Interim report Jan-June 2023
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- Book value of land and forest amounts to 41,909 (36,423) TEUR
- Equity amounts to EUR 0.94 (0.9) per share
- Earnings per share EUR 0.035 (0.033)
- Property holdings amounts to 7,992 (7,194) hectares
- Timber volume is estimated at 1,150,000 (1,067,000) cubic meters
- Net sales were 447.3 (1,464.9) TEUR
- Operational loss was -163.1 (957.6) TEUR
- Changes in value, forest 1,577.9 (332.4) TEUR
- Net profit amounted to 1,287.7 (1,137.3) TEUR
Latvian Forest Company
Latvian Forest Company AB (publ) is a Swedish listed company that invests in and conducts forestry on advantageously valued forest in Latvia and Lithuania. The three main foundations of the business are, in addition to forest being a sought-after real asset that grows by its own power,
- an expected increase in price levels for Latvian forest and agricultural properties.
- to create added value through active forest management.
- to create value by building up a larger property portfolio.
The expansion is financed by gradually carrying out new share issues as properties are acquired and the business develops. Through Latvian Forest Company, shareholders become co-owners of many properties instead of an individual one, which provides a good risk diversification. The operations conducted in day-to-day forestry create the turnover needed to cover the company's costs over time and eventually generate a surplus.
Latvian Forest Company AB has Euro as its accounting currency and all reporting is done in Euro. Trading in the share on Spotlight Stock Markets takes place in Swedish kronor.
Status & property holdings
Investments in forest properties have been made continuously and the holdings amounted to a total of 7,992 (7,194) hectares at the end of the period. Of these, 6,534 (5,937) were forest and 1,458 (1,257) other land including 953 (814) hectares of agricultural land. At the same time, the total growing stock was estimated at 1,150,000 (1,067,000) cubic meters after felling, property purchases and sales. Proportionally, the company owns 6,285 hectares with 800,000 cubic meters in Latvia, as well as 1,707 hectares with 350,000 cubic meters in Lithuania.
On the total of 6,534 hectares of forest land owned by the company at the end of this period, the existing growing stock is estimated at 1,150,000 m3. Of these, approx. 266,000 m3 is immediately harvestable. The company's management intends to harvest 415,000 m3 within the next 10 years. In total, the company estimates that there are 176 m3 of growing forest per hectare. Almost 70% of the company's holdings consist of land types corresponding to bonity classes IA, I and II (urban index G34/G36, G32, G28). Only 2% of the company's holdings have management measures prohibited due to nature conservation restrictions. Almost 85% of the growing stock consists of the three most important industrial wood species: birch, pine, and spruce. The company's growing stock has grown by 7% compared to last year.
The company has acquired 133 hectares with a growing stock equivalent to 8,500 cubic meters in the second quarter. The company has completed the sale of 16.72 hectares of agricultural and other land for a total of 69 TEUR during the second quarter.
(Map of existing property holdings)
Felling and clearing
The company has felled 7,940 (30,073) m3, of which 600 (22,891) m3 in Latvia and 7,340 (7,182) m3 in Lithuania during the first half of the year. The average felling price was EUR 43.49 (48.71) per cubic metre.
The company has planted spruce seedlings on 30.29 hectares during the second quarter
Sales and earnings
Net sales for the first half of the year were TEUR 447.3 (1,450.1). As previously reported, the Board decided to divest agricultural and other land considering previous strategic decisions to streamline the property portfolio and increase the proportion of forest land in the portfolio. Revenue mainly refers to income from felling, i.e., the sale of root items. Operating expenses have continued to develop satisfactorily. Operational result was negative at TEUR -163.1 (957.6) for the first half-year and TEUR -42.7 (845.9) in the second quarter. The negative operating result is due to a pause in felling because of the company having entered a letter of intent regarding the sale of assets. Net profit for the year amounted to TEUR 1,287.7 (1,137.3) for the first half of the year.
The estimated fair value of forest assets totalled TEUR 41,056.8 (36,423.4). The increase in value can mainly be attributed to the company's acquisition of new properties, as well as the average long-term price level for sawlogs and pulpwood. The fair value of growing forest has been calculated on the assets that were in the company as of June 30, 2023. The value is calculated by discounting a 100-year series of estimated felling volumes/sales revenues and forest management costs at a discount rate of 7.25% (6.75%). The company's management has decided to increase the discount rate to 7.25% due to the general increase in expectations regarding the cost of capital.
Otherwise, earnings are affected by normal costs for clearing, property-related costs such as new property measurements, inventories and stamping of stocks prior to felling, as well as certain costs associated with felling.
External costs consist largely of purchased services related to forest management, other consulting services such as accounting, auditing, legal advice, costs for travel, rent and transport. Variable costs for purchase commissions have to some extent been recorded as part of the acquisition cost for the individual properties and in these cases do not affect the result. Other variable compensations for clearing are recorded under raw materials and supplies (previously cost of goods sold).
(Results after mechanical clearing in Latvia)
Timber and forest property market
Experts speculate that the timber market has bottomed out after the sharp decline in late 2022 and early 2023. This is still not noticed in the Baltics. Rather, that the market has not yet reached the equilibrium point. The shortage arose after nearly 10 million m3 of timber products disappeared from the timber market around the Baltic Sea after Russia launched its aggression against Ukraine. In addition, the forecast shortage of natural gas contributes to the rise in the price of forest products. The North American timber market has been shown to be stable during the first half of the year. Trading in timber on the NASDAQ stock exchange is around 500 USD/LBS. The same trend can also be observed on the Swedish and Finnish markets. We predict that these market trends will also be relevant for the Baltics within a short time span. The purchase price of softwood timber reached the lowest level in the last twelve months corresponding to EUR 76/m3 at the end, which corresponds to the price level in June 2018.
Demand for birch veneer logs, and consequently also prices, peaked at EUR 220 per cubic metre in late 2022 and early 2023. At the end of June, it fell by almost 30% to EUR 170 per cubic metre. The purchase price is still significantly higher as the average price was EUR 120 per cubic metre in 2019, which was before the corona pandemic. International demand for veneer boards has been very strong in recent months, but now the economy seems to have turned downwards.
Pulpwood prices have also turned downward and are approaching the price level before the corona pandemic. It has fallen by as much as 50% (twice) compared to the same period last year. For example, one cubic metre of hardwood pulpwood was priced at EUR 55 in June 2023. Last year, the price was EUR 120 per cubic metre. The price of coniferous pulpwood has decreased to EUR 59 per cubic metre from the record price of EUR 89 per cubic metre. Prices for hardwood chips are at a level equivalent to EUR 17.42 per cubic metre compared to EUR 30.06 a year ago. The high price is driven by fears of shortages in natural gas supplies and possible high price levels for natural gas. Natural gas is still widely used in district heat production in many municipalities.
(Logging felling in Lithuania)
The company's management notes that the economic downturn and higher cost of capital are leading to an increased supply of advantageously priced forest assets in the region. LFC will actively use its experience and knowledge to identify and acquire forest properties at a favourable price in both Latvia and Lithuania.
Financing
During the first half of the year, no loans were taken, and no new issues were carried out.
Financing strategy
The Board of Directors has, following comments from and sounding out among shareholders and potential investors, decided that future financing in the form of new share issues will primarily take place within the framework of new share issues with preferential rights for existing shareholders. However, this does not prevent directed issues from being carried out, for example, in connection with acquisition of property portfolios or in special situations where a directed issue may be required. The objective is that existing shareholders shall not be disadvantaged if a directed share issue is carried out.
Share
At the end of the period, the share capital amounted to EUR 4,106,436, divided into 80,000 Class A shares and 36,583,521 Class B shares. Class A shares represent ten votes and Class B shares one vote each. Each share has a quota value of 0.112 Euro in share capital. According to the latest information received by the company, the five largest shareholders in terms of votes control 67.6% of the capital and 67.2% of the votes.
Significant events after the end of the period
Property holdings at the time of this report amount to 8,054 hectares. At the same time, the total growing stock was estimated at about 1,076,000 cubic meters after felling, property purchases and sales. The company has borrowed EUR 1,900,000 at market terms in Latvia to acquire new properties.
(Twenty-five-year-old birch stand in Latvia)
Next report
The interim report for the period January to September 2023 is scheduled to be published on November 22, 2023.
About this report
This report has not been subject to special review by the company's auditor.
Stockholm, 2023-08-22
Board
For further information, please contact:
Aleksandrs Tralmaks, CEO
+37129203972
info@latvianforest.se
Or visit our website: www.latvianforest.se
Latvian Forest Company offentliggör emissionsmemorandum
10.04.2024
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Latvian Forest Company genomför företrädesemission om 27,3 Mkr för fortsatt expansion
02.04.2024
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Ändrat datum för offentliggörande av bokslutskommuniké 2023
19.02.2024
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Interim report Jan-Sept. 2023
22.11.2023
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FLAGGING MESSAGE Galjaden Invest AB has reduced its holding in Latvian Forest Company AB
20.09.2023
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
26.06.2023
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NOTICE LFC ANNUAL GENERAL MEETING 2023 - MAY 30, 2023
30.05.2023
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Interim report January-March 2023
24.05.2023
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THE BUYER WITH WHOM LATVIAN FOREST COMPANY AB HAS NEGOTIATED THE SALE OF ITS TWO LATVIAN SUBSIDIARIES HAS ANNOUNCED THAT IT DOES NOT INTEND TO COMPLETE THE CONTEMPLATED TRANSACTION.
29.04.2023
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LATVIAN FOREST COMPANY CONTINUES WORK TO COMPLETE THE SALE OF ITS SUBSIDIARIES IN LATVIA TO SWEDEN BASED, WELL ESTABLISHED COMPANY.
17.04.2023
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Changed date for Year-end report 2022
20.02.2023
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LATVIAN FOREST COMPANY ENTERS INTO LETTER OF INTENT WITH SWEDEN BASED, WELL ESTABLISHED COMPANY REGARDING THE SALE OF ITS SUBSIDIARIES IN LATVIA
15.02.2023
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Interim report Jan-Sept. 2022
23.11.2022
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New date for Interim Report January-September 2022
14.11.2022
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Interim report Jan-June 2022
22.08.2022
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COMMUNICATION FROM ANNUAL GENERAL MEETING
30.06.2022
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Interim Report January - March 2022
27.05.2022
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Last day for trading in BTA B is 2022-03-11
09.03.2022
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CHANGED DATE FOR YEAR-END REPORT 2021
18.02.2022
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LATVIAN FOREST COMPANY'S PREMIUM ISSUE SUBSCRIBED
01.02.2022
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Correction: Carry out a rights issue of SEK 25 million for continued expansion
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) COMPLETES PREPARATION ISSUE OF SEK 25 MILLION FOR CONTINUED EXPANSION
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) HAS FINISHED THE BUSINESS REGARDING THE PURCHASE OF ALL SHARES OF UAB SILUONA.
02.12.2021
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CHANGED DATE FOR INTERIM REPORT JAN-SEPT 2021
12.11.2021
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LATVIAN FOREST COMPANY AB (PUBL.) HAS SIGNED AN AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF A LITHUANIAN COMPANY OWNING 1,338 HECTARES OF LAND WITH 301,000 m³ OF LUMBER.
01.11.2021
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Interim report Jan-June 2021
30.08.2021
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CORRECTION: UPDATE IN PREVIOUS PRESS RELEASE "CHANGED DATE FOR INTERIM REPORT JANUARY-JUNE 2021" REGARDING MAR CLASSIFICATION.
23.08.2021
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ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR LATVIAN FOREST COMPANY AKTIEBOLAG 2020
03.08.2021
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COMMUNICATION FROM ANNUAL GENERAL MEETING
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Interim report January-March 2021
06.06.2021
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NOTICE TO ATTEND THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
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Latvian Forest Companys företrädesemission registrerad
27.05.2021
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Latvian Forest Company's rights issue oversubscribed
07.05.2021
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LATVIAN FOREST COMPANY PUBLISHES PROSPECTUS
22.04.2021
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Latvian Forest Company provide a rights issue of approximately 78.2 MSEK for continued expansion
12.04.2021
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Changed release date for Interim Report Jan-Mar 2021
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Interim report Jan-Sept. 2020
30.11.2020
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AMENDED DATE OF INTERIM REPORT JAN-SEPT. 2020
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LATVIAN FOREST COMPANY AB (PUBL.) HAS COMPLETED THE TRANSACTION REGARDING THE PURCHASE OF ALL SHARES IN LATFOLDE AB
30.10.2020
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23.10.2020
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SUPPLEMENT - LATVIAN FOREST COMPANY AB (PUBL.) SIGNS CONDITIONAL PURCHASE AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF LATFOLDE AB
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LATVIAN FOREST COMPANY AB (PUBL.) SIGNS CONDITIONAL PURCHASE AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF LATFOLDE AB
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Interim report Jan-June 2020
26.08.2020
Interim report Jan-June 2020
- Book value of fixed assets 12,264.8 (0) TEUR
- Equity amounts to 0.669 (1.154) EUR per share
- Earnings per share 0.024 (0.474) EUR
- Property holdings amount to 4,324* (0) hectares
- Timber volume estimated at 500,000* (0) cubic meters
- Net sales 103.7 (15.6) TEUR
- Operating profit -498.6 (0) TEUR
- Change in value, forest 1,080.7(0) TEUR
- Net profit 498.3 (9,726.4) (0) TEUR
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LATVIAN FOREST COMPANY AB HAS SOLD 195.7 HECTARES OF FARMLAND AND A 2.3 HECTARE FARM.
20.07.2020
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
29.06.2020
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NOTICE OF ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
29.06.2020
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Interim report Jan-Mar 2020
25.05.2020
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Arbitration Institute has adjudicated on claims from former CEO Fredrik Zetterström
20.05.2020
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Regarding the company's former CEO Fredrik Zetterström, the Arbitration is expected to be on May 20, 2020.
28.04.2020
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Year- end report 2019
20.02.2020
Period January-December 2019
- Book value of fixed assets 8,660 (24,574) TEUR
- Equity amounts to 0,665 (1,145) EUR per share)
- Property holdings amount to 3,816 (10,452) hectares
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MINUTES HELD AT THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
20.12.2019
Minutes kept at the Annual General Meeting of Latvian Forest Company AB (publ), org. 556789-0495, at 10.00, Monday, December 16, 2019 in Stockholm.
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INTERIM REPORT JAN-SEP 2019
22.11.2019
- Equity amounts to EUR 0.604 (1,125) per share
- Profit after financial items 9,523.4 (2,020.5) TEUR
- Earnings per share EUR 0.464 (0.099)
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LATVIAN FOREST COMPANY AB HAS SIGNED A PURCHASE AGREEMENT FOR THE ACQUISITION OF 3,460 HECTARES OF FOREST AND AGRICULTURAL LAND IN LATVIA.
12.11.2019
Parts of the acquisition have already been taken up and the remaining shall be taken later.
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NOTICE OF EXTRAORDINARY GENERAL MEETING LATVIAN FOREST COMPANY AB (PUBL)
12.11.2019
Shareholders wishing to participate in the Meeting shall be included in the share register kept by Euroclear Sweden AB ("VPC) and report their participation no later than Wednesday December 11, 2019.
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Former CEO and Board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB.
08.10.2019
LFC informs that its past CEO and board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB regarding profit sharing corresponding to EUR 378,500.
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INTERIM REPORT JAN-JUN 2019
23.08.2019
All shares in the subsidiaries have been sold, leading to a surplus of 10,803 TEUR
- Equity amounts to EUR 1,154 (0.676) per share
- Profit after financial items 9,726.4 (18.3) TEUR
- Earnings per share EUR 0.474 (0.001)
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Record day to receive dividends
01.07.2019
Today, Monday, July 1, 2019, is the record day to receive a dividend. According to a resolution of the Annual General Meeting dividend to the shareholders shall be paid EUR 0.54 per share or a total of EUR 11 075 973.
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Annual Report and Consolidated Financial Statements for Latvian Forest Company Aktiebolag (publ)
03.06.2019
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INTERIM REPORT JAN-MAR 2019
24.05.2019
Book value of fixed assets amounts to 24,733.2 (21,924.3) TEUR
- Equity amounts to 1,117 EUR (1,034) per share
- Earnings per share -0.028 (0.008) EUR
- Property holdings amount to 10,614 (9,665) hectares
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NOTICE OF THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
23.05.2019
Notice of the Annual General Meeting of Latvian Forest Company AB (publ).
Shareholders of Latvian Forest Company AB (publ), org. No. 556789-0495, (the "Company") is hereby invited to the Annual General Meeting on Thursday, June 27, 2019, at 10:00 a.m. in Galjaden Fastigheter's premises on Linnégatan 18 in Stockholm.
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Chairman of the Board Ted Alvenius leaves his post as board member and chairman of Latvian Forest Company AB with immediate effect.
20.05.2019
LFC informs that Chairman of the Board, Ted Alvenius, is of a different opinion than the remaining Board of Directors regarding a transaction involving compensation for value increase in connection with the sale of all shares in the operating subsidiaries.
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Disclosure Notice
16.04.2019
Galjaden Invest AB has increased its holding in Latvian Forest Company AB to 20.03%.
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Press Release - sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
08.04.2019
Latvian Forest Company has, in accordance with a resolution at the Extraordinary General Meeting on March 27, 2019, completed the sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
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Disclosure Notice
29.03.2019
Nils Robert Persson has increased his holding in Latvian Forest Company AB.
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NOTICE FROM EXTRAORDINARY ANNUAL GENERAL MEETING
27.03.2019
Latvian Forest Company AB (publ) held the Extraordinary Annual General Meeting on March 27, 2019. The meeting resolved on the sale of all shares in the operating subsidiaries SIA Latvijas Mezu Kompaniju and Baltic Forest IV SIA to SCA Mezs Latvija, SIA
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Summons to Extraordinary General Meeting of shareholders in Latvian Forest Company AB (publ)
13.03.2019
The shareholders of Latvian Forest Company AB (publ), Reg. No. 556789-0495 ("The Company") are hereby summoned to the Extraordinary General Meeting of shareholders to be held on Wednesday, March 27, 2019 at 10.00 in Galjaden Fastigheter premises on Linnégatan 18, Stockholm.
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Latvian Forest Company undertecknar aktieöverlåtelseavtal med SCA Mezs Latvija
08.03.2019
LATVIAN FOREST COMPANY SIGNS SHARE TRANSFER AGREEMENT WITH SCA MEZS LATVIA
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Bokslutskommuniké 2018
22.02.2019
- Bokfört värde på mark- och skogstillgångar uppgår till 24.574 (21.323)TEUR
- Eget kapital uppgår till 1,145 (1,027) EUR per aktie
- Fastighetsinnehaven uppgår till 10.452 (9.599) hektar
- Virkesvolymen uppskattas till ca 1.015.000 (995.160) kubikmeter
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Latvian Forest Company signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the entire share capital of all its operating subsidiaries
04.02.2019
Latvian Forest Company AB signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the company’s operations by way of sale of all shares in the operating subsidiaries SIA Latvijas mezu kompanija and Baltic Forest IV, SIA. The total sale price is estimated to 26 000 000 Euro.
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Interim Report January - September 2018
23.11.2018
- Book value on land and forest assets of 23.840 (21.062) TEUR
- Owners’ Equity per share was 1,125 (0,979) EUR
- Property holdings of 10.357 (9.416) hectares
- Timber volume was 1.016.600 (960.000) cubic meter
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Interim Report January - June 2018
23.08.2018
- Book value on land and forest assets of 22.137 (20.850) TEUR
- Owners’ Equity per share was 1,047 (1,068) EUR
- Property holdings of 9.877 (9.368) hectare
- Timber volume was 1.034.000 (940.000) cubic meter
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Come follow us on Instagram!
17.08.2018
Come follow us on Instagram
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European Foresters' Orienteering Championships 2018
01.08.2018
We at Latvian Forest Company are proud supporters of orienteering in Latvia.
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Interim Report January - March 2018
24.05.2018
- Book value on land and forest assets of 21.924,3 (20.829,8) TEUR
- Owners’ Equity per share was 1,034 (1,06) EUR
- Earnings per share 0,008 (0,0039) EUR
- Property holdings of 9.665 (9.368) hectare
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Interim Report January - March 2017
22.05.2017
- Book value on land and forest assets of 20.829,8 (19.228) TEUR
- Owners’ Equity per share was 1,06 (1,03) EUR
- Earnings per share was 0,0039 EUR
- Property holdings of 9.368 (8.590) hectare
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Bronsstädet AB largest shareholder
23.09.2014
Bronsstädet AB (556612-1124) has purchased 1.878.616 B-shares in Latvian Forest Company AB (publ). The ownership, after purchases, corresponds to 14.81 percent of capital and 14.01 percent of votes which makes Bronsstädet AB the largest shareholder in Latvian Forest Co.
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Acquisitions will be completed
04.03.2014
Following the completion of its due diligence analyses, the Latvian Forest Company AB has decided to complete the previously announced acquisitions.
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