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REC went from profit to loss in 2009

Renewable Energy Corporation ASA (REC) reports a full year loss of NOK 2482 million in 2008 compared to a profit of NOK4379m in 2008.

The loss came despite a 12% increase in revenue to NOK9156m.


For the fourth quarter, REC recorded a loss of NOK 1218m compared to a profit of NOK1581m in Q4 2008. Q4 revenues, were, as the full year revenues, up 12% and amounted to NK2676m.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK567m, down 39.4%. REC says the main reasons for the decline in EBITDA and margin are reduced prices and negative contribution from ramp-up of new plants.


In its outlook for 2010, REC comments on 2009 saying: “Market development in the PV solar market was weak in 2009 compared to previous years, as increased product supply coincided with reduced demand growth due to a general economic slowdown, lower availability of capital for installations of PV systems, and adverse effects of changes in renewable policies in key markets.”

REC says further that global solar module demand will be in the lower part of industry analysts’ relatively wide estimate range of 7-10 GW.

REC expects that the many new production lines coming into commercial operation in 2010 will negatively affect margins during ramp-up. The combined effect of expansion costs and ramp-up is expected to amount to NOK600m in 2010.

“EBITDA in the first quarter 2010 is expected to be significantly lower than the first quarter 2009,” REC warns.


At the time of writing, the shareprice for REC had fallen 17.20% to NOK26.55 since trading started on 10 February on the Oslo Stock Exchange.

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Photovoltaics (PV)  •  Policy, investment and markets