Ence - Energía y Celulosa achieved an adjusted EBITDA of Euro 63.1 million in the first half of 2016. Net profit in the first half amounted to Euro 11.4 million compared to Euro 22.1 million on the same period of the previous year, as the company said in the press release received by Lesprom Network.
This result is mainly due to the lower average sales prices, both pulp and electricity generated in its biomass plants, which was partially offset by 4% increase in pulp sales volume after the capacity extension in 20,000 tons of the Navia mill in 2015 .
Ignacio Colmenares, CEO of Ence, highlighted that "despite the low pulp sales prices we have been able to keep a solid cash generation and achieve an adjusted EBITDA margin of 22%, what allows us to cover the planned investments and fulfill our commitment to remunerate our shareholders. Furthermore, he was confident that "pulp prices have bottomed in the second quarter thanks to strong demand. This will allow us to improve our results for the remainder of the year."
Ence has continued its asset divestment program. In the first half of the year, the company has agreed to sell 1,547 hectares worth Euro 34.9 million, with an estimated capital gain of Euro 14 million. In the 1st half Ence collected Euro 7.3 million and is expected to collect the remaining Euro 27.6 million in the 2nd half.
Ence is one of the main European producers of eucalyptus pulp, the most important Spanish company in the production of renewable energy using forest biomass and the leader in Spain for the comprehensive and responsible management of forest areas and resources.
