Impressive result of the State Forests. Profit twice as high as expected

5cf89179ec784b16f90d2b88f72b986c, Biznes Fakty

Russian wood inundates European market TVN24

In 2024, the profit of the State Forests reached approximately PLN 870 million, more than double the initial forecasts – as per the data released by the State Forests. Institution representatives highlight that these figures are estimates, and the final outcome will be established by the end of March 2025.

In response to inquiries from PAP, the State Forests indicated that according to preliminary data , the profit for 2024 was PLN 869.7 million gross, translating to PLN 785.4 million net .

The organization also disclosed that the value of the obligatory payment from timber sales for 2024 is PLN 223.7 million. In 2014, regulations were enacted mandating the State Forests to allocate 2% of their timber sales revenue to the state budget.

However, the State Forests noted that „efforts to finalize the year 2024 and ascertain the ultimate result are still in progress.” „These are preliminary figures (for 2024 – ed.) and will vary from the final outcome, which will be available by the end of March 2025,” they added.

At the close of the previous year, the general director of LP, Witold Koss, mentioned in an interview with PAP that the State Forests were expected to achieve a financial result for 2024 that would exceed the planned figures by several hundred million zlotys. The initial projection was for a profit of around PLN 400 million with revenues estimated at PLN 12.7 billion. Koss explained at the time that the improved outcome was attributed to, among other factors, the conditions in the wood market, as well as the sale of wood in thirds (three times a year).

– The financial stability of the State Forests is solid, and we are not at risk of collapse – either currently or in the future, contrary to what some groups predict – the head of the State Forests emphasized at that time.

New charge for the State Forests

Ministry of Climate and Environment representatives contend that the State Forests should contribute more financially to nature conservation efforts in Poland.

In January of this year, a proposed amendment to the Forests and Environmental Protection Act was published on the RCL website, which stipulates that LPs will annually remit to the National Fund for Environmental Protection and Water Management a fee based on the volume of timber harvested . These funds are intended to support initiatives and objectives carried out by national parks or regional environmental protection authorities.

According to the proposal, this fee will be progressive—meaning the more timber harvested, the higher the fee. For timber harvests up to 35 million cubic meters per year, the fee will be PLN 6 per cubic meter; for volumes between 35 and 40 million cubic meters, the fee will rise to PLN 8 per cubic meter; for volumes between 40 and 45 million cubic meters, it will be PLN 15 per cubic meter, and PLN 30 for each cubic meter exceeding 45 million cubic meters.

Koss reported that in 2022, LPs harvested over 44 million cubic meters of wood. It is estimated that in 2024, this figure will exceed 40 million. Meanwhile, the forecast for 2025 anticipated around 38 million cubic meters. The proposed amendment indicates that the fee will first take effect in 2025. Starting with the payment due in 2027, the fee rate will be adjusted according to inflation.

The Regulatory Impact Assessment for the proposal estimated that revenues from the fee in subsequent years will range from PLN 210-255 million annually, assuming that the annual timber harvest by the State Forests remains between 35-40 million cubic meters during the years 2024-2033.

Poland’s forests span over 9.2 million hectares, with more than 7.3 million hectares managed by the State Forests. The State Forests represent the largest organization in the European Union overseeing forests owned by the State Treasury, managing a quarter of Poland’s land area and employing around 26,000 individuals.

Źródło

No votes yet.
Please wait...

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany. Wymagane pola są oznaczone *