Ence achieved a net profit of 13.7 million euros in the first quarter, 73% more

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  • The company significantly improves its results despite the 9% decrease in the average price of pulp. 
  • The results of the first quarter of the year confirm the implementation of the Ence Strategic Plan and the effectiveness of the measures implemented.
  • Production costs stood at €343/t, 8.5% less than in the first quarter of 2016, and close to the €339/t target set for 2017.
  • Free cash flow reached 14.4 million euros until March and net financial debt fell 5%. Leverage remains at 1.6 times EBITDA, the lowest in its sector.

April 26 2017.- Ence – Energía y Celulosa achieved a net profit of €13.7 million in the first quarter of 2017, which means an increase of 72.9% over the same period in 2016. This is an especially significant improvement if one takes into account that average prices of pulp fell by 9%. EBITDA increased by 22.3%, to €40.8 million, with a good performance both in the pulp business, which improved its result by 17.4%, and by the Energy business, up 38.6%.

The reduction of production costs to € 343/t stands out, 8.5% less than the same period in 2016 and close to the target of €339/t set for 2017. It also highlights the energy business, which was driven by higher prices and increased installed capacity following the acquisition of two new plants at the end of last year.

Ignacio de Colmenares, CEO of Ence, said: “The significant improvement in Ence’s results in the first three months of the year is a clear indication of the strength of the company’s business and of the good progress in the execution of our Strategic Plan. The significant reduction in pulp costs and the growth of the energy business show that we are on the right track. “

Free cash flow reached €14.4 million and net financial debt stood at €208 million, 4.7% less than at the end of 2016. The company’s financial leverage thus remained at 1,6 times EBITDA, notably below the levels of its competitors.

Also worthy of note is the start-up of the 40 MW biomass generation plant project in Huelva, which is due to be awarded in July and will start construction in October. The plant is expected to start operating in the second half of 2019.

On April 18, the payment of a complementary gross dividend of €0.0473 per share was made with a charge to 2016, which added to the subscriber account in December of 0.032, represents a total gross dividend of €0.0793 per share. The company, which is among the top 10 IBEX Top Dividend companies, offered a total remuneration for its shareholders of 6.6% in 2016. Finally, Ence’s favorable behavior in the markets stands out: the stock closed in March at €2.89/share, which means that it has revalued 15.1% in the first quarter, well above the 1.9% average of comparable companies in the sector.