REC Silicon Q2 Loss Narrows, Revenues Drop

(RTTNews) - REC Silicon ASA (RNWEF, REC.OL) reported second-quarter results on Friday with a narrowed loss despite decreased revenue.

The Norwegian silicon producer reported a decreased net loss of $6.9 million or $0.02 per share from loss of $50.7 million or $0.12 per share a year ago.

On a continuing operations basis, loss was $9.1 million, compared to loss of $10.2 million a year ago. Loss per share from continuing operations, meanwhile, was flat with $0.02 last year.

EBIT loss of REC Silicon narrowed to $0.6 million from a loss of $4.4 million in the prior year.

EBIT margin was negative 3.2%, compared to negative 12.1% a year ago.

The EBITDA improved to $4.9 million from a loss of $1.5 million last year.

Coherently, EBITDA margin swung back to 24.4% from negative margin of 4.2% a year ago.

Revenue, meanwhile, decreased to $19.9 million from $36.4 million last year, mainly due to a decrease in sales volume of polysilicon.

Looking ahead, Kurt Levens, CEO of REC Silicon, said, "The Company's financial challenges continue due to lower-than-expected sales and pressure from operating expenses and interest payments. Negative impacts have also been felt from existing tariffs, channel inventories, project delays, and demand uncertainty from key markets and customers."

These factors are expected to continue to negatively impact revenues and cash flow.

Levens added that the need for additional capital is expected.