REC Silicon

Earnings Release • Aug 15, 2023

REC Silicon - Second quarter 2023 results

REC Silicon - Second quarter 2023 results

Oslo, Norway -- August 15, 2023: REC Silicon ASA (REC Silicon or Company)

reported second quarter 2023 revenues of USD 36.7 million compared to USD 29.1

million in the first quarter of 2023. The Company also reported an EBITDA loss

of USD 8.5 million compared to an EBITDA loss of USD 23.0 million in the prior

quarter.

The Company reported EBITDA contributed by the semiconductor materials segment

of USD 10.1 million for the second quarter compared to a loss of USD 3.4

million for the first quarter. The improved EBITDA contribution is due

primarily to an increase in the volume of silicon gases sold, an increase in

the ASP of semiconductor grade polysilicon and seasonally favorable

electricity costs.

Silicon gas sales volumes for the second quarter were 849 MT compared to 640

MT during the prior quarter. Total polysilicon sales volumes for the second

quarter were 184 MT.

REC Silicon reported cash balances of USD 15.0 million on June 30, 2023,

compared to USD 49.1 million on March 31, 2023. The decrease in cash was

primarily a result of operating cash outflows of USD 22.4 million and capital

expenditures of USD 42.2 million.

"The demand for our products from the semiconductor market appears to be

approaching a stabilized bottom, however excessive inventories of some gases

and materials still need to be removed from the value chain. We continue to

monitor the situation and look towards a potential recovery in the 2024 time

period. Despite these headwinds, EBITDA for the quarter, although negative,

was significantly improved from last quarter. The Moses Lake restart is

targeted for November 1st and all efforts are progressing well, on budget and

are on schedule. More information is expected to be released soon concerning

the Moses Lake Polysilicon offtake contract and our latest financing efforts"

said Kurt Levens, CEO.

For more information, please see the attached second quarter 2023 report and

presentation.

The company will host a live webcast to present the results at 8:00am CET. The

webcast of the presentation can be accessed at www.recsilicon.com or with the

following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230815_2/

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

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

Audiocast participants need to register to post questions.

Contacts

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Jack Yun

CFO

Email: jack.yun@recsilicon.com

Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@recsilicon.com

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.

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

This information has been submitted pursuant to the Securities Trading Act §

5-12 and MAR Article 19 no. 3. The information was submitted for publication

at 2023-08-15 07:00 CEST.