REC Solar's Q3 net profit rises 38.9% Q/Q

Oct 23, 2014 - REC Solar ASA (OSL:RECSOL) said on Thursday its third-quarter net profit has grown by 38.9% quarter-on-quarter to USD 22.5 million (EUR 17.8m).

The result includes a gain related to net financial items of USD 9.8 million, up from USD 1.1 million in the second quarter.

The firm was created in September 2013 as part of Norwegian company Renewable Energy Corp ASA’s move to separate its solar and silicon operations. REC Solar makes solar wafers, cells and panels in SIngapore, while it is also building and operating solar plants.

"REC's third quarter 2014 was impacted by a seasonal slowdown in Europe, softer market conditions in Japan and high activity level in the US market,” said CEO Martin Cooper. Currency movements are also affecting the relative attractiveness of the firm's key markets, he added.

The business saw its earnings before interest, tax, depreciation and amortisation (EBITDA) decline to USD 15 million from USD 21.1 million in the previous quarter, as the module operations’ EBITDA fell by USD 6.5 million to USD 15.1 million.

Revenues fell to USD 149.1 million from USD 175.8 million, as the system division contributed no revenue. In the meantime, module revenues declined from USD 164.3 million, even though module production went up by 7.1% quarter-on-quarter to 248 MW.

REC Solar expects to produce around 255 MW of solar panels in the fourth quarter and about 950 MW for the entire year. Full-year wafer and cells production is seen at about 829 MW and 736 MW, respectively.

(USD 1.0 = EUR 0.791)

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