Sveaskog’s Interim Report January-June 2021: The Market Situation Continues to Develop Strongly
Sveaskogs’s operating profit during the first half of the year profit amounted to MSEK 790 (676); the increased profit is primarily due to a new method for valuing forest assets. The new method means that costs for reforestation, MSEK 127, from this year are recognised in the item change in value of forest assets. Apart from the new method, the profit is in line with the previous year.
April – June 2021
- Net sales increased by three per cent to MSEK 1,867 (1,808). Total delivery volumes increased by three per cent, while average prices of wood raw materials remained unchanged.
- Operating profit increased by 77 per cent to MSEK 372 (210). The increased profit is primarily due to increased volume from Sveaskog’s own forest and a new method for valuing forest assets. The new method means that costs for reforestation, MSEK 120, from this year are recognised in the item change in value of forest assets. Aside from the new method, the underlying profit is higher than in the previous year (see more on pages 10 and 11).
- The reported net change in value of standing timber amounted to MSEK 183 (154).
- Profit for the quarter amounted to MSEK 607 (312), equivalent to SEK 5.13 (2.64) per share.
January – June 2021
- Net sales decreased by one per cent to MSEK 3,560 (3,609). Total delivery volumes were down by one per cent, while average prices of wood raw materials remained unchanged.
- Operating profit increased by 17 per cent to MSEK 790 (676). The increased profit is primarily due to a new method for valuing forest assets. The new method means that costs for reforestation, MSEK 127, from this year are recognised in the item change in value of forest assets (see more on pages 10 and 11).
- The reported net change in value of standing timber was MSEK 301 (307).
- Profit for the period amounted to MSEK 1,087 (827), equivalent to SEK 9.18 (6.98) per share.
Comments from Sveaskog's President och CEO Per Matses: “The market situation remains very good for the Swedish forest industry, especially for sawmills where prices for sawn timber products have exceeded previous price records by a margin; furthermore, prices are continuing to rise. Stocks of wood products are very low. The prices of market pulp are at a record level but stable, and in some markets prices have fallen slightly.”
“In April, Sveaskog’s Board of Directors approved a sustainable forestry programme. Sveaskog wants to use the programme to combine continued high-volume and reliable timber delivery with large-scale efforts to increase biodiversity. We want to contribute in a meaningful way to achieving the Swedish environmental goals, the Paris Agreement and the EU’s biodiversity goals. The activities we carry out aim to increase biodiversity and increase resilience to climate impact in forests and forest land.”