Financial statements indicate that 15 government companies and companies with government shareholding collectively recorded a profit of MVR 2.05 billion in the first quarter of this year. During the same period, these companies generated a total revenue of MVR 13.29 billion. The Ministry of Finance and Development Planning reported that despite 12 state-owned enterprises (SOEs) incurring a loss of MVR 281 million, the cumulative net profit for the entire SOE sector stood at MVR 1.76 billion. The Ministry of Finance further noted that a significant number of the companies reporting losses in this quarter are those dedicated to providing essential services to the public at subsidized or affordable rates.
According to financial reports released by the Privatization and Corporatization Board (PCB), while revenue decreased by 9% compared to the first quarter of the previous year, the net profit of these companies increased by 10%. The PCB attributes this to successful efforts in managing expenses, strengthening corporate governance, and implementing cost-reduction strategies, even as revenue saw a decline. Among the government companies and those with government shareholding, State Trading Organization (STO) achieved the highest revenue in the first quarter of 2025, reaching MVR 4.02 billion. Maldives Islamic Bank (MIB) recorded the most significant increase in revenue compared to the first quarter of the previous year, showing a 42% growth.
Maldives Airports Company Ltd (MACL) achieved the highest net profit in the first quarter of 2025, with MVR 572 million. Conversely, Road Development Corporation (RDC) reported the largest loss during this quarter, amounting to MVR 113 million.
Housing Development Corporation (HDC) achieved the most substantial increase in profit compared to the first quarter of the previous year, with a remarkable 190% growth. HDC recorded a profit of MVR 268.49 million in the first quarter of the year. The PCB’s 2024 sector report included provisional financial loss figures for HDC, which were based on data provided by the company prior to the completion of the 2023 and 2024 audits. The PCB clarifies that following the finalization of HDC’s 2023 audit, and given certain developments affecting the 2024 financial figures, it is anticipated that HDC will report a profit for its 2024 financial statements.
In the first quarter of 2025, the total value of fixed assets for government companies and companies with government shareholding reached MVR 205.24 billion. This represents a 10% increase compared to the same period last year. Concurrently, the debt of these companies increased by 7% during this period. The PCB highlights that the greater increase in assets compared to debt indicates a reduced reliance on debt for expansion and advancement of these companies.
Regarding the liquidity position of these companies in the first quarter of 2025, the PCB report notes that 60% of companies, excluding those in the financial sector, maintained their current ratio at an optimal standard. Furthermore, concerning leverage, 60% of companies, excluding financial sector entities, manage their finances without excessive reliance on debt, maintaining debt levels within desirable benchmarks. The PCB also highlighted that 25% of state-owned enterprises have no debt whatsoever.
