REC expects better financial performance in second-half of year

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Massive investments in polysilicon through to solar cell and module expansions in three continents over the last couple of years are finally coming to an end and Renewable Energy Corp. (REC) expects to benefit from significantly lower production costs across its fully integrated business model. That was a key theme of its first-quarter financial conference call. But declining prices throughout the production chain mean that execution will be a key factor to better financial conditions going forward. 

The company has been losing money since the economic crisis took hold in the fourth quarter of 2008. However, losses have been falling quarter-on-quarter, with REC posting a loss of NOK 125 million in the first quarter.

Although executives declined to give specific near-term guidance on financial performance, it was clear from the call that the company is more confident of business conditions due to the capacity additions and lower manufacturing costs as well as drawing a line under extensive capital spending.

REC’s FBR expansion plans are coming onstream and the quality levels of its polysilicon climbing to meet customer requirements. FBR production is growing at REC Silicon, and continued qualification of the material is under way with new customers. However, this is a slow process but the company noted that good progress is being made.

Interestingly, President/CEO Ole Enger noted that customers are not only demanding better pricing but higher quality polysilicon and wafers. Polysilicon contracts pricing has remained under pressure though not as intensively as in 2009. The demand for higher quality wafers is due to the balanced supply and demand dynamics as well as the need for PV manufacturers to boost conversion efficiencies with the help of higher-grade polysilicon and wafer.

Total polysilicon production in the first quarter was 3,322 MT, of which 2,441 MT was solar and electronic grade. FBR production continued to increase, reaching 1,721 MT in the quarter. However, approximately 700MT was below acceptable grade and was sold at a significant discount, because of the need for further refining by customers to reach solar-grade specification. This could have therefore contributed to the 14% decline in polysilicon prices in the quarter.

Higher wafer capacity and improving utilization saw wafer production increase to 272MW in the first quarter, of which 9MW came from its new advanced facility in Singapore. However, REC produced just 16MW of monocrystalline wafers from its new plant in Glomfjord but no production from the pullers producing five-inch wafers in the quarter. As with polysilicon prices, wafer ASPs declined 16% in the quarter, indicating perhaps that slowing price declines often muted because of strong end-market demand have not actually been as widespread as touted.

Solar cell production also improved quarter-on-quarter to 67MW, up from 45MW in the fourth quarter of 2009. The new fab in Singapore contributed 24MW of that total. Module production also increased to 48MW, up from 39MW in the previous quarter. Singapore contributed 11MW of module production in the quarter. However, ASPs decline 4%.

28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.

Read Next

September 23, 2021
US developer Clearway Energy Group has signed a virtual power purchase agreement (VPPA) with Toyota in North America to supply the company with 80MW of power, accounting for 8% of the company’s regional operations
PV Tech Premium
September 23, 2021
Backed by a new heterojunction module factory in Florida and the expansion of its production plant in Minnesota, solar manufacturer Heliene is looking to take advantage of US policy support to meet increasing demand for American-made PV equipment. Jules Scully discusses the company’s growth plans with CEO Martin Pochtaruk.
September 23, 2021
Arizonan utility Salt River Project (SRP) and renewables company Clēnera have signed a 20-year power purchase agreement (PPA) for the CO Bar Solar project that is expected to deliver between 440-480MW of power
September 23, 2021
Russian wholesale electricity market administrator JSC ATS has allocated 775MW of solar PV in the country’s eighth auction round for largescale renewables, which had an average price of ₽5.18/kWh (US$0.071/kWh)
September 22, 2021
Renewables developer and asset manager RES has named Eduardo Medina as its new chief executive designate, with the former Vestas, SunPower and Acciona exec set to take over at the end of next month.
September 22, 2021
More than 190 US solar companies have warned that proposed duties on imports of modules and cells from three Southeast Asian countries represent an “immediate and serious threat” to America’s solar sector.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021