Male’, Maldives – Despite the negative impact on some profit making divisions due to the pandemic, in 2020, MTCC recorded the highest revenue and profit figures in its 40 years of operations.
The company generated a staggering MVR 1.35 billion in revenue and Net Profit before Tax reached MVR 203 million according to the final quarterly report for the year end of 2020.
During the fourth quarter (Q4), MTCC had carried out over 50 projects including the construction of harbours, shore protection, dredging and reclamation projects. 17 new projects valued at MVR 956 million were awarded to MTCC.
The company had improved their financial performance in Q4 compared to Q3 of 2020. A total of MVR 400 million in revenue was generated, a 14% increase from Q3. Contracting segment contributed to the increase in revenue in a major way. Engine sales after the ease of lockdown restrictions and the commencement of the “Maa bodah ves agu heyo vejje” campaign resulted in a 12% increase in revenue from the trading segment.
The economic downturn and restrictions placed on various sectors of the economy due to the Covid19 Pandemic led to an increase in MTCC’s operating expenses in Q4 of 2020. Administration expenses grew because of increased utility expenses and the provision of retirement benefits of MVR 12 million. MVR 6.14 million worth of obsolete stock also increased the write off expenses in the fourth quarter.
MTCC managed to make a profit in both Q3 and Q4 of 2020 despite the economic downturn due to the Covid19 Pandemic. The company’s operating profit in Q4 increased by 14% compared to Q3, and stood at MVR 77 million. Profit after tax amounted to MVR 53 million in Q4.
Looking at 2020’s financial performance as a whole, protective measures imposed by the Maldivian Government during the Covid19 Pandemic had a drastic impact on MTCC’s transport and trading operations and their USD liquidity. The transport revenue dropped by 43% compared to the year ended 2019. However, as a partly state owned company, the Maldivian Government subsidized the public transport service losses and so, the division generated a nominal profit. Trading revenue fell by 32% and the net profits from the division decreased by 48% compared to the financial year 2019.
Construction activities carried out by MTCC remained profitable even with the restrictions as revenue grew over 60% and profits created by this division increased by tenfold compared to 2019.
MTCC’s Earnings Per Share for the year ended 2020, stood at MVR 21.48 per share indicating positive shareholder value creation. This is further supported by a 5.49% dividend yield in the last quarter of the year.
With multiple successful projects such as the Gn. Fuvahmulah Ring Road Project, the construction of Breakwater in S. Feydhoo, and the SH. Komandoo Harbour Upgrade, MTCC has had an extremely successful 2020 and remained mostly unaffected by the economic repercussions of the Covid 19 Pandemic.