State Trading Organization (STO) reported steady performance for the second quarter of 2025, with strong profitability and improved liquidity, even as overall revenue dipped due to falling global fuel prices and reduced jet fuel demand.
Total revenue stood at MVR 3.55 billion for the quarter, marking a 12 percent decrease compared to the previous quarter. The drop is attributed mainly to the stabilisation of international fuel prices, although diesel sales volumes rose significantly. Fuel continued to make up 78 percent of STO’s revenue, underscoring its role as the company’s core income stream. Non-fuel segments such as general trading, construction, and healthcare solutions also posted a 6 percent uptick from Q1.
Net profit after tax came in at MVR 163 million, slightly below the previous quarter’s MVR 169 million, but 10 percent higher compared to the same period last year. Earnings per share declined marginally from MVR 150 in Q1 to MVR 145, but key profitability indicators remained stable across the board.
Operational costs increased modestly to MVR 367 million, reflecting continued investment in internal capacity and higher provisions. Nonetheless, STO demonstrated tight cost control across procurement and logistics, which helped maintain its profit margins.
One of the more notable shifts this quarter was in STO’s cash flow position. After recording negative operating cash flow in Q1, STO rebounded with MVR 327 million in positive cash flow during Q2. This was supported by more efficient receivables collection, reduced inventory levels, and better capital controls. Cash and cash equivalents nearly doubled from the previous quarter to MVR 324 million.
The company also reported a healthier debt profile, with improvements in its debt service cover ratio (1.15 from 0.88) and debt-to-equity ratio (1.59 from 1.72). Net worth increased to MVR 5.2 billion, and reserves stood at MVR 5.1 billion by the end of June 2025.
In the equity market, STO shares continued to trade steadily. The company recorded 38 trades during the quarter with a highest trading price of MVR 2,080 and a last traded price of MVR 1,890. Earnings per share and a maintained dividend yield of 4 percent further reflected investor confidence.
Looking ahead, STO expressed optimism for the second half of the year. The company plans to pursue expansion in the fuel and wholesale sectors while advancing digital and infrastructure initiatives. With its sound financial fundamentals and a focus on disciplined growth, STO stated it remains well-positioned to meet its full-year objectives.
