The FPC continues to operate profitably and 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 $6.6 million has been achieved.
This result is contributed to by all forest business segments returning a profit.
The profit earned by the FPC has enabled the investment of $7.2 million in building the State’s softwood estate, native forest and sandalwood resource regeneration programs.
During 2017–2018, a dividend of $3.6 million was paid to the State Government for the 2016–2017 year.
Pricing arrangements are determined by a variety of factors including requirements under the Forest Products Act 2000.
Section 59 of the Act prescribes the costs that are to be factored into a price for forest products. Contracts include indexation or an alternative escalation mechanism to minimise financial risk to the FPC.
The following table details a summary of our corporate performance against the financial outcomes and targets detailed in the Statement of Corporate Intent.
|Target 2017-18 ($ millions)||Actual 2017-18 ($ millions)||Variance ($ millions)|
|Total expenses (sourced from Statement of Comprehensive Income)||131.4||107.5||23.9|
|Total income (sourced from Statement of Comprehensive Income)||134.3||119.7||(14.6)|
|Total equity (sourced from Statement of Financial Position)||362.4||370.3||7.9|
|Net increase / (decrease) in cash held (sourced from Statement of Cash Flows)||(7.0)||(0.8)||6.2|
|Net profit / (loss) after tax||(3.5)||8.0||11.5|
|Closing cash balance||23.5||30.6||7.1|
|Target 2017-18 (%)||Actual 2017-18 (%)||Variance (%)|
|Return on assets (operating profit/total assets)||0.7%||3.1%||2.4%|
|Return on equity||0.8%||3.5%||2.7%|
|Operating profit to timber revenues||2.2%||5.9%||3.7%|