Earned MVR 124 million from bunkering, further changes ahead: Shimad

State Trading Organization (STO) has earned MVR 124 million from its bunkering operations so far, Managing Director Shimad Ibrahim said during the company’s Annual General Meeting held last night.

The revenue was generated through the sale of 11,500 metric tonnes of fuel, including 1,200 tonnes supplied to one of the world’s largest cruise liners. This shows the growing confidence international shipping firms have in Maldives’ bunkering services, Shimad said.

Shimad noted that significant improvements are needed for the Maldives to compete effectively with Sri Lanka in the regional bunkering market.

STO launched its bunkering services in September 2023 under a Memorandum of Understanding with Vitol, one of the world’s largest privately owned energy firms.

The agreement marked the Maldives’ entry into the regional bunkering sector, with fuel being supplied from three tankers and 11 barges operated by STO.

The service is currently more active around the Male' region than in the northern Ihavandhippolhu zone, Shimad said.

Shimad said that changes are required to enhance the efficiency and competitiveness of the service. Reports suggest STO is in talks with additional fuel suppliers to broaden its offerings. Vitol currently receives a large portion of the revenue from the operation.

STO’s fuel business remains its primary revenue generator, bringing in MVR 12 billion last year, down 7 percent from the previous year due to a drop in global fuel prices. Despite the dip in fuel revenue, the company posted growth in other sectors including insurance revenue rose which rose by 46 percent to MVR 761 million, and shipping revenue increasing to 15 percent to MVR 432 million.

STO Group reported a net profit of MVR 770 million in 2024, a 40 percent decline from the MVR 1.1 billion posted in the previous year.