Ence gets 32 million euros in profits in the second quarter and increases the figure to 45 million benefit to accumulated in the first semester. These figures are derived from the dough price (which exceeds 1,350 gross dollars per tonne in July). According to the company, this offsets the general inflation in the cost of raw materials and logistics.
Thus, he continues to catapult his Gross operating income (EBITDA), which reached 101.9 million in the last three months and 148.4 million in the first six months of the year. Or what amounts to the same thing, in the first half of the year, it increased its EBITDA and 151.8%.
The Free movement of capital generated amounted to 129 million in the first half of 2022, ending the half with net cash of 10 million against a net debt 102 million at the end of 2021. “The company has a solid balance sheet and liquidity, to take advantage of growth opportunities that may arise in the various businesses of the group”, explains the firm.
Ence agreed to distribute a second share in advance of an amount of 32 million, or 0.13 euro gross per share, which will be paid on August 12 and which will be added to the 13 million distributed in May.
Shutdown of the Pontevedra plant
Due to the low levels of ecological flow of the Lérez river, from which the Pontevedra biofactory is supplied, last Wednesday, Ence decided to launch the temporary suspension of plant activity.
Ence cannot determine how long this situation will last and what effect it will have on the production of the biofactory, but it estimates that the situation should last more than a month before it can have a significant impact on the results. of the year.
As he explains, a total suspension of the activity of the Pontevedra bio-factory for 30 days would have a estimated impact on EBITDA from 2022 of 10 million euros. “Each additional month that said suspension was extended would have an impact of 12 million per year. These quantities would be partially mitigated during 2023 due to lower consumption of imported wood,” he reveals.
Company
Until paper pulp company, reached 49 million in the second quarter and 69.8 million in the half. There is talk of increases of 49.7% and 70.4%, respectively, compared to the same periods of 2021.
In this business, Ence continues to make progress on the “Navia Excelencia” project, an investment plan of 105 million euros, the objective of which is to diversify its production towards cellulose fluff for absorbent hygiene products and to decarbonize the plant with a reduction of 50,000 tons per year of CO2.
Likewise, at the end of June, Ence and the Xunta de Galicia announced a new project in the town of Coruña d’As Pontes, the study of which is beginning, for the production of recycled fibers and biomaterials from recovered paper and cardboard and of cellulose.
On the other hand, the EBITDA comparable to renewable energy company amounted to 13 million in the second quarter and 39 million over the whole half-year, “before including a reversal of 40 million in the accumulation of the regulatory collar provision which is offset by a depreciation of 36 million of the book value of certain factories and without any effect on the cash flows generated over the period”, details the company. After taking this turnaround into account, we are talking about 53 million in the second quarter and 79 million half-yearly.
According to the company, the growth of this sector of activity, through its subsidiary Magnon Green Energy, will continue to focus on the development of its portfolio of biomass and photovoltaic projects, as well as on new opportunities currently being analysed. “The Ministry of Ecological Transition and the Demographic Challenge has called a first biomass auction of 140 MW for October 25, 2022,” he said in the press release.
