REC Silicon expects zero production in the FBR facility in Moses Lake in Q3 and Q4 2019
Post date: 25/07/2019 - 18:54
Norwegian REC Silicon ASA reported second quarter 2019 revenues of $47.0 million compared to $58.9 million in Q2 2018. EBITDA for the second quarter of 2019 was $0.5 million compared to an EBITDA loss of $4.7 million in the first quarter of 2019 and loss of $9.6 million in Q2 2018. The increase in EBITDA was primarily due to lower electricity costs for the semiconductor materials manufacturing facility in Butte, Montana. The company achieved loss of $37.8 million compared to $-23.4 million in the prior quarter and $-374.4 million in the second quarter of 2018.
Polysilicon sales volume for the quarter was 2,090 MT compared to 2,004 MT in the prior quarter, while inventory decreased by 1,110 MT. Silicon gas sales volumes for the second quarter were 834 MT compared to guidance of 960 MT. Silane gas prices increased by 3.0 percent compared to the first quarter 2019 due to lower sales volumes into PV applications resulting in a lower overall average price. Second quarter semiconductor polysilicon production was 216 MT compared to guidance of 220 MT.
Production in the FBR facility in Moses Lake, Washington was shuttered on May 15, 2019 due to restricted access to Chinese polysilicon markets. Further, the company announced a workforce reduction at the Moses Lake facility and will not restart the FBR facility until access to polysilicon markets in China is restored or other significant positive developments in solar grade polysilicon markets occur.
As a result, FBR production was 980 MT during the quarter and FBR production costs were $18.5/kg. The company expects production in the FBR facility in Moses Lake will be zero during the third and the fourth quarters of 2019. Inventories of finished granular polysilicon declined by 1,059 MT during the quarter resulting in remaining inventories of 1,435 MT at June 30, 2019 which is expected to be sold during the second half of 2019. The company will continue to operate its manufacturing facility in Butte, Montana.
REC Silicon targets polysilicon production of 340 MT during the third quarter of 2019 and 3,138 MT for the full year 2019. Silicon gas sales volumes are targeted at 900 MT for the third quarter of 2019 and 3,463 MT for the full year 2019.