31 May 2024

22nd AgFood Conference presentation

CEO and MD of Midway Limited, Tony McKenna, presented at the Australasian AgFood Conference hosted by PAC Partners and Commonwealth Bank this week. 

Midway shared its carbon strategy, addressing emissions solutions for investors, landowners, and emitters. The event focused on innovation, access to capital, and resilience in Australia’s Agri industry. Please link here for details.

29 April 2024

Market Update – Trading Conditions and Forecast Earnings

Today Midway announced the following positive earnings guidance to the ASX. This is a pleasing improvement and demonstrates progress in our strategic approach:

Earnings Guidance

It is likely that Midway’s FY 2024 EBITDA-S will be in the range of $10M to $15M.  This update is in line with the guidance provided at the AGM of a level of sustainable earnings through the cycle of around $10M to $15M. 

The guidance primarily reflects the previously announced improved sales volumes for January and February 2024 and recently, the  decision by key customers to confirm delivery schedules for previously deferred CY23 contracts.  Other drivers include the continuation of some favourable carry-over 2023 pricing, better FX and dry fibre content, and a contribution from CIF sales.

Earnings guidance is subject to a range of market variables as outlined at the end of this update.  In particular, uncertainty remains in relation to the CY24 headline pricing, the risk of vessel deferrals as well as general market conditions, both of which may impact volumes.

Midway CEO, Tony McKenna said “I am very pleased that we are starting to see some positive results and a demonstration that our strategy is on track.”

Headline Price

The headline FOB price for E. Globulus (EG) from Australia to Japan for calendar year 2024 has not yet been settled. The price, which acts as a benchmark for the majority of woodfibre sales, is currently set between Australia’s largest EG exporter (New Forests) and Japan’s Nippon Paper. Over the past five years the price has been set at a time between February and July.

It is considered likely that the EG headline price for the current half will be lower than 2023’s price of USD198.75.

Midway is currently shipping some 2023 contracted vessels at 2023 prices and some vessels are shipping based on provisional pricing that will be adjusted once the headline price is set.  As the headline FOB price for EG has not been settled, new sales at an unknown price are proving difficult to secure, particularly for our joint venture company, South West Fibre.


China Bleached Hardwood Kraft Pulp prices have risen to a 2024 high of USD 715/t, up from last year’s low of USD 450/t.

Some softness continues in the demand for Australian woodfibre as many Chinese customers are seeking to preference the use of domestic logs and Vietnamese fibre.  Demand from two major new mills in China, scheduled to commence operations in the second half of calendar year 2024, is expected to substantially tighten the regional supply / demand woodfibre balance.

The Company’s FY24 guidance remains subject to a range of variables, including:

– Sales volumes;
– Timing of vessel shipments, some of which remain subject to deferral/slippage;
– The fact that the headline FOB 2024 price for EG is yet to be determined;

13 May 2022

Sale of Plantation Estate and Greenfield Commitment

Midway Limited has signed an agreement to sell its existing 17,000 hectare plantation estate in south-west Victoria. MEAG, a wholly owned subsidiary of Munich Re, has established a special purpose vehicle (SPV) for a client, and the SPV will acquire the existing 17,000 hectare plantation estate from Midway for A$154.1 million.

As part of the transaction, the SPV has also committed to invest an additional A$200 million for land purchases for the development of new hardwood plantations in southwest Victoria over the next five years on land to be sourced by Midway Limited and managed by Midway Plantations Pty Ltd. The transaction is subject to and conditional upon approval by the Foreign Investment Review Board (FIRB).

The sale of the Midway plantation estate, and Midway’s receipt of the transaction proceeds, will settle in scheduled tranches as Midway unwinds its existing timber supply arrangements with Manulife Investment Management (the ‘Strategy’ financial liability on the Midway balance sheet). Subject to regulatory approvals, the first tranche is provisionally expected to settle in mid-2022 and the last in or around September 2024.

The use of the net proceeds of the transaction will be considered further and will include paying the existing contractual arrangements under the `Strategy’ financial liability, reduce bank debt, investment in growth initiatives and returns to shareholders. The allocation of sale proceeds will be determined by the Midway Board of Directors following the conclusion of subsequent stages of the current Strategic Review announced on 14 March 2022.

As part of the transaction, the SPV will engage Midway Plantations Pty Ltd to manage the combined assets under a long-term management agreement and supply Midway Limited with all hardwood log harvested from the combined estate under a long-term offtake agreement, each on arm’s length commercial terms.

Managing Director for Midway, Tony McKenna, said the sale of the existing plantation estate and the greenfield plantation development is an excellent outcome for Midway shareholders.

“Midway will realise more than book value from plantation assets. We will generate revenue from the management and offtake agreements and we will secure future additional volume for our processing operations at North Shore.

“When complete, the change in ownership and control of the plantation estate will simplify the Midway balance sheet and remove annual valuation changes in biological assets that have previously created volatility in the valuation of company held assets.

“The proceeds of the transaction and the ongoing management revenue will support our existing business and allow Midway to develop initiatives that will reposition the company for long-term growth.”

Holger Kerzel, member of MEAG’s Board of Management, stated that MEAG was very pleased to enter into a long-term commercial relationship with a significant Australian forestry company such as Midway.

“On behalf of our clients, MEAG identified the Australian hardwood production sector as a key growth opportunity in global forestry and Midway is one of the few companies that could create a platform for significant new commercial hardwood forestry investment that meets our criteria especially for sustainable investments”, Holger Kerzel said.

The Midway project team was led by the General Manager of Business Development, Mitch Morison and the General Manager, Plantations, Glen Samsa, and was advised by Azure Capital and SBA Law for this transaction.

For further information please see ASX announcements as follows:

Sale of Plantation Estate Presentation 

Sale of Plantation Estate and Greenfield Commitment 

21 March 2022

International Day of Forests – Sustainable forestry continues to achieve positive outcomes

Forestry Australia, the peak organisation representing over 1,000 professional and scientific forest land managers and growers in Australia is celebrating the critical role of forests in sustainable production and consumption for Australians, and millions of people across the world.

As part of International Day of Forests, Forestry Australia is shining a light on the importance of forest science, and the skilled, experienced forest managers, growers and professionals who drive positive sustainable forest outcomes across the country. Rayna Barr, Midway Logistics Admin and Compliance Manager in Western Australia, said ensuring forests could be enjoyed by generations to come was an important outcome of active forest management.
“I have had a varied career in forestry, from native forest management in New Zealand, to pine log export in Western Australia and Safety and Environmental Compliance with Midway.
“Throughout this career I have learned that active management of forests provides us with an opportunity to improve forest health, ensuring that my children will be able to continue to use them and enjoy them in the future, just as we enjoy them now as a family.
“Managing forests to ensure they are resilient to fire, drought and disease, and open and available for the community to enjoy should be everyone’s goal.”
The United Nations General Assembly proclaimed 21 March the International Day of Forests (IDF) in 2012.
The Day celebrates and raises awareness of the importance of all types of forests, with this year’s theme “Forests and sustainable production and consumption”.

Learn more