REC Silicon Q3 report reveals 24.7% dip in polysilicon sales


REC Silicon ASA, a producer of silicon materials to the PV and electronics market, sold 299 metric tons of polysilicon in Q3, a decrease of 24.7% from 397 metric tons sold in the same quarter a year ago.  Silicon gas segment sales were down about 19.5% in the same timeframe to 586 MT in Q3 22 from 728 MT in Q3 21.

REC Silicon Gas Volumes

The company, which is based in Norway, reported $36.7 million of Q3 22 revenues, a 1.4% improvement compared to $36.2 million a year ago, while it reported negative $13.8 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), a wider loss compared to negative $3.7 million adjusted EBITDA in Q3 21.

“Although earnings for this quarter are disappointing due to reduced gas shipments, record high energy costs, and a complex non-recurring planned production shut down, long-term megatrends remain in place for REC to be in a strong position for long term success with the correct product mix, locations and accessible production capacity,” said Kurt Levens, chief executive officer of REC Silicon.

REC Silicon pointed to ongoing supply-chain constraints affecting global shipments and order timing, while its flat-panel display production utilization forced demand deferrals.

As a result, the company expects flat-panel production and supply-chain disruptions to persist in the near term. The company said it would be forced to implement price increases in 2023.

Long-term business drivers include data, mobility and automotive content production as well as increased demand for silicon in electric vehicle batteries and the reshoring of advanced semiconductor production thanks to incentives in the Inflation Reduction Act.

Moses Lake restart

REC Silicon’s Moses Lake facility in Washington state was shut down in mid-2019 when China imposed steep tariffs on U.S.-made polysilicon, in retaliation for tariffs imposed on Chinese-made solar panels in 2013. In its Q3 22 report, REC Silicon confirmed it will restart solar polysilicon production at Moses Lake in the U.S. state of Washington in Q3 23, following Hanwha’s decision to acquire a 16.67% stake in the Norwegian manufacturer in late 2021.

The company reports that Moses Lake’s ramp up will see the facility at 50% capacity utilization by mid-2024, with full capacity production on track for Q4 24.

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.

REC Silicon shares traded at NOK 18.09 ($1.82) per share today, up 20.6% from NOK 15 ($1.72) per share a year ago, while the company has a NOK 7.61 billion ($762 million) market capitalization.


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