Ence reports losses of € 4.2 M in the first half of the year, due accounting effect of energy regulatory changes

Ence – Energía y Celulosa has registered losses of €4.2 million in the first half of 2023, mainly due to the accounting effect produced by the update of the regulatory price of energy, approved at the end of June, with retroactive effects from January 1, 2023.


The update of the regulated energy price will mean a greater cash generation for the Group, of approximately €26 million in 2023.

On the other hand, from the accounting point of view, this regulatory change has led to lower revenues amounting to €65 M in the first half of the year, which, however, will be offset by the collection of a higher annual remuneration for investment from this year.

The Group’s operating result reached €12 million in the second quarter and €65 million in the first half.

The formalization of the sale of a first photovoltaic plant under construction in Jaén during the first quarter resulted in an operating result of €23 million. The planned formalization of the sale of the remaining plants under development over the next few quarters will generate an estimated operating result of €27 million.

The company’s strong balance sheet and ample liquidity provide flexibility to take advantage of growth and diversification opportunities in the Group’s two core businesses.

In the pulp business, Ence continues to make progress in the “Navia Excelente” project, which in its first phase will focus on diversifying production towards fluff pulp (special for absorbent products). In addition, the company continues to make progress in the project it is considering launching in the Galician town of As Pontes, which was declared a Strategic Industrial Project by the Government of Galicia in June. This is an innovative project for the production of bleached mixed fibre from recovered cardboard and paper and virgin cellulose produced by Ence, without increasing wood consumption.

In the renewables business, Ence Biogas aims to develop 20 biomethane plants over the next five years. The company already has a portfolio of 15 projects under development in Spain and during the first quarter signed a contract for the development of the conceptual engineering of 6 of these plants, which are scheduled to come into operation in 2026. The Group also has a portfolio of 140 MW with which to participate in upcoming biomass auctions through its subsidiary Magnon Green Energy. In addition, Ence has recently launched a new subsidiary for the generation and sale of renewable industrial heat with biomass, Magnon Servicios Energéticos, which will contribute to the decarbonisation of other companies, having already signed a first contract.


In June 2023, Ence was awarded the Ecovadis Platinum Medal: the highest rating awarded by this platform, which specialises in assessing the sustainability of companies around the world.

Ence continues to be the leading company in sustainability in the pulp sector worldwide for the third consecutive year according to the latest rating of the agency Sustainalytics, which in 2023 has reiterated its overall score of Ence’s environmental, social and corporate governance performance at 90/100.