Ence posts a net profit of €38.7 million in 2016

general

Navia 1006947

  • The Company achieved good results in an adverse environment of low pulp and energy prices in 2016. 

  • Ence advances in its Strategic Plan accomplishments: strong reduction of the cost production to €341/t within the fourth quarter. The Company speeds up its growth in energy from biomass, with a 29% increase of its power.
  • Financial strength: the net debt was reduced by 9.5% in 2016 to €218 million, with a leverage of EBITDA x1.6, the lowest in its sector.
  • Attractive and steady shareholder remuneration: the Board will propose to the General Meeting a complementary dividend of €0.0473 gross per share. The profitability for the shareholder rose to 6.6% within 2016.

February 27, 2017 –  Ence – Energía y Celulosa posted a net profit of €38.7 million in 2017 (-22.4%), a good result in an adverse environment of low pulp and energy prices in 2016. Besides, it’s remarkable how the pulp price has initiated a strong growth within the first months of 2017. The adjusted EBITDA rose to €42.2 million within the fourth quarter, with an increase of 29.1%, driven by increases of 26.5% and 35.6% in pulp and energy business, respectively. The adjusted EBITDA for the year was €138 million.

Ignacio Colmenares, CEO of Ence, highlighted: “throughout 2016 we have achieved significant advances in our Strategic Plan, as it shows the strong reduction of the costs made and the progress in the achievement of our growth objectives in our energy business. Moreover, we expect a good 2017 given the recovery of the pulp prices and the good pace in the execution of our investment plan”.

We must remark the cost reduction to €340.9/t within the fourth quarter, lower than €375/t in the first quarter of 2016 and very close to our goal for 2017. The energy business, that had already reached an EBITDA of €34 million (+9%), was driven by an increase of 29% in its installed capacity after the incorporation of two new biomass for power generation plants.

The levered free cash flow rose up to €110 million and the net financial debt ended the year in €218.3 million, 9.5% less than 2015. The financial leverage of the company is the EBITDA x1.6, significantly lower than its competitors.

The Board has agreed to propose a complementary dividend of €0.0473 gross per share for the 2016. The company, one of the 10 first companies in the IBEX Top Dividend index, offered a profitability of 6.6% for the shareholder in 2016.