REC saw strong demand in third quarter: 2H 2011 demand uncertain

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

Higher sales across its product range and continued ramp of its new manufacturing facility in Singapore helped REC reach third quarter revenue of NOK 3,783 million (US$642 million), up 37% compared to the previous quarter. Demand and pricing into the fourth quarter was expected to remain stable. Prices however, were expected to decline in 2011 but not by as much as the regression in the feed-in tariff in Germany of 13%. REC posted EBITDA of NOK 827 million in the third quarter, compared with NOK 449 million in the third quarter last year and NOK 455 million in the second quarter.  

REC Silicon reported revenues of NOK 1,421 million in the quarter, an increase of 52% from the third quarter last year and an increase of 23 percent from the second quarter. Measured in USD, revenues increased by 51 percent from the third quarter last year and by 24 percent compared with the previous quarter.

Revenues from FBR almost doubled from the previous quarter. Total Siemens and granular polysilicon production was 3,393 MT in the quarter, an increase of 19% from the previous quarter.

A power outage affected quality of yield, down to 66% from 77%.  However REC said it was back on track with yield since the problem. REC said that it had lost 250MT of polysilicon production due to the power outage. Production of solar and electronic grade polysilicon was 2,688 MT in the quarter, up 9% from 2,474 MT in the previous quarter.

The silane gas market has surprisingly declined from the second quarter, which was said to be due to both market demand dynamics and increased competition.

REC Wafer reported revenues of NOK 2,080 million in the third quarter, up 80 percent from the third quarter last year and up 21% from the previous quarter. REC noted that wafer market demand increased in the third quarter but average selling prices increased 3%.

Solar wafer production increased 20% with strong demand expected to continue. The ramp in Singapore is ongoing. However, the monocyrstalline production in Norway was only 26MW, much lower than anticipated. The company said that it has been impacted by recruitment issues at its plant in northern Norway. Capacity utilization of the plant was approximately 30% in the third quarter, REC said. REC also noted that the new wafer plant in Singapore is expected to reach full capacity by the first quarter 2011.

The company noted that REC Wafer had developed and almost completed installation of a low cost retrofit solution to its oldest generation of ingot furnaces.

REC Solar reported revenues of NOK 1,787 million in the third quarter, up 76% from the second quarter. REC noted that demand for modules continued to be strong with sales of 139MW, up from 32MW in the third quarter 2009 and 80MW in the second quarter of 2010. Module average selling price in euro’s were down 2% compared with the previous quarter.

REC said that module production amounted to 166MW, including 126MW from the new plant in Singapore. However, inventory increased in the quarter, due in part to an increased number of modules in transit end-user from the Singapore plant.

The cell efficiency in the operating lines was said to have continued to improve although at a lower rate than in the second quarter.

REC said that it expected continued strong demand for module deliveries into the  first quarter of 2011. Module prices are expected to decline less than announced FiT reduction in Germany of 13% but a price decline will also be affected by an expected overcapacity into 2011.

Demand uncertainty in particular for second half year of 2011 was seen, due to concerns over the potential for further subsidy cuts in various key markets.

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.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 
1 December 2021
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run online with streamed content, access to session recordings and chat/messaging tools for delegates to connect.

Read Next

October 19, 2021
Funds managed by private equity firm Antin Infrastructure Partners have secured a deal to acquire a majority stake in US solar and storage developer Origis Energy.
October 19, 2021
Lightsource bp has announced its entry into Poland’s solar market through a co-development deal which will see the developer proceed with a 757MWp pipeline in the country.
October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021