RMK earns EEK 1.3 billion in sales revenue in 9 months 26.10

Sales revenue of the State Forest Management Centre (RMK) in the first 9 months of 2010 reached EEK 1.3 billion. During the same period last year, RMK earned EEK 890 million in sales revenue, with growth reaching 46%.

RMK’s net profit in the first 9 months of this year was EEK 296 million. That is six times higher compared to the same period last year, when profit reached EEK 47 million.

The majority of the revenue was earned from the sale of felled timber and wood chips. In the first 9 months of the year, RMK sold 2 million cubic metres of felled timber for EEK 1.26 billion. The average sales price of felled timber settled at EEK 607 per cubic metre, 24% higher than the year before.

According to Anneli Viik, RMK’s Finance and Administration Manager, work in Q3 was impacted by the storm that had ravaged the forests late last summer and by efforts to remedy its extensive damage. “As a result, we revised our felling schedules and increased in areas the volumes of clear-cutting and sanitary cutting,” Viik said. In Q3, 756 000 cubic metres of felled timber and wood chips were sold for EEK 512 million. The average sales price in Q3 reached EEK 677 per cubic metre.

To provide facilities for natural resource utilisation based on everyman’s right and to promote awareness of nature, RMK spent a total of EEK 10.5 million in the first 9 months of 2010.

In the 2010 budget, RMK forecast annual sales revenue of EEK 1.7 billion and a profit of EEK 210 million. Based on the results of the first 9 months, the profit forecast has already been exceeded.

RMK is a profit-making state agency established under the Forestry Act, aimed at sustainable and efficient management of the state forest. RMK grows reforestation materials, organises forestry works, is engaged in the sale of forest and timber and organises game upkeep. In addition, RMK establishes opportunities for hiking in nature and forest recreation on recreational areas, in Estonia’s five national parks and 40 other protected areas, and shapes awareness of nature. RMK manages 38% of Estonia’s forests.

Further information:

Anneli Viik
Finance and Administration Manager, RMK
Tel 676 7740, 501 4740