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UPDATE 1-Rec Silicon Q2 pretax loss bigger than expected, needs capital to China JV
July 20, 2017 / 5:56 AM / a month ago

UPDATE 1-Rec Silicon Q2 pretax loss bigger than expected, needs capital to China JV

(Adds more details)

July 20 (Reuters) - Rec Silicon Asa:

* Rec silicon q2 revenues $ 61.4 million (Reuters poll $63 million) vs $71.1 mln in Q2 2016

* Rec silicon q2 ebitda $1.3 million (Reuters poll $0.3 million) vs $-14.3 mln in Q2 2016

* EBITDA Includes $2.5M Collection of Reserved Accounts Receivable

* Rec silicon pretax loss $48.3 million (Reuters poll loss $26.2 million) vs $-39.1 mln in Q2 2016

* Includes Q2 net currency losses of $17 mln vs a gain of $8 mln in q2 2016

* Net currency gains and (losses) relate primarily to internal loans

* Progress on Yulin joint venture plant in China continues as planned

* Continues to negotiate deferral of remaining $169 million capital contributions until after 2018 to keep its ownership of 49 pct

* China Yulin jv facility expects to start up first silane unit and FBR reactors in q4 2017

* The second silane unit at the Yulin plant is scheduled to start up in Q1 2018

* Rec silicon targets 2017 polysilicon production of 12,500 mt versus previous guidance of 12,320 mt, sees 3,070 mt in Q3

* Includes operation of the FBR facility in Moses Lake at approximately fifty percent capacity utilization throughout 2017 due to restricted access to markets in China caused by the solar trade war between China and the United States

* Rec silicon repeats targets 2017 FBR cash production costs of $11.0/kg, sees $11.5/kg in q3

* Silicon gas sales volumes for quarter were in line with expectations at 808 mt. Second quarter polysilicon production of 2,960 MT was slightly below guidance given at the previous quarter

* According to external sources end use PV demand has remained stable from previous estimates in a range of 78GW to 81GW

* Current estimates continue to reflect increasing consensus that demand for 2017 will result in modest growth compared to 2016 despite estimates early in 2017 predicting a possible retraction in annual installations Source text for Eikon: Further company coverage: (Reporting By Ole Petter Skonnord)

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