ENCE Energía y Celulosa S A : reduces its losses by more than 18% in the first quarter of 2021, up to € 9.6 M

Ence-Energía y Celulosa reduced its losses by 18.4% between January and March 2021, to € 9.6 million, compared to € 11.8 million in the same period of the previous year. During this quarter, there has been a clear change in the trend in pulp prices which, after remaining at historic lows in 2020, have risen by 38% strongly and allow us to foresee a return to profits in 2021. It is foreseeable that increases will occur additional prices for pulp in Europe in the coming months.

The operating result (Ebitda) of the Pulp business improved 51% year-on-year in the first quarter, reaching € 8 million.

The lower volumes (-10%) and higher costs (+ 2%) derived from the annual maintenance shutdowns in both biofactories in the first quarter - instead of in the third, as in the previous year - were offset due to the positive effect of exchange rate hedging to mitigate the depreciation of the dollar against the euro.

For its part, the comparable operating result of the Renewable Energy business, after the sale of the Puertollano thermosolar plant in 2020, improved by 13% between January and March, to € 9 million, driven by the 29% increase in the volume of renewable energy generation and the improvement in the regulated sale price, although Ebitda was reduced by 25% due to the deconsolidation of the aforementioned plant.

To continue growing in renewables, Ence has a portfolio of mature projects of 505 MW that would mean multiplying its current installed capacity by nearly three times. Its administrative processing is in progress and it is expected that the projects will be ready to start building progressively from 2022, depending on the result achieved in upcoming auctions or in the PPA market.

Ence is among the most sustainable companies in its sector according to the ratings of the main ESG rating agencies. During the first quarter it has continued to improve its environmental indexes and has achieved an additional 60% improvement in its safety indexes, having registered 0 accidents with sick leave; much better data than the industry and sector average in Spain.

Furthermore, after holding its last General Shareholders' Meeting, the company has increased its number of independent directors and the weight of women on its Board of Directors to close to 40%.