State Trading Organisation (STO) posted financial results for the third quarter of 2025, with total revenue reaching MVR 3.84 billion, an 8 percent increase from the previous quarter. The growth was primarily driven by higher volumes of oil sales, while non-fuel segments also contributed with an 8 percent rise in revenue.
The company reported a net profit of MVR 604 million, up 5 percent quarter-on-quarter, supported by disciplined cost management and operational efficiency. Operating expenses decreased to MVR 358 million from MVR 367 million, after reclassifying certain sales, marketing, and lease-related costs, resulting in operating profit of MVR 290 million, a 23 percent improvement. Pre-tax profit rose to MVR 230 million, while after-tax profit increased 14 percent to MVR 186 million.
STO strengthened its balance sheet through strategic asset optimisation, including the sale of the Hulhumalé hotel under construction for USD 20 million in land consideration. Working capital remained healthy at MVR 1.5 billion, with a current ratio of 1.22 and a debt service cover ratio of 1.21. Key financial ratios also improved, with a debt-to-equity ratio of 1.47 and interest cover ratio of 3.24, reflecting enhanced liquidity and disciplined capital management.
Cash flow remained strong, with MVR 285 million generated from operations. Investing activities produced MVR 547 million, driven by the hotel sale, while financing outflows of MVR 955 million reflected loan repayments, leaving cash and cash equivalents at MVR 201 million.
Looking ahead, STO aims to maintain operational excellence, streamline processes, and optimise performance across all business segments. Strong fundamentals, rigorous risk oversight, and prudent capital management position the company to sustain growth and deliver value for the remainder of 2025.
