U.S.-based producer of advanced silicon materials REC Silicon recorded revenue of $34.6 million in Q1 2022, a year-over-year (YoY leap of 23% from $28.1 million in the same period last year, and a quarter-over-quarter (QoQ) decline of 20% from $43.2 million in the previous quarter.
The company said that the YoY rise in revenue was due to increased shipments of semiconductor grade polysilicon that totaled 188 metric tons (MT), a YoY increase of 37.2% from 137 MT shipments last year.
REC Silicon is negotiating terms with multinational energy services provider Hanwha Solutions and Hanwha Corporation to undertake offtake contracts for polysilicon and silane gas. The company aims to restart its Moses Lake production with a 50% capacity utilization target by the second quarter of 2024.
The CEO of REC Silicon, James A. May II, asserted, “The restart of production directly results from Hanwha’s commitment to REC Silicon. We look forward to the value of REC Silicon’s unique position with respect to solar energy materials, battery materials opportunities, and semiconductor markets. We are currently discussing supplying Hanwha Solutions with polysilicon and Hanwha Corporation with silane gas.”
The company’s polysilicon sales volumes totaled 764 MT, down YoY by 2.1% from 781 MT, and up QoQ by 1.8% from 750 MT in Q4 2021.
REC Silicon’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) amounted to $3.6 million in Q1 2022, a YoY fall of 10% from $4 million last year. The EBITDA from the semiconductor materials segment totaled $10.7 million, a QoQ rise of 15% from $9.3 million in the quarter ago.
The company attributed higher product sales rates and lower electricity costs to the improved EBITDA.
The polysilicon production of REC Silicon totaled 372 MT in Q1 2022, a YoY surge of 30% from 293 MT, and a QoQ rise of 18% from 316 MT in the previous quarter. However, polysilicon sales volume decreased to 267 MT in the quarter, down YoY by 3% from 274 MT and down QoQ by 44% from 481 MT of polysilicon sales in the quarter ago.
In the fourth quarter of the previous fiscal, REC Silicon’s polysilicon prices surged in the initial part of the quarter by 10% to about $36.8/kg. It ended the quarter with $30.5/kg as demand in the year-end fell and wafer producers reduced inventory.
In 2020, REC Silicon and Violet Energy Corporation joined hands to develop an integrated domestic solar manufacturing supply chain. REC Silicon had invested over $1.7 billion in a facility employing its proprietary silane gas-based fluidized bed reactor for granular polysilicon.