Norwegian solar company Renewable Energy Corporation ASA (REC.OL) reported strong Q4 revenues.
The company said its Q407 revenue increased 42% from Q406 to NOK 1,320 million. FY07 revenue increased 53% to NOK 6,642 million, according to a company release.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 848 million in Q407, which was an increase of 25% from NOK 676 million in Q406. The EBITDA margin of 45% in Q407 compares with 51% in the same quarter last year.
For the full year 2007, REC said EBITDA increased by 61% to NOK 3,172 million, and the EBITDA margin increased by three percentage-points to 48%.
REC said embedded derivatives related to certain sales contracts were previously accounted for as hedge instruments, and changes in the fair value (losses) were thus included in the statement of recognized income and expense. At year-end 2007, these embedded derivatives were concluded not to fulfill all the formal requirements for hedge accounting, and the changes in fair value have thus been recognized in the 2007 Income Statement as a part of financial items.
A total change in fair value (loss) of NOK 642 million has been recognized in 2007, of which NOK 55 million relate to the fourth quarter 2007. Previous quarters of 2007 have been restated accordingly. These non-cash losses will be reversed in the Income Statement over the contract periods, the company said.
Including these effects, profit before tax was NOK 616 million in the fourth quarter 2007, compared to NOK 510 million in the fourth quarter 2006. Profit before tax for the full year 2007 was NOK 1,977 million, compared to NOK 744 million in 2006.
Earnings per share were NOK 0.84 in Q407 and 2.70 FY07. This compares to NOK 0.68 in Q406 and NOK 1.03 for FY06, on both a basic and diluted basis.
About REC
REC is one of the most integrated companies in the solar energy industry. REC Silicon and REC Wafer are the world’s largest producers of polysilicon and wafers for solar applications. REC Solar produces solar cells and solar modules. REC Group had revenues in 2007 of NOK 6,642 million and an operating profit of NOK 2,588 million. Please also see
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