REC Silicon

Earnings Release • Jul 19, 2018

REC Silicon - Second quarter 2018 results

REC Silicon - Second quarter 2018 results

Fornebu, Norway - July 19, 2018: REC Silicon ASA (REC Silicon) reported second

quarter 2018 revenues of USD 58.9 million, down from USD 69.6 million in the

previous quarter. The corresponding EBITDA during the second quarter was a loss

of USD 9.6 million compared to a positive USD 14.6 million in the previous

quarter.  Polysilicon sales volume for the quarter was 2,077 MT, a 28.5 percent

decrease from the first quarter, while inventory increased by 401 MT.

REC Silicon reported a cash balance of USD 42.4 million on June 30, 2018. This

represents a decrease of USD 69.6 million compared to March 31, 2018. The

company refinanced its outstanding debt during the quarter with a net repayment

of USD 59.5 million. Cash outflows from operations was USD 7.1 million for the

quarter.

Silicon gas sales volumes for the second quarter were 918 MT, an increase of

2.4 percent compared to the first quarter. Prices were 2.1 percent higher than

first quarter. Second quarter semiconductor polysilicon production was 267 MT,

in line with guidance of 270 MT.

FBR capacity utilization was decreased to approximately 25 percent in early June

resulting in cash costs of USD 13.4/kg, compared to USD 9.40/kg in the first

quarter. FBR production was 2,078 MT, a 1,049MT decrease compared to the first

quarter.

The Yulin JV plant continued to operate at reduced capacity utilization during

the second quarter. The plant produced approximately 1,000 MT of granular

polysilicon during the quarter. Year-to-date, the plant has produced a total of

1,800 MT compared to a target of 8,000 MT for 2018.

REC Silicon reported impairment charges of USD 340.4 million due to the market

disruption from the curtailment of solar incentives in China, as well as

continued trade barriers that prevent access to primary markets inside China. As

previously announced on July 1, 2018, REC Silicon reduced its Moses Lake

workforce by approximately 30 percent.

President and CEO, Tore Torvund, said, "Although our semiconductor and silane

gas business in Butte remains strong, it is regrettable that we had to reduce

our headcount by 85 highly-skilled employees. Despite having the most advanced

polysilicon manufacturing technology; REC Silicon has no access to the largest

market for polysilicon in China due to the 57 percent duty imposed by China. We

need the United States and Chinese governments to cooperate in ending the solar

trade dispute between the two countries to prevent additional job losses and to

enhance the value of the solar industry in the United States and China."

For more information, please see the attached second quarter 2018 report.

Morning Program:

The company will give a presentation at 8:00 am CET today at Høyres Hus

Konferansesenter, Stortingsgaten 20, Oslo, Norway. The presentation will be in

English.

A live webcast from the presentation can be accessed at www.recsilicon.com or

with the following link:

http://webtv.hegnar.no/presentation.php?webcastId=92016267

It will also be possible to listen to the presentation through a conference

call. Please make sure to dial in 5-10 minutes prior to the scheduled start time

on one of the following numbers:

Norway (Tollfree/Freephone): 800 51025

Norway (Local) +47 2100 2613

United Kingdom (Tollfree/Freephone): 0800 358 6374

United Kingdom (Local): +44 (0)330 336 9104

United States/Canada (Tollfree/Freephone): 800-289-0462

United States (Local): +1 323-794-2442

Other international: +44 (0)330 336 9104

Please provide confirmation code 873909 and state your name, company and country

of residence.

For further information, please contact:

James A. May II, Chief Financial Officer

REC Silicon ASA

Phone: +1 509 989 1023

Email: james.may@recsilicon.com

Nils O. Kjerstad

IR Contact Europe

Phone: +47 9135 6659

Email: nils.kjerstad@crux.no

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.