21.01.2008 - RMK’s initial unaudited financial results for 2007 10.10

The return on sales of the State Forest Management Centre (RMK) in 2007, according to the initial unaudited data, was MEEK 1595, that is, MEEK 467 more than in 2006. The main part of the revenues came from the sale of cutting rights to growing forest and timber.

“Return on sales increased mainly starting in May, by an average of 60%, by relying on the growth of sales prices,” explained Jaanus Laas, Financial Director of RMK.

In 2007, RMK sold 21.3 thousand cubic metres of timber (127.2 cubic metres in 2006) as cutting rights for growing forest for MEEK 3.9 (MEEK 35.5 in 2006), with an average price of EEK 183 (278 in 2006) per cubic metre. The sale of cutting rights for sanitary cuttings made up about 98% of it (24% in 2006).

As timber, RMK sold 1.98 million cubic metres of timber in 2007 (1.97 million cubic metres in 2006) for MEEK 1468.1 (MEEK 987.2 in 2006), with an average price of EEK 740 per cubic metre (EEK 500/cubic metre in 2006). The sales volume of timber increased by 10 000 cubic metres. 71.6% of the sales volume was made up by timber collected from regeneration cutting, 20.5% from thinning and 7.9% from sanitary cutting.
RMK calculates 26% of the revenue from the sale of regeneration cutting rights and timber collected through regeneration cutting, from which the expenses related to the processing, transport and sale of timber have been deducted, into revenue from forests that is paid into the state budget. In 2007, revenue from the sale of regeneration cuttings was MEEK 228.6 (MEEK 199.2 in 2006).

RMK is a profit-making state agency established under the Forest Act, mainly aimed at the sustainable and efficient management of the state forest. RMK grows reforestation materials, organises forest works, is engaged in the sale of forest and timber and organises game upkeep. In addition to this, RMK creates possibilities for nature hiking and forest holidays in recreational areas, and shapes nature awareness. RMK manages 38% of Estonia’s forests.

Additional information:
Jaanus Laas
Financial Director of RMK
GSM +372 508 8744