Sveaskog's Interim Report January-June 2022: Strong demand for timber and pulpwood

Operating profit increased by seven per cent to MSEK 843 (790). Higher timber prices and lease revenues from wind power have partially been offset by lower volumes from own forest and higher felling costs.

1 April – 30 June 2022

  • Net sales increased by seven per cent to MSEK 1,991 (1,867). Timber prices increased by an average of 14 per cent, while delivery volumes decreased by five per cent. Other changes in turnover are mainly attributable to nursery operations.
  • The operating profit decreased by three per cent to MSEK 362 (372). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest and nursery operation as well as increased felling costs.
  • The reported net change in value of standing timber amounted to MSEK 124 (183).
  • Profit for the quarter amounted to MSEK 632 (607), of which profit from associates amounts to MSEK 251 of which Setra Group represents the largest part, corresponding to SEK 5.34 (5.13) per share

1 January – 30 June 2022

  • Net sales increased by 12 per cent to MSEK 3,983 (3,560). Timber prices increased by an average of 12 per cent, while delivery volumes remained largely unchanged.
  • Operating profit increased by seven per cent to MSEK 843 (790). 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 213 (301).
  • Profit for the period amounted to MSEK 1,301 (1,087), of which profit from associated companies amounts to MSEK 484, with Setra Group accounting for the largest part, corresponding to SEK 10.99 (9.18) per share.

Significant events

In June, Sveaskog’s Board of Directors decided to reduce felling levels for the next five years.

Russia’s invasion of Ukraine negatively affects Sveaskog with increased costs mainly for felling. However, this has also led to increased timber prices.

Comments from Sveaskog's President och CEO Erik Brandsma:

"In June, Sveaskog’s Board of Directors decided to reduce felling levels for the next five years. This is a deliberate investment and stake on value-creating forestry that contributes to the ambition of being a leader in sustainable forestry. The decision means a reduced final felling level of approximately 1.0 million m³sub per year, compared to previous felling decisions from 2018."

"Despite a troubled world and high inflationary pressure on the cost side, including increased felling costs, the earnings trend is positive, mainly due to the positive market price trend. Operating profit for the first half of the year amounted to MSEK 843, which is an improvement of seven per cent compared to the previous year."

"The price increase in timber and pulpwood in recent months has levelled off, but demand is still greater than supply and we expect a relatively high price to continue."

For more information, please contact:

Erik Brandsma, President and CEO Sveaskog, +46 (0)10 471 81 50

Kristina Ferenius, CFO Sveaskog, +46 (0)10471 81 11

Sveaskog's press service, +46 8 655 90 50, press@sveaskog.se

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