REC Silicon

Earnings Release • Nov 16, 2022

REC Silicon - Third quarter 2022 results

REC Silicon - Third quarter 2022 results

Moses Lake, Washington USA -- November 16, 2022: REC Silicon ASA (REC Silicon)

reported third quarter 2022 revenues of USD 36.7 million compared to USD 45.0

million in the second quarter of 2022. The Company also reported an EBITDA

loss of USD 13.8 million compared to an EBITDA loss of USD 1.1 million in the

prior quarter.

The Company reported EBITDA contributed by the semiconductor materials segment

of a loss of USD 5.3 million for the third quarter compared to USD 7.5 million

for the second quarter. The decrease in EBITDA is due primarily to record high

energy costs, a large, planned maintenance shutdown, and weaker Flat Panel

production effecting silane shipments, compared to the second quarter of 2022.

Silicon gas sales volumes for the third quarter were 586 MT compared to 852 MT

during the prior quarter. Total polysilicon sales volumes for the quarter were

389 MT and polysilicon inventories decreased by 27 MT.

REC Silicon reported cash balances of USD 146.8 million on September 30, 2022,

compared to USD 173.0 million on June 30, 2022. The decrease in cash was

primarily a result of operating cash outflows of USD 7.4 million and capital

expenditures of USD 14.6 million.

Although the earnings for this quarter are disappointing due to reduced gas

shipments, record high energy costs, and a complex non-recurring planned

production shut down, the long-term megatrends remain in place for REC Silicon

to be in a strong position for long term success with the correct product mix,

locations and accessible production capacity. The Energy Transformation,

Digital Revolution and Supply Chain security trends continue to balance in

favor of our capabilities. Re-shoring of Advanced Semiconductor fabrication is

on-going, plans and details for re-shoring of the PV Value chain are emerging,

Silicon anode material providers are moving closer to actualizing on the

opportunity. Restart activities at our Moses Lake facility continue

on-schedule and we continue to work through all of the relevant details. Said

Kurt Levens, CEO.

For more information, please see the attached third quarter 2022 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 and the following Q&A session will be in English.

To join the videoconference, use the following link.

https://channel.royalcast.com/landingpage/hegnarmedia/20221116_4/

Audiocast participants need to register to post questions.

Contacts

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Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@crux.no (mailto:nils.kjerstad@crux.no)

About Us

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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.

This information is subject to disclosure under the Norwegian Securities

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

2022-11-16 07:00 CET.

Attachments

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REC Silicon Q3 2022 Report

(https://storage.mfn.se/84ba3a70-463d-4823-8b15-2ed2df5fb6a4/rec-silicon-q3-2022-report.pdf)

REC Silicon Q3 2022 Presentation

(https://storage.mfn.se/5ed435a9-f979-40e8-8aac-fbd7e816daa6/rec-silicon-q3-2022-presentation.pdf)