(CORR) REC Silicon – Fourth quarter 2022 results

Moses Lake, Washington USA – February 23, 2023: REC Silicon ASA (REC Silicon) reported fourth quarter 2022 revenues of USD 31.6 million compared to USD 36.7 million in the third quarter of 2022. The Company also reported an EBITDA loss of USD 23.6 million compared to an EBITDA loss of USD 13.8 million in the prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment of a loss of USD 6.5 million for the fourth quarter compared to a loss of USD 5.3 million for the third quarter. The decrease in EBITDA is due primarily to the continuation of record high energy costs and associated decrease in polysilicon production combined with lower shipments of Silicon Gases.

Silicon gas sales volumes for the third quarter were 515 MT compared to 586 MT during the prior quarter. Total polysilicon sales volumes for the quarter were 302 MT and polysilicon inventories decreased by 49 MT.
REC Silicon reported cash balances of USD 105.3 million on December 31, 2022, compared to USD 146.8 million on September 30, 2022. The decrease in cash was primarily a result of operating cash outflows of USD 22.2 million and investing cash outflows of USD 22.7 million.

“The financial results for Q4 2022 highlighted some key areas where we need to accelerate our progress in inflationary input cost mitigation, however the market related weakness in Silicon Gas shipments does not dampen the longer term outlook and opportunity related to the Semiconductor, Renewable Energy and Energy Storage macro trends. We continue to put in place the necessary high-quality investments so we can fully participate in the recovery once it develops and in Moses Lake, we have completed additional key steps towards re-starting our High Purity Granular Polysilicon capacity and securing our cash flows. We are still on schedule to start the plant later this year.” says Kurt Levens, CEO of REC Silicon.

For more information, please see the attached fourth quarter 2022 report and presentation.

The company will host conference call to present the results at 8:00am CET.

Following the presentation, it will be opened for questions from the audience. The presentation and the following Q&A session will be in English.

To join the videoconference, use the following link.
https://channel.royalcast.com/landingpage/hegnarmedia/20230223_1/

Audiocast participants need to register to post questions.