Published: 2017-09-27 10:31:56 CEST
Tornator Oyj
Release

Tornator increases its forest assets in Finland and Estonia

Imatra, Finland, 2017-09-27 10:31 CEST (GLOBE NEWSWIRE) --  

Tornator increased its forest area in Finland by signing a letter of intent with UPM in the spring concerning the purchase of 23,000 hectares of forestland. The forest estates will be gradually transferred to Tornator by the end of October this year, and did not have a significant effect on profit during the first half of the year. Smaller pieces of forestland were also actively purchased in Finland. In Estonia, forest assets grew by some 2,500 hectares during the reporting period.

 Net sales during the first half of the year were lower than expected, despite the picking up of timber deliveries* in the spring. The Group’s net sales were only €42 million, or nearly 10% short of those in the same period a year before, but operating profit remained unchanged. An increase in the fair value of forests at the end of 2016 increased equity ratio and decreased return on equity during the reporting period.


SUMMARY, 1 January – 30 June 2017 (1 January – 30 June 2016)       

  • Net sales totalled €41.8 (46.2) million, in which the share of timber deliveries was €39.2 (41.7) million. Operating profit was €31.2 (31.2) million.
  • There was a clear upturn in market interest rates, which had a positive effect on the fair values of Tornator’s interest rate instruments, with a profit effect of €+24.7 (-68.1) million since the beginning of the year.
  • Net profit was €+15.1 (+17.6) million without fair value changes and €+36.6 (-37.7) million with fair value changes. The difference was mainly due to an increase in market interest rates.
  • Return on equity was 5.0% (8.4) and return on capital employed 5.1% (6.9) without fair value changes. Equity ratio rose to 43.3% (33.5).
  • The fair value of biological assets (forests) was €1,299.8 million (1,256.9 at 31 December 2016).
  • Tornator signed a letter of intent to purchase 23,000 hectares of forestland from UPM and continued forestland purchasing in Estonia (+2,500 ha).
  • Tornator signed new long-term wood supply agreements in Finland and Estonia.
  • Tornator entered into a new loan transaction of €100 million.

 

Key figures (the Group, IFRS)

Official key figures

 

  1 Jan – 30 Jun 2017 1 Jan – 30 Jun 2016 1 Jan – 30 Jun 2015
Net sales, € million 41.8 46.2 48.7
Operating profit, € million 31.2 31.2 35.3
Operating profit, % of net sales 74.6 67.5 72.5
Profit for the period, € million 36.6 -37.7 39.6
Return on equity, % 12.1 -17.9 17.9
Return on capital employed, % 5.5 6.7 7.3
Equity ratio, % 43.3 33.5 38.3
Average number of personnel 188 201 212
IFRS = International Financial Reporting standards

 * Timber delivery = A customer harvests marked stands and gains ownership of the timber.

 

Complete translation of The Half-year Report (June 30, 2017) is attached.

 

For further information, please contact:

Sixten Sunabacka, Chief Executive Officer, tel. +358 400 366 148

Henrik Nieminen, Chief Financial Officer, tel. +358 40 869 761

 

www.tornator.fi

Tornator is a leading company specialised in sustainable forest management in Europe. It owns forests in Finland, Estonia and Romania. In 2016, the Group’s net sales were about €97 million and the balance sheet value was about €1.4 billion. The Group has about 200 employees. In total, its forests directly provide work for the company’s employees as well as contractors and their staff worth some 900 person-years. Tornator is among the 50 largest corporation tax payers in Finland. The parent company’s shareholders are Finnish investors, mostly institutions. Tornator’s mission is “generating sustainable well-being from the forest”.


Tornator Half-year Report 30 June 2017.pdf