The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: Yes. I would have 2 questions, both actually for -- related to Biorefining. Firstly, about the Q2, very strong EUR 120 million improvement in EBIT
year-over-year with 6% lower pulp deliveries. Obviously, this is supported by higher pulp price. But could you just talk a little bit about what was
the contribution of sawn timber in this quarter? I mean, I know it's a relatively small business for you, but the market is quite an extraordinary phase,
I would say.
Then second question is about the Lappeenranta biorefinery and the fire incident there in mid-May. If I understood correctly, the refinery has been
down since, and I was just wondering what is the situation with this at the moment. Have you scheduled a start-up already? And do you see a need
for a meaningful repayment CapEx upside?
Question: Antti Koskivuori - Danske Bank A/S, Research Division - Analyst
: And about the potential CapEx related to repairments, is that anything meaningful?
Question: Justin Joseph Jordan - Exane BNP Paribas, Research Division - Analyst
: I've got 2 separate questions on 2 different divisions. Firstly, on Communication Paper, and I appreciate you've had extraordinary volatility in
demand in the first half of this year. But clearly, prices were down significantly in January for most contracts for the first half, but we've just seen
announcements of what looks like an average double-digit price increases for July from (inaudible) for Germany and, I expect, for most markets
across Europe.
Can you just give us some indication of what that might mean for the second half? And clearly, I'm thinking in the context of your Slide 37, where
you've got your cash cost of the margin producer versus spot prices for Communication Paper for many years. We're very familiar with the chart,
but it looks like, hopefully, pricing is in a better place, shall we say, as we think about the second half of 2021.
And then secondly, just more generally, more strategic, I suppose. You've been talking about your Biofore strategy for years and (inaudible) for
years, long before the EU ever gave us any information about Taxonomy or Fit for 55, as they did last week. But when we think more generally,
more strategically, how is UPM positioned now that we've had 3 months to think about Taxonomy? What does that mean for UPM, I'm thinking in
terms of potentially biofuels? And what does the CO2, shall we say, regime that we have going forward from Fit for 55, what does that potentially
mean for UPM? Sorry, 2 separate questions but delighted to hear your response.
Question: Linus Larsson - SEB, Research Division - Analyst
: Most of my questions have been answered. But just a couple of follow-ups maybe on Paso de los Toros. Just I mean, second half 2022 is only 1 year
away. So when you say the second half 2022, is it closer to July or closer to December when you start the ramp-up?
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