In a clear reflection of its steady corporate strategy, the State Trading Organisation (STO) has declared a dividend of MVR 80 per share for 2024, equal to last year’s distribution and the highest shareholder return in 17 years. The decision was overwhelmingly supported by 99 percent of shareholders during STO’s Annual General Meeting (AGM), held on Saturday at Barceló Nasandhura in Malé. A total of 229 shareholders took part in the meeting, including 162 in person and 67 by proxy.
The dividend, derived from retained profits, underscores STO’s commitment to rewarding shareholders even amid a challenging market environment. The company recorded a gross profit of MVR 583 million in the first quarter of 2025, down by MVR 617 million from the same period last year. Operating profit also saw a decline, reaching MVR 263 million, compared to MVR 308 million in Q1 2024 and MVR 300 million from the final quarter of last year. The decline is attributed primarily to a reduction in fuel retail prices. Nevertheless, STO confirmed that operations across core business areas remain active and resilient.
A key highlight of the AGM was the strategic progress made in bunkering services, a new business vertical launched in September 2024. According to Managing Director Mr. Shimad Ibrahim, the company has already generated MVR 124 million in revenue from this service. Initially launched in the Ihavandhippolhu region, bunkering operations have since shifted to the Malé area, servicing global shipping lines with offerings including the supply of 1,200 tonnes of water.
Looking ahead, STO aims to scale its bunkering operations and increase competitiveness in the global market. The company is actively engaged in discussions with Vitol, the world’s largest private energy trading firm, under a Memorandum of Understanding signed in March 2024. The partnership is expected to lead to the joint operation of an international-standard bunkering project in the north of the country.
In parallel with its maritime expansion, STO is also making strides in infrastructure development. The company announced plans to construct a 15-storey multipurpose building on the site currently occupied by its medical warehouse, directly in front of its headquarters. The new facility will house a training centre, gym, cafeteria, multipurpose hall, and modern office spaces. The concept design is anticipated to be completed within five months, replacing an earlier 25-storey tower plan.
Additionally, STO has revived its long-delayed City Hotel project with a newly secured 40,000 square foot plot in Hulhumalé Phase 3. The original five-star hotel initiative, first proposed 14 years ago, was previously stalled due to development challenges and unsuccessful sale attempts. The Housing Development Corporation (HDC) has now allocated a new land parcel for the project, with the transfer agreement expected to be finalised in the coming two weeks. The new site paves the way for STO to reinitiate the hotel development under refreshed plans and renewed optimism.
In the governance front, Mr. Mohamed Ahsan Saleem was re-elected to represent public shareholders on STO’s Board for the term 2025–2026, reaffirming trust in his leadership and oversight.
With strong shareholder backing, active diversification, and forward-looking infrastructure investments, STO continues to play a pivotal role in the national economic landscape. These developments not only underscore the company’s resilience and adaptability but also reinforce investor confidence as STO charts a path for sustained growth and strategic expansion.
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