Ence – Energía y Celulosa obtained an attributable net profit of €32 million in the second quarter of the year, increasing the accumulated profit in the first half of 2022 to €45 million.
Free cash flow generated in the second quarter reached €71m and rose to €129m between January and June, closing the semester with no net debt. The company has a strong balance sheet and liquidity, to take advantage of growth opportunities that may arise in the group’s different businesses.
In line with the new dividend policy, the Board has agreed to distribute a second interim dividend of €32 million, equivalent to 0.13 euros gross per share, which will be paid on August 12 and which is added to the €13 million distributed in May.
The price of pulp exceeded 1,350 dollars gross per ton in July and the main producers have announced additional increases to 1,380 dollars. The improvement in the average sales price continued to boost the operating margin of the business, largely offsetting the generalized inflation in the cost of raw materials and logistics.
Ence’s differentiated products, such as Naturcell or Powercell, more sustainable and better adapted to replace long fiber, represented 19% of sales for the semester, compared to 14% in the same period of 2021.
The operating profit of the Pulp business reached €49 million in the second quarter and rose to €70 million in the first half, 70% more than in the same period of 2021. For its part, the operating profit of the Energy business Renewable energy reached €53 million in the second quarter and €79 million in the annual accumulated figure.
In the pulp business, Ence continues to make progress in the “Navia Excelencia” project to promote the sale of its differentiated products, diversify its production towards fluff pulp for absorbent hygiene products, and advance in decarbonization, with a reduction of 50,000 tons per year of CO2.
In addition, at the end of June, Ence and the Xunta de Galicia announced a new project. The company is studying setting up a bioplant in the Coruña town of As Pontes for the production of recycled fiber and biomaterials from recovered paper and cardboard and cellulose produced by Ence.
On the other hand, the Supreme Court has notified that in the month of October it will resolve the first appeal filed against the rulings of the National High Court annulling the extension of the Pontevedra biofactory concession until 2073. It is foreseeable that the judgment is published during the last quarter of the year.
Ence’s growth in the Renewable Energy business, through its subsidiary Magnon Green Energy, will continue to focus on the development of its portfolio of biomass and photovoltaic projects, as well as on new opportunities under analysis.
