Ence reaches a net profit of 59.5 million euros between January and September, 183% more

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  • The success in executing its Strategic Plan and the good performance of pulp prices leads Ence to triple its profit almost in the first nine months of the year.
  • The lack of significant new capacity increases in the world market anticipates high pulp prices in the next three years. Ence climbs to $ 970/ton the price of its cellulose as of November, from $ 670/t in September 2016.
  • The efficiency improvement continues: the cost of production was reduced by 4.4% to € 346.7/t, despite the increase of € 9/t of the cost of wood that is linked to the prices of pulp.
  • Recurring free cash flow reached € 92.1 million (+ 84.7%) and net financial debt decreased by 15.9%. The leverage was reduced up to 1 time EBITDA, compared to 3.6 times the sector average.

October 31, 2017.- Ence-Energía y Celulosa achieved a net profit of € 59.5 million between January and September 2017, practically triple that the same period in 2016. Success in the execution rate of its Strategic Plan, with a strong increase in capacity in the Energy business and cost reduction, together with the increase in the price of pulp, explain this significant growth in profits. In addition, the company has announced new increases in the price of its pulp that will be $ 970/t as of next November, compared to $ 670/t in September 2016.

Ignacio Colmenares, CEO of Ence, said that “the good results show the success of the measures of the company’s Strategic Plan and the soundness of our business model. This, together with the progress in reducing costs and the excellent behavior of pulp prices, which will remain high for the next 3 years, allows us to forecast that Ence’s EBITDA will exceed 210 million € in 2017 with the current market conditions”.

In the first nine months of the year, Ence’s EBITDA reached 147.7 million euros (+ 77.1%). The Cellulose business improved its result by 73.7% and that of Energy increased by 89.8%. Cellulose production costs continue to fall: they fell to € 346.7/t (-4.4%), despite the fact that the cost of wood increased € 9/t. Free cash flow reached € 92.1 million (+ 84.7%), and net financial debt fell to € 183 million in September 2017, 15.9% less than in December 2016. The financial situation was reduced to 1 time EBITDA, well below the average 3.6 times of Ence’s competitors.