State Trading Organization (STO) saw positive growth overall, despite a revenue decline attributed to the spike in world oil prices last year, with other business segments performing well and the company posting a strong overall profit, the company’s quarterly results indicated.

STO posted a revenue of MVR 16.4 billion in 2023, according to the report; MVR 1.8 billion less than the MVR 18.2 billion in the year before.

In a press release, STO said the decline in revenue was mainly due to the company’s sale of fuel at lower prices during a time of volatile oil prices in the world market. However, the company posted a total profit of MVR 2.7 billion as the volume of fuel sales increased and other businesses improved.

STO provided rebates on fuel sold in order to reduce fluctuation and somewhat bolster the local market from the changes in global oil prices, as well as to promote its subsidiary, Fuel Supply Maldives (FSM).

In addition, various efforts are being made to strengthen the company by prioritising its core businesses, and the value of company assets have been adjusted to fair value as part of its balance sheet restructuring efforts, the state owned enterprise (SOE) said.

The accounts for the first three quarters of this year have been restated to adjust for the fuel rebates, and asset impairment expenses resulted in a proportionate increase in the company’s impairment cost, provisions and operating expenses, STO noted.

However, STO posted an operating profit of MVR 1.3 billion for the year. Net profit before tax for the year stood at MVR 995 million. After tax, the company posted a net profit of MVR 819 million for the year. This is higher than in the previous year, when STO posted an operating profit of MVR 728 million and a net profit of MVR 728 million.

According to the state’s main trading SOE, the company’s operating profit rose by MVR 241 million, while net profit increased by MVR 91 million.