State Trading Organization closed Q2 2026 with a net profit of MVR 280 million, more than 70% up on a year ago.
Revenue for the quarter reached MVR 6.98 billion, up 27% on the first quarter and nearly double the MVR 3.55 billion booked in the same period last year. It is the largest quarterly revenue STO has reported in at least five quarters.
Fuel makes up 86% of the company’s revenue, and global fuel prices climbed through the quarter as geopolitical tension kept markets tight. Higher prices inflate the top line automatically.
Gross profit actually fell 4% quarter-on-quarter to MVR 757 million, as fuel margins thinned. The more STO paid its suppliers, the less of each sale it kept.
The squeeze deepened further down as operating profit dipped 12% MVR 324 million. Selling and marketing spend nearly doubled to MVR 168 million, reflecting the quarter’s retail push – the expanded People’s Choice first floor, the Philips air-conditioner launch, new electronics range.
Provisions for impairment of receivables jumped to MVR 88 million, four times the previous quarter’s level.
In the first quarter, STO carried a net finance cost of MVR 37 million, and in the second, it recorded a net finance income of MVR 11 million. A wing of roughly MVR 48 million in the company’s favor. The driver was dividend income: MVR 71 million flowed up from STO’s subsidiaries during the quarter.
Profit before tax landed at MVR 335 million, and after a tax charge of MVR 56 million, net profit came in at MVR 280 million.
Year-on-year Story is Strong
STO’s annual trajectory is genuinely powerful. Against Q2 2025, revenue is up 96%, gross profit up 32%, operating profit up 38%, and net profit up 71%. Earnings per share climbed from MVR 145 a year ago to MVR 248 today – this is the highest in five quarters, and a 71% annual gain.
STO’s share price touched MVR 2,749 during the quarter, its highest in more than a year, before closing at MVR 2,130 – up 6.5% on the quarter and 12.7% on the year. Trading volume is an even louder story; 1,028 shares changed hands, against just 62 in the first quarter, lifting the value of securities trade more than 16 fold to MVR 1.97 million.
Market capitalization rose to MVR 2.40 billion. For a stock where the Government of Maldives holds 82% and only a thin public float trades, this jump in activity signals real investor appetite.
Cash is Strong, Leverage is Climbing
STO’s liquidity strengthened over the quarter. Cash and equivalents rose by MVR 311 million to MVR 862 million by June 30, and operating activities generated MVR 382 million in cash. Total assets grew to MVR 17.82 billion, and total equity to MVR 6.08 billion.
Trade and other payables swelled to MVR 4.89 billion from MVR 4.25 billion – which is a fuel-price effect since STO owed more to suppliers on larger, pricier orders.
The debt-to-equity ratio ticked up to 1.93 from 1.84, and interest cover slipped to 3.25 times from 4.27.