The financial statements for 2024 show a healthy core business and a satisfactory result of DKK 6 million before tax.
After the first half of 2024, we expected a loss of between DKK 15-20 million, primarily due to a negative financial development in the subsidiary Arctic Umiaq Line. A number of initiatives in both the parent company and Arctic Umiaq Line contributed to significantly improve the result.
In addition to the satisfactory financial result, the schedule for Atlantic traffic is now more in balance with customer demands and regularity was improved in 2024. Royal Arctic Line will continue and strengthen the close dialog with owner and customers to ensure that customer needs are a central part of the company’s planning – alongside the continued focus on security of supply and efficient operations.
However, with 2024 well over, Royal Arctic Line still needs to further strengthen the company’s finances in order to future-proof the supply of Greenland.
Expectations for 2025
In 2025, a consolidated profit before tax (EBT) of DKK 15-25 million is expected.
It is crucial that earnings remain at this level in the coming years as this will enable the company to finance future investments in new vessels, barges, a more modern cargo handling system and improved working conditions at the port terminals.
The company’s results are closely linked to the development of freight volumes. With the imminent completion of the three major airport projects and several other large infrastructure projects, as well as a negative development in the export of fish products, freight volumes in 2025 are expected to remain unchanged at best compared to 2024. The improved performance will be achieved through a combination of an appropriate freight rate increase, which is already in effect, and close management of the company’s operating costs and investments.
Following Arctic Umiaq Line’s focus on the tourism segment in 2024, there has been a strong political desire to refocus coastal passenger shipping on the needs of the local population. In the 2025 season, Sarfaq Ittuk’s sailing schedule will once again include a weekly rotation between Qaqortoq and Ilulissat with the possibility of onward connections. The existing service contract expires at the end of the year and will be covered by a deficit guarantee of up to DKK 15 million in 2025. Based on this, Arctic Umiaq Line is not expected to have a positive or negative impact on the Group’s financial statements in 2025. The future of Arctic Umiaq Line after 2025 must be clarified in dialog with the Government of Greenland over the next 3-6 months.
The financial statements are expected to be formally approved at the company’s general meeting on d. May 14th.
For further information, please contact:
CFO, Jørgen Aqe Møller, jaqm@ral.gl
