Q4 2024 REC Silicon ASA Earnings Call Transcript
Key Points
- REC Silicon ASA (RNWEF) increased silicon gas sales by 5% in the fourth quarter, indicating growth in this segment.
- The company secured a $40 million loan from Hanwha to support restructuring activities, providing financial stability.
- DCS and MCS volumes grew significantly by 48% and 37% respectively over the previous quarter, showcasing strong performance in these areas.
- REC Silicon ASA (RNWEF) is transitioning to focus on silicon gases, which historically have better margin opportunities and less price volatility.
- The company is actively engaged with multiple potential customers for silicon anodes, indicating potential future growth opportunities.
- REC Silicon ASA (RNWEF) reported an EBITDA loss of $5.3 million due to the shutdown of the Moses Lake facility.
- The company faced challenges with product quality and consistency, leading to unsuccessful qualification tests.
- There is uncertainty regarding the timeline for reopening the Moses Lake facility as a silicon gas producer.
- REC Silicon ASA (RNWEF) is operating with a high ratio of fixed costs, impacting financial performance.
- The company has not provided specific guidance on cash flow, cost reductions, or revenue targets for the next two years, creating uncertainty for investors.
Welcome to REC Silicon's fourth quarter, 2024 earnings call. My name is Kurt Levens and I am REC Silicon's CEO. I am joined today by Jack Yun, Silicon's CFO. Today, we will report on REC Silicon's fourth quarter, 2024 earnings. Now turning to the agenda for today's call first, we will talk through a few highlights from the fourth quarter. We'll then discuss our near-term strategic plans as we enter 2025. And finally, we will summarize our discussion points and have Q&A.
Spurts and overview of some highlights and updates from the fourth quarter. During the fourth quarter, revenues from continuing operations totaled $29.7 million driven by an increase in silicon gas sales and planned sales of polysilicon inventory. EBITDA loss from continuing operations was $5.3 million primarily affected by the shutdown of our facility. As you know, during the fourth quarter, we made the decision to discontinue the production of polysilicon at our Moses Lake facility.
Following that decision, we successfully secured financing to
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