Iberpapel’s active management mitigates higher energy costs and regulatory impacts
In the first nine months of the year Iberpapel reported revenue of €230.79 million, year-on-year growth of 40.17%, thanks to the price strategy implemented by the company to address the unstable macroeconomic and geopolitical environment.
However, the impact of regulatory developments in the third quarter, specifically co-generators’ inability to participate in the government’s gas price adjustment measures, forced the company to stop its co-generation plant in Hernani, resulting in high and unforeseen costs. As a result, EBITDA narrowed by 17.06% year-on-year to €16.47 million, while net profit ended the period at €6.2 million.
New legislation passed on 20 September 2022 (Royal Decree-Law 17/2022), introducing urgent energy measures, remedies that situation. That, coupled with termination of the previous gas supply contract, among other measures taken by the company, point to a better performance during the last quarter of the year.
|Profit after tax||6.20||10.02|