SveaskogNet sales for the first quarter of 2022 increased by 18% to SEK 1,992 million. Total delivery volumes increased by 4% while prices for forest raw materials increased by an average of 12%. Other income, mainly for leases and plants, increased by 2%. Sales of forest raw materials amounted to 2,963 thousand cubic meters (m3sub). These are 5% higher deliveries compared to the corresponding period last year, which amounted to 2,810,000 m3sub.
Operating profit increased by 15% and amounted to SEK 481 million ($49 million). The explanation for the improvement in income is the increase in timber prices. The average price of deliveries of wood from clean forests is 11% higher than for the same period last year. Rising timber prices and higher rental income from wind power were partially offset by lower volumes from own forests and higher logging costs for inputs, e.g. fuels and parts spare.
Profit for the quarter was SEK 669 million ($68.3 million), or SEK 5.65 per share.
Comments from Sveaskog President and CEO, Erik Brandsma: “The demand for wood, pulp, paper and board remains strong in Sweden and the rest of the world. Sawmills and the rest of the forest industry urgently need raw materials. As a result, prices for Sveaskog timber suppliers are now being increased nationwide. These price increases help to further increase the profitability of forestry and justify a high level of activity in the forest, involving both regeneration cutting and thinning.
“A long-term approach and value creation are important for a company like Sveaskog. The forestry sector is in transition and we have a vital task ahead of us in the development of the company. The forest will provide us with raw materials and energy that can contribute to a climate-neutral future, and the biodiversity of the forest landscape will be enhanced.At the same time, the forest is important for recreation, tourism, small businesses, as a carrier of cultural heritage and for a A thriving reindeer industry is a big responsibility we have at Sveaskog. We will make sustainable use of the forest by adapting our forestry to the climate while creating growth. This is the goal of our sustainable forestry program.
Sveaskog, a state-owned company, is Sweden’s largest forest owner. The company owns 14% of Sweden’s forests, operates in approximately 170 municipalities and has more than 750 employees nationwide. Sveaskog’s main activity is managing the forest and providing timber, pulpwood, wood chips, biofuel, seedlings and forestry services.