25 October 2024 kl 16:00

Sveaskog’s interim report January–September 2024: The forest – a secure asset in an uncertain world

Operating profit increased by 79 per cent during the quarter and amounted to MSEK 345 (219). The improvement in earnings is mainly a result of higher timber prices. The higher timber prices were partly offset by lower volumes from Sveaskog’s own forests and slightly increased costs for felling and forest management.

1 July – 30 September 2024

Net sales increased by 4 per cent to MSEK 1,718 (1,647). Timber prices increased by an average of 10 per cent, while delivery volumes decreased by 8 per cent. Other sales increased by 2 per cent and are mainly attributable to concessions, saplings and other sales.
The average prices of deliveries from Sveaskog’s own forest increased by 16 per cent from the corresponding quarter of the previous year.
Operating profit increased by 79 per cent and amounted to MSEK 392 (219). The improvement in earnings is mainly attributable to higher timber prices.
Share of profits of associates amounted to a loss of MSEK 29 (profit: 13).
The reported net change in value of biological assets amounted to MSEK -39 (-86).
Profit for the quarter amounted to MSEK 193 (44), equivalent to SEK 1.63 (0.37) per share.

1 January – 30 September 2024

Net sales increased by 4 per cent to MSEK 6,113 (5,873). Timber prices increased by an average of 11 per cent, while delivery volumes decreased by 7 per cent. Other sales remained largely unchanged.
The average prices of deliveries from Sveaskog’s own forest increased by 19 per cent from the corresponding period of the previous year.
Operating profit increased by 21 per cent and amounted to MSEK 1,484 (1,230). Higher timber prices were offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling, forest management and nature conservation.
Share of profits of associates amounted to a loss of MSEK 61 (profit: 21).
The reported net change in value of biological assets amounted to MSEK 160 (-60).
Profit for the period amounted to MSEK 1,116 (812), equivalent to SEK 9.43 (6.86) per share.

Comment from Sveaskog’s President and CEO Erik Brandsma:

“There is still a large need for wood raw materials for industry, which contributes to a very good price trend. In September, for the third time this year, we raised the prices of timber and pulpwood. With higher prices, good conditions are created for profitable forestry.

“We are working in accordance with our strategic direction to make the best use of the assets that our forest and land represent. We are developing our primary business and core business in forestry, with the ambition of developing more varied forestry, while at the same time developing new business that provides higher revenues from wind and solar power, for example. In August, we announced cooperation agreements for large-scale solar energy production. With these agreements, we are advancing our positions in solar energy and establishing ourselves in the solar power market. In July, we announced the sale of Hjälmare Canal to AB Göta kanalbolag. Through the transfer, Hjälmare Canal will have a more natural home with a company that specialises in operating canals.

“During the quarter, Sveaskog issued additional green bonds for a total of SEK 1.3 billion with a term of five years. I am pleased to be able to note that the market is showing such great interest in our green bonds. The funds will be used in accordance with our framework for green bonds.”