Spanish paper mill Ence said Wednesday it will postpone to March the formulation of annual accounts in view of the possible impact of a Spanish Supreme Court ruling scheduled for Feb. 7.

On that date, the court will rule on a cassation appeal filed by the company against the rejection of the extension of the concession of an Ence mill in Pontevedra, in the region of Galicia.

"The Company informs of the decision adopted by its Board of Directors to formulate half-yearly financial statements in February and to postpone to March the formulation of the annual accounts for the 2022 financial year, in order to adequately reflect in the aforementioned annual accounts the result of the ruling of the corresponding judgments," it said in a statement.

In mid-July 2021, the Spanish National Court upheld an appeal by the local government of Pontevedra and the environmental group Greenpeace against the 60-year extension granted to an Ence pulp mill. Ence subsequently appealed the ruling to the Supreme Court.

The extension, granted in 2016 by Spain's previous conservative government, allowed the company to occupy for a period of 60 years an area of 373,524 square meters of public maritime land domain for a Kraft pulp mill between the towns of Pontevedra and Marín, in the region of Galicia.

(Information by Tomás Cobos)