Sveaskog's Interim Report January-March 2023: A good start to the year with higher prices mainly for pulpwood, but also for timber
Operating profit increased by 17 per cent and amounted to MSEK 562 (481). Higher timber prices and revenues from wind power concessions were offset by lower volumes from own forest and higher felling and forest management costs.
1 January – 31 March 2023
- Net sales increased by 8 per cent to MSEK 2,151 (1,992). Timber prices increased by an average of 22 per cent, while delivery volumes decreased by 13 per cent. Other sales increases are mainly attributable to concessions for wind power.
- Operating profit increased by 17 per cent and amounted to MSEK 562 (481). Higher timber prices and revenues from wind power concessions were offset by lower volumes from own forest and higher felling and forest management costs.
- Share of profits of associates amounted to MSEK –6 (233), mainly due to worse market conditions for Setra Group. • The reported net change in value of biological assets amounted to MSEK 305 (89).
- Profit for the quarter amounted to MSEK 647 (669), equivalent to SEK 5.46 (5.65) per share.
- A new green bond framework integrated with the EU taxonomy.
- Reduced regeneration felling in Norrbotten
Comments from Sveaskog's President and CEO Erik Brandsma:
- Our financial performance has been positively affected by the predominantly positive market situation and the operating profit for the first quarter is higher than the corresponding period in 2022. This is due, among other things, to higher timber prices and increased income from wind power concessions. The average price of timber deliveries from our own forest is 22 per cent higher than the corresponding period last year, timber prices are 10 per cent higher while pulpwood prices are more than 50 per cent higher. Higher timber prices have been offset by lower timber volumes from Sveaskog’s own forest, as well as increased costs for felling and forest management.
- Despite an economy marked by inflation, a banking crisis, higher energy costs and geopolitical tensions, the market situation remains good. The year will be marked by the efforts we are making to future-proof our development. This is why it feels reassuring to have started the year with a strong quarter.
- The need for green raw materials in industry remains high. Sveaskog’s customers demand increased deliveries. In January, we increased the prices for private forest owners who sell their timber to Sveaskog in two rounds. We operate in an important industry that affects the conditions of the country’s development. The forest industry is one of Sweden’s most influential industries and creates employment throughout the country. As Sweden’s largest forest owner, Sveaskog wants to contribute to active forestry and to strengthen the value of the Swedish forest.
- During the quarter, Sveaskog renewed its green framework for sustainable investments. Third parties have assessed that it is in line with the EU’s new taxonomy and Sveaskog is thereby the first forest company in Europe with a green financial bond framework compatible with the EU taxonomy, something that I am very proud of. Through our framework, we create better conditions for green investments in the forest and strengthen our competitiveness from an EU perspective. Also, I am happy to note that Sveaskog has once again been named Sweden’s most sustainable brand in the industry category “forest owners”, according to Europe’s largest independent brand study on sustainability, the Sustainable Brand Index, presented in March.
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, firstname.lastname@example.org