23.07.2008 - Financial results of RMK for the first half-year of 2008 05.10

Sales revenue for the State Forest Management Centre (RMK) for the first half-year of 2008 amounted to EEK 1.032 billion, which is MEEK 296 more than during the same period last year. The majority of the revenue was earned from the sale of forest materials and cutting rights to growing forest; revenue from other activities amounted to MEEK 15.

In the first 6 months of this year, RMK sold 1.24 million cubic metres of forest material for MEEK 937. The average sales price of forest material was EEK 752 per cubic metre, which is 26% higher than during the same period last year. As cutting rights to growing forest, RMK sold sanitary cuttings, which contributes to supplying local people with firewood. The average sales price of the cutting rights to sanitary cutting in the first half-year was EEK 213 per cubic metre.

The average sales price of forest materials, in comparison with the culmination of the market at the end of last year, has been decreasing. ”What makes us glad is that regardless of the decreased demand on the market, all cut timber has been sold. For the third quarter, we forecast the stabilisation of the price at the current level, and by the end of the year, an increase in prices,” said Aigar Kallas, Chairman of the Management Board of RMK. “The forecasts for the annual budget have been made pretty conservative in order to cope with the obligations taken, regardless of the cooling down of the economy,” added Jaanus Laas, the Financial Director of RMK.

Of the sales volume of forest material, 72% was made up of timber collected from regeneration cutting, 22% came from thinning. This year, regeneration cutting in the state forest has been performed on 3212 hectares, which makes up 39% of the amount designated by the Government of the Republic for 2008. This year, the state forest has been renewed (planting and sowing) on a total of 4874 hectares.

In order to provide options for the use of nature based on every man’s right and to promote nature awareness among the population, RMK spent a total of MEEK 15 in the first half of 2008. From hunting (selling of hunting packages, products of hunting and hunting permits), RMK earned MEEK 5 in the first six months.

RMK is a profit-making state agency, established under the Forestry Act, the main assignment of which is the sustainable and efficient management of the state forest. In addition to this, RMK creates possibilities for forest holidays and shapes nature awareness. RMK manages 38% of Estonian forests.

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