REC Reports 4th Quarter 2008 and Full Year Results (Feb 19, 2009)

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REC Reports 4th Quarter 2008 and Full Year Results

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February 19, 2009

Sandvika, Norway: REC Reports 4th Quarter 2008 and Full Year Results

Renewable Energy Corporation ASA (REC) reported revenue of NOK 2,380 million in the fourth quarter 2008, an increase of 27 percent from NOK 1,874 million in the fourth quarter 2007. For the full year 2008, revenue increased by 23 percent to NOK 8,191 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to NOK 936 million in the fourth quarter 2008, which was an increase of 10 percent from NOK 848 million in the fourth quarter 2007. The EBITDA margin of 39 percent in the fourth quarter 2008 compares with 45 percent in the same quarter last year.

For the full year 2008, EBITDA increased by three percent to NOK 3,279 million, and the EBITDA margin decreased by eight percentage-points to 40 percent. The operating profit (EBIT) was NOK 696 million in the fourth quarter, compared to NOK 677 million in the same quarter in 2007, and the EBIT margin decreased to 29 percent from 36 percent.

For the full year 2008 the EBIT was NOK 2,529 million, compared to NOK 2,588 million in 2007, representing a decrease of two percent.

REC reported net financial items of NOK 885 million in the fourth quarter, including net gains on derivatives of NOK 759 million. In the same quarter last year, net financial items were a negative NOK 61 million, including net losses on derivatives of NOK 90 million.

Net financial items for the full year 2008 were NOK 1,850 million, compared to a negative of NOK 610 million in 2007. Including these effects, profit before tax was NOK 1,581 million in the fourth quarter 2008, compared to NOK 616 million in the fourth quarter 2007. Profit before tax for the full year 2008 was NOK 4,379 million, compared to NOK 1,977 million in 2007.

Earnings per share were NOK 2.25 in the fourth quarter 2008 and 6.20 for the full year. This compares to NOK 0.84 in the fourth quarter 2007 and NOK 2.70 for the full year 2007, on both a basic and diluted basis.