Ferry services result in losses of MVR30m for MTCC

Maldives Transport and Contracting Company Plc (MTCC) has said that the ferry services provided by the company results in annual losses of about MVR30 million for the company.

In an interview with Sun Online on the financial situation of the company over the past three months, Dr Ahmed Adham Abdullah said that the biggest losses incurred by the company are due to transport services.

“We provide it as a social service. The motive isn’t to make large profits. The motive is to provide this service to the people at low prices,” he said.

He said that efforts are under way to make up for those losses, by obtaining new contracts and introducing premium transport services including premium ferry and cargo services.

Referring to the lower profits in Q1 when compared with Q2 of 2012, Adham said that this was due to complications in bringing in equipment for some projects from India.

Adham was confident that profits will improve in the final quarter of 2012, as several projects are estimated to be completed by then.

He said that the company’s financial situation is stabilising, and said that the company will make good profits next year.

Over the past three months, MTCC made revenues of MVR153 million, gross profit of MVR20.1 million and net profit after tax of MVR3.9 million, which is MVR348,810 less than its net profit after tax for Q2, which was MVR4.2 million. This is an eight percent reduction in profit.