Basic HTML Version
REC Annual Report 2011
14
REC Peak Energy Series modules have been installed in various types
of PV systems throughout Europe, the US and Asia.
Total research and development expenses increased to NOK 308million
in 2011, compared to NOK 290million in 2010. The 2011 expenses
include NOK 62million of impairment related to a technology
development agreement. Some of the development costs related to
introduction of new technology into mass production were carried by
the manufacturing plants and not reported as R&D.
THE FINANCIAL STATEMENTS
Pursuant to Section 3-3a of the Norwegian Accounting Act, the Board
of Directors confirms that the financial statements have been prepared
under the assumption that the enterprise is a going concern and that this
assumption was realistic at the date of the accounts.
The REC Group reports its consolidated financial statements in
accordance with International Financial Reporting Standards (IFRS),
as adopted by the European Union and the Norwegian Accounting Act.
The financial statements for the parent company, REC ASA, have been
prepared in accordance with Norwegian Generally Accepted Accounting
Principles (NGAAP).
For more information, please refer to the Financial Statements and note
disclosures.
Selected key figures from the statement of income for the REC Group
(NOK INMILLION)
2011
2010
Revenues
13 366
13 776
EBITDA
2 867
3 532
EBITDA - margin
21%
26%
EBITDA excluding special items*
2 514
3 255
EBITDA - margin excluding special items
19%
24%
Depreciation and amortization
-2 278
-2 476
EBIT before impairment charges
590
1 056
Impairment charges
-10 097
-38
EBIT
-9 508
1 018
EBIT - margin
-71%
7%
Net financial items
205
801
Profit/loss before tax from continuing operations
-9 303
1 818
Earnings per share from continuing operations (in NOK)
- basic
-10.06
0.96
- diluted
-10.06
0.51
* Specification of special items
2011
2010
Costs for junction box repair
0
38
Costs for restructuring
-220
-65
Onerous contracts due to capacity shut downs
-142
0
Write-down of inventories due to capacity shut downs
-245
0
Wafer contract cancellation fees
912
304
Sale of subsidiary REC Solar
47
0
Total
352
277
Parts of the special items presented are calculated and estimated and not
found directly from the separate lines in the financial statements. This
relates especially to thewrite-down of inventories due to capacity shut
downs in 2011 and cost for junction box repair in 2010. It also does not
include all items reported in the financial statements for onerous
contracts, write-down of inventories andwafer contract cancellation fees.
Revenues and EBITDA
RECachieved revenues ofNOK13,366million, a decreaseof threepercent
fromNOK13,776million in2010. The revenueswere affectedby reduced
sellingprices partly offset by increased sales volumes of solarmodules and
polysilicon.
REC’s average sellingprices formodules declined25percent in2011
compared to the averageprice of 2010, wafer average sellingprices
declined27percent, and thepolysilicon average sellingpricesweredown
12percent.
EBITDAdecreased19percent toNOK2,867million, and theEBITDAmargin
was21percent. Increased sales volumes of polysilicon and solarmodules
cost reductions across all business units and fees for termination ofwafer
sales contractswere offset by a sharppricedecline for all products. In
addition, inventorywritedowns and cost related to shutdown of production
capacity inNorwayweakenedREC’s results. EBITDA increased slightly in
RECSilicon, but declined inRECWafer andRECSolar. Moredetails on the
financial results andoperational development per segment areprovided
below.
SEGMENT REVIEW
REC Silicon
RECSilicon produces polysilicon and silane gas for the solar industry and
the electronics industry at plants inMoses Lake,Washington and in Butte,
Montana. RECSilicon targets a polysilicon production of 20,500MT in
2012 and employs approximately 880 people.
(FINANCIAL FIGURES – NOK INMILLION)
2011
2010
Revenues
5 585
5 245
EBITDA
2 781
2 735
EBITDA - margin
50%
52%
EBIT
1 801
1 853
EBIT - margin
32%
35%
Polysilicon production in MT (Siemens and granular)
19 050
13 673
- of which solar- and electronic grade in MT
16 672
11 459
Polysilicon sale in MT (Siemens and granular)
18 706
13 608
Silane gas sale in MT
1 651
1 891
REC Silicon reported revenues of NOK 5,585million in 2011, an
increase of six percent from2010. The polysilicon sales volume grew
significantly in 2011 but was partly offset by lower selling prices.
Measured in USD, the increase in revenues was 15 percent.
Through further optimization of the FBR facility, total production of
Siemens and granular polysilicon reached 19,050MT, an increase of
40 percent from2010.
Report from the Board of Directors