Sveaskog's Year-end report, January-December 2022: Continued increase in timber prices despite volume decrease from own forest
The operating profit for the quarter decreased by 18 per cent to MSEK 254 (308). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and roads. And a worse result in nursery operations in the fourth quarter.
1 January – 31 December 2022
- Net sales increased by 12 per cent to MSEK 7,760 (6,920). Timber prices increased by an average of 15 per cent, while delivery volumes decreased by three per cent.
- Operating profit increased by ten per cent to MSEK 1,366 (1,341). Higher timber prices were offset by lower volumes from own forest and higher felling and road costs.
- The reported net change in value of biological assets amounted to MSEK 499 (–196).
- Profit for the period amounted to MSEK 1,979 (1,494), equivalent to SEK 16.71 (12.62) per share.
- The Board proposes that the Annual General Meeting approve the payment of a dividend for 2022 of MSEK 1,150 (1,300).
Significant events
Russia’s invasion of Ukraine continues to affect Sveaskog with increased costs mainly for felling, but also with increased timber revenues.
Comments from Sveaskog's President and CEO Erik Brandsma:
- The fourth and final quarter of the year, like the year in general, was affected by the war in Ukraine and its aftermath. The forecasts indicate a slowdown in growth due to, among other things, high inflation and rising interest rates. Despite notifications of production reductions, the demand for timber deliveries from Sveaskog has been very good. The strained energy situation in Europe has increased interest in biofuels.
- Anxiety in the rest of the world and high inflationary pressure remain, leading to increased felling costs, among other things. We expect reduced felling volumes as early as this year. The earnings trend is nonetheless positive, mainly due to the positive development of market prices. The average price of timber deliveries as well as timber prices and pulpwood prices are higher than the corresponding period last year.
For more information, please contact:
Erik Brandsma, President and CEO Sveaskog, +46 (0)10 471 81 50
Kristina Ferenius, CFO Sveaskog, +46 (0)10 471 81 11
Sveaskog's press service, +46 8 655 90 50, press@sveaskog.se