State-owned dredging company spends MVR 1.05 billion without generating any revenue
7 ނޮވެމްބަރު 2026 | ހޮނިހިރު 10:20An audit report has revealed that Peninsula Infrastructure, a subsidiary of Maldives Airports Company Limited (MACL), incurred a loss of MVR 31,000 without generating any revenue in 2025, yet remains financially stable due to support from its parent company. Despite the lack of income, the company maintains assets totaling MVR 115.47 million and continues to be entrusted with major national projects, including the Ras Male' land reclamation initiative.
MACL Managing Director Ibrahim Shareef Mohamed at the company's Annual General Meeting: MACL has established a subsidiary company to spearhead its infrastructure development projects. | MACL
The Auditor General’s Office has revealed in a financial audit report that Peninsula Infrastructure Private Limited, a company established to undertake major land reclamation projects, generated no revenue from October 8, 2026, through the end of that year.
According to the report signed and released by Auditor General Hussain Niyazy on November 2, 2026, the company generated no revenue during this period. The recorded loss of MVR 31,000 was attributed entirely to administrative and operational expenses. Consequently, the loss per share stands at MVR 0.27.
According to financial records, the company's total assets are projected to be valued at MVR 115.47 million by the end of 2025. This figure primarily consists of MVR 115.47 million categorized as receivables. The company’s total equity stands at MVR 11.37 million, which includes MVR 11.40 million in issued shares, offset by an accumulated loss of MVR 31,000. Additionally, the report highlights that the company carries total liabilities of MVR 104.10 million owed to various parties.
Peninsula Infrastructure is a wholly-owned subsidiary of Maldives Airports Company Limited (MACL). The company was established to undertake dredging, land reclamation, and construction projects, as well as real estate development within the Velana International Airport area.
According to the audit report, the company spent MVR 1.05 billion on various projects through the end of 2025. However, as these works were carried out by MACL, the expenditure has been offset against the outstanding debt owed to the airport operator.
Regarding the company's financial status, the Auditor General noted that despite ongoing losses, operations remain sustainable due to guaranteed financial support from the parent company, MACL. The report highlights a written assurance from MACL to provide the necessary funding to cover operational expenses and debt obligations. Furthermore, the report states that the company’s authorized capital consists of 500 million shares, of which 113,985 shares have been issued to date.
The Auditor General stated that this audit report was prepared in accordance with International Financial Reporting Standards (IFRS) and accurately reflects the company's financial position. The financial statements were signed by Managing Director Ibrahim Shareef Mohamed, Director Mohamed Mihad, and MACL's Chief Financial Officer Ahmed Asad Hashim. The company has decided not to declare any dividends for this period.
Furthermore, the company was also awarded the Ras Male' reclamation project in 2025. It is noteworthy that physical works have already commenced and are currently underway.
