RMK’s 2009 preliminary financial results 26.01

Based on preliminary unaudited data, RMK’s 2009 revenues were EEK 1.464 billion, with a net profit of EEK 149.5 million; out of the profit retained in the previous years, EEK 680 million were transferred into the state budget.

RMK earned the lion’s share of its revenues from timber sales. 2.36 million cubic metres of timber were sold, for a total of EEK 1.214 billion. Logs accounted for 46% of the total sales volume; 40% was sold for paper wood, 11% for firewood and 3% for wood chips. Despite the recession in the timber market, there was success in increasing the cutting volume, and the volume of timber sold was 12% higher than in the previous year. The average producer price on timber, by contrast, dropped 33% from EEK 770 to EEK 514.

2009 was characterised most by an unusually volatile situation on the timber market. “If in the first half year timber sales practically stopped, and it was impossible to find a purchaser for the goods, even below the cost price, in the second half year we managed to restart sales, supported by new markets and product groups,” Anneli Viik, Director Finance and Administration, RMK, said.

RMK’s 2008 revenues were EEK 1.7 billion, with a net profit of EEK 110.7 million. A total of 2.1 million cubic metres of timber was sold. For 2010, it is planned to increase the volume of timber sales to 2.5 million cubic metres; similar to 2009, the growth estimate for the budget has been set at EEK 150 million.

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

Further information:
Anneli Viik
Director Finance and Administration RMK
Telephone: 501 4740
E-mail: anneli.viik@rmk.ee