RusForest AB has reported a net loss of SKr44.7m (2010: SKr28.4m) for the first quarter.
The group’s turnover of SKr91.5m was slightly down on a year ago.
The sawmilling division saw sales reduce to SKr57m (2010: SKr65.8m), with output up 21.6% to 59,156m³.
Prices and delivery volumes to North Africa suffered significantly due to the political unrest, with buyers at times unable to accept new deliveries during port and bank closures.
RusForest’s LDK-3 mill in Arkhangelsk was particularly affected and significant increases in stock of finished goods have been reported.
RusForest has been supplying low grade material to the Egyptian market, but it has been searching for alternative takers for the material, with some success in gaining contracts with Korean customers.
The opening of the new Magistralny sawmill is scheduled for the middle of June.
RusForest expects average prices for its sawn timber to increase by more than the market average due to stabilised production, higher larch volumes and improved drying capacities coming on stream.
Its recent acquisition of the Nord Timber Group increases its annual allowable cut in the Arkhangelsk region to 1 million m³. “In future, RusForest will invest significant amounts in both harvesting capacity and road construction equipment in order to fully utilise these new assets,” it said.
