Nov 08, 2012. /Lesprom Network/. Ence reported net profit of Euro 28.8 million up to October thanks to solid operating results and the success of the company’s cost cutting initiatives, coupled with rallying pulp prices across the global market. The sound results led to an impressive 37% growth in profit for the third quarter, which stood at Euro 12.8 million, illustrating the swift recovery in the Ence's profit, as the company said in a press release received by Lesprom Network. Ence is confident that results will continue to improve over the fourth quarter, generating growth in net profit for 2012 as a whole, given the predictions of leading analysts of high pulp prices over the last few months of the year-- which will compare favourably with the sharp decline in pulp prices seen in the last quarter of 2011- and the ongoing success of the company’s cost reduction initiatives. As a result, the average cash cost dropped 8% in the period to hit Euro 341/t, reflecting the pattern of falling production and sales costs at Ence. This marks a reduction of 13% since the highs of Euro 393/t seen towards the end of 2010. The improvement in the cash cost has been driven not only by a more efficient industrial process but also by keeping wood costs in check, a trend the company expects to continue over the coming quarters as it cuts back on imported wood while generating greater cost efficiencies in the supply chain. Sales for the period came in at Euro 603 million, 4% down on the first nine months of 2011 owing to a drop in pulp prices and lower sales of woody products, partially offset by increased pulp and energy production following the improvements made in terms of efficiency and performance. Adjusted EBITDA amounted to Euro 128 million, 2% down on the same figure at 30 September 2011. Despite failing to match 9M11 on account of the higher pulp prices reported at the start of 2011, a comparison with the second quarter of this year reveals a 17% gain in adjusted EBITDA. Discounting amortisation, provisions and financial results, the company posted gross profit of Euro 43.1 million (-21%). Net profit stood at Euro 28.8 million for the period, in comparison to the Euro 38.3 million for 2011 (-25%). The strength of the pulp and energy businesses is reflected in the solid operating cash flow generated over the year to date, which climbed to Euro 84.6 million and was largely generated in 2Q 2012 and 3Q 2012 against a backdrop of rallying prices, with this recovery and expected cost improvements to continue driving positive cash flow generation into the 4Q 2012. Recourse net financial debt stood at Euro 152 million, 20% down year-on-year and 8% down on the same figure at the close of 2Q. Factoring out the impact of dividend pay-outs and the repurchasing of treasury stock, net debt has dropped Euro 34 million since the end of September last year to reach Euro118 million. In spite of shareholder dividends, the company continues to be a benchmark for financial discipline within the sector, closing out the quarter with a net financial debt/EBITDA ratio of 1.2x for the past 12 months.