LONDON (ShareCast) - (ShareCast News) - Shares in Active Energy plunged 12% early on Wednesday, after the woodchip and timber supplier revealed its outlook for the second half was hit by legislative changes in Ukraine.
The London-listed company said production and shipping in the first half of 2015 were in line with forecast, adding it anticipates interim results to be in line with expectations.

However, a recently-approved law in Ukraine, which will come into effect in November and bans the export of unprocessed wood from the country, caused an unexpected hike in log demand over the last two months as traders rushed to buy before the legislation is implemented.

The ban in Ukraine coupled with a new law by the Bulgarian government on log exports caused a short-term hike in local timber market prices, which will reflect in a negative impact on trading margins, Active said.

Meanwhile, the group added the new softwood production line at its Yuzhny Port facility has been hit by delays, which will affect production volumes.

The facility had been scheduled to be operating by the start of the second half but the group is yet to indicate when it will become operational and, as a result, it expects full year results to be significantly below market expectations.

Active Energy shares were down 12% to 5.50p at 0918 BST on Wednesday.

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