Thanks to our integrated business model, we were still able to deliver a strong result for 2024, of SEK 3 721 million, with a total return on capital employed for our mills and sawmills of 16 per cent. Given the Group’s good profit and strong financial position, the Board of Directors proposes that the dividend per share increases from SEK 8.5 to SEK 9, and a payment of an extra dividend of SEK 3.
In the fourth quarter, the Group’s profit decreased to SEK 716 million due to maintenance shutdowns, seasonally higher costs and slightly lower deliveries. In recent years, the forest raw material supply has been unable to keep up with growing demand from the forest industry and the energy sector. In the fourth quarter, prices continued to increase, primarily for logs, and profit from Forest increased to SEK 522 million. In the last few years, wood prices have increased by more than 50 per cent, increasing earnings from our forestry operations. The book value of our forests, based on property transactions for the last three years, slightly increased in 2024 to SEK 58 billion.
Energy remains expensive in Europe due to high fossil fuel prices. In Sweden, the cost of energy is significantly lower, and the price of electricity in northern Sweden has been unusually low since the summer. This led to continued low profit from Renewable Energy in the fourth quarter, of SEK 10 million. As hydro power can be steered towards times when it is most needed, we still managed to maintain a premium for our hydro power and wind turbine portfolio of around 30 per cent above the market price in northern Sweden.
Interest in building in wood remains high, but demand is currently low due to the weakness of the construction sector. Prices have nevertheless increased by 10 per cent over the past year due to global shortages of raw materials. In the fourth quarter, wood product prices were stable but increasing cost for logs, particularly in southern Sweden, led to a negative result for Wood Products in the fourth quarter, of SEK -18 million. We are in a strong position for when the construction cycle turns, with well-invested sawmills and an expanded processing capacity.
Consumer caution is dampening demand for consumer paperboard, which could be seen in the fourth quarter, when the decrease in demand was slightly higher than usual for the time of year. For paper, consumption was relatively stable over the year, but the trend is slightly downwards. A slightly weaker market in the fourth quarter, together with the effects of maintenance and rebuilding shutdowns, meant that earnings from Board and Paper decreased to SEK 241 million. Our focus on niches in which fresh fibre comes into its own has worked well. This is illustrated by the fact that, although the market was weak in 2024, we were able to deliver a return on capital employed of 21 per cent.
Holmen has developed well by creating added value from the forest and land we own. By merging the Board and Paper business areas at the start of 2024, we further strengthened our competitiveness and focused our business model on four distinct business lines: forestry, hydro and wind power, and woodworking industry and process industry operations. With our large forest holdings as a foundation, we grow trees for sustainable construction while also harnessing the energy that blows over the treetops and flows in the rivers. We use the residual forestry products to make renewable packaging, magazines and books that are already today helping customers to reduce their fossil carbon footprints. Supported by a strong financial position, we are well placed to develop our business in a Europe that is trying to transition to a sustainable society without sacrificing competitiveness.
Henrik Sjölund, CEO
January, 31 2025