Despite the revenue fall from the previous quarter, REC reported a cash balance of $80.9 million as of March 31st 2017, a $15.2 million increase from December 31st 2016.
REC’s polysilicon production was in line with guidance, at 3,127 MT, with polysilicon sales volume of of 2,509 MT – meaning an inventory increase of 618 MT. Cash cost for fluidized bed reactor production also came in below expectations, at $10.70/kg. The company was able to increase its sales price for solar grade polysilicon by 9.5%, slightly above a wider spot market price increase of 9%, against the previous quarter.
“Our low FBR cash cost continues to show the strength of our employees and technology,” states CEO Tore Torvund. “We will continue to capitalize on these two assets to maintain liquidity and to remain a low-cost leader in the polysilicon industry.”
REC added that construction is ongoing at its Yulin joint venture plant, and that the plant is expected to come online in the second half of this year. REC is still engaged in negotiations over the possible deferral of its remaining $169 million capital contributions until after 2018.
In a presentation accompanying the financial statements, REC outlines expectations for strong global demand from the PV industry up until 2021, and a more balanced year compared to 2016, with demand from India, Europe and the Americas offsetting any slowdown from China.