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Seafood Processing

STRONG FIRST HALF PERFORMANCE BY ROYAL GREENLAND

STRONG FIRST HALF PERFORMANCE

Strong first half performance by Royal Greenland. Continued positive development in the core business and sales of two trawlers have resulted in strong half year result for seafood processor Royal Greenland.

A statement from the company says: “Royal Greenland’s ordinary activities in the first half of 2019 from 1 January to 30 June 2019 show solid progress, with pre-tax profits of DKK 87 million as opposed to DKK 50 million for the same period last year. This development once again confirms that Royal Greenland’s strategy “The North Atlantic Champion” is working as intended, with an increased focus on value creation, resource expansion and optimisation of markets, channels and product range.

“Profits from ordinary activities are supplemented by earnings of DKK 141 million from the sale of the trawlers Sisimiut and Qaqqatsiaq. The sale of the trawlers should be seen in relation to the investment in two new trawlers, of which the new Sisimiut was delivered in June 2019 while Avataq will be delivered in October 2019. A third trawler to replace Nataarnaq has been ordered for delivery in 2021.”

Royal Greenland’s total half year profits thus amounts to DKK 228 million, and the outlook for 2019 is a continued positive development.

The statement adds: “The solid progress in Royal Greenland’s ordinary activities during the first half of 2019 can be attributed primarily to the continued development of the sale of core products; cooked & peeled prawns, Greenland halibut and snow crabs.

“In terms of earnings, cooked and peeled prawns are making strong progress, despite lower sales as a consequence of maintaining the higher sales prices achieved in the second half of 2018.

“Sales of Greenland halibut have increased by 13 percent, while snow crab activities in Eastern Canada and Greenland have resulted in a growth of 35 percent.

“Fishing and sales of white fish have also provided a good development for Royal Greenland. The fishing season in the Barents Sea has been good and cod prices have generally been rising, resulting in significantly better earnings.
“On top of the profit on the sale of trawlers, Royal Greenland expect a higher ordinary profit before tax in 2019 than in 2018. However, a possible intensified trade war between the US and China, along with a general slowdown in the global economy and last, but not least, Brexit, may all affect the company’s earnings. Royal Greenland has built up stocks in the UK to handle the transition to Brexit.”

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