Forest's value

Sveaskog's goal is to increase the profit on forest capital. Changes in value are affected by forest growth, felling, and sales and acquisitions of forest properties.

In 2010 our forest holdings had a book value of 29,985 MSEK (30,041). Since 2005, Sveaskog has also reported the value of its biological assets. This amounted to 28,003 MSEK (28,028 ) for 2010. Assets are taken as present trees, not the land they grow on. Sveaskog applies international accounting rules for forest assets in the valuation (IAS 41 Agriculture). In addition to these values, forest land also has value in the form of permits for hunting, fishing, nature experiences through tourism entrepreneurs, wind power and eco-system services etc.

The annual timber harvest and its allocation over time is the most important factor for determining the economic value of the forest land. The calculation of the value of the forest capital is updated each quarter and is based on our long term felling estimations.

The value is affected by growth and value increase measures applied over time, for example, silviculture operations such as regeneration, thinning and fertilising.

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