Singapore-based integrated PV module manufacturer REC Solar ASA has reported module sales down 16% quarter-on-quarter due to weaker demand in Europe and declining ASPs.
REC Solar reported first quarter 2015 module sales of US$148.3 million, a 16% decrease from the preceding quarter. Total sales were US$149.8 million, down from US$180.0 million in the previous quarter.
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REC said PV module ASPs had declined by 4.2% compared to the previous quarter, while the sales volume was down 12.4%. Total module production was 263MW in the first quarter, up 2% from the previous quarter.
EBITDA for REC's module business was US$15.7 million, down from US$16.2 million in the previous quarter. The decrease was said to be primarily due to lower sales volume in Europe and lower average selling price coupled to exchange rate fluctuations.
On a geographical basis sales to Europe on a MW basis declined 35.6 % quarter-on-quarter and accounted for around 39% of total sales in the first quarter of 2015.
The UK was the most important market for REC in Europe in the quarter.
REC’s sales in the US increased 62.7% quarter-on-quarter and accounted for 39% of REC’s modules sold, which proved to be the largest market for REC in the quarter, reflecting the major shift in module sales after Europe had historically been REC Solar’s main market.
REC’s sales in Japan declined by 36.4% quarter-on-quarter, impacted by lower shipment volumes to an unidentified major customer in Japan.
Manufacturing update
REC Solar said that it had started solar cell migration to its PERC (Passivated Emitter Rear Cell) process in the first quarter of 2015, converting a total of three multicrystalline lines to PERC.
Solar module development was said to have been focused on ramping capacity of its TwinPeak product, which deploys half-cut cells and reduces power losses.
With the closing of the sale of its complete business to Bluestar Elkem Investment in May, REC Solar ASA is soon to be closed down and its first quarter results the last issued as a public company.
