State Trading Organization (STO) has announced its financial results for the fourth quarter of last year, posting a total revenue of MVR 4 billion. This figure represents a 3 per cent decrease compared to the previous quarter.
For the year 2023, STO’s total revenue was MVR 16.4 billion, marking a 10 per cent decrease compared to 2022. The primary factor behind this decline in revenue is attributed to the fluctuation in world oil prices, which directly impacted the company’s oil prices.
Despite these challenges, STO reported a substantial net profit of MVR 2.7 billion. This profitability was driven by increased oil sales and improvements in other business areas. The company attributes this success to various efforts aimed at strengthening its core businesses, including adjustments to its assets’ current values as part of a balance sheet restructuring process.
In response to changes in the oil market, STO has provided rebates on the amount of oil sold to stabilize prices and promote the Fuel Supply Maldives business. The figures for the first three quarters of the year have been revised to account for fuel rebate and asset impairment expenses over their appropriate periods.
Although the company’s impairment cost, provisions, and operating expenses saw a relative increase, STO’s total profit rose significantly, reaching MVR 1.3 billion. This marks a 23 per cent increase over the previous year.
The company’s net profit before tax for the year stood at MVR 995 million, a 15 per cent increase from the previous year. This improvement is largely due to the company’s effective business strategies and increased total profits.
After accounting for tax, STO recorded a net profit of MVR 819 million for the year.
These financial results highlight STO’s resilience and strategic adaptability in the face of global economic challenges, particularly in the volatile oil market. The company’s ability to maintain profitability amidst revenue decline demonstrates its effective management and strong business model. As STOC continues to navigate through these challenges, its focus on core business strengths and strategic adjustments are expected to play a crucial role in its ongoing success.