RMK’s turnover for the first half of the year increased 10%, profit increased 58% 06.08

The sales turnover of the State Forest Management Centre (RMK) for the first six months of 2013 amounted to EUR 72.4 million, which is 11% more than in the same period last year. At the same time, RMK’s profit was EUR 11.3 million, up 58% year-on-year.

RMK earned the majority of its revenue from the sale of timber and wood chips. In six months, RMK sold 1.6 million cubic metres of timber for a total of EUR 66.8 million. The average sale price for timber was EUR 41.8 per cubic metre, which is on the same level with the same period last year. During the first six months of the current year, RMK sold cutting waste and wood chips in the volume of 0.1 million cubic metres for EUR 3.2 million, with an average sale price of EUR 27.7 per cubic metre.

For comparison, in the first six months of 2012 RMK sold 1.33 cubic metres of timber for EUR 56 million, with an average price of EUR 42.10 per cubic metre; cutting waste and wood chips were sold in the volume of 0.21 million cubic metres for EUR 7.1 million, with an average sale price of EUR 33.20 per cubic metre.

“The increase in profits comes from an increased demand for saw logs, which has increased the price per log,” commented Aigar Kallas, Chairman of the Management Board of RMK, adding that currently the demand for logs surpasses supply. For cheaper product groups (pulpwood and firewood), decreased market demand has resulted in somewhat reduced prices.

For a third consecutive year RMK’s reforestation work has increased; in the second quarter RMK planted 17.2 million plants, which is 4% more than in the same period last year. “In the second quarter we provided more than 1500 persons with seasonal work related to large-scale reforestation activities,” explained Aigar Kallas, adding that for the second consecutive year reforestation work in the state forest will also continue in the autumn.

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 six months of 2013 the sales volume of cutting rights reached 12,700 cubic metres (average price EUR 9.9/m3). From 1 March, RMK harmonised the organisation of its firewood sales, which sets out how buying requests for firewood are registered in a unified registration system and according to which firewood is harvested from a standing crop from 1 November through 31 March.

In the budget for 2013, RMK forecasts sales revenue for the year to be EUR 140.6 million and profit to be EUR 16.2 million.

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 material, organises forest works, executes practical nature protection works and is engaged in forest and timber sales. 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:
Anneli Viik
Finance and Administration Manager at RMK
Telephone: 501 4740
E-mail: anneli.viik@rmk.ee