STO profit declines to Rf42.7m

State Trading Organisation (STO) has made a net profit of Rf42.7m in the first quarter of this year, which is a decline of Rf67.4m compared with its net profit in the final quarter of last year, which was Rf110.2m.

STO, of which 18 percent shares are held by the public, in the fourth quarter of last year made a gross profit of Rf334m, and a net profit before taxation of Rf110.2m.

This year’s first quarter report published today shows that the company’s turnover was Rf2.1b, gross profit was Rf150.2m, and net profit before taxation was Rf42.7m.

The company’s net profit for the first quarter of 2012 was Rf42m, while its net profit for the same quarter of 2011 was Rf32.4m. This is an improvement of Rf10.3m in net profit when compared with the same period last year.

STO Managing Director Shahid Ali told Sun Online today that the company’s profit declined in the first quarter of this year when compared with the final quarter of last year because its trade had suffered as a result of changes in fuel prices in the world market:

“Various socio-economic and political factors led to business being a bit low this quarter. Also, the company performed best in the final quarter of last year, as a result of the incomes from supplies to SAARC Summit. We believe that the profit will be better in the coming quarters, profit is usually bad in the first quarter.”

STO is among the public companies which generally make good profit. Last year, its turnover was Rf6.8b and net profit was Rf149m.

Capital Market Development Authority (CMDA) had fined STO with Rf30,000 for failing meet the deadline to publish its financial statement for the first quarter of this year. STO said that this was due to its Board of Directors not having been fully reconstituted. The company’s annual meeting scheduled for this month has also been delayed until next month.