REC Silicon decreased revenue in Q1 significantly yoy and achieved loss
Post date: 09/05/2019 - 17:44
Norwegian REC Silicon ASA reported first quarter 2019 revenues of $45 million, compared to $69 million in the first quarter of 2018. Loss was $23.4 million (Q1 2018: profit of $60 million).
Polysilicon sales volume for the quarter was 2,004 MT (production: 1,508 MT) compared to 2,902 MT in the first quarter of the previous year (production 3,523 MT). Silicon gas sales volumes for the first quarter were 829 MT compared to 897 MT in Q1 2018. Silane gas prices decreased by 3.3 percent compared to the fourth quarter 2018.
The FBR facility in Moses Lake operated at approximately 25 percent throughout the first quarter. FBR production was 1,091 MT compared to guidance of 1,180 MT. FBR production costs were $13.5 per kg compared to guidance of $12.8 per kg.
According President and CEO, Tore Torvund, the first quarter results »are far below our potential due to restricted access to Chinese markets. We are hopeful that REC Silicon's access to polysilicon markets in China will be restored and we can return to 100 percent capacity utilization in our FBR facility.«
As reported, the Board of Directors has initiated a plan to curtail the operation of the FBR facility beginning on May 15, 2019 to reduce spending and to maintain liquidity. Unless access to polysilicon markets in China is restored, the facility will be placed in a long-term shutdown by June 30, 2019. »The timing and length of the shutdown are dependent on whether REC Silicon is able to regain access to Chinese markets for polysilicon as a result of trade negotiations between China and the United States or other significant positive developments in solar grade polysilicon markets,« says the company.