• The successful restructuring and cost reduction plans of the company, the growth of pulp prices and the appreciation of the dollar, will mean a major boost to the results of Ence in 2015.
• Given the positive outlook for the continuity of the factory Ence in Pontevedra, Ence expressed strong commitment to environmental excellence, job creation and quality of life of citizens.
• Ence will begin implementing the new facade of its factory in Pontevedra to minimize their visual impact and working on a new and advanced treatment system that will allow the reuse of process water and minimize the effluent into the sea.
April 28, 2015. The Ence’s General Meeting of Shareholders held today has approved a dividend of 0.10 euros per share, representing a shareholder return of 3% on the price of Ence’s Day communication of the proposal.
As the President of Ence – Energía y Celulosa Juan Luis Arregui said, the company undertook during the year 2014 a “profound restructuring” has already been completed “with a year in advance.”
Ence will concentrate its efforts in 2015 on reducing costs and improving competitiveness. As explained by the Vice Chairman and CEO of the company, Ignacio de Colmenares, “Ence will overcome this year the profit that was before the electricity reform” and stressed that measures provide an increase in EBITDA of 77 million euros and reducing costs nearly 40 euros / tonne production.
In addition, the rise in international pulp prices and the appreciation of the dollar against the euro are driving more results to Ence this year. “For every 5 cent appreciation of the US currency recalled Colmenares-, our sales revenues are increased by more than 15 million euros”.
Another factor contributing to the rapid recovery of Ence is the good performance of pulp prices in recent months in Europe, the market for Ence. Thus Prices are offering a progressive improvement from the $ 734 / ton in the last quarter of 2014, with prices of $ 770 / ton today and announced price increases of $ 810.
Ignacio de Colmenares also referred to plans for business growth and biomass renewable energy production of cellulose. In the first case, Ence announced that support their growth projects “aimed at markets with high sales prices of energy markets requiring renewable energy and sustainable basis, including island systems are a magnificent goal, and, of course, with minimal regulatory risk”.
Regarding the “organic” growth in the pulp business, the CEO spoke about Ence plans to increase its production capacity by 40,000 cellulose in the Operations Center Ence in Navia (Asturias). The company also plans to increase the capacity of its factory in Pontevedra, whose continuity, Colmenares said, “begins to clear”.
“Ence will not dissapoint Pontevedra”
Juan Luis Arregui also referred to the Galician factory of Ence Energía y Celulosa. He thanked the “support continuity” of different political parties and citizen groups of Pontevedra and Galicia. He said “Ence will not disappoint Pontevedra”.
“I understand and agree that the population of Pontevedra requires us to have an environmental exemplary factory”, Arregui said. And the same words – “I understand and share it” – referred to the need to integrate scenically factory and keep increasing the generation of wealth in the environment. Ence president said that the “obligation” of the company is “making this factory regain competitiveness and make it a model” of industrial facility.
Referring to Ence’s Galician factory, Ignacio Colmenares stressed the need to “seal a new pact with the city of Pontevedra and its region”. The Managing Director of Ence said the company is committed to “putting progressively implemented a whole series of projects that will ensure environmental excellence of our facilities. And we are ready to prove that we will continue creating wealth, jobs and prosperity for the city of Pontevedra and its region through unique initiatives and business and social investments. “
“Let’s start with the implementation of the new facade of the factory to minimize its visual impact on the estuary. I also want you to know that we are working with a leading company in water treatment in a new treatment that allows the reuse of our process water, minimizing water use and effluent Lérez river to the sea. As odors, we reiterate our commitment to final disposal”, said Ignacio de Colmenares.
The Vice President and Managing Director concluded by noting that “in 2015 will see catapulted the results of Ence, significantly above what we announced at the last General Meeting of Shareholders”.
