RMK forecasts a turnover of EEK 2 billion for 2011 07.12
At its 3 December meeting, RMK’s Supervisory Board approved the 2011 budget, according to which RMK’s total revenues next year are projected to exceed EEK 2 billion (EUR 130 million). Profit of EEK 423 million (EUR 27 million) is forecast, which is twice as much as what had been planned for this year. RMK’s budget was prepared based on RMK’s 2011-2014 development plan approved at the same meeting.
Compared to this year’s budget, RMK’s revenues are to grow by 20% in 2011. “As we have reached the optimum level in terms of cutting operations in the state forest, the cutting volume next year will not be growing significantly,” Aigar Kallas, Chairman of RMK’s Management Board explained. “As a result, the source of increased revenue will be, first and foremost, the price of timber, which is forecast to be 16% higher in 2011 than this year. A large share of the forecast price increase has already gradually transpired this year; next year, we envisage further opportunities for increase on low-quality felled-timber products.” In this respect, in 2011 RMK will increase the volume of improvement cutting and cleaning, maintain logging roads and edges of roads more, and clear from cutting areas tree branches and treetops left there in the past.
With the increase in the volume of forest maintenance, costs will increase, too, by 8% compared to this year. Another significant factor raising costs is the rapidly growing competition on the labour market. “Finding available workforce has become an obstacle again, and so we will not be able to complete all the works planned for this year either,” Kallas said.
RMK’s profit in 2011 is being forecast at EEK 423 million (EUR 27 million), EEK 213 million more than the 2010 budget.
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.
Chairman, Management Board, RMK
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