ENCE Energia y Celulosa SA

Latest Results (07.08.2024):

Revenue Performance

ENCE Energia y Celulosa SA reported a total revenue of €200 million for the fourth quarter of 2023, a slight decrease from the €216.3 million reported in the same quarter of the previous year. This decline was primarily driven by a 32.3% drop in revenue from the Renewable Energy business, which fell to €39.6 million in 4Q23 from €58.5 million in 4Q22.

EBITDA Insights

The company's EBITDA for the Pulp business amounted to €19 million in 4Q23, contributing to an annual EBITDA of €46 million for 2023. In contrast, the Renewable Energy business saw a significant increase in EBITDA, reaching €7 million in 4Q23, up by 63% from the previous quarter, driven by higher earnings per MWh despite lower generation volumes.

Net Income

ENCE Energia y Celulosa SA's consolidated net income for the fourth quarter of 2023 was €4.8 million, a substantial decrease from the €180.1 million reported in 4Q22. This decline was influenced by various factors, including a reduction in revenue and increased costs associated with depreciation, amortization, and other non-ordinary results of operations.

Cash Flow and Investments

The company's normalised free cash flow before working capital changes was €8 million in 4Q23, contributing to a total of €26 million for the year 2023. Investments in growth and sustainability amounted to €26 million in 4Q23 and €66 million for the entire year, including significant expenditures in the Pulp business and the acquisition of forest land from Sniace.

Dividends and Financial Position

ENCE Energia y Celulosa SA paid out dividends of €0.29 per share in both March and May 2023, totaling €140 million from 2022 earnings, which implies a shareholder return of 16%. The company's net debt stood at €280 million at the end of December 2023, with a cash balance of €345 million, providing financial flexibility for future growth and diversification projects.