STO revenue, profit decline over fuel price cuts
STO operating expenses were lowered compared to previous quarters.
By
Ahmed Mizyal
The State Trading Organisation (STO)'s revenue and net profit has declined in the second quarter of this year compared to the same period last year.
According to the statistics STO released on Tuesday:
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Total revenue stood at MVR 3.4 billion in the second quarter of this year
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That’s 8% lower than the same period last year and 23% lower than the first quarter of this year
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STO posted a net profit of MVR 3.7 billion in the second quarter of last year and MVR 4.4 billion in the first quarter of this year
The main reason for the decline in total revenue was the reduction in the selling price of fuel in Maldives due to the change in fuel prices in the world market.
As a result, total profit fell 16% compared to the first quarter of this year. Thus:
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Total profit for the first quarter was MVR 617 million
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In the second quarter, the figure fell to MVR 515 million
Overall, however, the company’s operating expenses were lowered compared to previous quarters. Cost of sales in the first quarter was MVR 3.1 billion, down from MVR 2.9 billion in the second quarter.
Administrative, marketing and sales expenses were also reduced compared to the first quarter.
After tax, net profit for this quarter was the lowest in the previous four quarters. The net profits for the last five quarters are:
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Second quarter of 2023 - MVR 171 million
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Third quarter of 2023 - MVR 196 million
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Last quarter of 2023 - MVR 183 million
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First quarter of 2024 - MVR 195 million
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Second quarter of 2024 - MVR 148 million
