CORRECT: REC Group Aims To Raise NOK4.5 Billion ($712 Mln)
05 Juni 2009 - 10:39AM
Dow Jones News
Integrated solar company REC Group (REC.OS) Friday said its
markets have continued to weaken, so its solar production will
remain below capacity into the third quarter of the year.
The Oslo-listed company also said it plans to raise NOK4.5
billion ($712 million) in equity, NOK0.5 billion more than
previously stated, and has postponed the subscription period by
around three weeks to between June 29 to July 13.
"As stated in the report for the first quarter 2009, the demand
for solar products is currently weak due to the increased economic
uncertainty and low availability of financing for new investment
projects," the company said in a statement. "A lower level of solar
installations has reduced the demand and prices for solar modules,
which in turn has started to affect the supply and demand balances
and prices further up the value chain."
REC has already reduced production and made short-term layoffs
in its wafer and solar units.
The company said it will incur a NOK300 million nonrecurring hit
in the second quarter relating to costs associated with repair work
needed for malfunctioning junction boxes in its solar modules.
Looking forward, REC said its new integrated solar project in
Singapore continues to trend toward a lower capital expenditure
compared with initial investment projections due to a less heated
construction market.
The company said longer-term fundamentals in the poly-voltaic
industry remain "intact, with return on investments in solar
systems reaching record high levels."
Economic stimulus packages, especially in the U.S., are expected
to positively impact the PV market, REC said, adding that "it will
take some time before the policies implemented materialize as
increased demand."
At 0830 GMT, REC traded down NOK4.60 or 7% to NOK61.20, against
a 1.29% gain on Oslo's OSEBX index.
Company Web site: www.recgroup.com
-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 207 842 9386;
elizabeth.adams@dowjones.com