Renewable Energy Corporation ASA (REC) has released its financial results for the first quarter of 2009, revealing an increase of revenue by 14%, from NOK 1,771 million ($270.33M) in the first quarter of 2008 to NOK 2,013 million ($307.27M).

The earnings before interest rate, taxes, depreciation, and amortization (EBITDA) declined by 29% from NOK 742 million in the 2008 first quarter to NOK 527 million. The EBITDA margin also showed a considerable decrease from 42% in the first quarter of last year to 26%. This decrease was due to the external sourcing of polysilicon, higher expansion and ramp-up costs, and a build-up of module inventory.

The operating profit also declined to NOK 302 million, compared to the NOK 579 million in the first quarter of 2008.

However, the company reported positive net financial items of NOK 298 million in the first quarter of this year, as compared to the negative NOK 251 million in the same quarter of last year. Profit before tax increased from NOK 327 million to NOK 600 million, and earnings per share were NOK 0.80, as compared to NOK 0.43 in the first quarter of 2008, on both basic and diluted basis.

Renewable Energy Corporation ASA is the world’s largest producer of silicon materials and mono- and multicrystalline wafers for the photovoltaic (PV) and electronics industries through its subsidiaries, REC Silicon and REC Wafer. The company also manufactures solar cells and solar modules through its REC Solar subsidiary. The REC Group had revenues of NOK 8,191 million and an operating profit of NOK 2,529 in 2008. The company is headquartered in Sandvika, Norway.


-  Natassia Y. Laforteza

---

Sources:

¹ http://www.recgroup.com/default.asp?V_ITEM_ID=1258&xml=/R/136555/PR/200904/1309406.xml
² http://www.recgroup.com/default.asp?V_ITEM_ID=445