State Trading Organization plc (STO) has reported a robust performance for the third quarter of 2025, posting total revenue of MVR 3.84 billion, marking an 8% increase from the previous quarter. The company attributed this growth to higher fuel sales volumes and consistent performance across non-fuel business segments.
Revenue and Profitability
The fuel segment remained STO’s largest revenue driver, accounting for 78% of total sales, while non-fuel operations contributed 22%. Alongside the increase in sales, gross profit rose to MVR 604 million, a 5% improvement compared to Q2 2025, reflecting greater operational efficiency and cost management.
STO’s operating profit surged by 23% to MVR 290 million, supported by a reclassification of lease-related expenses under IFRS 16, which reduced overall operating costs from MVR 367 million to MVR 358 million.
As a result, profit before tax reached MVR 230 million, and after accounting for taxes, net profit stood at MVR 186 million, representing a 14% quarter-on-quarter growth.
Earnings per share (EPS) climbed to MVR 165, up from MVR 145 in the previous quarter, reflecting improved shareholder returns.
Financial Strength and Liquidity
STO maintained a strong balance sheet, closing the quarter with total assets of MVR 13.29 billion and equity of MVR 5.38 billion. The company’s debt-to-equity ratio improved to 1.47, from 1.59 in Q2, supported by the sale of its under-construction Hulhumalé hotel, which generated USD 20 million in land consideration as part of an asset optimization strategy.
Operating cash flow stood at MVR 285 million, demonstrating sustained cash generation despite increased inventory levels due to higher fuel procurement. Net cash from investing activities rose sharply to MVR 547 million, driven by proceeds from the hotel sale, while MVR 955 million was used for debt repayment.
At quarter-end, STO held MVR 201 million in cash and cash equivalents, underscoring a resilient liquidity position and its ability to meet operational and capital commitments.
Operational and Governance Highlights
During Q3, STO’s Board approved key strategic actions, including:
- Transfer of the Hulhumalé Hotel property to the Housing Development Corporation.
- Endorsement of a new fleet expansion plan.
- Approval of agriculture and poultry development projects.
- Adoption of a Communications Policy and IT Data Security framework.
The company also emphasized its focus on talent development, with 521 employees participating in training programs worth over MVR 4.7 million, reflecting continued investment in human capital. The workforce stood at 2,481, with 37% female representation and 79% Maldivian nationals.
Share Performance
STO shares traded steadily on the Maldives Stock Exchange, closing at MVR 1,800 on September 25, 2025, with a market capitalization of MVR 2.03 billion. The company maintained a dividend yield of 4%, and its price-to-earnings ratio stood at 10.9, reflecting stable investor confidence amid consistent returns.
Outlook
Looking ahead to the final quarter of 2025, STO said it remains focused on operational excellence, digital transformation, and disciplined financial management to sustain growth. The company reaffirmed its commitment to delivering long-term value through strategic investments, enhanced efficiency, and strengthened community partnerships.
“We extend our sincere gratitude to all our business partners for their continued cooperation and support” the company stated in its official release.
