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Outlook for 2019

Further improvements in production workflows will take place in 2019. Investments in the new sawmill are expected to be completed by the end of 2019. The yield is to be increased for the same harvest volume, leading to further sales growth. In the veneer plant, we expect an increase of 3 % in production, which can be achieved with the improvement in yield. Sales growth in 2019 will be between 5 % and 7 %. Margins will improve significantly again if no unexpected events lead to setbacks or delivery delays.

At the beginning of 2018, we carried out preparatory work to advance the project of a biomass power plant in Bambidie. However, as the new forestry law has not yet been adopted, we will leave it at preparatory work for now and only invest in it once there is legal clarity. In parallel, we are currently evaluating possibilities to make better use of restwood given that not the entire volume of biomass should be expected to be useable for electricity production.

We are also investigating additional concession areas with the intention of managing them sustainably and supplying the logs to the market. The demand for logs in the domestic market has risen massively because a number of companies have settled in a specially established industrial zone in Libreville for the first transformation (processing stage).

Key figures for Precious Woods Gabon
        2018   2017   Change
Economic                
Sales sawn and industrialized wood   in m3   37 300   36 700   1.6%
Sales logs   in m3   53 300   55 400   –3.8%
Sales rotary veneer   in m3   25 100   26 000   –3.5%
Sales sliced veneer   in m2     57 400   –100.0%
Harvest volume   in m3   243 500   238 600   2.1%
Net sales   in EUR million   29.3   30.7   –4.6%
Operating result   in EUR million   5.6   9.9   –43.4%
                 
Environmental                
Energy consumption   in GJ   165 400   162 000   2.1%
CO2 emissions   in t   15 400   14 500   6.2%
FSC share of timber production sold   in %   100   100  
                 
Social indicators                
Employees (yearly average)       872   830   5.1%
Women   in %   9.1   9.3   –2.2%
Accidents at work       88   77   14.3%
Days lost per accident       8.3   10.9   –23.9%