Greenland’s Royal Arctic Line achieved record operating and net profit in 2016

Royal Arctic LineThe Greenland state shipping company Royal Arctic Line achieved record operating profit of 143 million DKK (about 20.4 million USD) in 2016, which is 57% higher than 2015. The net profit is also best result for the entire history of the company and amounted to 98 million DKK, which represent an increase of 55.6% yoy. Royal Arctic Line noted that achieved record profits are mostly due to the increase in traffic volumes and cost reduction, as well as benefits from the partnership with Icelandic carrier Eimskip. The company succeeded to expand its business and reduced the operating costs on many routes.

In 2017, the Royal Arctic Line forecasts approximately the same volume of traffic as in 2016. However, it is expected that the operating result for the year will be around 20-30 million DKK due to higher costs associated with the acquisition of new vessels and the new Nuuk port.

Royal Arctic Line is a seabourne freight company in Greenland, wholly owned by the Greenland Home Rule Government. It was formed in 1993 and is headquartered in Nuuk. The company has a monopoly on all sea transport of cargo to, from, and within Greenland. Royal Arctic operates cargo routes among the Greenland settlements and between Nuuk and Aalborg in Denmark, managing 13 harbors in Greenland, as well as the base harbour in Aalborg, which serves as the source for all European shipping to the island. The Seabourne traffic from North America goes to Reykjavík aboard Eimskip, whence it is carried to Greenland aboard Royal Arctic.