Norway-based polysilicon manufacturer REC Silicon recorded a net loss of $14.7 million during the second quarter (Q2) of 2023, a year-over-year (YoY) improvement of 37.7% from a loss of $23.6 million.

The improvement was attributed to the improved silicon gas sales during the quarter.

The company recorded a revenue of $36.7 million, a YoY decrease of 18.4% compared to $45 million, as polysilicon prices continued to drop in the second quarter.

Revenue, however, increased from Q1 due to greater sales of silicon gas and increased prices for semiconductor-grade poly.

The EBITDA loss was put at $8.5 million, from a loss of $1.1 million YoY.

The company said that despite these challenges, the EBITDA for the quarter, while in the negative territory, showed substantial improvement compared to the previous quarter.

The semiconductor division has made a favorable EBITDA impact, influenced by greater quantities sold and reduced energy costs during the seasonal period.

The market for Semi Silicon Gas is showing signs of stabilization, while photovoltaic polysilicon continues to exhibit weakness.

During Q2, silicon gas sales saw a significant boost, with 849 metric tons shipped, a 32.7% volume increase compared to Q1. However, the sales price saw a 13.3% drop.

In the photovoltaic polysilicon market, Q2 witnessed a significant price decrease. Prices in China plummeted by 500% YoY and about 300% from Q1. Outside China, the decline was milder, with prices dropping by roughly 22.5% in Q2 compared to Q1.

1H 2023

During the first half (1H) of 2023, REC Silicon registered a net loss of $49.1 million, a YoY improvement of 51.5% from a loss of $32.4 million.

The company recorded a revenue of $65.8 million, a slight decline of 17.3% YoY compared to $79.6 million.

EBITDA was recorded at a loss of $31.5 million, a massive decrease of 1,360% YoY.

“The demand for our products from the semiconductor market appears to be approaching a stabilized bottom; however, excessive inventories of some gases and materials still need to be removed from the value chain. We continue to monitor the situation and look towards a potential recovery in 2024,” said Kurt Levens, CEO.

The company’s net loss widened to $34.4 million for Q1 of FY 2023 compared to the net loss of $8.6 million YoY.

Earlier, REC Silicon had joined hands with Violet Energy Corporation to develop an integrated solar manufacturing supply chain.