Ence blames fall in income from cellulose and earns 41.6% less in first quarter

Ence: Buy cellulose during Chinese New YearWorkers at Ence's cellulose plan in Pontevedra (Spain)

Link Securities | Ence (ENC) presented its first quarter results (Q12019).  The firm achieved business of 195.6 M€ in Q12019, which is in line with the previous year (-0.3%), principally sustained by the increase of income from energy (+17.7%), which compensated the fall in income from cellulose (-4.0%).

ENV raised operational cash flow (EBITDA) to 52.0 M€, 17% lower than that in Q12018. The Cellulose business EBITDA fell 28.1% in Q12019 compared to Q12018 because of the contrary effect in coverage liquidation of interest changes of 9 M€, a greater percentage of sales in the spot market outside Europe, the 7.3% increase in production costs (cash cost) and the 5.9% reduction in the volume of tons sold, related to the increase of inventories by than more than 20,000 tons in the period, facing the programmed closure of the Navia biofactory in Q22019.

Net operational profits (EBIT) fell 36.5% yoy to 29.2 M€. Finally, net profits were 17.3 M€, 41.6% less than in Q12018.