Coillte Policy

System

This discussion was created from comments split from: Wfs forestry investment.

Birdnuts

I see Coillte is going all in in bringing vulture funds over here to drive more block planting of conifers by buying up another 50k hectares of land. Seems the government recent review of the forestry sector that was meant to lead to a more sustainable and community based model has been binned already😡

Birdnuts

https://www.boards.ie/discussion/comment/120072201#Comment_120072201

Coillte claim to be providing other benefits like biodiversity, community benefits, adhering to various EU environmental Directives etc. as well as pulp forestry. So far we have seen little of the former and a failure of the industry in general to implement sustainable forestry approaches that protect water quality, biodiversity etc. They already have 400k under their portfolio so it is of concern that there current approach to forestry will be extended even further

https://www.boards.ie/discussion/comment/120062265#Comment_120062265

For once I have to agree with your sentiment. Personally I think Coillte has enough land that it needs to focus on and maintain to a better standard. The idea of another vulture fund owning Irish land and collecting premia.

Coillte is so badly managed. One of their foresters told there is forest that Coillte has no maps for, and maps of forests that don't exist. I know many fine dedicated and ethical foresters who work for Coillte, but the organization is top heavy on management and there is no accountability.

cap.in.hand.

Most of the publicity surrounding this is the upward price of forestry type land which is good for landowners... it's not compulsory if your a landowner that you have to or want to sell land and they could develop their own land into forestry

Bullocks

Will Coillte be taking on alot more staff to deal with the extra work and land?

I see the fund got €25m from the Irish gornment. Would that €25m have gone far in improving schemes to get more farmers to take up planting land think?

893bet

I bet the vulture funds will be able to sell the carbon credits from the trees….

getoutadodge

https://www.boards.ie/discussion/comment/120084047#Comment_120084047

Agree. See extract from page 19 of the ERA report for last year. A miserly return to the taxpayer of circa 25 million for the largest land holder in the State. In a country with the best forestry climate in NW Europe plus in a era when the are huge opportunities to draw down funds for mixed afforestation, climate mitigation, species diversification. leisure etc...all in an era of sky high lumber costs.

Bring in new management.

https://www.ntma.ie/uploads/publication-articles/NewERA-Annual-Financial-Review-2021-22.pdf

Key Financial Information (Year ended 31 December, FRS102) Key Financial Information (€’m) 5yr Avg 2021 2020 yoy Δ Turnover 333 422 285 +137 EBITDA (adjusted) 103 159 65 +94 EBIT (adjusted) 69 128 29 +99 PAT (adjusted 61 110 23 +87 PAT (reported) 79 117 22 +95 Tangible Fixed Assets 1,475 1,548 1,500 +48 Net (Debt)/Cash (32) 31 (28) +59 Pension (Liabilities)/Assets (47) (12) (44) -32 Net Assets/(Liabilities) 1,325 1,486 1,365 +121 Gross Capital Expenditure (66) (82) (73) +9 Dividends Paid (normal) (13) (25) (2) +23 Key Indicators EBIT Margin 19.9% 30.3% 10.2% +20.1% Return on Invested Capital 4.1% 7.4% 1.7% +5.7% Net Gearing 3.0% - 2.0% -2.0% Dividend Payout 36.5% 109.1% 3.9% +105.2% Financial Performance 2021 Significant improvement in financial performance in 2021 with record turnover (€422m) and operating profit levels (EBITDA €159m). This was due primarily to strong global demand and pricing for sawnwood and other timber related products. The strong trading performance, coupled with the sale of a stake in Coillte’s windfarm development portfolio during the year and a net of ongoing capital investment and dividend payments, resulted in net cash position of €31m in 2021 (2020: net debt of €28m). Reflecting the strong financial results, an interim dividend of €25m was paid in 2021 (2020: €2m)

the kelt

https://www.boards.ie/discussion/comment/120099033#Comment_120099033

But isnt the issue precisely that Coillte cannot draw down funds, premiums etc etc?

https://www.boards.ie/discussion/comment/120099556#Comment_120099556

THat's the reason for the new partnership. Premia and grants can be drawn down.

I'd sooner see Irish landowners/investors get that money.