Ence - Energía y Celulosa achieved a net profit of Euro 50.3 million in the first half of the year, 60% higher than in the same period of 2018. The Group's EBITDA increased by 49% and reached Euro 130.8 million, driven by the improvement in the price of pulp and the incorporation of the 27 MW biomass plant in Lucena, Spain.
Ignacio Colmenares, CEO of Ence, said: "The trend of growth of results will continue in the second half of the year, in which we will achieve higher levels of production, both in the pulp and energy business. All this will allow us to exceed our goal of Euro 300 million of EBITDA this year." He also stressed that "The prospects for the evolution of pulp prices continue to be very favorable. The strength of demand and the absence of large projects to increase production capacity suggest a scenario of strong prices, at least until 2023”.
The strong generation of free cash from Ence has allowed Euro 78 million to be allocated to investments in the Strategic Plan, to pay a complementary dividend of Euro 16 million and to maintain net indebtedness by the end of 2017. The Group's leverage level at the end of the semester it is only 0.6 times the EBITDA of the last 12 months. The Board of Directors of Ence has agreed to pay a first interim dividend for 2018 on September 12th for an amount of Euro 25 million, equivalent to Euro 0.104 gross per share.
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.