The net result of Ence – Energía y Celulosa stood at € 22.1 million in the first half of the year, compared with a loss of 48.6 million in the same period of 2014. The company managed to multiply by about 14 EBITDA, which rose to 77.3 million in the first six months.
Ence confirms its strong capacity to generate operating cash flow, which amounted to € 69.2 million in the first six months and multiplied by 25 the record of the first half of 2014, when it stood at 2.8 million.
The Board of Directors announces its intention to distribute an interim gross dividend against 2015 earnings of €0.044/share, which will be effective next October.
Ignacio de Colmenares, Vice-Chairman and CEO of Ence, said that “our management effort and the good performance of pulp prices has enabled us to beat profit targets we had set ourselves. In fact, we are convinced that this year’s Ence EBITDA heads towards 200 million euros and our free cash flow to 100 million, which gives a clear idea of the quality of our results.”
The cost of production continued its downward trend, falling 12% from the first half of last year, to stand at levels of € 365 / ton, moving towards the target of 336 € / t.
The pulp prices have experienced a good performance in the first half helped by strong demand, standing at $ 810 / tonne at the end of the period, and it is expected to continue presenting a good evolution with additional future increases between 10 and 20 US dollars / ton.
On the other hand, in order to ensure the levels of income the company has begun to cover their dollar risk for the next 12 months with instruments that guarantee benefits of potential reinforcements exchange rate.