Ence expects to double its EBITDA, which will reach 550 million euros in 2023


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  • The Strategic Plan is based on the diversification of raw materials, cellulose products and renewable generation technologies to increase the strength of the Group.
  • It contemplates committing the investments in stages to maintain their low level of leverage by paying 50% of the BDI in dividends.
  • The company will invest more than € 1,100 million in growth and diversification of its Pulp and Renewable Energy businesses, to take advantage of the clear opportunities for market growth.
  • Ence will devote between € 125 and 225 million to the sustainability chapter, to reinforce the reliability, environmental excellence and security of its assets.

November 20, 2018.- Ence – Energía y Celulosa has presented its Strategic Plan 2019-2023, which aims to achieve an EBITDA of € 550 million within five years, at constant pulp prices. Thus, it foresees that the cellulose business will increase its EBITDA to € 400 million and that of energy up to € 150 million in 2023.

Ence will carry out a productive investment plan of € 1,100 million over the next five years, in order to boost its growth and diversification to take advantage of the clear opportunities for growth that are presented to the company. The investments will respect the maximum leverage levels established by the company after paying 50% of the net profit in dividends: 2.5 times net debt/EBITDA in the Pulp business and 4.5 times in the Renewable Energy business.

In the presentation of the Strategic Plan on the Investor Day of the company, Ignacio Colmenares, CEO of Ence, said that with the new Plan “we will make the most of the important opportunities in the pulp and energy market, and we will practically double our EBITDA in 2023, always respecting the maximum limits of leverage that we have marked and maintaining the pay-out of 50%.”

In the pulp business, Ence’s strategy will take advantage of the positive forecast scenario until 2023. The growth of the urban population and the increase in the standard of living in emerging countries drive the increase in demand for hygienic and absorbent cellulose products, as well as viscose for textile applications. To take advantage of these opportunities, Ence will carry out investments of up to € 500 million, which will increase the production capacity to 1.3 million t / year, as well as the diversification towards absorbent hygienic products and viscose.

In the energy business, the company will take advantage of Spain’s need to increase the generation of renewable sources up to 70%, in order to meet the EU’s objective in renewable energy. For this, Ence plans to carry out investments for € 615 million in generation with biomass, thermosolar and photovoltaic. These investments will increase the sales of renewable energy to 2,330 GWh / year and multiply by three the EBITDA of the business to € 150 million, providing stability and predictability to the cash flow of Ence Group.

Ence will allocate between € 125 and € 225 million to continue moving towards excellence in sustainability, which is a strategic priority for the company. Specifically, it will focus on improving the safety of people and facilities, the environmental excellence of its operations, contributing to the circular economy, as well as boosting the economy and employment in rural areas.