STO reports profit after tax of MVR81m for Q2 2019


STO generated the highest revenue in Q1 2019

The largest state-owned enterprise in Maldives, State Trading Organization (STO) has reported a profit after tax of MVR81 million for the second quarter of 2019.

According to their recent updates the company’s revenue for the second quarter reached MVR2,382 million (MVR2.4 billion) while the revenue for the previous quarter reached MVR2,344 million (MVR2.3 million).

The increase in revenue according to STO is by 6% from the first quarter to the review quarter – which is an increase of MVR38 million.

The company notes their fuel segment as the most prominent contributor for the revenue growth.

The operating profit of STO during the review quarter reached MVR124 million while in the previous quarter operating profit was registered at MVR167 million.

The gross profit for the company in Q2 2019 reached MVR330 million and noted that despite the increase in revenue, lower gross profit margin reduced the fuel gross profit by 14%. However, other segments showed an increase in the gross profit for the quarter.

However, this was unable to avoid the company’s gross profit to fall by 7% during the review quarter.

Furthermore, STO claims the reduction in fuel gross profit and high operational expenses – which comes due to the inclusion of the Ramadan allowances and bonuses – the net profit decreased. Net profit before tax for the quarter reached MVR97 million.