Press Release

Ence invests Euro 61.8 million in first 9M of 2012

By Thu, Nov 15, 2012

MADRID, Spain, Nov. 9, 2012 (Press Release) -More than 53 million euros have been earmarked for growth in renewable power generation through biomass and forestry crops, which will benefit the environment directly.

Ence has invested €61.8 million over the first nine months of 2012, €53 million of which have been channelled into renewable energy generation through biomass and into developing forestry crops, both directly helping to improve forest cover and the environment.

It is worthy of mention that, thanks to Ence's excellent results during the period (amounting to €28.8 million) and the strong cash flow generation during the period (up €84.6 million), these significant investments were accompanied by a reduction in non-recourse net financial debt, which decreased by 20% with regard to the end of the first nine months of 2011 to reach €152 million; 1.2 times the EBITDA, a reference level in the sector.

Ence's industrial investment in developing forest biomass power plants climbed to €33.4 million, enabling the company to continue with its strategy of growth within the energy sector and to cement its position as Spain's market leader in the production of electrical power from biomass.

In addition, the company's investment in developing energy crops was stepped up by 6% to reach €10.7 million. This particular investment is intended to boost energy crop volume on the path to guaranteeing a reliable supply for the forest biomass generation projects that Ence is currently involved in.

This investment has helped extend operations to over 9,800 hectares and will allow Ence to create a supply base for regular and competitive biomass, thus providing stability and guaranteeing the profitability of future biomass power plants. In particular, the investment will help fuel the 50 MW plant in Huelva, scheduled for start-up towards the end of the year, and the 20 MW facility in Mérida, construction on which recently got under way.

Investments in the pulp business area climbed to €17.7 million, and are aimed at streamlining plant operations and maintenance and at developing the forestry resources needed to produce pulp, with investment in this particular area amounting to €8.9 million up to October. The investment has led to the planting of roughly 540 hectares and forest maintenance and management work on a further 20,282 hectares.

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