REC turns profitable as PV module plant at full capacity

REC reported second quarter 2013 revenue of NOK 1,544 million (US$ 257.3 million), a 21% increase over the prior quarter.rec_2q13_financial_chart-600x0

The company posted a positive EBITDA of NOK 152 million (US$25.3 million) in the quarter, marking a return to an operating profitability. However, EBIT was negative NOK 58 million (US$ 9.6 million). EBITDA margin was 10%.

Aside from Renewable Energy Corporation’s (REC) announced split of its polysilicon and module manufacturing operations, the company also posted a positive EBITDA due to rising ASPs and running its Singapore-based PV module plant at full capacity.

REC reported second quarter 2013 revenue of NOK 1,544 million (US$ 257.3 million), a 21% increase over the prior quarter.

The company posted a positive EBITDA of NOK 152 million (US$25.3 million) in the quarter, marking a return to an operating profitability. However, EBIT was negative NOK 58 million (US$ 9.6 million). EBITDA margin was 10%.

The company said it benefited from rising module ASP’s (up 6%) due to the affect of EU anti-dumping duties as well as shipping modules to the booming Japanese market where premium brands retain higher prices.

REC also benefited from a reduction in the polysilicon production cash cost of its FBR technology declining to US12.5/kg. However, solar grade polysilicon sales volume was down 30% compared to the previous quarter.

REC noted that it had built some inventory in the quarter to meet demand in Asia in the second-half of the year that would also benefit from higher selling prices on the spot market. Polysilicon prices actually increased 19% quarter-on-quarter, according to the company.

REC Silicon reported second quarter revenues of NOK 498 million and EBITDA of NOK 106 million and margins of 21%. Polysilicon production in the second quarter was 4,913MT, which included 4,471MT of solar and electronic grade material. Capital expenditure for REC Silicon would be below NOK 150 million in 2013.

PV module production at REC Solar essentially reached quarterly run-rate capacity of 199MW (200MW nameplate capacity) in the second quarter. Management noted that the Singapore plant was at full capacity in the third quarter of 2013.

Module production increased 17% from the prior quarter which included lower production due to Chinese New Year. However, due to the first quarter production halts, management noted that total annual production is expected to be 775MW, down from 800MW. Full-utilization is therefore expected for the rest of the year.

REC Solar reported second quarter revenues of NOK 1,070 million and EBITDA of NOK 75 million.

Source: PV-Tech

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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