State Trading Organization plc (STO) closed the fourth quarter of 2025 with improved earnings, firmer liquidity, and steadier market performance, reinforcing its position as one of the Maldives’ most systemically important corporate groups. The results point to disciplined cost management and resilient core operations, even as cash flows reflect the capital intensity of the Group’s business model.
According to STO’s Q4 2025 report, revenue for the quarter reached MVR 4.14 billion, an increase of about 8 percent compared to the previous quarter. Growth was driven largely by higher sales volumes across core segments, with fuel remaining the single largest contributor to revenue, while non fuel businesses provided steady support. Gross profit rose by 11 percent quarter on quarter, indicating operational gains rather than purely top line expansion.
Net profit for the quarter stood at MVR 244 million, up from MVR 186 million in Q3. This improvement was supported not only by higher operating profit but also by lower finance costs, a notable factor given STO’s reliance on borrowings to support inventory, logistics, and infrastructure related activities. For the full year, STO reported net profit of MVR 762 million on revenue of MVR 15.5 billion, reflecting modest year on year growth but consistent profitability in a high volume, low margin operating environment.
From a balance sheet perspective, STO ended the quarter with total assets of MVR 14.18 billion and equity of MVR 5.62 billion. Liquidity indicators improved during the period, with the current ratio rising to 1.48 from 1.22 in the previous quarter. Working capital increased to MVR 3.16 billion, largely due to higher financial investments and reduced trade payables. While total borrowings increased, pushing the debt to equity ratio slightly higher to 1.52, coverage ratios strengthened, with the debt service cover ratio improving to 1.72 and interest cover rising to 4.28. These figures suggest greater headroom in servicing debt, even as leverage remains structurally elevated.
Cash flow dynamics, however, underline the operational realities of STO’s scale. Operating activities recorded a cash outflow of MVR 139 million during the quarter, driven mainly by rising receivables and changes in payables. At the same time, investment cash outflows rose to MVR 642 million, reflecting continued deployment into financial assets and capital projects. These pressures were offset by financing inflows of MVR 802 million, resulting in an increase in cash and cash equivalents to MVR 222 million by the end of the quarter.
On the market side, STO’s share performance remained stable. The share price traded within a range of MVR 1,671 to MVR 1,900 during Q4, closing the quarter at MVR 1,800. Market capitalisation stood at around MVR 2.03 billion, while earnings per share rose to MVR 217 for the quarter. The price earnings ratio moderated to 8.29, reflecting stronger earnings against relatively steady pricing. Trading activity also increased compared to earlier quarters, indicating sustained investor interest despite STO’s majority government ownership.
Beyond the numbers, the report highlights a focus on governance continuity and capital planning. The Board approved the 2026 annual budget and proceeded with a new barge building project during the quarter, signalling continued investment in logistics and supply chain capacity. For businesses and suppliers operating within STO’s ecosystem, the results suggest a company prioritising balance sheet strength and operational reliability over aggressive expansion.
Overall, STO’s Q4 performance reflects a large, diversified conglomerate consolidating its financial position rather than pursuing rapid growth. In an economy where STO plays a central role in fuel supply, consumer goods, construction materials, and shipping, the quarter’s results point to stability, incremental efficiency gains, and a cautious approach to capital deployment as the Group enters the next financial year.
