Brief: Rec Silicon: Underlying EBITDA From Semiconductor Materials Has Improved Markedly

Rec Silicon ASA

15/11/2023 06:16

Nov 15 (Reuters) - REC Silicon ASA  RECSI.OL :
    * CONTINUING WEAKNESS IN SEMICONDUCTOR SEGMENT AND SOLAR PV
MARKET
    * OUR UNDERLYING EBITDA FROM OUR SEMICONDUCTOR MATERIALS HAS
IMPROVED MARKEDLY
    * ANTICIPATES THAT FIRST SILICON PRODUCTION WILL OCCUR THIS
MONTH
AND FIRST SHIPMENTS OF PRODUCT WILL OCCUR IN Q1 2024
    * REPORTED CASH BALANCES OF USD 121.7 MILLION ON SEPTEMBER
30,
2023, COMPARED TO USD 15 MILLION ON JUNE 30, 2023
    * INCREASE IN CASH WAS PRIMARILY A RESULT OF CASH INFLOWS
FROM
ADDITIONAL TERM DEBT
    * SILICON GAS SALES VOLUMES FOR Q3 WERE 754 MT COMPARED TO
849 MT
DURING PRIOR QUARTER
    * TOTAL POLYSILICON SALES VOLUMES FOR Q3 WERE 199 MT.
    * LOWER EBITDA CONTRIBUTION IS DUE PRIMARILY TO A DECREASE
IN
SILICON GAS SALES VOLUMES
    * ANALYST CONSENSUS IS THAT THE MARKET WILL HOLD AT  LOWER
LEVELS
FOR A COUPLE OF QUARTERS BEFORE RECOVERY IN 2024
    * WHILE 2023 IS PROJECTED TO BE A DOWN YEAR  IN
SEMICONDUCTOR
DEMAND, 2024 IS PROJECTED TO SHOW RECOVERY
    * EXPECTATIONS ARE THAT THE RECOVERY WILL LEAN MORE TOWARDS
THE
SECOND  HALF OF 2024
    * LONGER TERM, THE MARKET GROWTH IS STILL PROJECTED TO
FOLLOW  THE
HISTORICAL AVERAGE OF AROUND 6%

Source text for Eikon:  ID:nMFN3r6H9l 
Further company coverage:  RECSI.OL 

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