STO Q3 profit steady at MVR 281 million as operating profit rises 23%
Summary: State Trading Organization’s third-quarter profit after tax was MVR 281 million, level with the previous quarter and up 51% on a year earlier, as higher margins offset lower fuel revenue.
State Trading Organization (STO) reported a profit after tax of MVR 281.1 million for the third quarter of 2026, up 0.5% from MVR 279.8 million in the second quarter and up 51% from MVR 186.1 million in the third quarter of 2025. Earnings per share were MVR 249, against MVR 248 in the previous quarter and MVR 165 a year earlier.
The report covers 1 July to 30 September 2026 and was published on 29 October. The figures are unaudited.
Revenue and margins
Revenue was MVR 6.48 billion, down 7% from MVR 6.98 billion in the second quarter but about 69% higher than the MVR 3.84 billion a year earlier. Fuel makes up 79% of revenue and non-fuel business 21%. The quarterly dip came from lower global fuel prices, partly offset by higher fuel sales volumes and steady results from non-fuel segments.
Gross profit was MVR 738 million, compared with MVR 757 million in the previous quarter, but the gross margin improved to 11.4% from 10.8%. Operating expenses fell to MVR 393 million from MVR 449 million, mainly because staff costs dropped after the transition of the Medical segment and the transfer of its staff.
Operating profit rose 23% to MVR 400 million from MVR 324 million, and the operating margin widened to 6.2% from 4.6%. Profit before tax was MVR 352 million, up from MVR 335 million.
Balance sheet and cash
Total assets rose to MVR 18.35 billion from MVR 17.82 billion.
Cash and cash equivalents rose to MVR 1.25 billion from MVR 862 million.
Total equity grew to MVR 6.37 billion from MVR 6.08 billion.
Gearing improved to 62.6% from 63.9%, and the debt to equity ratio to 1.88 from 1.93.
Interest cover rose to 3.55 times from 3.25.
Net operating cash inflow was MVR 39 million, a sharp drop from MVR 382 million in the second quarter.
Inventories fell to MVR 900 million from MVR 1.5 billion, while trade and other receivables rose to MVR 7.88 billion from MVR 6.69 billion. STO said both moves mainly reflect the restructuring of the Medical segment and the sale of its inventories and related operations.
Share price
STO’s last traded price at the end of the quarter was MVR 2,400, up 12.7% from MVR 2,130 at the end of June and 33.3% above the MVR 1,800 a year earlier. Market capitalisation rose by MVR 305 million to MVR 2.705 billion, and the price to earnings ratio was 9.62. Trading was thin, with 43 trades and 132 shares changing hands, worth MVR 307,668.
The dividend yield is about 4%, based on the MVR 85 per share dividend approved at the annual general meeting on 16 May 2026. The government holds 81.63% of the company and the public 18.37%.
Board
Non-executive independent director Dhaanish Mohamed Ameen resigned from the board on 1 September, after being reappointed on 16 May. Amir Mansoor remains chairman, with Shimad Ibrahim as managing director and Mohamed Nizam as chief financial officer.
Projects and operations
Modular fuel stations: Phase 1 of the rollout across 18 islands is 86% complete, with eight stations operating. One site is held up by a land lease issue.
Funadhoo Terminal: the custody transfer standardisation project is 62% complete, and the fire safety project is in testing and commissioning.
Hulhumalé warehouse: steel and concrete work on the first three floors of the multipurpose warehouse is done.
Board approvals: the board approved a Nippon Paint showroom at Haveeree Magu, investment in Powermix’s production and fleet, a modular sewage treatment plant at K. Funadhoo and a real estate development unit within Construction Solutions.
STO had 1,895 employees at the end of the quarter, 70% of them Maldivian, and spent MVR 2.79 million on training. The company reported no fines or penalties from regulators.
