Covid-19 to have ‘very significant impact’ on Coillte, says Hurley

COILLTE’S chief executive, Imelda Hurley, has warned that the coronavirus pandemic will have “a very significant impact” on the business for at least this year.

Ireland’s largest forestry group is also being hit by a slowdown in the approval of forestry felling licences.

“The market environment in 2020 is – and will continue to be – particularly challenging,” Ms Hurley said.

“The Covid-19 pandemic is clearly changing the market dynamic and will have a very significant impact on our business for at least this current year.”

Coillte are wary also of the uncertainty around Brexit as the UK is Ireland’s largest market for sawnwood and timber products.

“The UK’s future trading arrangements with the EU are an important and as yet unknown variable which may impact the 2020 market dynamics towards the latter part of the year,” said Ms Hurley.

“As a result of these challenges we are projecting a significantly weaker financial performance in 2020 compared to 2019.”

The comments come as the group released annual results for 2019, which show a fall in earnings at the State-owned company. However, Coillte is now debt free for the first time in its history.

Its earnings declined by 10pc to €102.8m last year. The performance was impacted by a 15pc-20pc price decline in its key products, which was due to an excess supply of sawnwood into the UK from mainland Europe.

The sale of the majority of Coillte’s operating wind farms in December 2018 also affected results, as they accounted for €7m in reoccurring earnings.

Meanwhile, revenues of €327.4m were slightly down on 2018’s record year of €330.3m.

On whether Coillte would convert more commercial forests into recreational areas, Ms Hurley said it was “impossible to look too far into the future and say if there will be others”.

“We also have to be mindful that we drive a profitable business,” she said.