Rayonier’s division in New Zealand recorded a 28% decrease in earnings. The lower Chinese demand that influenced the export prices, together with the weaker kiwi dollar affected the forestry group.
The global forestry group’s division has more than 13,000 ha of plantations in New Zealand, being the third biggest company in the country. Rayonier reported last month adjusted earnings of $US 33 million in 2015, before interest and taxes, compared to the 2014 earnings of $US 46 million.
The total sales volume increased by 2.2%, to 2.41 million tonnes, of which domestic sawn timber increased 6.2%, to 682,000 tons and domestic pulpwood rose 23%, to 434,000 tonnes. Also, the exports increased: sawn timber rose 19% to 982,000 tonnes and pulpwood increased 17%, to 83,000 tonnes, as NBR reported.
The prices drooped, both in domestic and export markets. Sawn timber was sold at $US 64.05 a ton, going down 18%, and the domestic pulpwood decreased 15%, to $US 32 a ton. The sawn timber exports also dropped 21%, to $US 88.59 a ton.
Still, the lower Chinese demand was balanced by the low prices of oil, which provided low shipping costs.
In 2015, Rayonier bought 1800 ha of forestry rights for $US 9.9 million and they expect adjusted earnings of about $US 23 million to $US 28 million in 2016. Last year, the forestry group invested NZ$ 242 million into Matariki as to increase its 65% stake to 77%.
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