ENCE Energía y Celulosa, S.A. (EEYCF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen. Welcome to the ENCE 2Q2026 results presentation. I will now hand over to Mr. Ignacio Colmenares, Executive Chairman, and Alfredo Avello, CFO. Gentlemen, please go ahead. Good morning, good afternoon, and welcome to ENCE's second quarter 2026 results presentation. Thank you for joining us. I'm Ignacio Colmenares, Chairman and CEO And today I'm joined by our CFO, Alfredo Abello, and our Head of Investor Relations, Inés Álvarez. I'm pleased to report that this quarter shows the results of our key strategic initiatives to reposition our product mix and strengthen competitiveness, with PALP returning to positive net profit and marking an inflection point for the company. In this context, let me briefly remind you of the four main objectives of our strategic plan. One, growth in higher margin special parts substituting BSKP. Two, local wood and biomass sourcing. Three, cash cost efficiency. Four, BDA growth in our renewable platform. All these without losing sight of a key short-term priority, delivery. We should progress significantly in the second half of the year thanks to stronger cash generation and lower capex. Slide 4 summarizes the second quarter of 2026. Execution is the core theme. During the quarter, we reduced cash costs significantly. We benefited from positive pulp price momentum. Our special pulp volumes continued to grow, and we made further progress in deploying our biomass-backed renewable energy pipeline. Starting with pulp, European gross BHKP prices continued to improve during the quarter. By the end of June, prices had reached approximately $1,410 per ton. This momentum is expected to continue in the second half of the year. We may see normal seasonal adjustments during the summer slowdown, but we do not expect thes...