STO Posts MVR 281 Million Third-Quarter Profit, Up 51% on a Year Earlier
The state-majority fuel and trading company's revenue fell 7% from the second quarter to MVR 6.48 billion as global fuel prices eased, but lower staff costs after the transfer of its pharmacies lifted operating profit by 23%.
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State Trading Organization plc (STO) made a profit after tax of MVR 281.1 million in the third quarter of 2026, up 51% from MVR 186.1 million in the same quarter last year, according to its unaudited quarterly report published on Thursday, 29 October.
Profit was almost unchanged from the second quarter's MVR 279.8 million. Earnings per share were MVR 249, compared with MVR 248 in the previous quarter and MVR 165 a year earlier.
The listed company is 81.63% owned by the government. The report gives figures for STO as a company: its subsidiaries are carried as investments, and it does not include consolidated group accounts.
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Revenue for July to September was MVR 6.48 billion, down 7% from MVR 6.98 billion in the second quarter. STO said the fall was mainly due to lower global fuel prices, partly offset by higher fuel sales volumes and steady results from its non-fuel businesses. Fuel made up 79% of revenue.
Revenue was still 69% higher than the MVR 3.84 billion reported for the third quarter of 2025. In its first-quarter report, STO attributed a 33% quarter-on-quarter rise in revenue to fuel price volatility linked to geopolitical developments, along with a 27% increase in the quantity of fuel sold.
Gross profit slipped to MVR 738 million from MVR 757 million in the second quarter, though the gross margin improved to 11.4% from 10.8%.
Total operating expenses fell to MVR 393 million from MVR 449 million. STO said this was mainly because staff costs fell after the "transition of the Medical segment" and the related transfer of staff. Its second-quarter report said STO had transferred its retail pharmacies and the related pharmaceuticals and consumables business to State Pharmaceutical and Medical Supply Corporation Limited, with effect from 30 June 2026, in line with government policy. It said 725 employees moved with the business.
Operating profit rose 23% to MVR 400 million from MVR 324 million, and the operating margin rose to 6.2% from 4.6%. Net finance costs were MVR 48 million, against net finance income of MVR 11 million in the second quarter, when STO received MVR 71.3 million in dividends, compared with MVR 18.6 million in the third quarter. Profit before tax was MVR 352 million, and income tax took MVR 71 million.
The cash flow statement shows a provision of MVR 94.5 million for impairment of receivables in the quarter, after MVR 88.3 million in the second quarter.
Total assets rose to MVR 18.35 billion from MVR 17.82 billion at the end of June. Inventories fell to MVR 900 million from MVR 1.50 billion, while trade and other receivables rose to MVR 7.88 billion from MVR 6.69 billion. STO said both movements mainly reflected the restructuring of the medical segment and the sale of its inventories.
Cash and cash equivalents rose to MVR 1.25 billion from MVR 862 million. Net cash from operating activities fell to MVR 39 million from MVR 382 million in the second quarter, while investing activities brought in MVR 444 million. Non-current loans and borrowings fell to MVR 2.63 billion from MVR 2.77 billion, and current borrowings stood at MVR 3.77 billion. Total equity rose to MVR 6.37 billion.
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Over the first nine months of 2026, STO's three quarterly reports show combined revenue of MVR 18.95 billion and profit after tax of MVR 837 million, against MVR 11.41 billion and MVR 518 million in the first three quarters of 2025. STO does not publish a nine-month total; these figures are Maldives Today's addition of the quarterly results.
STO's last traded share price at the end of September was MVR 2,400, up from MVR 2,130 at the end of June, giving a market capitalisation of MVR 2.705 billion. Only 132 shares changed hands in 43 trades during the quarter.
During the quarter the board approved investment in Powermix's production facilities and fleet, citing expected growth in demand for ready-mix concrete, and a modular sewage treatment plant at K. Funadhoo. It also resolved to set up a unit in its Construction Solutions Department to lead real estate development, and to pursue "storage infrastructure opportunities for resort-sector customers" through its Energy Department, subject to commercial feasibility and approvals.
Independent director Dhaanish Mohamed Ameen resigned from the board on 1 September.
