Faroese fuel company Effo reports sharp decline in 2025 earnings

The Faroese oil company Effo saw its pre-tax profit drop to its lowest level in years in 2025, according to newly published financial results reported by national broadcaster Kringvarp Føroya.

Revenue fell by nearly 200 million Danish kroner (DKK), from DKK 1.2 billion in 2024 to just over DKK 1 billion in 2025. Pre-tax profit declined from DKK 61.3 million in 2024 to DKK 49.8 million in 2025, marking the company’s weakest performance in several years.

The decline was driven primarily by reduced sales of marine gas oil, which dropped significantly compared to 2024. Household heating oil sales also continued their multi-year downward trend as more homeowners switch to alternative energy sources.

Effo’s total assets decreased by DKK 60 million over the year, falling from DKK 411 million at the end of 2024 to DKK 351 million at the end of 2025. Inventory levels and accounts receivable—assets held for sale—were both lower than the previous year, with receivables dropping by roughly one-third.

Despite the challenges, Effo maintains a strong equity position, with DKK 186 million in equity at the close of 2025. The company will distribute DKK 35 million in profit shares to its owners for the year.