REC - ANNUAL REPORT 2018.


http://hugin.info/136555/R/2241573/884230.pdf

BUSINESS ACTIVITIES
REC Silicon ASA was established in Norway on December 3, 1996.
The Company is headquartered in Fornebu, Norway.
REC Silicon is a global leader in silane-based, high-purity silicon
materials, delivering high-purity polysilicon and silicon gases to the solar
and electronics industries.
REC Silicon operates manufacturing facilities in Moses Lake,
Washington and Butte, Montana in the USA. REC Silicon’s subsidiaries
include: REC Silicon Inc., REC Solar Grade Silicon LLC, and REC Advanced
Silicon Materials LLC in the United States. REC Silicon’s sales and
marketing activities for sales of solar grade polysilicon, semiconductor
grade silicon and silicon gases are carried out in China, Japan, Korea,
Taiwan, Singapore, and in the United States. The Group’s investment in
associates (Yulin JV) is held by REC Silicon Pte. Ltd. in Singapore.

STRATEGY AND OBJECTIVES
REC Silicon’s strategy is to maintain its position as a low-cost leader
and technological innovator in the silicon materials industry.
REC Silicon intends to improve its competitive position by:
• Maintaining liquidity (retain cash)
• Minimizing the impact of Chinese Tariffs on US Polysilicon
(Prioritize the development market opportunities outside China)
• Focusing on cost control - match activities and spending to
production
• Managing inventories by adjusting production capacity utilization
• Focusing on continued quality improvements
• Optimizing semiconductor polysilicon product offerings
• Providing support for the Yulin JV

2018 HIGHLIGHTS (COMPARED TO 2017)
> Cash Balance of $31.8 million at December 31, 2018
• Cash Decrease of $72.7 million in 2018
• Net Reduction in Long-Term Debt $61.4 million
• Cash Outflows from Operations of $10.1 million
• EBITDA Loss of $4.9 million
• Working Capital Decrease of $11.0 million
• Interest Payments of $14.4 million
• JV Equity Settlement Payment of $2.7 million
(Including interest of $0.5 million)
• Tax Refund of $0.7 million
> Revenues of $221.2 million and EBITDA Loss
of $4.9 million
• Compared to 2017 Revenues of $272.4 million
(18.8% Decrease)
• Compared to 2017 EBITDA of $19.8 million
> Silicon Gas Sales Volumes of 3,600MT
• Compared to 2017 Sales Volumes of 3,501MT
(2.8% Increase)
• 2.3% Decrease in Average Silane Gas Prices
> Polysilicon Sales Volumes of 7,784MT
• Compared to 13,503MT in 2017 (42.4% Decrease)
• Average Prime Granular Polysilicon Price Increase
of 12.3%
• Prime Granular Polysilicon Price Decrease of
40.5% Compared to Year End 2016
• Polysilicon Inventory Increase of 1,496MT
• Continued Impact of Chinese Tariffs on US Polysilicon
• FBR Capacity Curtailments to Manage Inventory Levels
• High Discounts to Maintain Market Share Outside of China
> Polysilicon Production Volumes of 9,280MT
• Compared to 11,636MT in 2017 (20.2% Decrease)
• FBR Production of 7,584MT Compared to 9,380MT
in 2017
• Restricted Access to Polysilicon Markets in China
Continues to Limit FBR Capacity Utilization
> FBR Product Costs of $12.2/kg at ~38%
Capacity Utilization
• Compared to $10.6/kg in 2017 ~50% Capacity
Utilization
• Continue to Reduce Costs to Offset Lower Production
Volumes
> Yulin JV Start-up
• ~5,400MT FBR Polysilicon Produced in 2018
• Production of Electronic Grade Siemens
Polysilicon Demonstrated
• Silane Units and FBR Reactors Have
Demonstrated Design Capacities

😎> On April 9, 2019 the Company Announced the
Curtailment of Production at the FBR Facility in Moses
Lake, Washington beginning as of May 15, 2019
KAWAS
15.05.2019 kl 09:48 356

Det er riktig at det gjøres store avtaler mellom batteriprodusenter og bilprodusenter for tiden. Jeg hørte på radioen forøvrig at VW satser delvis på egen batterirpoduksjon og setter av 700 ansatte til utviklingsarbeid (tysk radio i dag).

Men, jeg tenker at dersom man løser problemet med silisiumanoder vil dette kunne forbedre dagens batterier betraktlig etter det man kan lese, og det er her RECs mulighet ligger, muligheter stort potensial.

På den annen side, muligheter er ikke nok, man må kunne evne å utnytte de også, så jeg finner det legitimt å stille kritiske spørsmål om dagen ledelse er den riktige.