Spain’s Ence reports 49% jump in Q1 renewables EBITDA

Spanish forest management company Ence Energia y Celulosa SA (BME:ENC) saw its first-quarter net profit plunge by 41% to EUR 17.3 million (USD 19.4m) due to an inventory pile-up related to the planned shutdown of the Navia eucalyptus pulp mill as it undergoes an expansion.

Ence said Monday that its earnings before interest, taxes, depreciation and amortisation (EBITDA) of the pulp business were down by 28% year-on-year to EUR 39 million as a result of a combination of factors, among them the Navia shutdown and unfavourable exchange rates.

By contrast, the renewable energy business improved its EBITDA by 49% to EUR 13 million, receiving a boost from the production of the 50-MW Ciudad Real concentrated solar power (CSP) plant acquired in December 2018. In addition, Ence’s six biomass plants across Spain saw an increase in output. Attributable net profit decreased by 43.1% year-on-year to EUR 0.8 million.

Revenues from the renewable energy business went up by 17.7% to EUR 40 million during the first quarter as the electricity output increased by 8.6% to 247,184 MWh.

Ence is currently building two biomass plants in Huelva and Ciudad Real, which together will add 96 MW in December 2019. The company expects that the new plants will inject an estimated EUR 30 million to EBITDA in 2020.

(EUR 1.0 = USD 0.89)

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