RMK’s Q1 profit up 57% 08.05

According to Aigar Kallas, Chairman of the Management Board at RMK, the increase in RMK’s profit was mainly due to increased sales volumes. “The below-zero temperatures persisting through early April permitted us to complete all planned cutting works and then some, as a result of which we sold 23% more timber year-on-year,” explained Kallas. Yet, he added that the late spring pushed back construction works on the infrastructure geared for hikers in nature, as well as several nature conservation and forestry improvement works.

RMK earned the majority of its revenue from the sale of timber and wood chips. In the first three months, RMK sold 1 million cubic metres of timber for a total of EUR 40.8 million. The average timber sales price turned out to be EUR 42.3 per cubic metre, which is 1.4% less than in the same period last year. In the first nine months, cutting waste and wood chips were sold in the volume of 0.06 million cubic metres for EUR 1.7 million. The average sales price amounted to EUR 26.2 per cubic metre.

To enable people to purchase firewood and timber for a good price, RMK sells cutting rights to growing forests to private persons, and within the first nine months of 2013 the sales volume of cutting rights reached 32,206 cubic metres (EUR 11.1/m3). From 1 March, RMK harmonised the organisation of its firewood sales, under which firewood is harvested from a standing crop from 1 November through 31 March.

By comparison, in the first 3 months of 2012 RMK sold 0.77 million cubic metres of forest material for EUR 33.1 million. The average timber sales price turned out to be EUR 42.9 per cubic metre. In Q1, cutting waste and wood chips were sold in the volume of 0.09 million cubic metres for EUR 3.1 million. The average sales price amounted to EUR 33.7 per cubic metre.

In its budget for 2013, RMK estimated this year’s sales revenue at EUR 140.6 million and profit at EUR 16.2 million.

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

Further information:
Aigar Kallas
Chairman of the Management Board of RMK
telephone 528 1299
e-mail aigar.kallas@rmk.ee