Portugal's Altri profit jumps as prices soar, pulp sales hit record
17/03/2022 17:17
LISBON, March 17 (Reuters) - Portuguese paper pulp producer
Altri ALSS.LS reported on Thursday a nearly five-fold rise in
its net profit to 123.7 million euros ($136.79 million) last
year, boosted by price increases and record pulp sales.
"Financial performance was strongly impacted by record
production of cellulose fibres, but also by the increase in
sales, in a period marked by high pulp prices in international
markets," the company said in a statement.
As demand increased in Europe, the international price index
for bleached hardwood kraft pulp rose to $1,140 a ton at the end
of 2021 from $680 a year earlier.
Pulp production hit a record high of 1,126,000 tons, a 2.2%
rise from 2020.
Total sales increased 38% to 793.4 million euros as the
company sold a record 1,153,000 tons of pulp, of which 86% were
exported to markets outside Portugal.
Core earnings or EBITDA increased 132.7% to 227.7 million
euros and its margin improved to 28.7% from 17% in 2020.
The company said that in the pulp segment it continued to
see "strong demand" in Europe in early 2022, especially for
printing and writing paper.
Some challenges persist on the supply side, the company
said, adding it was also worried with prolonged strikes in
northern Europe, which have a direct impact on the dynamics of
the European market.
($1 = 0.9043 euros)
(Reporting by Patrícia Vicente Rua; Editing by Catarina Demony
and Chizu Nomiyama)
((patricia.rua@thomsonreuters.com; +351 21 123 2775; Reuters
Messaging: patricia.rua.reuters.com@reuters.net))