First half profits of DKK 85 million before tax
Despite a lower prawn quota and difficult ice conditions, Royal Greenland has achieved its anticipated result for H1 2014/2015 with a profit of DKK 85 million kroner.
The result is a pre-tax profit of DKK 85 million and a net profit for the interim after tax of DKK 50 million. Thanks to the good result, Royal Greenland’s equity ratio continues to rise, and now stands at 37 percent. The Company’s equity capital comprises DKK 1.2 billion.
Interest-bearing debt, which is under full control, has been held at last year’s level, and is thus still less than DKK 1 billion.
The profit improvement of DKK 26 million compared to the previous year was driven by Royal Greenland's core activities, cold-water prawns and Greenland halibut.
The improvement was achieved despite significant operational challenges in the form of lower prawn quotas and a harsh winter, which caused periodic factory closures and inefficient trawler fishing.
The growth is mainly attributable to higher sales prices, as sold tonnage increased by only just under 3 percent. The scarce quantities of prawn, in particular, have made significantly higher prices possible at the sales level.
Profits on Greenland halibut have grown, in part due to the acquisition of Upernavik Seafood A/S on 1 October 2014. The main synergies of the acquisition will however first become apparent in H2, when the break-up of the ice makes it possible to resume fishing.
Flatfish production in Koszalin, Poland, is continuing to grow and is making a positive contribution to group earnings.
The interim does not as usual include sales of frozen-at-sea cod and haddock from the Barents Sea, as the trawler Sisimiut has been on a major shipyard stay. Sisimiut began fishing in April, and is expected to realise its income in the second half of 2014/2015.
Slightly higher profits for the year
Royal Greenland expects profits for the year on a slightly higher level than in 2013/2014, despite the fact that the results for April and May were very adversely affected by the ice situation along the west coast of Greenland. The Company expects to be able to compensate for the lost income when the ice is gone.
