Sandvika, Norway-based REC ASA has published its second-quarter financials for 2011, which show revenues of NOK 3,391 million, down 17% on the previous quarter. Significant weakening of the solar market led to a slowdown in demand for the company’s products, while polysilicon production operations are also under pressure from Chinese competitors.
The company has announced plans to temporarily shut down its multicrystalline wafer plant in Glomfjord in addition to the previously announced shutdown of the cell plant in Narvik and the wafer plants at Herøya.
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Average selling prices for wafers and modules were down 21% and 14% respectively, while polysilicon prices were also 3% lower than the previous quarter, contributing to the reduced revenue figures. EBITDA came in at NOK 871 million for the second quarter, down from NOK 1,449 million in the previous quarter. The discrepancy – mainly a result of ASP dips – also included inventory write downs of NOK 115 million.
The company’s pre-tax losses amounted to NOK 6,287 million in the first quarter, compared to a pre-tax loss of NOK 84 million in the previous quarter.
Further information on the company's second-quarter results is available here.