Fenaka posts profits in first two quarters of 2024: Muaz

Fenaka Corporation reported a profit in the first two quarters of this year and is making significant efforts to cut costs to improve its financial position, Fenaka Managing Director Muaz Mohamed Rasheed said on Thursday.

In a press conference held by Fenaka yesterday, Muaz stated that the company had been running at a loss for the past five years. However, during this administration, the company posted a profit of MVR 4 million in the first quarter of this year due to successful cost cutting measures.

He added that the company posted a profit of MVR 7.4 million in the second quarter of 2024.

Muaz highlighted that the company achieved profitability by significantly cutting costs and plans to continue doing so in more areas in the future.

Muaz added that when the new management took over Fenaka, the company had 8,200 employees which has since been reduced to 7,300 employees.

He said that the company would determine the appropriate number of employees needed as part of the process to "right-size" the organization.

The company posted a loss of MVR 24 million in the last quarter of 2023 and had to rely on substantial financial assistance from the government.

Muaz stated that the company is still in a very difficult situation but is reducing its debt and making repayments to private parties.

He noted that Fenaka provides water supply to 29 islands without billing, and once billing starts, it could generate some profits here as well.

"We have not been able to raise the quality of our services to what we want. The reason is, we have to raise a huge amount of funds to purchase spares and upgrade the network to increase generation capacity," he said.

Muaz stated that the company aims to repay its current debt of MVR 4.3 billion by 2027.