ENCE Energia y Celulosa SA

ENC

Equity

ISIN ES0130625512 / Valor 2970696

BME Bolsas y Mercados Espanoles - Renta Variable (2025-03-14)

EUR 3.25+1.50%

ENCE Energia y Celulosa SA
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About company

ENCE Energia y Celulosa SA is a company focused on pulp production and renewable energy generation. The company's General Meeting of Shareholders has recently approved its commitment to growth and diversification in these key business areas. ENCE Energia y Celulosa SA aims to continue expanding its operations in the pulp industry while also increasing its presence in the renewable energy sector.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Revenue Overview

ENCE Energia y Celulosa SA reported total revenue of €200 million for the fourth quarter of 2023, a slight decrease from €216.3 million in the same quarter of the previous year. The revenue from the pulp business was €160.9 million, showing a marginal increase of 1.1% compared to 4Q22. However, the renewable energy business saw a significant decline in revenue by 32.3% to €39.6 million.

Profitability and Earnings

The company's consolidated net income for 4Q23 was €3.5 million, a substantial decrease from €180.2 million in 4Q22. The earnings per share (EPS) also dropped significantly from €0.74 in 4Q22 to €0.01 in 4Q23. This decline in profitability is attributed to various factors, including lower revenue from the renewable energy segment and increased costs.

EBITDA Performance

ENCE Energia y Celulosa SA's EBITDA for the fourth quarter of 2023 was €25.1 million, down from €40.1 million in the same period of the previous year. The pulp business contributed €18.5 million to the EBITDA, while the renewable energy business added €6.7 million. The overall decline in EBITDA reflects the challenges faced by the company in maintaining its profitability amidst fluctuating market conditions.

Cash Flow and Investments

The company reported a normalized free cash flow of €56.1 million for 4Q23, a significant increase from €16.5 million in 4Q22. This improvement was driven by favorable changes in working capital, which resulted in a cash inflow of €48 million during the quarter. ENCE also invested €26 million in growth and sustainability projects in 4Q23, focusing on expanding its pulp business and enhancing its environmental initiatives.

Outlook and Strategic Initiatives

Looking ahead, ENCE Energia y Celulosa SA plans to continue its focus on growth and diversification in its core businesses. The company is working on projects to produce fluff pulp for absorbent hygienic products and expand its renewable energy offerings, including biomethane production. These initiatives are expected to strengthen ENCE's market position and drive long-term growth, despite the current challenges in the pulp and renewable energy markets.

Summarized from source with an LLMView Source

Key figures

15.2%1Y

1.88%3Y

47.5%5Y

Performance

24.4%1Y

33.1%3Y

40.0%5Y

Volatility