Sveaskog’s Interim Report January-September 2022: Continued positive progress for Sveaskog
Operating profit increased by eight per cent and amounted to MSEK 1,112 (1,033). Higher timber prices and lease revenues from wind power have partially been offset by lower volumes from own forest and higher felling costs.
1 January – 30 September 2022
- Net sales increased by 14 per cent to MSEK 5,716 (5,032). Timber prices increased by an average of 15 per cent, while delivery volumes decreased by one per cent.
- Operating profit increased by eight per cent and amounted to MSEK 1,112 (1,033). Higher timber prices and lease revenues from wind power have partially been offset by lower volumes from own forest and higher felling costs.
- Share of profits of associates amounted to MSEK 602 (500).
- The reported net change in value of standing timber amounted to MSEK 320 (414).
- Profit for the period amounted to MSEK 1,691 (1,586), equivalent to SEK 14.28 (13.40) per share
- At the Extraordinary General Meeting in August, new financial targets were decided. The amended articles of association concerning the land sale programme were also decided to divest a total of up to 60,000 hectares of unprotected productive forest land.
- Russia’s invasion of Ukraine continues to affect Sveaskog through increased costs mainly for felling, but also through increased timber revenues.
Comments from Sveaskog's President and CEO Erik Brandsma:
– 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.
– Following the war in Ukraine and the feared energy crisis, some raw material shortages have arisen, countering the declining delivery volumes to the sawmills. Consequently, demand for timber deliveries from Sveaskog remained stable during the quarter. Profitability is also very good for the Nordic pulp and paper industry, which, combined with lower wood availability in the Baltic Sea region, has a positive impact on pulpwood prices.
– At Sveaskog’s Extraordinary General Meeting in August, new financial targets were adopted. Together with our forecast for deliveries to the market, the ongoing digitalisation and balancing of various interests, we now have a clear direction for the future; a more varied and value-creating forestry.
– The Swedish forest is an important resource in the green transition, not only for Sweden but also far beyond the country’s borders. Nature conservation measures, such as the controlled nature conservation burning in Ejheden, and investments in value-generating forestry contribute to our ambition of being a leader in sustainable forestry.
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, email@example.com