REC Silicon - Second quarter 2023 results

Oslo, Norway – August 15, 2023: REC Silicon ASA (REC Silicon or Company) reported second quarter 2023 revenues of USD 36.7 million compared to USD 29.1 million in the first quarter of 2023. The Company also reported an EBITDA loss of USD 8.5 million compared to an EBITDA loss of USD 23.0 million in the prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment of USD 10.1 million for the second quarter compared to a loss of USD 3.4 million for the first quarter. The improved EBITDA contribution is due primarily to an increase in the volume of silicon gases sold, an increase in the ASP of semiconductor grade polysilicon and seasonally favorable electricity costs.

Silicon gas sales volumes for the second quarter were 849 MT compared to 640 MT during the prior quarter. Total polysilicon sales volumes for the second quarter were 184 MT.

REC Silicon reported cash balances of USD 15.0 million on June 30, 2023, compared to USD 49.1 million on March 31, 2023. The decrease in cash was primarily a result of operating cash outflows of USD 22.4 million and capital expenditures of USD 42.2 million.

“The demand for our products from the semiconductor market appears to be approaching a stabilized bottom, however excessive inventories of some gases and materials still need to be removed from the value chain. We continue to monitor the situation and look towards a potential recovery in the 2024 time period. Despite these headwinds, EBITDA for the quarter, although negative, was significantly improved from last quarter. The Moses Lake restart is targeted for November 1st and all efforts are progressing well, on budget and are on schedule. More information is expected to be released soon concerning the Moses Lake Polysilicon offtake contract and our latest financing efforts” said Kurt Levens, CEO.

For more information, please see the attached second quarter 2023 report and presentation.

The company will host a live webcast to present the results at 8:00am CET. The webcast of the presentation can be accessed at www.recsilicon.com or with the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20230815_2/

Following the presentation, it will be opened for questions from the audience. The presentation and the following Q&A session will be in English.

Audiocast participants need to register to post questions.