Maldives Transport and Contracting Company (MTCC) has reported a profit of MVR 40.6 million for the third quarter of 2022.

According to the company's quarterly report, MTCC earned an income of MVR 593.4 million during the third quarter of the year. During the second quarter of the year, MTCC earned an income of MVR 593.10

Statistics shows that the operating profit of the company for the third quarter was MVR 72.59 million, while this was at MVR 94.54 million for the second quarter.

The profit before tax decreased from MVR 77.78 million, in the second quarter to MVR 47.71 million for the third quarter.

The company highlights that the revenue from Construction, Dredging and Transport sector has increased during the quarter while the trading segment was affected by the continuous long holidays during the month of July 2022.

Statistics shows that the company generated MVR 59.4 million from trading, MVR 492.5 million from contracting, MVR 98.3 million from dredging, MVR 35.6 million from transportation and MVR 54.8 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 19.1 million from contracting. Additionally, MVR 9.5 million was earned as profit from trading and a profit of MVR 8.7 million was earned from dredging projects.

Moreover, statistics shows that the company earned a profit of MVR 3.2 million from transportation.

The cost of sales also has increased compared to the revenue due to increase in landed cost of materials with global inflation, and logistics. As such, MTCC noted that the fuel price has risen significantly and the price hike over the months has slashed the profitability of the construction segment compared to the first two quarter of 2022.

The company's other income has increased compared to the previous quarter, mainly from the Government subsidy for the transport losses from the greater Male’ bus operations and RTL speed ferry operations.

Other expenses were relatively increased along with the provision of MVR six million, which was accounted for impairment of investments.

Finance cost of the company has almost doubled compared to the second quarter of 2022 with the increased borrowings to finance the new investments of the company.

During the quarter, the company has capitalized new dredgers, speed ferries and minibuses for RTL operation. With the new capital investment, total asset of the company has reached to MVR 4 billion by end of third quarter.

MTCC disclosed that the total revenue of the company has reached to MVR 1.74 billion with a profit before tax of MVR 200 million for the nine months of 2022.

Earlier this year, MTCC has stated 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.