Iberpapel’s active management mitigates higher energy costs and regulatory impacts

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.

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