Swedish forestry group Holmen AB on Thursday reported a drop in first-half profit, citing the impact of very low electricity prices in northern Sweden.
Operating profit for the January to June period fell to 1.79 billion Swedish kronor from 1.93 billion kronor a year earlier, the company said.
Net profit for the six months declined to 1.35 billion kronor from 1.49 billion kronor in the same period last year, while net sales were largely flat at 11.55 billion kronor.
The company's net debt jumped to 5.35 billion kronor at the end of June, up from 3.26 billion kronor a year prior.
Holmen said it paid 1.89 billion kronor in dividends and repurchased shares for 862 million kronor during the first half of the year.
According to the company, an increase in profit from its paperboard and paper business was offset by a decline in its energy division.
Second-quarter operating profit decreased from the first quarter, a result the company attributed to a maintenance shutdown at its Workington mill.
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