Ence Narrows Q1 Losses Amid Strikes, Storms, and Prepares for Pulp Price Upswing

Ence reported a significant reduction in losses for the first quarter of 2026, despite operational disruptions caused by strikes and severe weather. The company posted losses of €17.6 million, nearly half those recorded in the fourth quarter of 2025, attributing the result to extraordinary factors including labor strikes at its Navia biofactory and storms that impacted its renewables segment.

By the end of the quarter, operations had normalized. Consolidated EBITDA exceeded €1 million, compared with €13 million in the previous quarter, reflecting the temporary effects of these disruptions.

The company continues to advance its cost-reduction strategy in the pulp business, targeting improvements through 2026 and 2027. Cash costs, excluding extraordinary items, declined to €479 per tonne from €510 per tonne a year earlier. Measures implemented during the quarter are expected to deliver an annual impact of €6 million, as part of a broader plan to reduce costs by €30 per tonne over two years.

Ence is also positioning itself to benefit from rising pulp prices. After an average price of $1,086 per tonne in 2025, a new benchmark of $1,430 per tonne has been announced for implementation in May. The company noted that potential disruptions to imports from Asia, the Middle East, and Latin America could further support pricing for European producers.

In parallel, Ence highlighted opportunities arising from geopolitical tensions in the Middle East, particularly in reinforcing its role as a regional supplier and advancing energy independence through biomass-based renewable solutions. Its renewable industrial heat business is expected to expand to five operational projects by the end of 2026, while its biomethane portfolio includes 41 projects, with 25 in advanced stages.

The company continues its transition toward specialty pulp production, which accounted for 34% of sales in the quarter, up from 30% in 2025. Initial sales of fluff pulp were also recorded, supporting its strategy to expand into higher-margin segments, with a target of exceeding 62% of pulp sales by 2028.