REC Silicon, a polysilicon manufacturer based in Norway, reported a revenue of $37.7 million for the second quarter (Q2) of 2024, marking a modest increase of 2.7 per cent from $36.7 million in Q2 2023. The company experienced an EBITDA loss of $38.2 million, primarily attributed to startup costs related to the Moses Lake facility. This loss represents a significant year-over-year (Y-o-Y) increase of 349 per cent compared to the $8.5 million loss recorded in Q2 2023.

The net loss before tax reached $50.7 million, reflecting a 244 per cent Y-o-Y increase from the $14.7 million loss in the same period last year. The company faced difficulties due to oversupply in the photovoltaic industry and trade actions impacting silane volumes.

During the quarter, the cash balance fell by $63.5 million, ending at $37.6 million as of June 30, 2024, largely due to capital expenditures related to the Moses Lake restart. The nominal net debt rose to $313.9 million, reflecting the decrease in cash and changes in lease liabilities.

Operationally, the restart of the Moses Lake facility led to higher costs, affecting the company?s financial performance. This facility is anticipated to reach full production capacity by 2024. Additionally, polysilicon production at the Butte facility was halted at the end of the quarter. Sales volumes for silicon gas declined by 23 per cent compared to the first quarter of 2024, despite a 16.5 per cent increase in prices.

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