Kulhudhuffushi Port Private Limited recorded a total loss of MVR 12.3 million for the year 2025: audit
26 ސެޕްޓެމްބަރު 2026 | ހޮނިހިރު 13:42Kulhudhuffushi Port incurred a loss of MVR 12.3 million in 2025 as operating expenses exceeded total revenue. With personnel costs alone surpassing the port's earnings, the facility continues to rely on financial support from its parent company, Maldives Ports Limited (MPL), to sustain its operations.
Kulhudhuffushi Port. | PSM
Kulhudhuffushi Port Private Limited is projected to incur a total loss of MVR 12.3 million in 2025, according to the company's financial report released by the Auditor General's Office.
According to the financial report released by the office, Kulhudhuffushi Port Private Limited is projected to incur a significant loss of MVR 11.5 million in 2025. Compared to the MVR 10.4 million loss recorded in 2024, the company's deficit has increased by MVR 1.1 million, marking a rise of approximately 11 percent.
According to financial records, Kulhudhuffushi Port generated MVR 11.9 million in revenue for the year 2025. The largest portion of this income was derived from cargo handling services, which accounted for MVR 8.9 million.
Furthermore, the company generated MVR 1.1 million from cargo loading services and MVR 1.8 million from the rental of vessels and equipment. However, the company remains mired in significant losses as its operational expenses continue to outpace total revenue.
An analysis of the company's expenditures reveals that the highest costs were attributed to employee salaries and benefits. Personnel-related expenses totaled MVR 13.8 million, a figure that notably exceeds the company's total revenue. Furthermore, administrative costs amounted to MVR 6.8 million, while MVR 4.4 million was accounted for as depreciation. With these combined expenses, the company’s total net loss has reached MVR 12.3 million.
Despite the current financial challenges, the audit report provides assurance that the company can remain operational through the continued financial support of its majority shareholder, Maldives Ports Limited (MPL). MPL has issued a formal commitment to provide the necessary financial assistance to meet the company's debt obligations over the next 12 months. By the end of 2025, the total amount owed to MPL had increased to MVR 34.5 million.
Among the key highlights of the audit report is the valuation of the company's assets. Property, plant, and equipment account for 92 percent of the company's total assets. This includes a plot of land valued at MVR 76.4 million, which was allocated to the company by the Kulhudhuffushi City Council. However, the company's current assets—those that can be readily converted into cash—stand at just MVR 3 million.
The Auditor General has issued an "unqualified opinion" on the financial statements of Kulhudhuffushi Port, confirming their accuracy. However, the audit report highlighted significant concerns regarding the company's financial position, noting that its ability to continue as a going concern remains in question.
The company is a joint venture, with the Maldivian government holding a 49 percent stake and Maldives Ports Limited (MPL) owning the remaining 51 percent.
