Renewable Energy Corporation (REC) advised that during Q3 2011 revenues reached US$543,558 and an EBITDA of US$67.03 million, down from US$157.81 million in Q2. The company noted that the drop in its revenues for the quarter was a direct effect of a weak solar market, the curbing of parts and production capacity in Norway and a reduction in selling prices and sales volumes.
REC noted that Q3 saw the average selling prices for polysilicon down 8% compared to previous quarters, while wafer prices were down 17% and module prices down 13%. In addition to releasing its financial results for Q3 2011, REC additionally advised that its board had decided to permanently close the oldest wafer plants at its Herøya site, a 500MW capacity, its wafer multi-plant in Glomfjord that had a 275MW capacity and its solar cell plant in Narvik, an 180MW capacity site.
REC endured costs of US$49.28 million in relation to the shutdown of its production capacity in Norway, which was partially offset by US$40.22 million in income for the termination of its wafer sales contract. The closedown costs of nearly US$36.23 million and income of around US$72.57 million from the end of its other wafer sales contracts is anticipated to be recognized in Q4 2011.
The company’s EBITDA without special items was finalized at US$76.09 million with EBIT before impairment charges being recorded at negative US$17.7 million, compared to US$36.59 million in Q2 2011. Loss before tax for the quarter was US$80.62 million, compared to US$1.13 million in Q2.
