, mainly reflecting net currency gains, and fair value adjustment of convertible bonds offset by interest expense.
Profit from continuing operations was USD 119.0 million in the fourth quarter, compared to USD 119.5 million in the previous quarter.
Basic and diluted EPS from total operations was USD 0.05 in the fourth quarter 2014, unchanged from the previous quarter.
Source: IWR Online, 13 Feb 2015
