The State Trading Organisation (STO) has declared a dividend of MVR 80 per share for 2024, matching last year’s payout, and marking the highest shareholder return in 17 years. The decision was approved by 99 percent of shareholders during the company’s Annual General Meeting held Saturday at Barceló Nasandhura in Malé.
Despite a decline in profits, with a gross profit of MVR 583 million in Q1 2025, down by MVR 617 million from the same quarter last year, STO reaffirmed its commitment to sustaining operations across core business areas. Operating profit for the quarter also fell to MVR 263 million, from MVR 308 million year-on-year and MVR 300 million from the previous quarter.
One of the key highlights of the AGM was the company’s success in launching bunkering services. According to Managing Director Shimad Ibrahim, STO generated MVR 124 million in revenue from this new venture since its inception in September 2024. While operations were initially based in the northern Ihavandhippolhu region, the bulk of the activity has shifted to the Malé area, where STO has supplied major global shipping lines with services including the delivery of 1,200 tonnes of water.
Shimad noted that discussions are ongoing to scale up operations and enhance competitiveness in the global bunkering market. This includes collaboration with Vitol, the world’s largest private energy trading company, under a Memorandum of Understanding signed in March 2024 to jointly operate an international bunkering project in the north.
In terms of infrastructure, STO revealed plans to construct a 15-storey multipurpose building on land currently occupied by its medical warehouse, located directly in front of the company’s headquarters. The building will feature a training centre, cafeteria, gym, office spaces, and a multipurpose hall. The concept design is expected to be completed within five months, replacing an earlier proposal for a 25-storey tower on the same site.
Additionally, STO confirmed it has secured a new 40,000 square foot plot in Hulhumalé Phase 3 to revive its long-stalled City Hotel project. The original five-star hotel initiative, launched 14 years ago, failed to materialise and efforts to sell the unfinished property had not succeeded. The newly allocated land from the Housing Development Corporation (HDC) will allow STO to proceed with a fresh development. The transfer agreement is expected to be finalised within the next two weeks.
