Orkla Would Seek Exit From Unprofitable REC When Price Right

Orkla ASA (ORK), a Norwegian producer of frozen pizza, Jif bathroom cleaner and aluminum, would seek an exit from its 39.7 percent stake in the unprofitable Renewable Energy Corp. ASA should its price rise to the right level.

“We would look for exit opportunities if the price was right, which it is not at the moment,” Chief Executive Officer Bjoern Wiggen said at an earnings presentation in Oslo. “We’re a financial investor in REC and that position has not changed.”

A 2.6 billion kroner ($473 million) charge from REC, a producer of solar energy components, accounted for almost all of Oslo-based Orkla’s second-quarter 2.65 billion kroner net loss. REC wrote down the value of Norwegian factories after a slump in the price of solar power parts during the quarter.

“What is important in REC are the things that we can influence ourselves within the company,” Wiggen said today.

Orkla’s quarterly loss, which it reported today, grew 29 percent from a net loss of 2.06 billion kroner a year earlier.