The State Trading Organization plc (STO) has released its second-quarter report for 2024, showcasing a strong financial performance and significant corporate initiatives. The report, covering the period from 1st April 2024 to 30th June 2024, highlights key achievements and financial figures, highlighting STO’s commitment to sustainable business practices and community engagement.
Financial Performance
STO reported a total revenue of MVR 3.471 billion for Q2 2024, demonstrating robust business operations. The company’s net profit stood at MVR 148 million, a slight decrease from the MVR 195 million recorded in Q1 2024. Earnings per share for the quarter were MVR 131, down from MVR 173 in the previous quarter.
The company’s total assets increased to MVR 12.978 billion from MVR 12.634 billion in Q1 2024. The balance sheet also showed an increase in total equity, reaching MVR 4.654 billion, compared to MVR 4.508 billion in the previous quarter.
Corporate Governance and Transparency
STO achieved the highest ranking on the Corporate Governance Transparency Index, as announced by Transparency Maldives in collaboration with the Information Commission and the Privatisation and Corporatisation Board. This accolade underscores STO’s dedication to transparency and good governance practices.
The company has adopted several initiatives to enhance governance and transparency, including improved disclosure of strategic decisions, publication of key policies, and the provision of governance reports for main subsidiaries.
Key Corporate Events and Initiatives
During Q2 2024, STO undertook several significant initiatives:
• Fuel Price Revision: Effective 27th May 2024, STO reduced the price of diesel by MVR 0.70 per litre and petrol by MVR 0.35 per litre. This move is expected to benefit consumers and businesses across the Maldives.
• STO Construction Solutions Showroom: In April 2024, STO inaugurated its new Construction Solutions Showroom in Hulhumale. This facility offers a paperless, one-stop-shopping experience, enhancing service delivery to customers.
• Project Samuga: STO announced the go-live of Project Samuga on 1st June 2024, upgrading from SAP ECC to RISE with SAP S/4 HANA. This AI-powered cloud ERP system is set to streamline operations and prepare STO for future technological advancements.
Corporate Social Responsibility
STO remained committed to its corporate social responsibility (CSR) initiatives in Q2 2024:
• Environmental Efforts: The company donated an ocean clean-up drone to Maldives Airports Company Limited (MACL) to help keep water aerodromes and surrounding lagoons free from debris.
• Educational Support: STO signed a memorandum of understanding with Villa College to launch the Cast Program, aimed at enhancing vocational competencies of students and facilitating their career progression.
• Community Engagement: STO and its staff contributed MVR 300,000 to the Palestine Fund-raising telethon organised by Public Service Media (PSM). Additionally, the company supported various educational and health institutions through donations and infrastructure development.
Shareholder Engagement and Dividends
STO held an informal shareholder meeting to discuss concerns and suggestions for improving governance and strategic performance. The Board of Directors also proposed a record dividend of MVR 80 per share for 2023, the highest in the past 17 years, pending approval at the Annual General Meeting.
STO’s Q2 2024 report reflects a period of robust financial performance and proactive corporate initiatives. The company’s commitment to transparency, governance, and community engagement continues to drive its success and strengthen its position as a leading organisation in the Maldives. As STO advances into the second half of the year, it remains focused on sustainable growth and enhancing value for its stakeholders.
