Low activity in the industry has led to pulpwood prices starting to fall from very high levels. However, competition for logs remained high and prices were largely unchanged. We manage the forest actively and responsibly to optimise value over time, while it is also the main source of supply for our industry, and operating profit from Forest increased slightly to SEK 538 million.
The electricity surplus in northern Sweden continued in the third quarter and the electricity price remained low at SEK 185/MWh. Such low electricity prices mean that production costs are not covered and the operating loss for the third quarter was SEK -18 million for Renewable Energy. The low electricity prices in northern Sweden are challenging, but in the long run they should lead to new establishments of electricity intensive industry.
Demand for wood products weakened and, following a seasonal price increase in the spring, wood product prices decreased. Lower wood product prices and continued high raw material costs resulted in a very weak operating loss of SEK -91 million. Due to large price differences for logs within the country, we have reduced our production in southern Sweden, but with efficient sawmills and processing capacity we are in a good position for when the construction cycle turns.
The market for consumer paperboard was weak, with slightly lower demand and increased supply. Demand for paper decreased. Market prices were largely unchanged. Despite weak market conditions and maintenance shutdowns, operating profit from Board and Paper was good, at SEK 356 million, mainly thanks to our ability to adapt electricity-intensive paper production to a volatile electricity market. In September, the new packaging product from Braviken Paper Mill was launched, which is another step forward in our development of products that make best use of the fresh fibre.
Geopolitical uncertainty is affecting the global economy and the markets where we operate. However, with a business based on owning a large amount of land, Holmen remains strong even in uncertain times. On our land, we grow houses 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 help our customers to increase their competitiveness and reduce their fossil carbon footprints.
Henrik Sjölund, CEO
October 23 2025