Ence increases its net profit by 54%, reaching 91.7 million euros between January and September
Company's pulp business, which improved EBITDA by 58%, boosts the company's results.
Group's EBITDA rose to 213.6 million euros, 45% more than in the same period of 2017.
- The strength of demand and the lack of large projects to increase capacity suggest a scenario of strong pulp prices for the coming years.
- Ence has agreed to purchase a 50 MW thermosolar plant in Puertollano that will provide an EBITDA of € 18 million/year, before synergies.
October 31, 2018.- Ence - Energía y Celulosa increased its net profit by 54% after reaching € 91.7 million in the first nine months of the year, driven by the strength of its pulp business. Ence's EBITDA amounted to € 213.6 million, with an increase of 45%. The cellulose business improved its result by 58%.
In this business, the company has successfully executed the expansion of 30,000 tons of capacity in the Pontevedra biofactory and has begun works for the expansion of 80,000 tons in the Navia biofactory, which will be completed in 6 months. In the Renewable Energy business, investments for the installation of 99 megawatts of new generation capacity with biomass progress adequately to start operating at the end of 2019, and will contribute with an estimated annual EBITDA of € 30 million. In addition, Ence has agreed to purchase a 50 MW thermosolar plant in Puertollano (Ciudad Real) that will contribute an annual EBITDA of € 18 million, before synergies.
Ignacio Colmenares, CEO of Ence, announced that "on November 20 we will present a new Strategic Plan for the next 5 years, in which the strength of the demand and the lack of large projects to increase production capacity, make us anticipate a scenario of strong pulp prices for the coming years. The axes on which the new Plan will be based are: growth, diversification, competitiveness, sustainability and financial discipline."
The strong generation of free cash, which increased by 60%, has allowed to pay dividends amounting to € 39 million and invest € 127 million to complete the execution of the current Strategic Plan, without hardly increasing.