Ence – Energy and Pulp recorded a net profit of more than €3 million in the fourth quarter of 2023, thus returning to the path of profits thanks to the cost reduction achieved and the start of the recovery of the price of pulp.
The first three quarters of the year were marked by low pulp prices, which hit rock bottom in the month of August, such that the result for the year stood at -€25 M. Since then, and until now.
Prices have recovered more than 40%. Likewise, the main producers have announced increases additional.
From an operational point of view, a 15% increase in pulp production stands out in the fourth quarter compared to the previous one, to exceed 266,000 tons. Likewise, the 2023 financial year was characterized by the significant cost reduction achieved, of €180 in the cost per ton of pulp, bringing the cash cost up to €455/t.
Ence’s special pulps, more sustainable and adapted to replace long fiber and plastics, continue gaining market share, growing to reach 28% of total pulp sales in the fourth quarter, and 22% for the year as a whole.
The Group’s consolidated operating result (EBITDA) reached €25 million in the fourth quarter and €89 million in 2023.
GROWTH AND DIVERSIFICATION IN PULP AND RENEWABLE ENERGY
The strength of the Group’s balance sheet provides flexibility to take advantage of growth opportunities and diversification in the company’s two businesses, fully aligned with decarbonization and the economy circular.
In the Pulp business, Ence continues to promote the sale of its special pulps and has launched the project to diversify its production towards fluff cellulose, for absorbent hygiene products, whose Startup is scheduled for 2026. In addition, the company continues to advance in the engineering and processing of the As Pontes project, a bioplant for the production of recycled and bleached fiber based on paper and cardboard recovered, without increasing wood consumption and taking advantage of the industrial land on which it was located the As Pontes thermal power plant.
In the Renewable business, the Group continues to advance in the diversification of its activities towards sales renewable thermal energy and biomethane mainly, taking advantage of its leadership position in management of biomass in the national market. In this sense, Magnon Servicios Energético signed its first contract services in 2023 and is working with potential industrial clients to replace their thermal energy from fossil origin by renewable thermal energy. For its part, Ence Biogas plans to launch twenty of projects in the next five years. In addition, this subsidiary already has a portfolio of 6 biomethane plants in the engineering and administrative processing phase, whose entry into operation is scheduled for 2026.
Ence continues to be the leading company in sustainability in the pulp sector worldwide for the third year consecutive, according to the latest Sustainalytics rating, which in 2023 reiterated its global score of environmental, social and corporate governance behavior of Ence at 90/100. Furthermore, in 2023 Ence was recognized with the platinum medal from Ecovadis: the highest qualification granted by this platform, specialized in evaluating the sustainability of companies, and has been included in the IBEX ESG index.
