Polysilicon producer REC Silicon ASA benefited from higher sales volumes and ASP increases to report a 23% increase in revenue in the third quarter of 2017.
REC Silicon reported revenue of US$75.5 million in the third quarter, up from US$61.4 million in the previous quarter. Third quarter EBITDA was US$3.6 million compared to US$1.3 million in the previous quarter.
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The company reported a cash balance of US$88.0 million in the quarter, up by US$16.6 million compared to the second quarter of 2017.
Polysilicon sales volumes increased by 1,131MT to 4,091MT, a 38.2% increase quarter-on-quarter. REC Silicon also noted that the higher than expected polysilicon sales resulted in a reduction in inventory of 1,280MT. Third quarter FBR production was 2,254MT, lower than guidance of 2,290MT.
Despite the sales improvement the company continued to operate polysilicon production at its Moses Lake (FBR) facility at 50% capacity utilization rates. FBR cash cost was better than expected at US$10.4/kg for the quarter, due to reduced maintenance activities and continued cost reduction efforts.
The company also benefited from strong silicon gas sales, due to demand in the FPD and semiconductor manufacturing sectors, leading to sales volume of 904MT, a 12% increase, quarter-on-quarter.
REC Silicon reiterated that it’s Yulin, China FBR gen 2 polysilicon plant joint venture is expected to start up the first silane unit and FBR reactors in the fourth quarter of 2017.
REC Silicon guided polysilicon production of 2,610MT for the fourth quarter of 2017 and approximately 11,630MT or the full-year.
