Ence - Energía y Celulosa increased its net profit by 54% after reaching Euro 91.7 million in the first nine months of the year, driven by the strength of its pulp business. Ence's EBITDA amounted to Euro 213.6 million, with an increase of 45%. The cellulose business improved its result by 58%, as the company said in the press release received by Lesprom Network.
In this business, the company has successfully executed the expansion of 30,000 tons of capacity in the Pontevedra biofactory and has begun works for the expansion of 80,000 tons in the Navia biofactory, which will be completed in 6 months.
In the Renewable Energy business, investments for the installation of 99 megawatts of new generation capacity with biomass progress adequately to start operating at the end of 2019, and will contribute with an estimated annual EBITDA of Euro 30 million. In addition, Ence has agreed to purchase a 50 MW thermosolar plant in Puertollano (Ciudad Real) that will contribute an annual EBITDA of Euro 18 million, before synergies.
Ignacio Colmenares, CEO of Ence, said: "On November 20 we will present a new Strategic Plan for the next 5 years, in which the strength of the demand and the lack of large projects to increase production capacity, make us anticipate a scenario of strong pulp prices for the coming years. The axes on which the new Plan will be based are: growth, diversification, competitiveness, sustainability and financial discipline."
The strong generation of free cash, which increased by 60%, has allowed to pay dividends amounting to Euro 39 million and invest Euro 127 million to complete the execution of the current Strategic Plan, without hardly increasing.
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.
