October 22, 2008

Oslo, Norway: REC ASA Announces 3rd Quarter 2008 Results

Renewable Energy Corporation ASA (REC) reported revenue of NOK 1,919 million in the third quarter 2008, an increase of 30 percent from NOK 1,480 million in the third quarter 2007. Revenues for the first nine months of 2008 were NOK 5,811, representing an increase of 22 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 711 million in the third quarter 2008, an increase of 11 percent from NOK 643 million in the third quarter 2007. The EBITDA margin of 37 percent in the third quarter 2008 compares with 43 percent in the same quarter last year. Nine months over nine months, the EBITDA increased one percent from NOK 2,324 in 2007 to NOK 2,342 million in 2008.

Mainly due to higher production and revenues, operating profit (EBIT) increased by nine percent to NOK 537 million in the third quarter 2008, compared with NOK 495 million in the same quarter last year. The EBIT margin of 28 percent was a down from 33 percent in the third quarter last year. For the first three quarters of 2008, EBIT declined four percent to NOK 1,833 million compared with NOK 1,911 million for the same period of 2007.

REC reported net financial items of NOK 1,224 million in the third quarter, including a positive effect of NOK 1,207 million on embedded derivatives. In the same quarter last year, net financial items were a negative NOK 438 million, including a loss on embedded derivatives of NOK 394 million.

Including these effects, profit before tax was NOK 1,761 million in the third quarter 2008, compared with NOK 57 million in the third quarter 2007. For the first three quarters of 2008 the profit before tax was NOK 2,797 million compared with NOK 1,362 in the same period 2007. Earnings per share were NOK 2.52 in the third quarter 2008 and 3.95 year to date, compared with NOK 0.05 in the third quarter 2007 and 1.86 for the first nine months of 2007, on both a basic and diluted basis.

Further details about: REC ASA