15 State Owned Enterprises (SOEs) and companies with a Government stake recorded a combined profit of MVR 2.05 billion in the first quarter of this year.

During the quarter, SOEs and Government-linked companies generated total revenue of MVR 13.29 billion. Data released by the Privatization and Corporatization Board (PCB) shows that despite a nine per cent decline in revenue compared to the same period last year, net profit increased by 10 per cent. This indicates improved cost control and operational efficiency across the sector.

The Ministry of Finance and Planning reported that 12 State-owned companies recorded combined losses of MVR 281 million. However, the SOE sector as a whole posted a net profit of MVR 1.76 billion. The Ministry noted that many of the loss-making entities are providers of essential public services delivered at affordable prices.

Among individual entities, the State Trading Organization (STO) recorded the highest revenue in the first quarter, totalling MVR 4.02 billion. Maldives Islamic Bank (MIB) reported the largest year-on-year revenue growth, with an increase of 42 per cent compared to the first quarter of last year.

Maldives Airports Company Limited (MACL) recorded the highest profit for the quarter, posting a net profit of MVR 572 million. In contrast, the Road Development Corporation (RDC) registered the largest loss, amounting to MVR 113 million.

The Housing Development Corporation (HDC) recorded the strongest profit growth, with a 190 per cent increase compared to the same quarter last year. HDC reported a profit of MVR 268.49 million for the first quarter.

The report also highlighted improvements in SOE balance sheets. Total SOE assets rose to MVR 205.24 billion in the first quarter, representing a 10 per cent year-on-year increase, while total debt increased by seven per cent. The stronger asset growth relative to debt suggests improving financial resilience across the sector.

PCB noted that moderate debt-to-asset ratios, particularly among commercially operated entities, indicate that many SOEs retain the capacity to access market financing if required.