MTCC reports profit of MVR 66 million for the 2nd quarter

Maldives Transport and Contracting Company (MTCC) has reported a profit of MVR 66.1 million for the second quarter of 2022.

According to the company's quarterly report, MTCC earned an income of MVR 593.10 million during the second quarter of the year. This is a 7.74 percent increase compared to the company's income for the first quarter, which was MVR 550.49 million.

Additionally, statistics shows that the operating profit of the company for the second quarter was MVR 94.53 million. The profit before tax stands at MVR 77.78 million.

The company's operating profit for the first quarter of the year was MVR 88.62 million and the profit before tax was MVR 75.31 million.

Statistics shows that generated MVR 82.8 million from trading, MVR 423.9 million from contracting, MVR 58.5 million from dredging, MVR 22 million from transportation and MVR 5.8 million from others.

During the second quarter of the year, MTCC earned the biggest profit from contracting. As such, the company earned a profit of MVR 27.4 million from contracting. Additionally, MVR 19.9 million was earned as profit from trading and a profit of MVR 16.2 million was earned from dredging projects.

Moreover, statistics shows that the company earned a profit of MVR 561,476 from transportation.

MTCC highlights that the cost of sales has increased compared to the revenue due to increase in landed cost of materials with global inflation, increase in fuel cost along with logistics.

The company notes that other incomes has increased compared to the previous quarter mainly from the Government subsidy for the transport losses from the greater Male’ bus operations and RTL ferry operations. Further, dividend income of MVR 10.50 million received from investments in BML shares are also accounted under the other income of second quarter.

Administrative, selling, marketing and other expenses were relatively increased along with the increase of revenue compared to the previous quarters.

Highlighting that contracting and dredging revenue has gone up by 29.6 percent compared to the second quarter of 2021, MTCC noted that the revenue and profitability of the segment was affected by the increased prices of materials and logistics due to the startling increase in fuel prices compared to the first quarter of the year.

Trading revenue has doubled in the second quarter, compared to the second quarter of 2021. Global logistic constrains were relaxed during the second quarter freeing the long pending sales orders of engines has resulted the increase in sales.

The total revenue of the company has reached to MVR 1.14 billion with a profit before tax of MVR 153 million for the first half of 2022.

MTCC states that the company has the potential to generate a revenue of over MVR 2.2 billion with a profit before tax of MVR 300 million by end of the year, considering the additional investments on assets and expansions on transport segment with the increased number of projects secured.