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Profits plunge for state-run businesses in 2018 last quarter

Shahudha Mohamed
25 April 2019, MVT 16:42
Senior officials of MTCC speaking at a press conference. Profits of state-run companies decrease in 2018's last quarter.
Shahudha Mohamed
25 April 2019, MVT 16:42

Statistics show a 12 percent decrease in profits generated by state-run companies in the last quarter of 2018, compared to the last quarter of 2017.

The total profit generated in 2018's last quarter stood at MVR 1.1 billion while a profit of MVR 1.3 billion was generated in 2017's last quarter. This is a decrease of MVR 159.6 million.

Despite the overall decrease of 12 percent in profits, while total revenue increased by 15 percent. State-run companies generated a total revenue of MVR 7.55 billion in the last quarter of 2018.

Companies which generated the largest profits in the last quarter of 2018:

- Maldives Airports Company Ltd (MACL): MVR 360 million

- Bank of Maldives (BML): MVR 276 million

- Dhiraagu: MVR 234 million

- Maldives Water and Sewerage Company Pvt Ltd (MWSC): MVR 176 million

Fenaka Corporation Ltd suffered a loss of MVR 18 million in the last quarter of 2018. This was the most substantial loss sustained by a state-run company within this period.

Addu International Airport (AIA) also suffered a loss of MVR 15 million due to high administrative costs.

Maldives Transport and Contracting Company (MTCC) saw a huge decrease in profits in the last quarter of 2018. Compared to the same period of 2017, the company saw a decrease of MVR 94 million in profits.

However, within the same period, Housing Development Finance Corporation (HDFC), Maldives Airports Company Ltd (MACL), Maldives Tourism Development Corporation (MTDC), State Trading Organisation (STO), and Waste Management Corporation (WAMCO) saw an increase in profits.

The state-run company that racked up the highest revenue was STO, generating MVR 2.5 billion within 2018's first three quarters. MACL, which generated the second highest revenue, acquired a total of MVR 1.4 billion. Most of the profits generated by MACL were due to oil sales.

Additionally, companies such as BML, Dhiraagu, Island Aviation Services Ltd (IAS), State Electric Company Ltd (STELCO), MWSC, MTCC and Fenaka all generated revenues of MVR 200 million in 2018's last quarter.

WAMCO saw a large increase in their revenues, raking in a 44 percent increase. Moreover, MWSC saw a 43 percent increase, while AIA saw an increase of 26 percent.

STELCO's revenues for 2018's last quarter increased by 12 percent, while HDFC's revenues for the same period increased by 13 percent.

Maldives Centre for Islamic Finance (MCIF), Maldives Integrated Tourism Development Corporation (MITDC), Maldives Marketing and Public Relations (MMPRC) and Sports Corporation suffered the largest decreases in revenues.

While MITDC's revenues took a nosedive by 100 percent, Sports Corporation's revenues saw a decrease of 67 percent. Additionally, MMPRC's revenues decreased by 50 percent, while MCIF's revenues decreased by 35 percent.

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