Norway-based Renewable Energy Corporation (REC) has reported first quarter 2013 revenues of NOK1,278 million (US$217 million), down 24% compared to revenues in the fourth quarter of 2012.
REC experienced improved demand for solar panels in first-quarter 2013 compared to the second half of 2012. The slowdown observed in the largest solar markets in Europe is being offset by growth in other markets, in particular in Asia. Despite the recent price stabilization, global production capacity is still excessive throughout the solar value chain, and a significant demand growth or supply reduction is required to improve pricing.
Sales and production volumes were reduced in the first quarter after temporary capacity shut downs in both silicon and solar, said the firm. REC's selling prices for solar panels were down 4% from the previous quarter while average blended polysilicon prices declined 9%, mainly due to reduced prices and sales volume of electronic grade polysilicon. REC managed to reduce its solar panel cost further in the quarter, while Fluidized Bed Reactor (FBR) costs were negatively affected by high maintenance costs and the temporary shutdown of the Silicon I Siemens reactors.
Net loss was NOK209 million, compared to a loss of NOK2,170 million in the fourth quarter of 2012, added the firm.
"The market conditions continue to be demanding for the entire solar industry, although prices have stabilized recently. REC continues to focus on improving our operations and on technology development in order to cut costs further, while reinforcing our market position globally. In the first quarter, the solar organization has demonstrated its strength and adaptability by shifting sales away from stagnating Europe markets to high growth solar markets in Asia," said Ole Enger, CEO and president of REC.
