REC Silicon - Third quarter 2021 results

Oslo, Norway – October 20, 2021: REC Silicon ASA (REC Silicon) reported third quarter 2021 revenues of USD 36.2 million versus USD 35.6 million in the second quarter of 2021 and an EBITDA loss of USD 3.7 million versus positive USD 7.9 million in the prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment of USD 1.8 million for the third quarter compared to USD 11.5 million for the second quarter. Second quarter results included other income related to the forgiveness of a loan provided by the US government under the C.A.R.E.S. Act. Excluding this item, EBITDA decreased by USD 5.2 million. This decrease can primarily be attributed to higher electricity prices and lower production caused by the completion of planned maintenance activities and a delayed restart to mitigate high electricity prices.

Silicon gas sales volumes for the third quarter were 728 MT compared to 819 MT during the prior quarter. Total polysilicon sales volumes for the quarter were 397 MT and polysilicon inventories decreased by 101 MT.

In addition, the Company reported USD 13.4 million in profit from discontinued operations during the third quarter due to the settlement of the indemnification loans on October 18, 2021. This transaction also resulted in a decrease in liabilities of USD 13.9 million to USD 10.8 million at September 30, 2021.

REC Silicon reported cash balances of USD 126.3 million on September 30, 2021 compared to USD 123.6 million on June 30, 2021.

“The semiconductor market continues to strengthen from a demand perspective, but our results were unfortunately impacted by high power prices and challenges caused by the global supply chain backlog.

REC Silicon is pleased with the successful resolution of the indemnity loans, which reduced the Company’s debt and removed the remaining uncertainties associated with legacy obligations,“ said Tore Torvund, CEO.

For more information, please see the attached first quarter 2021 report and presentation.

The company will host conference call to present the results at 8:00am CET. Following the presentation, it will be opened for questions from the audience. The presentation will be in English. To join the videoconference, use the following link.
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211020_1

Audiocast participants need to register to post questions.

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: RECSI), the Company is headquartered in Lysaker, 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 2021 report
• REC Silicon Q3 2021 presentation