REC Silicon - Third quarter 2019 results

Fornebu, Norway – October 30, 2019: REC Silicon ASA (REC Silicon) reported third quarter 2019 revenues of USD 36.4 million. EBITDA for the third quarter was a loss of USD 5.6 million compared to EBITDA of USD 0.5 million in the second quarter of 2019. The decrease in EBITDA was primarily due a production interruption in connection with planned maintenance at the Butte facility, severance payments in connection with the Moses Lake shut down, and higher electricity costs for the semiconductor materials manufacturing facility in Butte, Montana.

REC Silicon reported a cash balance of USD 46.2 million on September 30, 2019. This represents an increase of USD 7.8 million compared to the cash balance on June 31, 2019. Cash inflows from operations were USD 9.0 million for the quarter which included a reduction in working capital of USD 17.4 million offset by the EBITDA loss, interest payments of USD 1.5 million, and a currency loss of USD 1.1 million due to a stronger US dollar. Cash inflows from investing activities were USD 0.4 million which included a USD 0.5 million reduction in restricted cash deposits offset by capital expenditures of USD 0.1 million. Cash outflows from financing activities were USD 1.6 million and were a result of payments of lease liabilities.

Polysilicon sales volume for the quarter was 1,155 MT compared to 2,090 MT in the prior quarter, while inventory decreased by 815 MT.

Silicon gas sales volumes for the second quarter were 860 MT compared to guidance of 900 MT. Silane gas prices decreased by 0.5 percent compared to the second quarter 2019. Second quarter semiconductor polysilicon production was 191 MT compared to guidance of 220 MT.

For more information, please see the attached third quarter 2019 report and presentation.

A presentation of the results will be held at 8:00 a.m. CET at Høyres Hus Konferansesenter, Stortingsgata 20, Oslo, Norway.

A live webcast from the presentation can be accessed at www.recsilicon.com or with the following link:https://webtv.hegnar.no/presentation.php?webcastId=98161653

It will also be possible to listen to the presentation through a conference call. To join this event, use one of the following access numbers. Please make sure to dial in 5-10 minutes prior to the scheduled start time.

Norway Dial-in (Tollfree/Freephone): 800 51 084
Norway, Oslo (Dial-in Local): [phone]
United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377
United Kingdom (Dial-in Local): [phone]
United States (Dial-in Local): [phone]
United States/Canada (Dial-in Tollfree/Freephone): 800 458 4121
Other international: [phone]

Participant Passcode: 1125891

For further information, please contact:
James A. May II, Chief Financial Officer
Phone: [phone]
Email: [e-mail]

Nils O. Kjerstad
IR Contact
Phone: [phone]
Email: [e-mail]

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.

Attachments

• REC Silicon Q3 2019 report
• REC Silicon Q3 2019 presentation