Norway-based solar firm Renewable Energy Corporation (STO:RECO) has recently reported its quarterly results in which its revenue dropped by more than one-third on the back of lower volume and a weak pricing environment. The company also shut down its facilities temporarily, which also had a negative impact on both silicon and solar volume. REC is now focusing more toward the rising Asian markets to offset the problems it is facing in Europe.
The company earned revenues of $218.4M, down from $288.3M in the previous quarter and $334.9M in the same quarter last year. This shows a 24.2% sequential and 34.8% Year-over-Year (YoY) drop. REC has noted that although prices now are relatively more stable, the production capacity is still far more than what it should be. However, REC’s EBITDA margin improved from negative 2% in the previous quarter and fell from 16% in Q1-2012 to 4% in Q1-2013. The company’s loss from continuing operations has shrunk from $369.4M in the previous quarter and $49.5M in the same quarter last year to $35.7M in Q1-2013.
The revenues of both of the company’s segments, REC Solar and REC Silicon, have dropped by at least 20% sequentially as well as YoY as plants were shut down in celebration of the Chinese new year. The revenues of REC Solar, which manufactures wafers, cells and solar panels, fell by 20% sequentially and 35% YoY to $127.5M, but its EBITDA has improved by 56% sequentially and 43% YoY to negative $8.5M, as EBITDA margin improved to negative 7% from negative 12% in the previous quarter and negative 8% in Q1-2012. Total shipments stood at 182MW, down from 202MW in Q4-2012 and 190MW in Q1-2012. REC Solar is aiming to ship 800MW in 2013 including 195MW in the current quarter.
REC Silicon, which manufactures polysilicon and silane gas for solar as well as the electronics industry, has reported revenues of $94.85M, down from $130M in Q4-2012 and $151M in Q1-2012. Although the segment’s EBITDA has increased by 12% from the previous quarter, it has dropped by 71% from the same quarter a year ago to $20.2M. Its EBITDA margin stands at 21%, down from 46% a year ago and up from 14% in the previous quarter. The polysilicon shipments are down 15% from Q4-2012 and 2% from Q1-2012 to 4,993MT. On the other hand, silane gas shipments have gone up by 20% sequentially and 30% YoY to 409MT. The segment aims to sell 5,000MT and 20,000MT of polysilicon in Q2-2013 and FY-2013, respectively.
REC Group now has cash and cash equivalents of $358.3M, showing a consistent improvement from $323.3M in March-2012 and $325.9M in Dec-2012.
Meanwhile, Comtec Solar Systems Group Limited (HKG:0712) has also reported its quarterly results for the three months ending March-2013 in which it swung to a net profit of $1.72M from a loss of $25.89M in the same quarter last year. The business’s quarterly turnover has gone up by 9.5% to $38.8M.