The strong improvement in results was driven by the impact of the company's competitiveness improvement plan and positive price trends for pulp. A key factor also was a reduction in production costs, which dropped to Euro 355/tonne in the final quarter of the year, giving an average of Euro 359/tonne in 2015, 11% lower than in 2014.
Ignacio de Colmenares, CEO of Ence, said: "We have met the ambitious target we set for 2015 in achieving Euro 200 million in adjusted EBITDA thanks, amongst other aspects, to the measures we have implemented.”
"The renewal of the concession for Ence's plant in Pontevedra, in which we will invest Euro 61 million, and the recent award of a 40 MW plant in the auction for biomass generation, are important steps towards meeting the objectives set by Ence in its 2016-2020 Strategic Plan," he added.
Rising pulp prices, as a consequence of a sustained increase in demand, have had a highly positive impact in the strong results for 2015, as well as a favourable euro/dollar exchange rate. The company completed dollar hedging for the next 18 months at between $1.07/ Euro 1 and $1.15/ Euro 1, covering approximately 50% of pulp sales.
In 2015 Ence continued to improve its capacity to generate operating cash flow. Recurrent free cash flow came to Euro 110 million, which enabled the company to reduce debt by Euro 43 million, assign Euro 34 million to investments and Euro 36 million to pay dividends.
Ence is one of the main European producers of eucalyptus pulp, the most important Spanish company in the production of renewable energy.