REC Silicon reports loss in Q4, but remains optimistic

REC Silicon ASA’s fourth quarter report is a mixture of loss coupled with optimism, positive cash flow, talk about restarting its Moses Lake facility, and stimulus provided by an investment by Hanwha Solutions, owner of Q CELLS.

REC Silicon reported fourth quarter 2021 revenues of $43.2 million compared to $36.2 million in the third quarter of 2021. The company also reported an earnings before interest, tax, depreciation and amortization (EBITDA) loss of $0.4M compared to a loss $3.7 million in the prior quarter.

Silicon gas sales volumes for the fourth quarter were 750 MT compared to 728 MT during the prior quarter. Total polysilicon sales volumes for the quarter were 481 MT and polysilicon inventories decreased by 168 MT.

REC Silicon reported cash balances of $110.5 million on December 31, 2021 compared to $126.3 million on September 30, 2021.

REC Silicon ASA is a producer of advanced silicon materials, supplying high-purity polysilicon and silicon gases to the solar industry worldwide. It manufactures Granular Polysilicon (NextSi) from Fluid Bed Reactor (FBR) technology for solar applications, and when both are operational, its two US-based plants have a capacity of more than 20,000 MT high-purity polysilicon, the company reports. REC Silicon is headquartered in Fornebu, Norway and listed on the Oslo stock exchange under the ticker: REC.

REC Silicon’s Moses Lake facility in Washington state was shut down in mid-2019 when China imposed steep tariffs on US-made polysilicon, in retaliation for tariffs imposed on Chinese-made solar panels in 2013. In the REC Silicon ASA audiocast Q4 2021 James May, CEO, said that investments by Hanwha in January “improves the company’s liquidity position and is expected to give us the capital necessary to restart the FBR facility in Moses Lake and make targeted investments in and improve our product portfolio in the semiconductor materials segment.”

In November 2021, Hanwha Solutions bought 21.9 million shares in REC Silicon ASA from Aker Horizons in addition to approximately 48.2 million new shares in REC Silicon through a private placement. As a result, Hanwha Solutions and Aker Horizons both own approximately 16.67% in REC Silicon.

“Fourth quarter events clearly demonstrate that REC Silicon’s strategic plan is coming together. REC Silicon financial position has been substantially improved due to Hanwha Solutions’ investment. REC Silicon’s low cost, high quality granular solar grade polysilicon will become a key component in ensuring the success of a PV supply chain in the United States. At the same time, opportunities in silicon anode battery materials are beginning to materialize. These events are expected to result in a firm plan to restart operations in Moses Lake, Washington, “ said James A. May II, CEO.

REC reports that it is focusing its efforts on creating a domestic market for its product in the United States, working with a battery company looking to use polysilicon for the next generation of rechargeable batteries and an Oregon-start-up looking to build solar panels in Moses Lake.