The State Trading Organization (STO) reported a net profit of USD 10.57 million for the second quarter of 2025. The result, though solid, marked a 3 percent decline from the previous quarter, as the company faced mounting pressure in its core oil business.
Gross profit for the quarter totalled USD 37.23 million, reflecting a 2 percent decrease from the first quarter. Total revenue fell more sharply, dropping 12 percent to USD 233.44 million. According to the company, the decline was driven by fluctuating oil prices and a noticeable reduction in oil demand during the period.
Revenue generated from other business segments, however, showed improvement. STO reported gains across its operations in pharmaceuticals, construction materials, and food and beverage products, offsetting some of the losses incurred in its energy division.
Operating profit came in at USD 15.31 million, down 11 percent from the preceding quarter. The decrease was attributed to the contraction in gross profit and a proportional rise in operating expenses, highlighting the financial strain imposed by shifting market dynamics.
Investment income and reduced finance costs provided a measure of relief, with STO citing increased returns from investments and lower net finance costs as key contributors to a profit before tax of USD 12.84 million. After tax deductions, net profit for the quarter stood at USD 10.57 million.
Compared to the same period last year, the company’s performance showed notable improvement. Second-quarter net profit rose by USD 972,762.65 year-over-year, representing a 10 percent increase and underscoring the resilience of its diversified portfolio.
STO is widely regarded as the country’s most diversified commercial enterprise. With operations spanning key sectors of the Maldivian economy, including oil, pharmaceuticals, construction materials, and food and beverage, STO continues to play a central role in national commerce.