By Malé, Maldives – State Trading Organization (STO) has reported a 6% decline in total revenue for the past year, citing fluctuations in global oil prices as a key factor affecting performance. The company’s latest financial report indicates a slowdown in overall earnings, despite signs of improvement in the final quarter.
Annual Financial Performance
- Total Revenue: MVR 15 billion (6% decrease from the previous year)
- Net Profit After Tax: MVR 717 million (12% decline)
- Total Profit: MVR 2.4 billion (12% decrease)
STO attributed the drop in revenue and profit to changes in global oil prices, which led the company to reduce oil prices three times over the year. This strategic decision, while beneficial for consumers, impacted STO’s earnings from oil sales.
Quarterly Gains Indicate Possible Recovery
Despite the yearly decline, STO’s fourth-quarter results show signs of recovery:
- Quarterly Revenue: MVR 3.8 billion
- 7% Increase in revenue compared to the previous quarter
- Total Profit for Q4: MVR 637 million (8% growth from Q3)
While the company’s operating profit dropped by 8%, settling at MVR 1.1 billion, STO’s management emphasized that operational efficiency has improved and the business remains stable.
Outlook for STO
The company remains optimistic about a gradual recovery, with expectations of stabilization in oil trading and other business segments in the coming year. As one of the Maldives’ largest trading entities, STO’s financial health plays a crucial role in the nation’s economic landscape.
Despite the challenges, the latest figures suggest that STO is on a path toward recovery, with strategic adjustments in pricing and business operations helping to navigate market fluctuations.