Yesterday, UPM hosted a Forest and Energy seminar. Attention focused on its ''net long'' electricity position, which will increase to over 7 TWh in 2023e, boosting UPM profits if current elevated energy prices are sustained. Confident of energy advantaged UPM''s evolution from structurally challenged graphic paper to green growth in pulp, biofuels and bio-chemicals we reaffirm Outperform with EUR38TP ahead of UPM October 25 3Q22e earnings. UPM is net long energy, hence its profits are boosted by higher energy prices In 2021, UPM consumed 11.7 TWh of electricity and produced 14.0 TWh of electricity, giving 2.3 TWh ''net long'' electricity position. With a new Finnish OL3 nuclear power reactor (Dec 2022) and UPM''s Paso de los Toros pulp mill (Q1 2023), this electricity ''net long'' will increase to over 7 TWh, boosting UPM profits if current elevated energy and electricity prices are sustained. UPM forest strategy: committed to biodiversity UPM has over 1m hectares of forest assets globally, valued at EUR3.2bn at FY21. While UPM forests supply 10% of its Finnish wood and the majority of its Uruguay wood needs, UPM is committed to net-positive biodiversity, harvesting less than 100% of forest growth, planting 50m trees annually. Uruguay pulp mill on track for 1Q23e ramp-up; Expect EUR600m+ EBIT contribution. UPM''s EUR3bn 2.1mT Uruguay pulp mill is on track for 1Q23e start. Post ramp-up, we believe this new pulp mill can contribute some EUR600m UPM comparable EBIT (or over EUR1,000m EBIT, if current pulp prices were maintained). Outperform with EUR38TP ahead of October 25 3Q22e earnings With UPM Energy''s ''net long'' energy position, sustained higher electricity prices give 4%/3% 2022/23e EPS upgrades. Confident of energy advantaged UPM''s evolution from structurally challenged graphic paper to green growth in pulp, biofuels and bio-chemicals we reaffirm Outperform with EUR38TP ahead of October 25 3Q22e earnings.