Ence registers € 16 Mn of losses in the third quarter due to the minimum prices of pulp

Ence Energía y Celulosa recorded net losses of € 16 million in the third quarter of the 2020 financial year, and accumulated losses of € 42 million in the first nine months of the year, as a consequence of the low prices of cellulose, which remain at the minimum of the last ten years.

The company has maintained activity and employment despite the difficulties caused by the pandemic. The early and strict application of its protocols against the coronavirus has made it possible to guarantee the safety and health of the entire Ence human team, to continue supplying renewable energy and cellulose to society.

In Pulp, both sales and production costs in biofactories improved by 7% and 3% respectively in the first nine months of the year. Despite this operating improvement, the results continue to be marked by the minimum prices of pulp, with an EBITDA of € 7 million in this business (-92% year-on-year). Looking ahead to 2021, Ence has secured a price of $ 770 / t for the sale of 193,200 tons of pulp, 13% above the current reference price in Europe.

Renewable Energy sales grew by 27% year-on-year in the first nine months of the year and the EBITDA of this business stands at € 42 million (+ 2% year-on-year), despite low electricity prices.

Ence continues with the development of new renewable energy projects. The 405 MW in portfolio, with access to the grid and secured locations, are awaiting the next call for auctions for the implementation of the National Renewable Energy Plan while its administrative processing is completed.

Ignacio Colmenares, President of Ence, highlighted that “Ence’s regulated Renewable Energy business provides stability to the Group’s income statement. Precisely because the Pulp business is cyclical, its financing is long-term, without any covenant and we have € 360 million in cash to calmly face the challenges that lie ahead ”.

Ence continues to dedicate its best efforts to defend the extension of its concession in Pontevedra. A plant that comfortably complies with all current environmental regulations, that supports more than 5,000 direct, indirect and induced jobs and that creates value throughout Galicia, especially in the rural world, and in the forestry and logistics sectors.

Ence is committed to a green recovery to overcome the crisis caused by the coronavirus, supported by the promotion of renewable energies and the supply of cellulose, which the company produces in a sustainable and eco-efficient way in its biofactories in Pontevedra and Navia, generating, in altogether, 11,500 jobs.