MACL records MVR 1.1 billion net profit in 2024; hikes investment in govt securities
MACL’s net profit rose by MVR 192.4 million compared to the previous year.
Maldives Airports Company Limited (MACL), the operator of Velana International Airport (VIA), reported a net profit of MVR 1.1 billion for 2024, according to the company’s audit report published by the Audit Office.
The audit outlines the following financial performance for 2024:
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Revenue: MVR 8.6 billion
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Expenditure: MVR 4.6 billion
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Gross profit: MVR 4 billion
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Net profit (after administrative expenses and taxes): MVR 1.1 billion
MACL’s net profit rose by MVR 192.4 million compared to the previous year. The company had posted a net profit of MVR 902.8 million in 2023, indicating a 21% increase year-on-year. MACL also paid MVR 236.4 million in dividends to the government last year.
Debt Position and Loan Activities
The audit report shows that MACL’s total debt stood at MVR 13.4 billion at the end of the year, which includes loans secured by the government for airport development. Since the current administration took office, MACL has obtained two corporate loans from the Bank of Maldives (BML), amounting to USD 80 million, or 8.96% of its total debt.
Details of the loans include:
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USD 50 million (26 December 2023): Secured from BML for corporate use, with no specific project allocation. The loan carries an annual interest rate of 8.5% and is to be repaid over five years. USD 40 million remains outstanding.
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USD 30 million (24 June 2024): Also obtained from BML for corporate purposes at the same interest rate and repayment terms. USD 26.5 million remains outstanding.
These loans are believed to have been used to support the state budget. Approximately 9% of MACL’s total revenue was borrowed to contribute towards recurrent government expenditures.
Dividends and Investments
According to the audit, the government was entitled to MVR 75 million in dividends from the company’s 2024 profit. MACL, however, retained MVR 268.2 million at year-end without transferring this amount to the government.
The audit further reported a rise in MACL’s investments in government Treasury bills (T-bills) and bonds:
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T-bills purchased in 2023: MVR 371.6 million
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Total investment in T-bills by end of 2024: MVR 531.6 million (up from MVR 160 million in 2023)
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Investment in government bonds in 2024: USD 30 million (approximately MVR 462.6 million)
The corporate loans obtained by MACL are believed to have partly financed these investments in government securities.
As of the end of 2024, MACL reported a cash balance of MVR 936 million.
