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BRIEF-REC Silicon Q4 revenues beat forecasts, costs down
February 16, 2017 / 6:18 AM / 8 months ago

BRIEF-REC Silicon Q4 revenues beat forecasts, costs down

Feb 16 (Reuters) - REC Silicon ASA

* Rec Silicon Q4 revenues $80.4 million (Reuters poll $75.9 million)

* REC Silicon says efforts to maintain liquidity and reduce costs have proven successful, with company reporting Q4 FBR cash cost at $11.2/kg and similar cash cost expected in Q1

* REC Silicon Q4 EBITDA $4.9 million (Reuters poll loss $0.2 million)

* Q4 polysilicon sales of 3,801 mt were above expectations and finished goods inventory decreased by 585 mt during q4

* REC Silicon says we will continue to be cost conscious and diligent at managing cash levels so that REC silicon remains a low cost leader in polysilicon industry even when operating at reduced capacity.

* Silicon gas sales volumes increased to 882 mt compared to 772 mt in prior quarter

* REC Silicon says Yulin joint venture plant remains on target for start-up in second half of 2017REC Silicon asa says jv employees have completed training in operating procedures at the moses lake and butte facilities in preparation for plant commissioning in 2017.

* REC Silicon says company has successfully negotiated a deferral of $15 million capital contribution in JV until at least july 2017

* REC Silicon says ongoing negotiations with company’s JV partner to defer company’s remaining $154 million capital contribution until after 2018

* Company also reported a December 31, 2016 cash balance of USD 65.8 million

* REC Silicon asa says due to the reduction of feed in tariffs (fits) in china in July 2017, demand is expected to strengthen during the first half of 2017 as projects are accelerated to take advantage of higher tariff structures.

* REC Silicon says unlike 2016, low inventories across the supply chain are expected to result in less demand volatility during the second half of 2017

* REC Silicon says PV demand for the first quarter of 2017 is estimated near 17 GW

* REC Silicon targets q1 2017 polysilicon production of 3,080 mt

* REC Silicon targets 2017 polysilicon production of 12,500 mt

* REC Silicon says targets silicon gas sales volumes at 750mt for the first quarter of 2017 and approximately 3,200mt for the full year 2017

* REC Silicon says for 2017, capital expenditures are expected to be approximately USD 10 million and include only the capital necessary to maintain operations in a safe and reliable manner

* REC Silicon ASA says for 2017, all activities associated with all expansion projects have been halted due to market conditions.

* REC Silicon asa says until market conditions improve, the company will defer and delay capital spending when possible while maintaining safe operating conditions in order to maintain liquidity. Source text for Eikon: Further company coverage: (Reporting By Nerijus Adomaitis)

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