18.10.2005 - RMK earned MEEK 823 in nine months 29.09

The State Forest Management Centre (RMK) earned MEEK 822.7 in the first nine months of 2005, which is MEEK 80 more than it earned during the same period past year.
RMK earned the majority of the revenue from the sale of timber (1,375,700 cubic metres for MEEK 734.2, with the average price of a cubic metre being 534 kroons). The cutting rights, covering 164,800 cubic metres of standing crop, were sold for MEEK 44.3 (with the average price of a cubic metre being 269 kroons). The revenue from other activities was MEEK 44.2 during the first nine months of 2005.

“The economic results of the present year are significantly influenced by the 9 January storm damage in Sweden and the Baltic States, as well as by a six-week lockout in the Finnish pulp factories,” said Director General of RMK Ülo Viilup, when commenting on the economic results. “The demand for softwood used in paper production has undergone a significant decrease, which in turn has reduced the sales price of timber used by paper factories. At the same time, logging of storm damaged trees is more expensive than normal logging.”

Viilup also noted that the storm damage greatly changed the structure of cutting. “The volume of sanitary cutting is higher than usual, and part of the planned clear and improvement cutting is postponed until next year,” said Viilup. “Sanitary cutting rights have been sold for 46.5 thousand cubic metres (38.6 thousand during the same period in 2004) and the sales volume of the timber obtained through sanitary cutting has reached 352.7 thousand cubic metres (48.0 thousand during the first nine months of 2004), plus the areas ravaged by the storm where the damage was so excessive that they were clearcut.”

The State Forest Management Centre, RMK, is a profit-making state institution, formed pursuant to the Forest Act, whose main objective is the effective and sustainable management of state owned forests. RMK grows reforestation material and arranges for forest works and game maintenance. RMK also creates opportunities at its recreational areas for the public to access the forest and provides nature education.

Additional information:

Jaanus Laas, Chief Financial Officer of RMK
Telephone +372 628 1572
E-mail jaanus.laasrmk.ee