Ence to propose dividend of €0.145/share, a 45% improvement on 2010 dividend, payable May 8; company cites improved cellulose production, power sales

Kendall Sinclair

Kendall Sinclair

Mar 26, 2012 – Ence

MADRID , March 26, 2012 (press release) –

  • Solid profits in 2011 allow the company to pay out a dividend equivalent to €0.145 per share compared to €0.07 the year before, due to be paid on 8 May.
  • Prospects for the year are favourable thanks to the recovery of cellulose prices and a reduction of the cash cost.
  • The General Shareholders’ Meeting will take place on 26 April.

The Ence Board of Directors will propose to the General Shareholders’ Meeting to be held on 26 April, to pay out a dividend equal to € 0.145 per share (€0.07 per share in cash and 1 share per every 26 shares held), representing a 45% improvement on the dividend paid out for financial year 2010. The dividend will be paid on 8 May.

The total dividend return for Ence shareholders will thereby reach 7.4% compared to 4% in 2010, when Ence shareholders received €0.10 per share. Considering Ence’s share price at the end of yesterday’s trading session (Wednesday), €1.955, the remuneration in shares per share held would be €0.075, which, added to the cash dividend, makes up the total dividend of €0.145 per share.

The favourable results of Ence in 2011 were possible thanks to improvements in cellulose production, which rose by 7%, and in power sales, which increased by 31%, together with the efficiency enhancements and the 10% reduction in the company’s cash cost in 2011.

Prospects for Ence in 2012 are clearly positive in light of the important recovery of cellulose prices and the efficiency enhancements that have been achieved, allowing a reduction of 4% to 6% in the cash cost per ton of cellulose paste in the present year.

Additionally, increased productivity suggests rises of between 2% and 5% in the production of both renewable energy and cellulose.

Ence faces the year 2012 in a position of financial soundness that makes the company an industry benchmark. The company’s borrowing declined by 10% in 2011, taking the company’s net financial debt to 1.1 times its EBITDA.

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