REC Solar posts 4th quarter pretax profit of $13.7 million

25. FEBRUARY 2014

Improving market conditions and cost reductions have boosted the newly independent REC Solar’s bottom line.

REC Solar Singapore facility

REC Solar’s operations are largely based in Singapore.

REC Solar, which spun off from former parent REC Group to become an independent company in October, posted an operating pre-tax profit of $13.7 million in the fourth quarter of 2013, a significant increase over the third quarter, while taking in $18.2 million in revenue, a 17 percent rise over the preceding three months.

Due to the company’s recent breakaway from its former parent and the acquisition of solar units previously owned by the now likewise independent REC Silicon division, the company presented consolidated re-presented results that are unaudited and not in compliance with International Accounting Standards.

REC Solar said its prepared the results to provide better understanding of its trading performance. The company, whose main operations are based in Singapore, was listed on the Oslo Stock Exchange on October 25, the same day that it acquired the former REC Silicon solar units.

“The successful IPO has established REC as a leading provider of solar energy solutions with a strong balance sheet,” said REC Solar CEO Oyvind Hasaas. “REC is now well positioned to exploit strategic and operational opportunities in the solar sector.”

Hasaas added that 2013 had been a turning point for REC after a challenging period for the solar sector. “Improving market conditions, our strong market position as a supplier of high quality solar panels and continued cost reductions have contributed to the improved margins.”

In order to further capitalize on the improved market conditions and to meet strong demand, REC Solar has embarked on an investment program to increase its module manufacturing capacity to 1 GW by the third quarter of this year.

“In addition, we are exploring opportunities to further increase our module capacity to 1.3 GW by 2015,” he added.

The company added that strong markets in Japan, the U.S. and China contributed to stabilized pricing and that European anti-dumping legislation on Chinese modules had reduced unfair competition.