State Trading Organization plc (STO), the Maldives’ leading public enterprise, has released its Q1 2025 financial and operational report, reflecting a steady performance despite global market fluctuations and fuel price normalization.
Financial Highlights and Resilience
STO recorded revenue of MVR 4.02 billion in the first quarter, marking a 4.6% increase from the previous quarter, though representing a 10.6% decline compared to Q1 2024 due to stabilizing global fuel prices. Fuel operations remained the cornerstone of revenue, contributing over 81% to the topline, with non-fuel sectors such as healthcare, construction, and trading also showing steady contributions.
Despite lower gross profit (MVR 583 million) and operating profit (MVR 263 million) due to increased administrative expenses, the company posted a net profit of MVR 169 million. Earnings per share stood at MVR 150, down from MVR 194 in the previous quarter.
Strong Balance Sheet and Liquidity
STO maintained a robust financial position, with net assets per share at MVR 4,526 and reserves increasing to MVR 5.02 billion. The company’s debt-to-equity ratio improved to 1.72, indicating prudent financial management. Although cash flow from operations was negative at MVR 401 million due to timing mismatches in receivables and payables, liquidity remained adequate, supported by strong credit lines and stable reserves.
Corporate Developments and Governance
During the quarter, the STO Board made several strategic decisions including the implementation of modular fuel stations, replacement of aging fuel tanks, and renovation of key operational offices. The Board also underwent structural changes with the appointment of Ms. Aishath Fazeena, who now chairs the Audit & Risk Committee.
Board and committee participation remained strong, with most members maintaining 100% attendance, reaffirming STO’s commitment to high standards of corporate governance and accountability.
Workforce Development and Community Engagement
STO continues to prioritize human capital, employing 2,371 staff members as of Q1 2025. Investments in training amounted to MVR 0.8 million, while engagement initiatives through the STO Recreation Club fostered employee morale and cultural vibrancy.
Notably, the company organized an Eid celebration in collaboration with Allied Insurance, distributing over 1,500 gifts to children. Other community efforts spanned across education, health, and infrastructure, including donations for mosque construction, school equipment, and support for sports and migrant welfare programs.
Capital Market Performance
STO’s shares demonstrated strong market performance during the quarter, with the last trading price climbing to MVR 1,935—up from MVR 1,098 in Q4 2024. Market capitalization surged to MVR 2.18 billion, supported by 31 trades and a total traded value of MVR 105,204. The price-to-earnings ratio stood at 12.92, reflecting improved investor confidence.
Outlook for 2025
Looking ahead, STO aims to bolster revenue through strategic growth in the fuel and wholesale sectors, expand its digital platforms, and complete key infrastructure projects. With a solid financial base and proactive governance, the company remains well-positioned to regain growth momentum in the second half of the year.