The FPC continues to provide a significant contribution to the economies of the State and many communities throughout the south-west of Western Australia.
This financial year, an operating profit result of $0.89 million has been achieved after taking into account an additional amortisation expense of $2.2 million.
This result is contributed to by all forest business segments returning a profit before amortisation of licences and right of use assets.
The profit earned by the FPC has enabled the investment of $11.7 million in building the State’s softwood estate, native forest and sandalwood resource regeneration programs.
Pricing arrangements are determined by a variety of factors including requirements under the Forest Products Act 2000.
Section 59 of the Act prescribes the costs that are to be factored into a price for forest products. Contracts include indexation or an alternative escalation mechanism to minimise financial risk to the FPC.
The following table details a summary of our corporate performance against the financial outcomes and targets detailed in the Statement of Corporate Intent.
|Target 2019-20 ($ millions)||Actual 2019-20 ($ millions)||Variance ($ millions)|
|Total expenses (sourced from Statement of Comprehensive Income)||138.2||127.7||10.5|
|Total income (sourced from Statement of Comprehensive Income)||138.2||128.6||(9.6)|
|Total equity (sourced from Statement of Financial Position)||365.4||263.3||(102.1)|
|Net increase / (decrease) in cash held (sourced from Statement of Cash Flows)||(7.9)||(19.9)||(12.0)|
|Net profit / (loss) after tax||(1.7)||(2.6)||(0.9)|
|Closing cash balance||21.5||11.5||(10.0)|
|Return on assets||0.0%||0.3%||0.3%|
|Return on equity||0.0%||0.3%||0.3%|
|Operating profit to timber revenues||0.0%||0.7%||0.7%|