State Trading Organization plc recorded a modest increase in profit in 2025 despite a slight decline in revenue, with the Group’s performance reflecting both the resilience of its core fuel business and the growing importance of its non-fuel segments.
According to STO’s Annual Report 2025, Group revenue stood at MVR 16.68 billion, down 0.5 percent from MVR 16.76 billion in 2024. The decline was mainly linked to lower global fuel prices, even as fuel volumes increased by 8 percent. Profit after tax rose by 1.7 percent to MVR 785 million, supported by lower finance costs, disciplined cost management, and stronger contributions from insurance, gas and trading.
The results show a company still heavily anchored in energy, but gradually building a wider earnings base. Fuel remained STO’s largest segment, accounting for around 70 percent of Group revenue. Revenue from the segment fell by 3 percent to MVR 11.69 billion, reflecting fuel price normalisation rather than weaker demand. Demand across power generation, transport, tourism and other sectors remained stable, keeping the segment central to both STO’s commercial performance and the Maldives’ energy security.
The more notable movement came from STO’s non-fuel businesses. Trading revenue increased by 8 percent to MVR 3.39 billion, driven by growth in construction, healthcare and general trading. Construction Solutions recorded the strongest increase within the segment, rising 15 percent to MVR 718 million, supported by infrastructure and resort development activity. Healthcare Solutions grew 9 percent to MVR 1.55 billion, while General Trading rose 3 percent to MVR 1.12 billion.
Insurance also delivered strong growth, with revenue increasing by 15 percent to MVR 875 million. The segment, operated through Allied Insurance, has become an increasingly important contributor to STO’s diversification, supported by premium growth, product expansion and improved service delivery. The gas segment grew 12 percent to MVR 291 million, helped by sustained LPG demand and expansion into medical and industrial gases.
Shipping was the main weak point in the portfolio. Revenue declined by 5 percent to MVR 409 million, affected by competition in the Colombo to Malé trade route, lower freight rates, reduced capacity after the withdrawal of a chartered vessel, port congestion and vessel delays. The segment remains strategically important for trade continuity and supply chain resilience, but its 2025 performance showed the financial pressure facing logistics businesses operating in a constrained domestic environment.
The report also points to improved financial discipline. Net finance costs fell by 16 percent to MVR 230 million, helped by lower borrowing costs, reduced fuel-related financing needs and more favourable supplier and financing terms. Operating cash flow improved sharply to MVR 1.1 billion from MVR 398 million in 2024, while cash and cash equivalents rose to MVR 1.98 billion.
However, STO continues to face liquidity and working capital challenges. Receivables increased by 7 percent to MVR 6.4 billion, mainly due to higher amounts owed by government entities and state-owned enterprises. The Group said it has strengthened its credit management framework and expects a gradual reduction in receivables during the first quarter of 2026.
A major corporate move during the year was the divestment of the Hulhumalé hotel project to Housing Development Corporation. The USD 20 million project was transferred in exchange for land in Hulhumalé, a move STO framed as part of a broader effort to improve capital allocation and focus on core businesses.
Shareholder returns also improved. STO’s Board proposed a dividend of MVR 85 per share for 2025, compared with MVR 80 per share for the previous year. The company’s share price rose 64 percent during the year, closing at MVR 1,800 at the end of 2025, while market capitalisation increased to about MVR 2.03 billion. Trading activity also picked up, with the number of trades rising to 183 from 43 in 2024, though overall volumes remained limited by STO’s concentrated ownership structure and restricted free float.
Looking ahead, STO’s next phase will be shaped by EVOLVE 2026 to 2030, its five-year strategic plan. The plan sets out intended capital investment of MVR 3.5 billion to MVR 4.5 billion across infrastructure, fleet modernisation, digital systems, healthcare, manufacturing and climate resilience. By 2030, STO aims to raise annual revenue to MVR 19 billion to MVR 21 billion, improve gross margins, reduce the cash conversion cycle, and generate 5 to 10 percent of revenue from new business areas.
For the corporate sector, the report shows STO moving into a more disciplined phase of growth. Its national mandate still shapes much of its business model, particularly in fuel, food, healthcare and construction materials. But the 2025 results suggest that the company is trying to reduce its dependence on fuel revenue, improve operational efficiency, and place greater weight on segments that can generate more stable long-term returns.
