Ence triples its net profit, which reaches 31.5 million euros in the first half

Centro operaciones Navia pequeña

  • This strong increase occurred with a growth of the average price of pulp of only 1.5%. Higher prices are expected in the second half of the year given the favorable balance between demand and supply.
  • Production costs fell by 6.6% in the first half to €344 / t, close to the €339 / t target for 2017.
  • Free cash flow reached €43 million and net financial debt decreased by 14%. Leverage was down 1.2 times EBITDA, the lowest in the sector.
  • Ence will pay an interim dividend of €0.061 gross per share against the results of the fiscal year that will be paid on September 6th.

July 26 2017.- Ence – Energía y Celulosa reached a net profit of €31.5 million in the first half of 2017, which is triple the profit for the same period of 2016. This growth occurs with an increase in the average pulp price of only 1.5% in the period. For the second half of the year, higher pulp prices are expected to rise to $ 880/t from July, according to the main producers. Ence has announced price increases up to $900/t since September.

During the semester, Ence’s EBITDA increased 65.2% to €87.9 million. The Pulp business improved its result by 54.7% and the Energy business increased by 120.9%. Pulp production costs fell by 6.6% to €344/t, close to the €339/t target for 2017. Ence’s energy business increased its sales volume by 54%.

Ignacio de Colmenares, CEO of Ence, said that “the strong increase in profit in the first half of the year in a context of moderate growth in pulp prices, demonstrates the strength of Ence’s business model and success in the implementation of our Strategic Plan. Significant cost reductions and revenue growth allow us to be optimistic about meeting our goals.”

Free cash flow reached €43 million, up from €6 million a year ago, and net financial debt fell to €188 million, down 13.9% from December 2016. Leverage was reduced up to 1.2 times EBITDA, well below its competitors.