REC Silicon

Earnings Release • Jul 15, 2015

REC Silicon ASA - Second quarter 2015 results

REC Silicon ASA - Second quarter 2015 results

Fornebu, Norway - July 15, 2015: REC Silicon ASA (REC Silicon) reported second

quarter revenues of USD 93.0 million, compared to USD 74.4 million in the

previous quarter. The corresponding EBITDA during the second quarter was USD

5.8 million compared to USD 24.8 million in the previous quarter. The decrease

in EBITDA can be attributed to lower sales prices.

Second quarter production remained strong with total polysilicon production of

5,071 MT. The company also realized improved FBR cash cost of $11.0/kg, compared

to guidance of $11.5/kg.

Finished goods inventory increased by 1,248 MT, compared to 2,818 MT in the

previous quarter. The inventory built in Q2 will be sold in Q3.

Silicon gas sales volumes in the second quarter were strong, at 989 MT, beating

previous guidance of 700 MT. However, silicon gas prices declined in the second

quarter by approximately 21% due to sales contracts that were entered into in

order to regain market opportunities that were previously lost due to the West

Coast port shut-down. Despite the silicon gas price decline in the second

quarter, third quarter silicon gas prices are expected to rebound to first

quarter levels.

The joint venture in China remains on track for start-up in 2017 and

construction has begun in Yulin. However, in order to conserve cash, the

expansion effort in Moses Lake, WA of Reactors 25 and 26 has been halted.

REC Silicon also announced today a reduction of roughly half of its production

capacity in Moses Lake, WA USA with the shut-down of the Silane III production

unit for the remainder of 2015. This reduction in production capacity is the

result of the significant effect on REC's ongoing ability to sell solar grade

polysilicon in China due to the unresolved trade dispute between the United

States and China.

Tore Torvund, REC Silicon's CEO said, "In spite of being the world's lowest cost

producer of solar grade polysilicon, we are no longer able to access the Chinese

market without a 57% duty. None of our global competitors outside of the US face

this duty, so it is only adversely affecting the two US polysilicon producers

that were previously accessing China. We have experienced very real consequences

from this ongoing trade war, and it is hard to see that it will be resolved

without mutual agreement from both the US and China. Regrettably, due to the

effects of the trade dispute, in order to adapt to the present situation, we

have decided to undertake roughly 50% reduction in the production capacity in

Moses Lake for the rest of the year.  However, we can be ready to resume

production if the trade dispute is resolved in the coming months."

The capacity reduction is expected to impact 2015 FBR production by 2,030 MT.

REC Silicon intends to perform inspections of equipment and preventative

maintenance on the Silane III unit during the time it is shut-down.

Second quarter 2015 report and presentation attatched.

Morning Program Thursday 16 July,

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

the following link "Webcast REC Silicon Q2 2015 presentation".

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 scheduled start time on

one of the following numbers:

Norway: +47 2350 0486

UK: +44 (0)20 3427 1900

USA:  +1 646 254 3360

Other international: +44 20 3427 1900

Please provide confirmation code 1177690 and state your name, company and

country of residence.

Afternoon Program Thursday 16 July,

REC Silicon will host an analyst conference call at 3:00 p.m. CET. Please make

sure to dial in at least 5-10 minutes ahead of time to complete your

registration.

Norway: +47 2350 0486

UK: +44 (0) 20 3427 1900

USA:  +1 212 444 0481

Other international: +44 20 3427 1900

Please provide confirmation code 2693675 and state your name, company and

country of residence.

For further information, please contact:

Chris Bowes, Investor Relations

REC Silicon ASA

Phone: +1 509 793 8127

Email: chris.bowes@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 25 years of experience and proprietary technology with the

needs of our customers, and 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 Moses Lake, Washington

and employs approximately 720 people.

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

This information is subject of the disclosure requirements acc. to §5-12 Vphl

(Norwegian Securities Trading Act)

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