REC Silicon - First quarter 2024 results

Oslo, Norway – May 10, 2024: REC Silicon ASA (REC Silicon or Company) reported first-quarter 2024 revenues of USD 42.1 million compared to USD 40.5 million in the fourth quarter of 2023. The Company also reported an EBITDA loss of USD 31.5 million compared to an EBITDA loss of USD 31.2 million in the prior quarter.
 
The Company reported EBITDA contributed by the semiconductor materials segment of USD 2.8 million for the first quarter compared to USD 1.1 million for the fourth quarter of the prior year. The higher EBITDA contribution was positively affected by increased silicon gas volumes, higher silicon gas and polysilicon sales and lack of the one-time costs that existed in the fourth quarter of 2023. However, seasonally high electricity prices, inventory adjustments and product delivery pushouts dampened the results. 
 
Silicon gas sales volumes for the first quarter were 850 MT compared to 832 MT during the prior quarter. Total polysilicon sales volumes for the first quarter were 181 MT.
 
REC Silicon reported cash balances of USD 101.1 million on March 31, 2024, compared to USD 170.9 million on December 31, 2023. The decrease in cash was primarily a result of cash outflows from restarting activities at the Moses Lake facility.
 
“We made a lot of progress in Q1 2024 and had some challenges. The Moses Lake facility has demonstrated successful achievement of most of the key purity targets, we continued to bring on reactor and product handling capacity and silane has been running stably. We were disappointed that we did not reach our targeted first delivery date and remain absolutely focused on this key milestone for our company, our shareholders, our customer and the re-shoring of the manufacturing value chain to the USA. Our transition process in Butte is still on track and Semiconductor silicon gas segments volumes are starting to recover as we see spot volumes associated with Chinese markets exhibit price and demand volatility. Discussions with silicon anode materials producers continue and some are expected to reach a resolution this year. We will continue to have challenges as our company transitions this year and we will continue to anticipate, adapt and resolve as they manifest. As I have said before, we have the right products, in the right place, at the right time. We are poised for success as we move through this period”, said Kurt Levens, CEO.
 
For more information, please see the attached first-quarter 2024 report and presentation.

The company will host a digital presentation of the results today at 8:00 a.m. CEST. The presentation can be accessed at www.recsilicon.com or with the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20240510_2/

Following the presentation, it will be opened for questions from the audience. Webcast participants need to register to post questions.

The presentation and the following Q&A session will be in English.