Norway-based polysilicon manufacturer REC Silicon reported revenue of $37.7 million for the second quarter (Q2) of 2024, a slight increase of 2.7% from $36.7 million in Q2 2023.

The company recorded an EBITDA loss of $38.2 million, primarily due to startup costs associated with the Moses Lake facility. The 349% year-over-year (YoY) loss is significantly higher than the $8.5 million loss in Q2 of 2023.

The net loss before tax was $50.7 million, an increase of 244% YoY compared to a loss of $14.7 million in the same period last year.

The company faced challenges due to oversupply in the photovoltaic industry and trade actions affecting silane volumes.

The cash balance decreased by $63.5 million during the quarter, ending at $37.6 million on June 30, 2024. This was primarily due to capital expenditures related to the Moses Lake restart.

Nominal net debt increased to $313.9 million, reflecting the decrease in cash and changes in lease liabilities.

Operational Highlights

The restart of its Moses Lake facility contributed to increased costs, impacting the company’s financial performance. The facility is expected to reach full production capacity by 2024.

At the end of the quarter, polysilicon production at one of its other facilities, the Butte facility, was halted.

Sales volumes for silicon gas decreased by 23% compared to the first quarter of 2024, although prices increased by 16.5%.

REC Silicon is benefiting from U.S. government initiatives, including the CHIPS Act, which supports domestic manufacturing and aims to protect against Chinese imports.

The company anticipates continued challenges in the PV market but expects stable demand for semiconductor gases. It is also in discussions with silicon anode material producers, with anticipated resolutions by the end of the year.

The company reported a revenue of $40.5 million in the fourth quarter of 2023, a 28% YoY rise from $31.6 million, driven by strong performance in the semiconductor business.

In Q3 2023, REC Silicon’s revenue fell 5% on lower polysilicon prices influenced by an expansion of polysilicon plants in China, leading to oversupply and inventory growth.