23.07.2009 - Economic Performance of RMK in the First Half-Year of 2009 23.07

The State Forest Management Centre (RMK) had a sales revenue of a total of 524 million kroons and a net profit of 18 million kroons in the first six months of 2009. Of the sales revenues, RMK earned 96% from timber sales; revenue from the sales of logging rights to standing timber and other activities totalled 22 million kroons.

This year, RMK sold 1.04 million cubic metres of timber in the first six months, which is one-fifth less than in the same period last year. Timber sales generated earnings of 502 million kroons; the sales price of timber averaged 484 kroons per cubic metre. The price of timber sold has decreased by 36% compared to the previous year.

"The reduced market demand and the accompanying decline in price has forced RMK to reduce its logging and sales volumes", said Aigar Kallas, Chairman of RMK's management board. "Thanks to the reorganisations carried out last year, we have managed to also cut costs and made ends meet. For instance, labour costs have declined by approximately 100 million kroons compared to the previous year", Aigar Kallas added.

RMK predicts a more optimistic second half-year. "Sales contracts have been signed, and we intend to place on the market during the second half-year the quantity of timber not cut in the first half-year", Aigar Kallas asserted and added that RMK hoped thereby to cover the increased demand for logs by saw mills and to provide additional employment opportunities both in the forest and in the timber processing industry.

In order to provide natural resource utilisation opportunities based on the common right of access and to promote awareness of natural resources amongst the general public, RMK used 22 million kroons in the first half of 2009. Hunting (sale of hunting packages, products of hunting and hunting permits) generated earnings of 4.4 million kroons for RMK in the first six months.

RMK is a profit-making state agency established under the Forest Act, aimed at sustainable and efficient management of the state forest. In addition to this, RMK creates possibilities for forest holidays and promotes nature awareness. RMK manages 38% of the Estonian forests.

Further information:
Jaanus Laas
Financial Director, RMK
Phone: +372 676 7572, +372 508 8744
E-mail: jaanus.laas@rmk.ee
www.rmk.ee/en