Ence – Energía y Celulosa - reached a net profit of Euro 31.5 million in the first half of 2017, which is triple the profit for the same period of 2016. This growth occurs with an increase in the average pulp price of only 1.5% in the period, as the company says in the press release received by Lesprom Network.
For the second half of the year, higher pulp prices are expected to rise to $880/t from July, according to the main producers. Ence has announced price increases up to $900/t since September.
During the semester, Ence's EBITDA increased 65.2% to Euro 87.9 million. The Pulp business improved its result by 54.7% and the Energy business increased by 120.9%. Pulp production costs fell by 6.6% to Euro 344/t, close to the Euro 339/t target for 2017. Ence's energy business increased its sales volume by 54%.
Ignacio de Colmenares, CEO of Ence, said that "the strong increase in profit in the first half of the year in a context of moderate growth in pulp prices, demonstrates the strength of Ence's business model and success in the implementation of our Strategic Plan. Significant cost reductions and revenue growth allow us to be optimistic about meeting our goals."
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.