21.10.2008 - The financial results of RMK for nine months 04.10

The 9 month total sales revenue of RMK in 2008 was BEEK 1.38, which is MEEK 335 more than during the same period last year. RMK earned most of the revenue from timber sales and sales of the right to cut standing forest. Revenue from other activities was MEEK 25.

RMK sold 1.73 million cubic meters of timber, worth BEEK 1.23, during the first nine months of the current year. The average sale price of timber located next to a forest road was EEK 712 per cubic meter, which is 8.3% more compared to the same period last year.

RMK sold sanitary cutting under the right to cut standing forest and thus helped to provide firewood to local residents. During the first nine months, the average sale price of sanitary cutting rights was EEK 212 per cubic meter.

“The economic slowdown has created tensions in the timber sales market, and demand has fallen.” Compared to the first half-year, timber prices in the third quarter were lower and we are not expecting any price increases until the end of the year," said Aigar Kallas, chairman of the management board of RMK. “Due to autumn precipitation, large amounts of water have collected in the forests, which is why we have decided to curb cutting to prevent soil damage,” added Tavo Uuetalu, member of the management board.

71% of sold timber originated from regeneration cutting and 29% was from thinning. This year 4851 ha of state forests have undergone regeneration cutting, which is 59% of the total planned for 2008. State forests have been regenerated (planting and sowing) on 4874 hectares.

As of 30 September, RMK has transferred MEEK 164 to the state budget as forest revenue is MEEK 47 more than for the same period in 2007.

RMK used MEEK 15.6 during the first nine months of 2008 to facilitate public use of nature and to promote public awareness of nature. During the first nine months, RMK earned MEEK 8.1 from hunting (hunting packages, the products of hunting and hunting permits).

RMK is a profit making state agency established by the Forest Act and its main goal is to manage state forests economically and effectively. In addition, RMK creates forest vacation possibilities in the Estonian state forest and shapes nature awareness. RMK manages 38% of Estonian forests.

Additional information:
Jaanus Laas
RMK Finance Director
Phone: +372 508 8744
E-mail: jaanus.laasrmk.ee
www.rmk.ee/en