MTCC profit surges 88% to MVR84.8 million as revenue holds above MVR2.1 billion

The Maldives Transport and Contracting Company (MTCC) has reported a sharp recovery in profitability in 2025, with the company’s Profit After Tax rising 88 per cent to MVR84.83 million despite a slight decline in annual revenue.

According to MTCC’s 2025 Annual Report, the Group generated MVR2.134 billion in revenue, down 1.04 per cent from MVR2.157 billion in 2024. Despite the marginal revenue decline, operating profit increased 8 per cent to MVR179 million, while Profit After Tax almost doubled from MVR45.21 million in 2024 to MVR84.83 million in 2025.

The company recorded MVR98.35 million in profit before tax, compared with MVR49.61 million in 2024. Tax expenses increased from MVR4.40 million to MVR13.52 million, leaving the Group with MVR84.83 million in net profit. Basic and diluted earnings per share consequently rose from MVR5.62 to MVR10.55.

MTCC’s total comprehensive income also climbed substantially, reaching MVR127.84 million, compared with MVR34.99 million in 2024.

Construction remains the backbone

Construction and Dredging continued to dominate MTCC’s business, generating MVR1.722 billion, accounting for 80.68 per cent of total revenue. The segment’s revenue was virtually unchanged from MVR1.721 billion in 2024, but profitability improved through stronger project execution and tighter cost management.

The segment generated approximately MVR70 million in operating profit, compared with MVR67 million in 2024. MTCC said the division ended 2025 with 459 projects on hand, while its nationwide project operations were reorganised into six zones during the year.

The company said all six of its dredgers remained in continuous operation throughout 2025, while specialised project staff were recruited and trained to meet the scale of its government project commitments.

Trading revenue falls 8.5%

MTCC’s Trading segment faced a more difficult year, with revenue falling 8.5 per cent to MVR244.13 million, from MVR266.85 million in 2024.

The annual report attributes the decline to increased market competition and deliberately cautious inventory management in response to working-capital pressures. Nevertheless, the segment remained profitable, recording around MVR67 million in operating profit.

MTCC said it plans to strengthen supplier relationships, improve inventory planning and expand its range of Yanmar, Suzuki and related marine and engine products.

Transport profit nearly quadruples

The Transport Division delivered one of the strongest operational improvements during the year.

Revenue increased modestly from MVR148.85 million to MVR149.60 million, but operating profit surged from MVR6 million to MVR22 million.

MTCC attributed the improvement primarily to the continued expansion of Raajje Transport Link ferry services and government operational subsidies supporting affordable regulated fares.

Passenger numbers across MTCC’s transport operations reached 16.25 million in 2025, up from 16.08 million in 2024 and 12.13 million in 2022 — representing nearly 34 per cent growth over three years.

Engineering and repair profit rises

Other business activities, which include Engineering and Repair, generated MVR18.66 million in revenue in 2025.

More significantly, operating profit from Other Services increased to MVR20 million from MVR7 million in 2024. MTCC said the improvement reflected stronger performance in docking, repair and support activities.

The company is now preparing to advance a Government-approved dry-docking facility, which MTCC says could eventually be integrated with a trans-shipment port and bunkering facility.

The facility is expected to reduce the company’s reliance on overseas servicing of its dredgers and other large vessels, while creating additional commercial capacity for state-owned companies, security services and private operators.

Stronger balance sheet and liquidity

MTCC’s financial position also strengthened during the year.

Group equity increased from MVR1.745 billion at the end of 2024 to MVR1.857 billion at the end of 2025, an increase of about MVR111.8 million. Retained earnings rose to MVR1.249 billion from MVR1.176 billion.

Cash and cash equivalents increased dramatically to MVR151.30 million, compared with just MVR25.01 million a year earlier.

The Group’s current ratio stood at 1.13 times, while its assets ratio improved to 0.93 times from 0.85 times. MTCC said the improvement indicates stronger asset coverage and a strengthened balance-sheet position.

The company secured MVR186.97 million in new borrowings during 2025, primarily to support working capital and operational continuity. At the same time, it repaid MVR206.50 million in loan principal, contributing to a six per cent reduction in its gearing ratio.

Group net debt stood at MVR443.96 million, down from MVR527.18 million in 2024, while the gearing ratio fell from 23 per cent to 19 per cent. Total equity increased to MVR1.857 billion.

Shareholders to receive higher dividend

The improved profitability has also translated into a higher proposed shareholder return.

MTCC has proposed a MVR3 dividend per share for 2025, up from MVR2 per share for 2024. With 8,037,749 shares in issue, the proposed dividend represents approximately MVR24.1 million in total distribution if approved.

The company’s net asset value per share increased by MVR13.90 during the year, while its share price closed 2025 at MVR86, compared with MVR90 at the end of 2024. The weighted average traded price during 2025 was MVR89.64, with 243 trades recorded.

719 government projects underway

Despite the improved financial results, MTCC’s management says the company faces a substantial project workload.

Managing Director DCP (Retd.) Ahmed Saudee said MTCC had 719 government projects underway entering 2026 and that managing the associated capacity, cash flow and workforce responsibly would remain a priority.

The company plans to diversify beyond government projects by pursuing more private-sector and resort-related infrastructure work, expanding trading activities and developing the planned dry-docking facility.

MTCC also says it is exploring opportunities to take its project expertise into regional markets, including potential collaborations with companies in India on specialised infrastructure and bidding for major regional projects.

The 2025 results come as MTCC marked its 45th anniversary, with the company describing the year as one of consolidation, improved discipline and stronger profitability. The Board said the focus going forward will be on diversification, private-sector engagement, operational efficiency and investment in people, systems and technology.