Finnish forestry group Vapo has recorded an operating loss of €11.6m for the first nine months due to a €27.7m writedown in its wood pellet business.
Vapo’s biofuels division saw the wood pellet business recording an operating loss of €37.1m.
Vapo Timber saw a 3.9% reduction in turnover to €97.2m with an operating loss of €4.2m. The business increased production by 4% in the first nine months, but sales prices were 5% lower than the comparison period.
“There was substantial oversupply in sawn timber markets, leading to lower sales prices and higher stock levels,” it said.
Vapo expects to record a full year operating loss.
