Q2 profit of MTCC increases; STO decreases

The profits of MTCC and STO have increased to MVR4.2 million and decreased to MVR34.3 million respectively over the past quarter.

MTCC and STO are the two main companies jointly owned by the State and the public.

Financial statements of STO show that goods worth MVR1.6 million were traded in the past quarter, which resulted in total profit of MVR243.8 million, and net profit after expenses of MVR34.3 million.

Compared with the first quarter of 2012, this is a reduction of MVR8.4 million in net profit.

Managing Director of STO Shahid Ali said that the reduction is due to decreased sales as a result of economic recession.

“It’s very challenging for us. But as tourism and fisheries improve, our performance will also improve in the future,” Shahid said.

Financial statements of MTCC show that goods worth MVR152.5 million were traded in the past quarter, which resulted in total profit of MVR22.6 million, and net profit after expenses of MVR4.2 million.

MTCC’s net profit in the first quarter of 2012 was MVR2.3 million, while its net profit in the first six months of 2012 is MVR6.6 million.

MTCC has commenced 18 projects in the first six months of 2012, of which two have been completed over the past three months, and 14 are in progress.

Despite the reduction in its net profit, STO is one of the government’s most profitable companies.

STO’s net profit stood at MVR146.6 million at the end of 2011, resulting in earnings per share of MVR72; while MTCC suffered a loss of MVR8.03 million in 2011.