REC Silicon - Fourth quarter 2023 results

Oslo, Norway – February 7, 2024: REC Silicon ASA (REC Silicon or Company) reported fourth quarter 2023 revenues of USD 40.5 million compared to USD 34.8 million in the third quarter of 2023. The Company also reported an EBITDA loss of USD 31.2 million compared to an EBITDA loss of USD 17.8 million in the prior quarter.
 
The Company reported EBITDA contributed by the semiconductor materials segment of USD 1.1 million for the fourth quarter compared to USD 6.1 million for the third quarter. The lower EBITDA contribution is primarily due to a one-time employee retention tax credit that was realized in the third quarter, increased employee costs, and an inventory write down in the fourth quarter.
 
Silicon gas sales volumes for the fourth quarter were 832 MT compared to 754 MT during the prior quarter. Total polysilicon sales volumes for the fourth quarter were 182 MT.
 
REC Silicon reported cash balances of USD 170.9 million on December 31, 2023, compared to USD 121.7 million on September 30, 2023. The increase in cash was primarily a result of cash inflows from the sale proceeds of the Company’s shares in its Yulin JV.
 
“The fourth quarter of 2023 was impactful for the company in two positive and material ways. First, production commenced at the Moses Lake facility. Second, the company closed on the sale of its interest in the Yulin JV for over $136 million which has strengthened the company’s financial position, increased our focus and provided the flexibility to take advantage of future opportunities as they arise. Both of these key events were achieved in the manner that we previously disclosed to the market and our other stakeholders. The financial results for the quarter were weak, however, the company continues to work towards our first shipments of our high purity granular polysilicon from Moses Lake and completing the projects in Butte that give us capacity leverage and places us in a position to capture increased silicon gas opportunities that come with the anticipated improvement in the semiconductor market, the advancement of volume production of silicon anode materials and eventually IRA driven Solar PV Cell production” said Kurt Levens, CEO. 
 
For more information, please see the attached fourth quarter 2023 report and presentation.

A presentation of the results will be held in person at 8:00 a.m. CET at Stortingsgata Kurs og Konferanse (Høyres Hus), Stortingsgata 20, Oslo, Norway.

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

A live webcast of the presentation can be accessed at www.recsilicon.com or with the following link:
https://channel.royalcast.com/landingpage/hegnarmedia/20240208_10/

Webcast participants need to register to post questions.