State Trading Organization Plc (STO), the leading public enterprise in the Maldives, has reported a net profit of MVR 163.2 million for the second quarter of 2025, reflecting a modest decline of 3.3% compared to the MVR 168.7 million posted in Q1. Despite a reduction in quarterly sales, STO demonstrated financial resilience through effective cost control, solid non-fuel segment growth, and stronger liquidity.
According to the company’s Q2 2025 financial disclosure, total revenue reached MVR 3.55 billion, representing a 12% decrease from the previous quarter’s MVR 4.02 billion. The revenue decline is primarily attributed to the normalization of global fuel prices and reduced demand for jet fuel. However, diesel sales rose significantly by 17.3 million liters offsetting some of the negative impacts. Fuel remained STO’s largest revenue segment, accounting for 78% of total sales.
Non-fuel business segments, including healthcare, construction, and general trading, recorded a 6% increase in revenue, highlighting the benefits of business diversification. Operating profit for the quarter was MVR 235.6 million, down from MVR 263.3 million in Q1. Nevertheless, improved investment income and lower finance costs helped preserve bottom-line profitability.
Earnings per share (EPS) stood at MVR 145, slightly lower than the MVR 150 recorded in Q1 but up year-on-year from MVR 131 in Q2 2024. Total expenditure for the quarter rose to MVR 367 million from MVR 343 million in the previous quarter, as the company continued to invest in operational and digital efficiencies.
STO’s liquidity position showed marked improvement. The company generated MVR 327.4 million in operating cash flow, reversing a negative flow of MVR 401 million in Q1. Cash and cash equivalents at the end of Q2 increased to MVR 323.7 million, up from MVR 160.7 million. This was supported by stronger receivables collection and leaner inventory levels.
The company’s balance sheet remains robust, with total equity rising to MVR 5.2 billion and total assets reaching MVR 13.5 billion. Key financial indicators remained within prudent thresholds: the debt-to-equity ratio improved to 1.59 (from 1.72 in Q1), while the debt service cover ratio rose to 1.15 from 0.88.
In its outlook, STO reaffirmed its commitment to driving operational excellence and expanding core businesses in fuel and wholesale trading. Strategic priorities for the second half of 2025 include advancing infrastructure investments, enhancing digital platforms, and expanding the company’s medical and retail portfolio.
The Government of Maldives remains the majority shareholder with 82% ownership, and no changes in shareholding were reported for the quarter.