An impressive 1Q 2017 boosted by the pulp cycle
Ence reported 1Q17 results spell a solid turnaround in the pulp cycle (pulp EBITDA +5%), something we had anticipated in our 24/4/2017 report when we increased our target price from €3.00 to €3.70. These results confirm our expectations. Earnings from Biomass (EBITDA +42%) also increased notably on a combination of capacity acquired at the end of 4Q16 and a +51% hike in generation. Total EBITDA +22%.
We are comfortable with this set of results and continue recommending to Buy with a €3.70 target price.
Ence Energia Y Celulosa is engaged in the manufacture and commercialization of wood pulp and derivatives. Co. divides its activities into the following two business lines: Forest Division: Co. manages timberlands in South America and the Iberian Peninsula. Co. is involved in trading of wood, and supplies solid wood products including: plywood, sawn timber, parquet flooring and glued-edge paneling. Co. is involved in forest and environmental consulting. Pulp Division and Energy Production: Co. is engaged in the production of Eucalyptus globulus-based TCF and ECF paper pulp. Co. is also involved in the generation of electricity through biomass power producing plants.
Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.
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