Royal Arctic Line optimizes and prepares for future investments
The financial result for 2023 has turned from a loss before tax of DKK 96 million in 2022 to a profit before tax of DKK 4 million. This is secured equally through actions and rate increases.
Growth in earnings from non-concessional revenue has secured additional earnings of DKK 16 million in 2023 compared to 2022. This helps limit rate increases to, from and in Greenland on the licensed goods.
For 2024, zero growth in freight volumes is expected due to, among other things, the completion of the construction work related to the Atlantic Airport in Nuuk, which will be completed in 2024. As a result of the new sailing schedule, which accommodates an earlier call of the Atlantic ship to Nuuk, earnings from commercial revenues are also expected to stagnate.
Internal optimizations and simplification of the company’s processes, including increased digitalization and use of AI, are ongoing to reduce costs and provide a better service for the company’s customers. This also means that there is an ongoing focus on ensuring that the asset base contributes to the core business. The parts that do not contribute to the company’s core business will be divested on an ongoing basis.
The initial preparations for the next ship investments have begun and the investment needs from 2028 will be significant, and together with servicing the current debt, this places demands on the company’s bottom line, which is why a multi-year agreement has been entered into with the owner on the rate development.
For 2024, the company’s management expects a profit before tax of between DKK 0 million and DKK 10 million.
For further information, please contact the company’s CEO Niels Clemensen
Tel: 553652
Email: nic@ral.gl
Annual report 2023 can be read here:
annual report-2023_web.pdf
