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 second quarter, prices continued to increase and profit from Forest grew to SEK 490 million. Wood prices have increased by 50 per cent since 2021, increasing the return on forest assets, while forests are playing an ever more prominent role in the transition to a fossil-free world.

After a cold winter with high electricity prices, the price in Sweden decreased to relatively low levels in the second quarter. Due to the lower electricity prices and that we built up the levels in our reservoirs, profit from Renewable Energy decreased to SEK 59 million. The price premium for our renewable electricity production has reached 30 per cent this year, thanks to its ability to regulate production and help stabilise the grid.

Demand for wood products remained weak, but picked up seasonally in the spring, and prices increased as a result of global raw material shortages. The higher prices meant that the profit from Wood Products improved to SEK 47 million even though costs for logs increased. With efficient sawmills and an increased processing capacity, we will be in a good position when house construction picks up.

The market for consumer paperboard continued to recover after the sharp drop in demand last year. The paper market was stable., Thanks to higher paperboard deliveries and a better product mix, profit from Board and Paper increased to SEK 438 million despite growing wood costs. Given our strong market positions in  selected niches, and our well-invested production facilities, we see good opportunities to create ample added value.

Holmen has developed well by creating added value from the forest and land we own, and our business model is now focused on four distinct business lines, i.e. forestry, hydro and wind power, woodworking industry and process industry operations. With our large forest holdings as a foundation, we grow houses while also harnessing the energy that blows over the treetops and flows in the rivers. We then make renewable packaging,  magazines and books from the residual forestry products. With a strong financial position we are well equipped for the transition to a fossil-free world.