REC Silicon - Second quarter 2024 results
Oslo, Norway – August 8, 2024: REC Silicon ASA (REC Silicon or Company) reported second-quarter 2024 revenues of USD 37.7 million compared to USD 42.1 million in the first quarter of 2024. The Company also reported an EBITDA loss of USD 38.2 million compared to an EBITDA loss of USD 31.5 million in the prior quarter.
The Company reported EBITDA contributed by the semiconductor materials segment of USD 7.0 million for the second quarter compared to USD 2.8 million for the first quarter of 2024. The higher EBITDA contribution was positively affected by an increase in the silicon gas sales price. However, the second quarter of 2024 was also impacted by lower sales volumes of both silicon gas and polysilicon, related to weakness in PV solar manufacturing and semiconductor wafer inventories.
Silicon gas sales volumes for the second quarter were 654 MT compared to 850 MT during Q1 2024. Total polysilicon sales volumes for the second quarter were 187 MT.
REC Silicon reported cash balances of USD 37.6 million on June 30, 2024, compared to USD 101.1 million on March 31, 2024. The decrease in cash was primarily a result of cash outflows from restarting activities at the Moses Lake facility.
“We are methodically working towards resolving the downstream issue related to impurity addition to our granular in Moses Lake. Our cross-functional team of experts continues the implementation of improvements in a prioritized fashion with a focus on the most expedient resolutions. As stated before, it is not a question of whether this one issue can be resolved, but rather when it will be resolved. The first shipment of granular in mid-September is still our target and primary focus. In Butte, we have stopped commercial production of our electronic-grade polysilicon aligned with our communicated exit plan to focus on silicon gases and increasing profitability. Our capex spending level will decrease significantly in the coming quarters. For PV, significant Chinese overcapacity and trade actions have created a challenging environment for at least the next several quarters, affecting silane and polysilicon demand in this segment. However, our long-term granular offtake contract, silicon gases product mix, and semiconductor business will provide some measure of stability to the Company overall. Potential supply to silicon anode material producers continues to represent an opportunity for us and we remain in constructive dialogue with several potential partners. Our focus and main priority is to make our first shipment of high purity granular polysilicon and fulfill our contractual commitment to our offtake partner”, said Kurt Levens, CEO.
For more information, please see the attached second-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.