The Estonian government approved at its Thursday meeting an annual summary report on the management of state holdings, according to which the total revenue of companies with state participation reached an all-time high in 2018.
The total revenue of the state’s businesses in 2018 grew by 14.7 percent, or €239 million, to €1.86 billion on year, spokespeople for the government said.
The companies’ total net profit in 2018 stood at €205.4 million, up 9.8 percent on year.
Companies with state participation generally maintain an adequate level of capitalization, while the structure of the capital is rather conservative and entails low risks. The companies’ supervisory boards, however, must continue focusing on the profitability of investments, the reports reads.
The summary indicated that problems persist in relation to the companies’ compliance with the rules imposed on their publication of information. According to the report, the situation has improved significantly, however many of these undertakings still fail to publish their information to the required extent.
As of the end of 2018, the state had a holding in 29 undertakings, of which it was the sole owner of 24.
The companies’ volumes of operating revenue and operating costs reached record levels last year, with each exceeding the €1.1 billion mark.
Operating revenue was up 16 percent, or by €164 million, on year, and operating costs increased 18 percent, or by €175 million. The volume of support received by undertakings with state participation grew 22 percent, or by €128 million, while that of support granted grew 30 percent, or by €105 million.
As of the end of last year, ministries, county governments and constitutional institutions carried out founder rights on behalf of the state in 67 foundations, in 40 of which the state was the sole founder. The number of employees at said foundations grew 4 percent on year.