27 April 2022 kl 17:00

Sveaskog's Interim Report January-March 2022: Higher prices and volumes

Operating profit increased by 15 per cent and amounted to MSEK 481 (418). The increased profit is due to higher timber prices. The average price of timber deliveries from our own forests is eleven percent higher than the corresponding period last year.

1 January - 31 March 2022

Net sales increased by 18 per cent to MSEK 1,992 (1,693). The total delivery volumes increased by four percent while the prices of forest raw materials increased by an average of 12 percent. Other income, mainly for leases and seedlings, increased by two percent.
Operating profit increased by 15 per cent and amounted to MSEK 481 (418). Higher timber prices and lease revenues from wind power have partially been offset by lower volumes from own forest and higher felling costs.
The reported net change in value of standing timber amounted to MSEK 89 (118).
Profit for the quarter amounted to MSEK 669 (480), equivalent to SEK 5.65 (4.05) per share.

Significant events

The market situation for sawmills and pulp producers remains strong, resulting in stronger demand and rising prices.
The war in Ukraine is affecting Sveaskog negative, mainly through increased fuels and spare parts costs.
The operating profit for the quarter before change in the value of forest assets rose by 43 per cent to MSEK 717, of which net income from associates amounts to MSEK 233, with the Setra Group having the greatest impact.

Comments from Sveaskog's President och CEO Erik Brandsma:

"The war in Ukraine is impacting on the markets in which the Swedish forest industry operates. The sanctions imposed on Russia have strangled timber exports from Russia to Europe, particularly as regards pulpwood. For Sveaskog’s customers in pulp and paper, market conditions remain strong. As a result of the disruptions to normal fibre resource flows, both new and existing customers have shown a strong interest in supplies from Sveaskog."

"Demand for timber, pulp, paper and cardboard remains strong both in Sweden and in the rest of the world. Sawmills and the rest of the forestry industry are in urgent need of raw materials. As a result, prices for Sveaskog timber suppliers are now being increased throughout the country. These price rises are helping to further boost the profitability of forestry, and justifies a high level of activity in the forest, involving both regeneration felling and thinning."

"A long-term approach and value creation are important for a company like Sveaskog. The forestry sector is in transition, and we have a vital task ahead of us in developing the company. The forest will provide us with raw materials and energy which can contribute to a climate-neutral future, and the biodiversity of the forest landscape will be strengthened. At the same time, the forest is important for recreation, tourism, small businesses, as a bearer of cultural heritage and for a thriving reindeer industry. This is a great responsibility that we have at Sveaskog. We will make sustainable use of the forest by climate-adapting our forestry while at the same time creating growth. This is what our sustainable forestry programme is all about."