Fornebu, Norway - October 3, 2019: The effects of the on-going trade war and its
impact on semiconductor markets have created the expectation of a sharp decline
in REC Silicon's third quarter shipments. However, REC Silicon ASA (REC Silicon)
will report shipments of approximately 860MT of silicon gases for the third
quarter of 2019. This represents a decrease of 40MT compared to the guidance of
900MT provided on July 25, 2019. The decrease is primarily a result of lower
sales directly into China but also includes some impact from lower than
anticipated demand for semiconductor and flat panel display applications outside
of China. As a result of REC Silicon's efforts to maintain sales volumes, prices
realized by REC Silicon for Silane have declined by approximately 1.3 percent in
the third quarter of 2019 compared to the second quarter of 2019.
REC Silicon currently expects silicon gas sales to remain near current levels
for the fourth quarter of 2019. However, the Company will continue to evaluate
the impacts of the trade war and market conditions on future sales and will
provide additional guidance with the earnings release on October 30, 2019.
REC Silicon is the largest global producer of silicon gas with production
facilities in Butte, Montana and Moses Lake, Washington. These facilities use
silicon gas to make polysilicon, however, REC Silicon also delivers
approximately 70% of the global supply of silicon gases to semiconductor
customers located primarily outside of China in Asia. In addition, REC Silicon
is a 15% owner of a state-of-the-art granular polysilicon plant located in
Yulin, China. The Yulin plant produces high quality polysilicon for the PV
industry through its FBR-B reactors but also has 500MT of silane gas loading
capacity which will serve customers in China. There are no plans to expand the
silane gas loading capacity at the Yulin JV. REC Silicon's CEO is the Vice
Chairman of the Yulin JV Board of Directors.
REC Silicon expects to report sales volumes of semiconductor grade polysilicon
of 142MT during the third quarter of 2019 compared to 201MT reported for the
second quarter of 2019.
REC Silicon will report cash balances of approximately USD 46.2M at September
30, 2019.
The REC Silicon Board of Directors has decided to consider the divestment of the
Butte facility. Production from this facility primarily serves semiconductor
markets with silicon gases and semiconductor polysilicon. If an acceptable bid
is received, the proceeds will be used to retire the company's debts, to provide
a buffer for contingent liabilities (tax examination and indemnity loan), and to
prepare to restart FBR production in Moses Lake, Washington when the trade
dispute with China is resolved and REC Silicon regains access to polysilicon
markets in China. Roth Capital has been retained as advisors for this possible
divestment.
For further information, please contact:
James A. May II, Chief Financial Officer
Phone: +1 509 989 1023
Email: james.may@recsilicon.com
Nils O. Kjerstad
IR Contact
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering
high-purity polysilicon and silicon gas to the solar and electronics industries
worldwide. We combine over 30 years of experience and proprietary technology
with the needs of our customers, with annual production capacity of more than
20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on
the Oslo Stock Exchange (ticker: REC), the Company is headquartered in Fornebu,
Norway.
For more information, go to: www.recsilicon.com
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.