The quarter was also marked by a sharp 43% decline in corporate net financial debt and the success of the bond issue in the international capital market for Euro 250 million, an innovative issuance converting Ence into the sole mid-cap in Spain by taking advantage of the liquidity window last January. Ence thereby consolidates its position as the most solid, streamlined company in its sector, and has a high investment capacity which sets it up to take on forthcoming investments both in Spain and abroad.
Ence increased its sales in the 1Q to Euro 217 million, 8% up on the same period in 2012. Noteworthy was the rise in cellulose sales during the period to Euro 151 million (+5 %) and that of energy sales, to Euro 65 million, 29% up on the first quarter in 2012, due to the strength of production (+21%) and a sound price performance (+4%), the result of the improved production mix following the commissioning of the Huelva biomass plant. The increase in energy sales adjusted as a result of the new energy tax was posted at 20%.
Cash costs stood at Euro 359 per ton (+6 %) due to the impact of the electricity regulatory framework, although only 2% above the levels of the last quarter of 2012, as a result of Ence actively managing costs and improving its competitive edge.
Such management drive brought the EBITDA to Euro 44 million for the first three months of the year, reporting a growth of 42% on the same period in 2012. After deducting depreciation and amortisation, provisions, financial results and taxes, the Company posted a net profit of Euro 13 million in the quarter, doubling that reported in the 1Q 2012.
Ence's cash position at the end of the quarter saw an increase of Euro 89 million, standing at Euro 129 million.
It should be noted income totalling Euro 53 million for the sale of assets in Uruguay. Besides, Ence has a credit line capped at Euro 90 million, which had not been drawn down at the end of the quarter. In addition, after the placement of the bond issue for E Euro UR 250 million, which matures in full in 2020, and after repaying existing debt, there will be no significant debt maturities until that year.
Cellulose production rose 1% in the 1Q reaching 319,921 tons, which showed a sound operating performance along with a capacity utilization rate of close to 97%. Average revenue per ton rose to Euro 479 per ton in the period, 8% up on that reported in the 1Q 2012, as a result of the increase in cellulose prices. Average income did not reflect the price increases announced up to $820 per ton, which were implemented in April, and $850 per ton from May 1.
Ence exported close to 85% of its cellulose production. The Company is the leading European producer of short-fibre cellulose and ranks second in sales, with a market share that exceeded 15% during the quarter.
Wood consumption grew by 4% in the quarter due to the growth in cellulose production and a slight increase in consumption per tonne. This effect has been offset by a reduction in the average cost of 3% after the price reductions implemented in the last twelve months. In respect of the source of supply, high rainfall during the quarter limited purchases of standing timber and led to a greater volume of imports, which explains the higher specific consumption and average cost compared to the previous quarter.
There was no significant variation in the number of hectares managed; Company efforts having focused on a downward review of the cost of the leases following the latest regulatory changes.