REC Silicon - Third quarter 2022 results

Moses Lake, Washington USA – November 16, 2022: REC Silicon ASA (REC Silicon) reported third quarter 2022 revenues of USD 36.7 million compared to USD 45.0 million in the second quarter of 2022. The Company also reported an EBITDA loss of USD 13.8 million compared to an EBITDA loss of USD 1.1 million in the prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment of a loss of USD 5.3 million for the third quarter compared to USD 7.5 million for the second quarter. The decrease in EBITDA is due primarily to record high energy costs, a large, planned maintenance shutdown, and weaker Flat Panel production effecting silane shipments, compared to the second quarter of 2022.

Silicon gas sales volumes for the third quarter were 586 MT compared to 852 MT during the prior quarter. Total polysilicon sales volumes for the quarter were 389 MT and polysilicon inventories decreased by 27 MT.
REC Silicon reported cash balances of USD 146.8 million on September 30, 2022, compared to USD 173.0 million on June 30, 2022. The decrease in cash was primarily a result of operating cash outflows of USD 7.4 million and capital expenditures of USD 14.6 million.

“Although the earnings for this quarter are disappointing due to reduced gas shipments, record high energy costs, and a complex non-recurring planned production shut down, the long-term megatrends remain in place for REC Silicon to be in a strong position for long term success with the correct product mix, locations and accessible production capacity. The Energy Transformation, Digital Revolution and Supply Chain security trends continue to balance in favor of our capabilities. Re-shoring of Advanced Semiconductor fabrication is on-going, plans and details for re-shoring of the PV Value chain are emerging, Silicon anode material providers are moving closer to actualizing on the opportunity. Restart activities at our Moses Lake facility continue on-schedule and we continue to work through all of the relevant details.” Said Kurt Levens, CEO.

For more information, please see the attached third 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/20221116_4/

Audiocast participants need to register to post questions.