Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on REC SILICON ASA. We currently have 10 research reports from 1 professional analysts.
|16Feb17 05:50||GNW||REC Silicon ASA - Fourth quarter 2016 results|
|09Feb17 07:02||GNW||REC Silicon - Invitation to fourth quarter 2016 results|
|19Jan17 15:30||GNW||REC Silicon - Presentation at the Pareto Securities' Power & Renewable Energy Conference|
|02Nov16 05:55||GNW||REC Silicon - Third quarter 2016 results|
|26Oct16 06:01||GNW||Invitation to REC Silicon ASA's third quarter 2016 results|
|23Sep16 05:55||GNW||REC Silicon ASA Trading Update|
|21Jul16 14:39||GNW||REC Silicon ASA - Mandatory Notification of Trade|
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REC SILICON ASA
REC SILICON ASA
Performance improved and EBIT loss reduced
16 Feb 17
The company reported Q4 16 results. Revenues increase 7.2% to US$80m and the gross margin improved from 47.5% to 73.6%. EBIT losses declined from US$59.9m to US$30.5m because polysilicon volume increased by 38.7% to 3,801mt. The company experienced a recovery in the solar market after the significant deterioration in Q3 16 caused by the expiration of the feed-in tariffs in China. Average spot prices increased by 12.7% in Q4 16 compared to Q3 16. Taking total costs of US$0.35 per watt into consideration, polysilicon only contributed US$0.08 per watt to total costs.
When the going gets tough, the tough get going!
02 Nov 16
In Q3`16 revenues dropped 41.8% to US$50.9m. EBIT losses increased from US$46.3m to US$109.8m. This also includes an impairment of US$78.5m taken against property, plant and equipment. Excluding the impairment, EBIT losses would have reached US$31.3m. Polysilicon production increased by 9% to 3,903 MT but total sales volume plummeted from 4,512 MT to 1,775 MT. Sales of silicon gas however increased by 20.2% to 772MT in the third quarter. The cash balance reached US$86.8m and will meet the working capital requirements in Q4`16.
Another profit warning
23 Sep 16
Management published a trading update. Third quarter results and fourth quarter guidance will be given on 2 November. The trading update is a clear profit warning. Due to the ongoing trade war between the USA and China, management indicated lower than anticipated sales volume. In addition, the weak photovoltaic market accelerated the decline in the third quarter. Third quarter polysilicon sales volume will only reach 1,800 tons. Revenues are expected to range between US$45m and US$50m compared to US$71.1m in the second quarter. Third quarter polysilicon production volume will reach around 3,900mt compared to 4,490mt forecasted previously. FBR production will now reach 3,300mt compared to the guidance of 3,830mt. FBR costs will remain unchanged at US$12/kg.
Wanted - higher capacity utilisation rates
22 Jul 16
Revenues in Q2 16 declined 23.5% to US$71.1m and EBIT losses widened to US$38.1m, compared to US$29.4m in Q2 16. Compared to Q1 16, revenues increased 3.2%, mainly a result of higher silicon gas sales volume of 14.8%. In Q2 16, polysilicon sales volume in MT declined 4.8% to 3,634MT but average solar grade polysilicon prices increased 9.7% quarter-on-quarter. Production, however, plummeted from 5,071MT to 1,671MT. Silicon gas sales declined around 38.3% to 610MT. According to management, demand remained stable and prices declined only 2.8% compared to the first quarter. The EBIT loss was mainly attributable to inefficiency due to capacity curtailment in Moses Lake. The company profited from extraordinary income. An electricity refund of US$5.9 was booked in other income and reached US$6.1m, compared to zero in Q2 15. The refund helped to reduce operating losses. In May, the company retired a NOK bond worth US$21.2m and improved liquidity. Total cash balance reached US$91.3m at the end of June.
Waiting for a sunny day
03 May 16
The company reported Q1 16 results. Revenues declined 7.5% to US$68.8m and EBIT losses increased from US$11.5m in Q1 15 to US$37.5m. The losses were mainly driven by the capacity curtailments in Moses Lake. In May, the company restarted the Silane III production and will start Silane IV production in June. The polysilicon sales volumes increased by 61% to 3,857 tons despite limited access to the Chinese market. Compared to Q4 15, volumes increased 41%. Average solar grade prices increased by 6% and solar spot market prices by 4%. According to management, spot prices increased due to inventory depletion and higher wafer production.
12 Feb 16
The company reported final 2015 results. As already mentioned when REC Silicon reported preliminary results, the company is fighting for survival. The key solution to overcome the difficulties is a resolution of the US/China trade war. China requires a balanced and reciprocal deal and the US needs reasonable access for its polysilicon producers.
20 Feb 17
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The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.