The company reports that the disappointing results are the result of continued supply chain constraints affecting global shipments and the timing of orders, indicating that it will pursue a further price increase in 2023.

REC Silicon ASA, a producer of silicon materials for the PV and electronics market, sold 299 metric tons of polysilicon in the third quarter, down 24.7% from 397 metric tons sold in the same quarter one year ago. Silicon gas segment sales were down around 19.5% over the same period to 586 MT in Q3-22 from 728 MT in Q3-21.

REC silicon gas volumes

The Norway-based company reported Q3 22 revenue of $36.7 million, a 1.4% improvement from $36.2 million a year ago, as it said a negative adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $13.8 million, a larger loss compared to a negative adjusted EBITDA of $3.7 million in Q3-21.

“While earnings this quarter are disappointing due to reduced gas shipments, record energy costs and the complex, one-time shutdown of planned production, the long-term megatrends remain in place for REC to be in a strong position for long-term success with the right product mix, locations and accessible production capacity,” said Kurt Levens, CEO of REC Silicon.

REC Silicon pointed to continued supply chain constraints affecting global shipments and the timing of orders, while its use of flat panel production has forced demand deferrals.

As a result, the company expects flat panel production and supply chain disruptions to persist in the near term. The company said it would be forced to implement price increases in 2023.

Long-term business drivers include the production of data, mobility and automotive content, as well as increased demand for silicon in electric vehicle batteries and the relocation of advanced semiconductor production through reducing inflation.

Restarting Moses Lake

REC Silicon’s Moses Lake, Washington facility was shut down in mid-2019 when China imposed high tariffs on US-made polysilicon, in retaliation for tariffs imposed on manufactured solar panels in China in 2013. In its third quarter report 22, REC Silicon confirmed this. will restart solar polysilicon production at Moses Lake in the US state of Washington in Q3-23, following Hanwha’s decision to acquire a 16.67% stake in the Norwegian manufacturer at the end of 2021.

The company reports that the Moses Lake ramp-up will see the facility at 50% capacity utilization by mid-2024, with full-capacity production on track for Q4 24.

In November 2021, Hanwha Solutions has purchased 21.9 million shares of REC Silicon ASA from Aker Horizons in addition to approximately 48.2 million new shares of REC Silicon through a private placement. As a result, Hanwha Solutions and Aker Horizons both own approximately 16.67% of REC Silicon.

Shares of REC Silicon were trading at NOK 18.09 ($1.82) per share today, up 20.6% from NOK 15 ($1.72) per share a year ago, while the company has a market capitalization of NOK 7.61 billion ($762 million).

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