Ence Reports Sales of Specialty Pulps Climb to 32% of Pulp Sales in First Half of 2025

Aug. 11, 2025 – Spanish pulp and paper producer Ence [on July 22] presented its results for the first half of the year, marked by falling pulp prices and uncertainty stemming from tariffs.

During this period, the company has continued to focus on its transformation strategy toward becoming a producer of higher-value-added specialty pulps, a substitute for long-fiber pulp, which will position it as one of the most competitive producers in this market. This is in addition to its commitment to non-conventional renewable energy, through new developments in biomethane and renewable industrial heat.

For its part, and during the second quarter of 2025, Ence has managed to reduce its average cost per ton of cellulose (cash cost) to 488 euros, which represents an improvement of 22 euros/ton compared to the previous quarter, thanks to the continuous improvement in operational efficiency and energy optimization initiatives.

Ence's Fluff Pulp to Replace Long-fiber Pulp

Specialty pulps continue to gain prominence within the company's commercial mix, already reaching 32% of total Pulp sales in the first half of the year, compared to 23% in the first half of 2024.

This development reflects Ence's firm commitment to higher value-added products and will be reinforced in the fourth quarter of the year with the start-up of the new fluff pulp production line for the absorbent hygiene products market. With this special type of pulp, Ence will be one of the most competitive producers in this market compared to long-fiber producers.

Financial Results

Ence recorded revenues of EUR 192 million in the second quarter, a 3% increase over the previous quarter. This figure was driven by higher sales volumes in both the Pulp business (with 243,000 tons, 12% more than the previous quarter, when Navia was shut down) and the Energy business (with 303 GWh, a 9% increase over the previous quarter), which helped mitigate a weak sales price environment.

Focused on the first half of 2025, the Group has completed two sales transactions with the accreditation of 191 million Energy Saving Certificates (CAEs) (equivalent to savings of 191 GWh) and 61 million CAEs (equivalent to savings of 61 GWh), respectively, with their transfer price, net of acquisition costs, of 30 million euros and 10 million euros, respectively.

In the first half of 2025, the company recorded net attributable profit of -6.9 million euros, impacted by the decline in pulp prices.

Recovery Expectations

The average raw short staple fiber price (BHKP) in Europe was $1,177 per ton between April and June (compared to a peak of $1,218/t reached in April) and, in July, stood at $1,060/t, below the industry's marginal production cost. The restocking process should drive a price recovery once tariff uncertainties are overcome.

SOURCE: Ence (Energía y Celulosa)