Norwegian REC swings to loss in Q2 2011 on write-downs
Jul 19, 2011 - Norwegian solar power company Renewable Energy Corporation (OSL:REC) said today it moved to a pretax loss from continuing operations of NOK 6.287 billion (USD 1.124bn/EUR 798.5m) in the second quarter of 2011, on the back of huge write-downs.
In the second quarter of 2010, REC posted a pretax profit from continuing operations of NOK 866 million.
The group booked impairment charges of NOK 6.461 billion in April to June 2011. They resulted from the significant reductions in prices and demand, which hit the solar market in the second quarter of 2011. Subseqently, REC changed its long-term outlook, especially related to future prices.
Second-quarter revenue rose to NOK 3.391 billion from NOK 2.758 billion in the same period of 2010.
The earnings before interest, tax, depreciation and amortisation (EBITDA) increased to NOK 871 million from NOK 455 million.
Former associated company, mono-wafer producer Sovello AG, sold in 2010, is reported as discontinued operations.