The Supervisory Board proposes to transfer half of the profit earnt by RMK in 2018 into the state budget 07.03

At today’s meeting, RMK’s Supervisory Board approved the 2018 audited annual report, according to which RMK’s turnover last year reached EUR 209.1 million (EUR 174.8 million in 2017) and operating profit reached EUR 88.9 million (EUR 48.8 million in 2017). The Supervisory Board proposed that EUR 41.6 million, i.e. half of the earnt profit, be paid into the state budget in the form of dividends.

The lion’s share of revenue earnt by RMK came from the sale of timber. In 2018, the sales volume for timber reached 3.7 million cubic metres, which is 100,000 cubic metres less than the year before. In a comparison of groups of products, timber was sold as follows: logs 49%, pulpwood 32%, fuel wood 15%, chips and cutting waste 4%.

“Less timber was sold because RMK strictly adhered to the total area limit established by the Minister of the Environment for permitted cutting areas; at the same time, it selected cutting areas which were, thanks to the cold winter and dry summer, growing on wetter lands and from which the amount of timber extracted is lower. All concluded timber sales contracts were fulfilled and there was no reason for any timber purchaser to demand a contractual penalty from RMK,” said Chairman of the Management Board Marku Lamp.

The Supervisory Board proposed that EUR 41.6 million be paid into the state budget in the form of dividends, which is EUR 20.1 million more than the year before. “Good economic results allow the state to expect greater income from the forest. In the budget approved by the Supervisory Board the volume of investments made back into the forest will increase, so that the forest has not been hurt by this decision,” added Marku Lamp.

Since prices on the timber market are experiencing a downward trend, RMK is forecasting a turnover of EUR 203.4 million for 2019; profit of EUR 51.9 million is planned.

RMK, or the State Forest Management Centre, is responsible for taking care of nearly 30% of the total land area of Estonia, on which 47% of Estonia’s forests are located. RMK is the keeper, protector and manager of the forest and other natural biotic communities belonging to the Estonian state. RMK cultivates forests, preserves natural treasures, earns income for the state by managing the forest, creates opportunities for visiting nature, and provides nature education.