Royal Arctic Line A/S is closely linked to the general level of activity in Greenlandic society. Following the completion of several major construction and building projects and a decline in fishing activity, the impact is now clearly felt in the company’s freight volumes and earnings. The first half of 2025 has thus been characterized by lower social activity with a knock-on effect on the business.
In the first half of 2025, Royal Arctic Line A/S’ total freight volumes have decreased by almost 6% compared to the same period last year. The decrease can mainly be attributed to construction volumes normalizing after several years of very high activity and lower fishing catches – a key driver for southbound freight in particular. In addition, changes in packaging flows have led to a decrease in return transportation, which has further impacted internal freight volumes negatively.
The Group’s total revenue in the first half of 2025 has decreased by DKK 30 million, corresponding to 7%, while freight-related costs have decreased by DKK 10 million compared to 2024. Despite the decrease in freight and revenue, operating profit (EBITDA) improved and amounted to DKK 7 million in the first half of 2025 – an increase of DKK 11 million compared to the same period last year. The development reflects effective cost management in a market characterized by lower activity.
As a result of the development, the expectations for 2025 have been adjusted. Northbound and internal freight volumes are now expected to decrease by 5% compared to the original budget. Revenue for concessionary freight is expected to be DKK 35-40 million below the budgeted level.
Arctic Umiaq Line A/S
Since 2024, the subsidiary Arctic Umiaq Line A/S has adapted its strategy so that the passenger ship Sarfaq Ittuk once again sails according to the original sailing schedule. To support the continued operation, the Government of Greenland has provided a deficit guarantee to the company.
Result for 2025
Royal Arctic Line A/S expects a profit before tax for the full year 2025 in the range of DKK 1-10 million.
For further information contact: Jørgen Aqe Møller, CFO at jaqm@ral.gl
