The titles of Ence Energía and Celulosa have collapsed this Monday more than 14% in the Stock Market, weighed down by the ruling of the National Court on the extension of the concession of its biofactory in Pontevedra. Specifically, the shares of the paper and renewable energy group fell by almost 16% at noon, falling to 2.46 euros, at the lowest levels since November last year.
Last Friday, the contentious-administrative chamber of the National Court estimated the resources that the environmental NGO Greenpeace and the Pontevedra City Council presented against the resolutions of the central Administration by which it was agreed, for a period of 60 years, the extension of Ence’s concession. So the group’s shares have already fallen 9%.
Specifically, the extension, granted by the Government of Mariano Rajoy, was for the occupation of an area of 373,524 square meters of maritime-terrestrial public domain destined for this Kraft cellulose pulp factory in the strip between Pontevedra and Marín, in the lands of Lourizán.
Ence Energía y Celulosa has announced that it will appeal the ruling of the National Court to the Supreme Court, in defense of the legality of the extension of the concession of its biofactory in Pontevedra.
The paper and energy group pointed out that, “out of absolute respect for the decisions of justice”, it revealed “its disagreement” with this decision of the court, as shown by independent studies such as those of Idom engineering.
Thus, he insisted that he will exhaust all possible legal channels in defense of his interests and reiterates the validity of the extension of this concession, “on which more than 5,100 families in Galicia depend directly and indirectly.”
“Very negative” news, according to Banco Sabadell
In a report, Banco Sabadell analysts consider the news “very negative” for Ence, since, despite not being a final ruling, it is a contrary ruling “which also removes the intermediate scenario from a new extension until 2033 ”.
In this sense, the entity considers as possible scenarios the closure of the plant once the sentence is final – regardless of the possible agreements that could be reached for a new location of the same – and a final sentence favorable to the group that, considers, “would imply the confirmation of the current extension until 2073.”
However, he warns that the uncertainty about the final result of the judicial process is “very high” – giving after last week’s ruling a greater probability of a contrary sentence – and believes that it makes more sense to position “in a closing scenario of the plant in a short period of time (between 1 and 3 years) ”.
On the positive side, Banco Sabadell analysts understand that in a plant closure scenario, the company would present the appropriate claim requesting compensation for at least the 130 million euros that it has been invested since the current extension was granted until 2073.