Sveaskogs’s Interim Report January-June 2020
Sveaskog reports an operating profit of MSEK 676 (832) for the first half of 2020, which is lower than in the same period last year. A dip in earnings was expected, as prices of the products declined gradually in 2019, and the trend has continued into 2020.
Hannele Arvonen, CEO Sveaskog.
1 January – 30 June 2020
- Net sales decreased by six per cent to MSEK 3,609 (3,849) due to lower marketprices. Prices of wood raw materials decreased by eight per cent on average, while total delivery volumes were up by one per cent. Revenue from wind power concessions has increased.
- Operating profit decreased by 19 per cent to MSEK 676 (832). Lower prices were partly offset by an increased share of deliveries from own forest. Costs for forest and nature conservation has increased as a result of planned expanded investments. Road costs have increased due to, among other things, difficult weather conditions during the spring. Svenska Skogsplantor’s earnings were down due to lower volumes and higher costs.
- The dividend yield, measured over a 12-month period, was 4.3 per cent (5.4).
- The reported net change in value of standing timber was MSEK 307 (272). The change in value had no impact on cash flow.
- Earnings for the first six months totalled MSEK 827 (946), which equates to SEK 6.98 (7.99) per share.
- Sveaskog has so far been able to operate without major disruptions caused by the coronavirus pandemic. The situation is being monitored closely to ensure that the necessary adaptations can be made.
Comments from Sveaskog's President och CEO Hannele Arvonen:
“It has now been one year since I took over as CEO of Sveaskog. It is clear to me that Sveaskog plays a key role in the bio-economic value chain. Sveaskog has a very important duty to fulfil in ensuring increased forest growth and thus in providing industry with wood raw material in a sustainable manner while also sustainably increasing biological diversity. It is entirely possible to achieve this in a sustainable forestry framework”.
“Sveaskog seeks to ensure a safe and sustainable supply of timber that contributes to regional development by creating jobs in the bio-economic value chain, in forestry and in industry”.
For more information contact:
Hannele Arvonen, President and CEO Sveaskog, +46 770 787 000
Per Matses, CFO Sveaskog, +46 8 655 92 90
Sveaskog's Press Service, +46 8 655 90 50, email@example.com
Sveaskog is Sweden's largest forest owner. We want to show the way to a sustainable society and be a leader in the development of sustainable forestry. Our most important task is therefore to use the forest so that the climate benefit, biodiversity as well as social and economic values are strengthened both now and for future generations. We have over 800 employees throughout Sweden. Sveaskog is owned by the Swedish state. For more information: www.sveaskog.com