REC 4Q Net Profit NOK783 Million, Sees Price Pressure In 2011

Renewable Energy Corp. (REC.OS) Wednesday reported a 4Q net profit of NOK783M compared with a 4Q 2009 net loss of NOK1.05B, and said the company's average selling prices for polysilicon, wafers and modules are expected to decline approximately 5% from 4Q 2010 to 1Q 2011.

MAIN FACTS:

-Revenue was NOK4.87B vs NOK2.68B.

-Ebitda was NOK1.84B vs NOK595M.

-Ebit was NOK1.13B vs loss NOK1.12B.

-Industry analysts are expecting a 30%-40% polysilicon supply growth from 2010 to 2011. The potential for slower demand growth together with increase in supply is expected to result in downward price pressure during 2011.

-For 2011, REC Silicon is expecting Siemens and granular polysilicon production to reach approximately 17,000 MT (up from 16,000 MT) and silane gas sales volume to reach 2,150 MT. For 1Q, Siemens and granular polysilicon production is estimated to approximately 4,000 MT. Due to normal seasonal fluctuations in demand, silane gas sales volumes are expected to decrease to approximately 320 MT in 1Q 2011.

-REC Wafer is expecting multi and mono wafer production of approximately 1,650 MW in 2011. 1Q 2011 multi and mono wafer production is estimated to approximately 350 MW.

-REC Solar is expecting module production of approximately 750 MW, of which 100 MW contract manufacturing in 2011. 1Q 2011 module production is estimated to approximately 170 MW including contract manufacturing.

-By Niclas Rolander, Dow Jones Newswires; [phone]; [e-mail]