REC Silicon swings back to profit in Q2 2014

Jul 18, 2014 - REC Silicon Group said today it had turned to a second-quarter profit from continuing operations of USD 24.6 million (EUR 18.2m) from a loss of USD 85.9 million a year back.

REC Silicon’s profit from discontinued operations amounted to USD 300,000, down from USD 8.6 million in the second quarter of 2013.

The group includes US-based polysilicon maker REC Silicon ASA (OSL:REC) and subsidiaries. It was formed after Renewable Energy Corp separated its solar and silicon operations in October 2013. The solar business is now managed by Singapore-based REC Solar ASA (OSL:RECSOL) and is reported as discontinued operations in REC Silicon Group's financial statements.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations tripled to USD 31.6 million from USD 10.3 million a year earlier, with EBITDA margin up to 25% from 8%. The rise in earnings is attributed to higher sales volumes and selling prices. The group noted that higher average polysilicon prices during the three-month period mirror the strengthening demand for granular polysilicon and silicon gases.

Group revenues surged to USD 126.9 million from USD 81.1 million.

(USD 1.0 = EUR 0.740)

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