MTCC MD confident company will not hit insolvency

The Managing Director of Maldives Transport and Contracting Company (MTCC), Ahmed Saudhy has expressed confidence the corporation will not face insolvency despite going through current financial predicaments.

He made the remarks during an interview with state-run media, PSM.

The annual report of the corporation indicates MTCC earned a total revenue of MVR 2,157 million in 2024 with a net profit of MVR 45 million. This marks a notable 33 percent decline compared to the preceding year.

The company earns its revenue mainly from four strategic business units (SBUs), which are trading, transportation, real estate, land reclamation, dredging and infrastructure development. MTCC’s top earning streams include land reclamation and infrastructure.

Saudhy reasoned that MTCC operates with the primary objective of serving the public making it unreasonable to charge hefty fees from the public for their services. He explained that completing a project at a 75 percent profit margin which would bump up the project cost, and in turn drive up the state allocated budget for the initiative.

He added that the low rates of their services reflect the nature of necessity of these services for the public.

Saudhy assured that once MTCC completes all of the 356 awarded projects, there would be no local island requiring a harbor construction initiative.