In 2016, the net sales of Renewable Energy Sources decreased by 6.6 per cent to EUR 36.8 million (EUR 39.4 million). Operating profit totalled EUR 1.5 million (EUR 2.1 million). The relative profitability of the Renewable Energy Sources business remained on a par with the previous year.
In 2016, the overall demand for forest energy continued its decline from the peak level reached in 2013 due to factors including warm weather conditions, the weak profitability of electricity produced from wood chips and the ample supply of competing fuels. The decline in the overall demand for forest energy also affected the development of the Renewable Energy Sources division’s net sales.
In the short term, the strategy for Renewable Energy Sources is focused on ensuring profitability and moderate growth. The business environment will remain challenging in 2017, but demand will improve in the coming years due to new plant investments. As the market situation improves, we aim to grow the business in line with our strategy.
Well, it grows on trees.
Less emissions, more renewable energy.
Key actions and achievements in 2016
- We defined our new strategy aimed at profitable growth and began its systematic implementation
- We signed significant long-term customer agreements
- We further increased the efficiency of the supply chain and improved the quality of our operations
- We developed inventory management and released tied-up capital
- Forest services received PEFC certification to verify that the raw materials are sourced from sustainably managed forests.