REC Solar ASA Issues Preliminary Figures for Q4 2013

REC Solar ASA was listed on Oslo Børs on Oct. 25, 2013, the same day that it acquired the solar entities previously owned by REC Silicon ASA. Therefore, as of Dec. 31, 2013, the company has a financial history of only two months. In order to provide better understanding of the company’s trading performance, consolidated re-presented results based on the full Q4 2013 have been prepared. These financials are unaudited. Following a concern that the fourth quarter re-presented results are higher than market expectations, a brief update is provided.

The company’s re-presented consolidated revenues for Q4 2013 are expected to be $182 million, of which $181 million are related to the Module business. Re-presented EBITDA for the same period is estimated to be approximately $21 million in the Module Business and $18 million on a consolidated group basis. The improvement in the results is primarily caused by continued cost reductions and sales volume growth for the company’s premium solar panels. As of Dec. 2013 the company had a cash balance of $68 million.

The Board of Directors has decided that the European-based Systems business is not part of the future strategy of the company. The re-presented EBITDA of $18 million is after the European-based Systems business incurred a re-presented EBITDA loss of $3 million. In Q4 2013 the company’s solar panel production was 228 MW.