Ence's EBITDA to lose 10% on energy reform - report

(SeeNews) - Jan 7, 2013 - Spanish power utility and pulp manufacturer Ence (MCE:ENC) expects to post a 10% fall in its earnings before interest, tax, depreciation and amortisation (EBITDA) due to the new energy reform in the country, CEO Ignacio Colmenares said in an interview for local daily Cinco Dias.

Ence has plans to increase its EBITDA by EUR 100 million (USD 130.35m) in 2015, thanks to its operations in the energy sector. However, the company, which operates a 50-MW-biomass power plant in Huelva and is building another 20 MW facility in Merida, will be affected by the new reform. More precisely, the government has recently approved to impose a new tax of 7% on the biomass energy.

Since it will be difficult for Ence to achieve its goals on the domestic market, the company is studying the option to expand business abroad, Colmenares noted.

(EUR 1.0 = USD 1.304)

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