Mar 05, 2012. /Lesprom Network/. Ence returned a favourable operating income in 2011, having recorded a 7% increase in cellulose production and electricity sales in excess of 31% along with efficiency improvements and reduced operating costs resulting in a net profit of Euro 41.2 million, as the company said in a press release received by Lesprom Network. These profits, posted in a troubled economic climate, means a proposal can be made at the Annual General Shareholders’ Meeting, to be held next April, to distribute a Euro 0.07 dividend per share plus one share for every twenty-six shares that each shareholder owns, representing a total dividend yield of 7.4%, compared to 4% in 2010. An indication of the strength of the trading results is the 19% increase in cash flow from operating activities during the year, which rose to Euro 121 million. Additionally, net debt was reduced by 10%, establishing Ence as an industry leader in financial ratios, as the net-debt-to-EBITDA ratio stands at 1.1 times. The company is moving towards a clearly positive outlook for this year, given the favourable price performance expected by the end of the first quarter, which stands at $760 per ton compared to $650 in late 2011 and the expected favourable trend in demand in a year in which there are reduced inventories and no expected increases in capacity. Furthermore, advances in efficiency will now make it possible to increase production from between 2% to 5% as well as reducing the total cash cost from between 4% and 6%. Total sales for the year 2011 stood at Euro 825.5 million, as a result of increased cellulose and energy production and the aforementioned improvements in efficiency, making it possible to offset lower cellulose prices. The total cash cost decreased by 10% to at Euro 352 per ton at the end of the year from a peak of Euro 393 per ton, recorded in the 4Q 2010. This reduction was made possible as a result of greater efficiency in the industrial process and the cost containment of timber prices. Adjusted EBITDA for 2011 stood at Euro 152.1 million, 24% lower than the figure recorded in 2010. Net from the impact of hedges, indemnities and provisions, accounting EBITDA in 2011 stood at Euro 139.1 million, 22% below the figure for the previous year. The limited decline in operating profit is an indication of the strength of the results, as 2010 was the best year in terms of profits in the last decade, in an environment where cellulose prices were at record highs, the dollar was strong and timber costs were increasing gradually during the year. The company posted a net profit of Euro 41.3 million, 36% below that of 2010, due to the drop in cellulose prices and despite the improvement in financial expenses. As a result of the strength of the cellulose and energy business, operations continue to generate strong cash flow this year, which amounted to Euro 121.9 million in 2011 compared to Euro 102.5 million in 2010.