REC Silicon

Earnings Release • Aug 8, 2024

REC Silicon - Second quarter 2024 results

REC Silicon - Second quarter 2024 results

Oslo, Norway -- August 8, 2024: REC Silicon ASA (REC Silicon or Company)

reported second-quarter 2024 revenues of USD 37.7 million compared to USD 42.1

million in the first quarter of 2024. The Company also reported an EBITDA loss

of USD 38.2 million compared to an EBITDA loss of USD 31.5 million in the

prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment

of USD 7.0 million for the second quarter compared to USD 2.8 million for the

first quarter of 2024. The higher EBITDA contribution was positively affected

by an increase in the silicon gas sales price. However, the second quarter of

2024 was also impacted by lower sales volumes of both silicon gas and

polysilicon, related to weakness in PV solar manufacturing and semiconductor

wafer inventories.

Silicon gas sales volumes for the second quarter were 654 MT compared to 850

MT during Q1 2024. Total polysilicon sales volumes for the second quarter were

187 MT.

REC Silicon reported cash balances of USD 37.6 million on June 30, 2024,

compared to USD 101.1 million on March 31, 2024. The decrease in cash was

primarily a result of cash outflows from restarting activities at the Moses

Lake facility.

"We are methodically working towards resolving the downstream issue related to

impurity addition to our granular in Moses Lake. Our cross-functional team of

experts continues the implementation of improvements in a prioritized fashion

with a focus on the most expedient resolutions. As stated before, it is not a

question of whether this one issue can be resolved, but rather when it will be

resolved. The first shipment of granular in mid-September is still our target

and primary focus. In Butte, we have stopped commercial production of our

electronic-grade polysilicon aligned with our communicated exit plan to focus

on silicon gases and increasing profitability. Our capex spending level will

decrease significantly in the coming quarters. For PV, significant Chinese

overcapacity and trade actions have created a challenging environment for at

least the next several quarters, affecting silane and polysilicon demand in

this segment. However, our long-term granular offtake contract, silicon gases

product mix, and semiconductor business will provide some measure of stability

to the Company overall. Potential supply to silicon anode material producers

continues to represent an opportunity for us and we remain in constructive

dialogue with several potential partners. Our focus and main priority is to

make our first shipment of high purity granular polysilicon and fulfill our

contractual commitment to our offtake partner", said Kurt Levens, CEO.

For more information, please see the attached second-quarter 2024 report and

presentation.

The Company will host a digital presentation of the results today at 8:00 a.m.

CEST. The presentation can be accessed at www.recsilicon.com or with the

following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20240510_2/

Following the presentation, it will be opened for questions from the audience.

Webcast participants need to register to post questions.

The presentation and the following Q&A session will be in English.

Contacts

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Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@recsilicon.com

About Us

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REC Silicon is a global leader in silane based high purity silicon materials.

We combine 40 years experience and best-in-class proprietary technology to

deliver on customer expectations. Our two U.S. based plants have a combined

production capacity of more than 30,000 MT of high purity silane gas. Our

Signature Silane® based products are used in everyday quality of life

technologies, emerging technologies, cutting edge power and memory devices,

high-voltage transmission, as well as renewables. REC Silicon is headquartered

in Lysaker, Norway and listed on the Oslo stock exchange under the ticker:

RECSI.

For more information, go to: www.recsilicon.com

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2024-08-08 07:00 CEST.