REC's second quarter 2012 results
(Thomson Reuters ONE) -
Sandvika, July 19, 2012: Renewable Energy Corporation ASA (REC) reported second
quarter 2012 revenues from continuing operations* of NOK 1,987 million and
EBITDA of NOK 267 million. Further operational improvement resulted in FBR cash
production cost of 12.0 USD/kg and module cash cost of 71 Eurocents/watt. Net
debt was reduced to NOK 4.1 billion in the quarter.
Despite high installation volumes, industry wide overcapacity continued to put
pressure on market prices throughout the quarter. Compared to the previous
quarter, REC's selling prices for polysilicon and modules were down eight
percent.
After the permanent shut down of all production, REC Wafer is reported as
discontinued operations* from the second quarter. REC's second quarter revenues
from continuing operations were in line with the previous quarter, while EBITDA
adjusted for special items was NOK 230 million, up from NOK 128 million in the
previous quarter.
EBIT from continuing operations was NOK -3.7 billion in the second quarter,
compared to negative NOK 75 million in the previous quarter. The second quarter
EBIT includes impairment charges of NOK 3.6 billion, primarily related to fixed
assets in Singapore based on revised external views on future prices.
Loss after tax from continuing operations was NOK 3.7 billion in the second
quarter, compared to loss of NOK 0.3 billion in the previous quarter. Loss after
tax from total operations was NOK 4.1 billion, compared to loss of NOK 0.2
billion in the previous quarter.
EPS for total operations was NOK -4.07 and NOK -0.21 for the same periods.
In the second quarter REC generated net cash from total operating activities of
NOK 0.6 billion, capex spend was NOK 0.1 billion and an increase in fair value
of REC's convertible bond and currency effects negatively affected net debt by
NOK 0.4 billion. Net debt was hence reduced by NOK 0.1 billion to NOK 4.1
billion.
On July 4, 2012 REC announced a refinancing proposal that included an issue of
new shares raising gross proceeds of NOK 1.3 billion through a successfully
placed private placement, a subsequent repair offering of up to NOK 375 million
and a new NOK 2 billion bank debt facility maturing in April 2014. The proposal
for issuance of new shares through the private placement, the subsequent
offering, and hence also the refinancing of the bank debt facility, is subject
to final approval by the Extraordinary General Meeting to be held on July
27, 2012.
"I am very pleased to see further improvements operationally and financially and
that we continue to generate positive cash flow under current market conditions.
I am also grateful that our shareholders and banks continue to provide support
as demonstrated through the proposed re-financing. The combination of a solid
balance sheet and a strong market and cost position gives us the necessary
strength to weather the current industry turmoil ", says Ole Enger CEO.
(*) From the second quarter 2012, external profit and loss items of REC Wafer
are re-presented as discontinued operations, and the historic figures for most
line items in the statement of income are re-presented and differ from what was
previously reported. Line items and results presented for continuing and
discontinued operations will not represent the activities of the operations as
if they were standalone entities, for past periods or likely to be earned in
future periods.
For more information, please see the attached first quarter 2012 report and
presentation as well as a spreadsheet with detailed financial information.
More information on the proposed Subsequent Offering
The proposed Subsequent Offering will be directed towards existing shareholders
of the Company as of July 3, 2012 (as documented by the shareholders' register
in the Norwegian Central Securities Depository (the "VPS") as of July 6, 2012),
who were not invited to participate in the Private Placement ("Eligible
Shareholders"). Eligible Shareholders will be granted 0.6295 non-tradable
subscription rights per share held as of July 3, 2012, that provide right to
subscribe for, and be allocated, subject to applicable securities laws, one new
share in the Subsequent Offering. Over-subscription is permitted for Eligible
Shareholders. In the event not all issued subscription rights are exercised,
oversubscribing shareholders will be allocated shares proportionally to the
number of subscription rights they have exercised. Subscription without
subscription rights will not be allowed.
Shareholders representing approximately 60 percent of shares were contacted in
the Private Placement. This implies dilution of approximately 23 percent for
eligible shareholders that participate in the Subsequent Offering, relative to
their ownership previous to the Private Placement, assuming all Eligible
shareholders subscribe for all subscription rights.
The subscription period for the proposed Subsequent Offering is expected to
commence on or about August 20, 2012 and expire on or about September 3, 2012.
The subscription price per Subsequent Offering Share is NOK 1.50, equal to the
subscription price in the Private Placement.
Q2 reporting - morning program:
On the release day, President and CEO Ole Enger of REC will give a presentation
together with other members of the management team. The presentation will take
place at 08:00 hrs Norwegian time/CET at the conference centre Høyres Hus,
Stortingsgata 20, 0161 Oslo, Norway.
The presentation, held in English, will be broadcasted live over the Internet,
and can be accessed from: www.recgroup.com.
It will also be possible to listen to the presentation through a conference
call. Please make sure to dial in 10 minutes prior to scheduled start time on
one of the following numbers:
Confirmation code: 9506714
Norway Toll Free: 800 56 053
UK Toll Free: 0800 279 4841
USA Toll Free: 1877 249 9037
International Toll: +44 (0)20 7784 1036
Q2 reporting - afternoon program:
REC will further host an analyst conference call with possibilities for
questions and answers later the same day at 15:00 CET. Please make sure to dial
in at least 5 minutes ahead of time to finalize your registration:
International dial in: +47 2318 4540, please state your name and company.
Immediately after the call, a replay of the conference call will be made
available. To access, please dial +47 2318 4502 and use the following procedure:
1. Type pincode 1524 followed by # (pound-sign)
2. Continue by typing reference number 524 followed by # (pound-sign)
For more information, please contact;
Mikkel Tørud, VP & IRO; +47 976 99 144
About REC
REC is a leading vertically integrated solar energy company. REC produces
polysilicon, wafers, cells and modules for the solar industry, and silicon
materials for the electronics industry. REC also engages in project development
in selected PV segments. Founded in Norway in 1996, REC employs around 3,100
people globally with revenues of more than NOK 13 billion in 2011. Please visit
www.recgroup.com to learn more about REC.
REC Q2 financial information:
http://hugin.info/136555/R/1627788/521047.xls
REC Q2 report:
http://hugin.info/136555/R/1627788/521045.pdf
REC Q2 presentation:
http://hugin.info/136555/R/1627788/521046.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Renewable Energy Corporation ASA via Thomson Reuters ONE
[HUG#1627788]
Unternehmensinformation / Kurzprofil:
Datum: 19.07.2012 - 07:00 Uhr
Sprache: Deutsch
News-ID 166713
Anzahl Zeichen: 8644
contact information:
Town:
Sandvika
Kategorie:
Business News
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