Sveaskog's Q3 2023 net sales decreased by 5% to SEK 1,647 million ($147 million), compared to SEK 1,733 million ($155 million) in the Q3 2022. Prices of wood raw materials increased by an average of 10%, while total delivery volumes decreased by 15%, mainly as a result of a lower planned production rate. Sales of wood raw materials amounted to 1,867 thousand m3.
Q3 2023 operating profit decreased by 19% to SEK 219 million ($19.6 million). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and processing after the storm Hans.
1 January – 30 September 2023
Sveaskog's net sales increased by 3% to SEK 5,873 million ($526 million) in January – 30 September 2023. Prices of wood raw materials increased by an average of 15%, while total delivery volumes decreased by 12%, mainly as a result of a lower planned production rate. Sales of wood raw materials amounted to 6,743 thousand m3.
Operating profit increased by 11% and amounted to SEK 1,230 million ($110 million). Higher timber prices and revenues from wind power concessions were offset by lower volumes from own forest and higher felling and forest management costs.
Profit for the period amounted to SEK 812 million ($73 million), equivalent to SEK 6.86 per share.
Sveaskog's President and CEO Erik Brandsma, said: “Sveaskog continued to have good demandfor forest raw materials, despite a surrounding situation characterised by inflation and a weaker economy. Swedish sawmills have benefited from the weak SEK exchange rate and, unlike their European colleagues, have not reduced their production rate. Access to timber was generally low, which meant that price levels continued to rise.
The current world situation and higher interest rates mean that we see a clear slowdown in new construction in the European market, which has a negative impact on the demand for timber. The market conditions in the pulp and paper industry have also weakened during the year. However, continued supply shortages meant that pulpwood prices increased during the period. We continue to experience a strong interest in biofuel deliveries, with good price development as a result.
The continued high price level of our products has had a positive impact on our earnings. The lease revenues from wind power, which were significantly higher than last year, also contributed to the positive earnings. The average price of timber deliveries from our own forest was 20% higher than the corresponding period last year, timber prices were 10% higher and pulpwood prices were 46% higher.”
Sveaskog, a state-owned company, is the largest forest owner in Sweden. Sveaskog’s core business is to manage the forest, and provide timber, pulpwood, wood chips, biofuel, seedlings and forest services.
