REC Silicon ASA

REC Silicon reported an EBITDA loss from continuing operations of $3.7 million for the quarter. Gas shipments were higher than in Q3, but remained in the 500 to 600 range for roughly the last six quarters. Cash balance at year-end was $7.3 million, and the company borrowed $20 million in Q4; management also said $110 million of short-term loan was extended post-quarter, with an additional $10 million loan in January. For Q1 2026, silicon gases shipment targets are expected to remain in the same recent range. The company said it continues to need additional financing, and proposed a fully underwritten rights issue to raise the NOK equivalent of $100 million in new equity, with proceeds subject to shareholder approval and intended to support ongoing operations and restructuring needs.

Kurt Levens said the market environment remains difficult and characterized by oversupply, regional demand shifts, and delayed end-market capacity ramps. He noted some signs of recovery in higher-grade products and higher-value markets, but said broad recovery has not appeared, particularly in semiconductors and auto segments. Strategically, he emphasized defending market share, winning qualifications at new facilities, reducing the cost of optionality at Moses Lake, and high-grading the Butte portfolio.

The call highlighted tight liquidity and ongoing cash use. Management said Moses Lake consumed about $3.9 million of negative cash in the quarter, tied to keeping the asset safe and reliable while preserving restart optionality, including labor, energy, and other input contract costs. The company ended the year with $7.3 million of cash, borrowed $20 million in Q4, and also noted interest as the largest outflow. Management said debt maturities remain a major issue this year and that the company needs additional financing to meet debt service and anticipated operating cash flow requirements.

Analysts focused on Moses Lake cash burn, asking why the site is still consuming cash; management explained that the roughly $3.9 million quarterly outflow reflects the cost of maintaining safe and reliable operations and preserving future restart optionality. Questions also centered on financing alternatives and whether the rights issue is the only path; management said the Board considered multiple options but concluded a fully underwritten rights issue was the only executable solution within the needed timeframe that preserves equal shareholder treatment. On legal and ownership questions, management said it is complying with the Norwegian court request and would not speculate on whether the rights issue could trigger a mandatory offer.