ENCE Energia y Celulosa : Standard & Poor's improves the credit rating of ENCE
April 27, 2018 at 09:45 am EDT
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27 de abril de 2018.- The agency Standard & Poor's has improved the long-term credit rating of ENCE Energía y Celulosa, from BB- to BB with a stable outlook. S&P has taken into consideration the solid operating evolution of ENCE and the increasing contribution of the company's independent energy business to the Group's results, which gives them greater stability.
It should be noted that ENCE has launched this week the construction of a new 50 MW biomass generation plant in Puertollano (Ciudad Real), in which environment there is a great abundance of biomass at a competitive cost. This facility joins the 40 MW biomass plant that ENCE is building in Huelva. Both plants will come into operation in the second half of 2019 and are expected to contribute EBITDA of more than € 24 million, with which the estimated EBITDA of ENCE's energy business will be 84 million by 2020.
ENCE increased its net profit by 115% after rising to € 29.5 million in the first quarter of 2018. The Group's EBITDA improved by 54% after standing at € 62.9 million. The strong generation of free cash from ENCE in the quarter allowed to allocate € 17 million to investments and reduce its net debt by 28 million. The Group's level of leverage at the end of the quarter stood at only 0.5 times the EBITDA of the last 12 months.
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Ence Energía y Celulosa SA published this content on 27 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 April 2018 13:44:06 UTC
Ence Energia y Celulosa SA, formerly Grupo Empresarial ENCE SA, is a Spain-based company engaged in the operation of pulp mills. The Company' activities are divided into two business units: Pulp and Energy. The Pulp business unit is subdivided into three segments: Pulp, manufacturing pulp and pulp derivatives, such as lignin and biomass, as well as co-generating energy; Forest Management, providing forest crops and wood raw materials, and Forest Services & Other, including residual business activities, as well as forest support services. The Energy business unit focuses on generating energy using forestry and agricultural biomass, as well as, thermos and solar electric energy generation. The Company operates pulp mills and power generation plants in Spain.
ENCE ENERGÍA Y CELULOSA, S.A. 
