MTCC reports record profit

In recent news, the state owned Maldives Transport and Contracting Company (MTCC) has celebrated breaking a 41 year long record, of generating the highest profits ever made by the publicly listed company, at a whopping USD17.6 million in the year 2021.

As per their 2021 annual report, the company generated a total income of USD127 million last year, a 43 percent increase from 2020, and announced the profit before taxes at USD17.6 million. This was 21 percent higher than the previous record profit generated in 2020, when the company had raised USD89 million as income and USD14.6 million as profit before taxes.

Despite recording an annual profit improvement for 2019, it was confirmed that the company had seen a 20 percent  drop in their gross profit margin, and another 12 percent drop in their net profit margin, for 2021. The decline is reportedly due to fluctuation of prices in materials, accumulative of the rise in logistical and freight charges due to the economic crisis following the global Covid-19 pandemic.

However, MTCC carried out a large number of infrastructure development projects across the country in 2021, where they generated the largest revenue through construction of harbours and such, land reclamation, beach protection infrastructure and sheet piling. With a total of 103 ongoing projects, the company has taken on a further 57 new projects last year, out of which they have managed to complete 27. The company also expanded its trade and other businesses, stepping up the marketing campaign in 2021, where they have projects underway in every atoll in the country.

The Board of Directors of MTCC has decided to distribute USD1.8 million to its shareholders from the profits generated last year. The dividends will be distributed at a rate of USD 0.23 per every share, with a face value of USD 0.32. The dividend will be passed during the Annual General Meeting of the company.