MTCC faces heavy loss in first quarter of 2019

The Maldives Transport and Contracting Company (MTCC) has faced heavy financial losses in the first quarter of 2019.

According to the company’s quarterly report, the transport and contracting company generated a revenue of MVR210 million while during the final quarter of 2018 the company generated a revenue of MVR377 million.

Cost of sales deducted reached over MVR214 million during the quarter in review while the gross profit also indicated a negative figure of over MVR3 million. The company’s administrative expenses were at over MVR29 million.

In addition to this MTCC had also faced an operating loss of over MVR34 million and the company faced a net loss of over MVR45 million.

The company’s total assets were valued at over MVR1.89 billion – which includes non-current assets at over MVR1.06 billion and current assets at MVR823 million. The company’s total equity was valued at MVR889 million while the total liabilities were valued at over MVR1.0 billion.

Looking at the major activities carried under MTCC, the company made over MVR63 million in revenue from trading with an operating profit of MVR7.8 million but faced a loss after tax at MVR6.9 million. From contracting projects, MTCC pulled a revenue of MVR77 million but faced an operating loss of over MVR6.5 million and faced a final loss of MVR8.7 million following tax deduction.

MTCC’s dredging contracts garnered the company a revenue of MVR42 million with an operating profit of MVR1.4 million, however, due to financial costs and tax deduction, faced a loss of MVR4.9 million. Logistics contracts pulled MVR1.8 million but faced an operating loss of over MVR6.6 million.

Similarly transport contracts garnered a revenue of MVR22 million but faced an operating loss of MVR12 million. These performances have not yet been audited as per the company.

The company’s sales faced a heavy drop of 79.02% from MVR377 million in Q4 2018 to MVR211 million in Q1 2019. Gross profit slipped by 104.6% from MVR69.59 million in the final quarter of last year to a loss of MVR3.2 million during the first quarter of 2019.

In addition to this, fixed assets of the company fell by 2.01% from MVR1,089 million in Q4 2018 to MVR1,067.16 million in Q1 2019. Operating profit faced a significant drop of 283.96% from MVR18.7 million in Q4 2018 to an operating loss of MVR34.4 million in Q1 2019.

Similarly, profit after tax faced a drop of 435.06% from MVR13.49 million in the final quarter of 2018 to a loss of MVR45.2 million in the first quarter of 2019.

Key Developments of MTCC

The company had carried out a total of 22 construction projects during the first quarter of 2019, out of which 12 were successfully completed during the period. In addition to this, the company commenced three new projects during the period while it was also awarded six more projects.

MTCC had carried out a total of 6 dredging, reclamation and other projects during the period which includes land reclamation of Maavaru Lagoon, land reclamation and shore protection of Kaafu atoll Thilafushi, Gaafu Dhaal atoll Faresmaathoda, Haa Alif Hoarafushi and Kaafu atoll Huraa.

The company also carried out the Sawmill Relocation Project.

MTCC had also celebrated the company’s 38th anniversary with a special staff night on 29 March 2019.

As of the first quarter of 2019, MTCC employs a total of 1,647 staffs which is a 2.89% decrease in the employment numbers compared to the final quarter of 2018. The employee composition consists of 89% male workers and 11% female workers.

During the quarter in review, the company held a total of 4 board meetings and 3 audit and risk committee meetings.

Keyboard decisions made during the quarter include the approval of the company’s fourth-quarter report of 2018, endorsement for Mr Mohamed Faheem as an independent non-executive board director and as the chairman of the board.

In addition to this, new members were appointed to board committees which included the appointment of Mr Shahid Hussain Moosa as the chief operating officer and as an executive board director.

Moreover, the company’s board also approved the provision of free transportation service for school students within Male’, Hulhumale’ and Vilimale’ region.