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Royal Greenland Reports Return to Profit in First Half of 2025 Amid Volatile Market

The company saw an increase in sales prices that offset an 11% drop in volumes, driven by fishing challenges and geopolitical tensions, according to its recent interim report.

NUUK — Royal Greenland A/S, one of the world's leading fishing companies, has reported a positive result in the first half of 2025, reversing the losses of the previous year. The company posted a profit of $585,000 US (DKK 4 million) compared to a loss of $1.75 million US (DKK 12 million) in the same period of 2024. This progress, though modest, marks a significant step in the company's restructuring plan, known as "Back-to-Black". The result before tax showed a loss of $1.6 million US (DKK 11 million), an improvement of $7.02 million US over the prior year.

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The company attributes the improvement to successful cost-cutting measures and favorable market developments that have allowed sales prices to rise despite a decline in catch volumes.

Fishing Challenges and Strategic Advances

The results were achieved against a backdrop of significant challenges. Unstable ice formation in northern Greenland limited inshore halibut fishing, and the shrimp catch rate in western Greenland continued its decline. Additionally, the fleet was affected by shipyard stays for two trawlers and the late start of the Tuullik, which replaced the Lomur, a vessel that sank last year.

Despite these obstacles, offshore fishing for halibut and cod remained stable, and capelin fishing resumed in eastern Greenland after no quotas were issued in 2024. In Canada, snow crab fishing was also positive, with higher landings than last year.

The company's strategy of focusing on cost reduction through its "Back-to-Black" initiative has generated significant savings. A major milestone was the delivery of the new vessel Kaassassuk from a shipyard in Spain, completing a $292.4 million US (DKK 2 billion) fleet modernization program. This vessel symbolizes Royal Greenland's transition to its new strategy, INUA 2027, which aims to simplify its business model and achieve a financial target of $36.55 million US (DKK 250 million) in pre-tax profit by 2027.

Market Factors and Future Outlook

The company successfully navigated a complex geopolitical environment, achieving a 9% increase in sales prices per kilogram, which offset the 11% drop in sales volumes. The global supply of cold-water shrimp has decreased due to declining catches from Norway and Russia in the Barents Sea, which has driven prices up.

The report, however, warns of the market's fragility. The company faces additional uncertainty due to the potential reallocation of an offshore halibut quota, which could result in a loss of 2,700 tons for Royal Greenland and force the company to make capacity and employment adjustments.

The company remains optimistic for the second half of 2025, expecting continued earnings growth. However, the outlook is subject to global market volatility and potential new trade tensions, such as the threat of significant U.S. tariffs. The company has also managed internal changes, hiring a new CFO and searching for a new CEO, both to be based in Greenland to strengthen local leadership.

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Address:	Postboks 1073
City:	Nuuk
State/ZIP:	(3900)
Country:	Greenland
Phone:	+299 324 422
Fax:	+299 323 349
E-Mail:	[email protected]
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