Ence foresees strong increase in sales revenue by the appreciation of US$



• Every 5 cent rise in US$ supposes to Ence an increase of turnover exceeding €15 million. The average exchange rate in 2014 stood at $ 1.329/€ compared to current $ 1.18/€

13 January 2015.- Euro against US Dollar evolution is boosting sales revenue Ence – Energía y Celulosa. Operations in the global pulp sector are referenced in American currency, so the fall of the Euro is involving a strong increase in sales revenue of cellulose sold by Ence in international markets, which the company expects will impact in a significant profit improvement expected for 2015.

It should be noted that for every 5 cent appreciation of the US$, sales revenue of Ence are increased by more than 15 million Euros, with an equivalent impact on the company profits. Strong fall of the Euro from an average price in 2014 of $ 1.329/€ to the current $ 1.18/€ suppose, therefore, an important boost for sales and results of Ence.

Furthermore, it is important to mention that pulp prices are showing a good performance in recent months in Europe –Ence reference market–, with progressive improvement since last September and announced price increases to 770 dollars/ton. In addition, industry analysts expect during this year the strength of pulp prices, in view of the evolution of demand and the expected entry into operation of new production capacity.

Ence will absorb the impact of energy reform on its results with the upcoming closure of the accounts for 2014, because of success of its recovery plan launched results last year, which will return Ence to benefits since the beginning of this year. The aforementioned appreciation of Dollar will be a significant improvement over earnings estimates made by the company.

Ence Energía y Celulosa recently managed to close 2015 cellulose sales agreements for a volume of 930,000 tons, which ensures the company 100% of its sales target for this year. According to these figures Ence plans to maintain its export volume, which will be above 80% of its production. The company is the leading producer of eucalyptus pulp in Europe with a capacity of 930,000 tonnes/year and it is the second company by sales on the continent.