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Annual Report 2020

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Annual Report 2020 ANNUAL REPORT 2020 Annual Report 2020 ATTENTION This report (Annual Report) Rufiyaa (1 US Dollar is MVR 15.42). Undue reliance should not be placed on comprises the Annual Report of the MTCC prepares its financial statements any such statements because, by their Maldives Transport and Contracting in accordance with International Financial very nature, they are subject to known Company PLC for 2020 is compiled in Reporting Standards (IFRS). Reference to and unknown risks and uncertainties accordance with the Companies Act of a ‘year’ in this report are, unless otherwise and can be affected by other factors that the Republic Maldives, the Listing Rules of indicated, reference to the Company’s could cause actual results, and MTCC the Stock Exchange, the Securities Act of financial year ending 31st December 2020. plans and objectives to differ materially the Republic of Maldives, the Cooperate from those expressed or implied in the Governance Code of Capital Market In this report, financial and statistical forward-looking statements. There are Development Authority Requirements, information is, unless otherwise indicated, several factors which could cause actual Securities (Continuing Disclosure stated on the basis of the Company’s results to differ materially from those Obligations of Issuers) Regulation financial year. Information has been expressed or implied in forward looking and Regulation for Companies. updated to the most practical date. statements. MTCC cannot guarantee This Annual Report contains forward future results and thus cannot be legally Unless otherwise stated in this Annual looking statements that are based on held responsible for levels of activity, Report, the terms ‘MTCC’ and ‘Company’ current expectations or beliefs, as well performance or achievements. refer to Maldives Transport and as assumptions about future events. Contracting Company PLC and/or its These forward-looking statements can subsidiaries. In this report currency is, be identified by the fact that they do not unless otherwise indicated, in Maldivian relate only to historical or current facts. 1 MTCC Vision Mission & Values 5 MTCC: Celebrating 40 years of Nation Building 6 A look back at our journey of 40 years 14 Highlights 2020 16 Chairman’s statement 20 CONTENTS CEO’s statement 24 Board of Directors 28 Executive Team 34 Business Review 2020 46 Human Resources 73 Club MTCC 78 Corporate Social Responsibility 83 2 Annual Report 2020 Financial Review 87 Future outlook 95 Share Performance 102 Directors Governance Report 104 Audited Financial Statements 122 CONTENTS Corporate Information 200 3 MTCC Our Company 4 Annual Report 2020 OURTo be the leading VISION dredging, construction, transport and engineering solution provider in the Maldives. OURTo maximize shareholders MISSION wealth by: Delivering innovative, renewable construction and engineering solutions. Providing convenient, safe and reliable transport solutions. And fostering continuous growth. VALUES Employee Development We are committed to effective employee training and development strategies to ensure staff expertise and excellence. Integrity We believe that our actions should be honest, ethical and transparent, respecting the diversity of our clients and each other. Innovation We pursue creative ideas incorporating technological advances that have the potential to shape the industry. Excellence We deliver a superior experience for all our customers, sensing their needs and exceeding their expectations, through committing ourselves to continuous improvement. Community We contribute to the development of our society and fulfil our corporate social responsibility. Environment We strive to reduce our environmental impact on the earth and its resources. 5 MTCC CELEBRATING 40 YEARS OF NATION BUILDING 6 Annual Report 2020 KAAMIYAABU 40 This year we celebrate forty years of service to the nation. MTCC came into being in December 1980, a time when the country was embarking on its journey of growth. It was a crucial juncture in the country’s We move people to work and goods to economic and social development when the the market with our nationwide land and country was in need of basic infrastructure sea transport networks. By pre-empting in the form of harbours, schools, health the needs of the country and its industries, centres and island administrative offices. and setting standards for construction, Since our inception, our focus has been on dredging, reclamations and related building the nation, supporting the efforts of works, we have played an important the government by providing infrastructure role in the development of the economy for development, expanding the means for and various industries of the country. connectivity through transport networks and supporting the modernization of We continue to build our capacity with fisheries through creating access to investments, introduction of new technology products and technology and facilitating the and skills development. Our business smooth running of major economic sectors strategy revolves around offering the such as tourism and marine transport. highest quality and reliability in all the products and services we offer. We adhere We have evolved with the needs of the to international quality control systems country. In construction and infrastructure and adopt the latest innovations to match development we have expanded beyond local needs. Our focus is on sustainability harbour development to include airports, through strategic diversification and roads, modern construction projects and expansion of our customer base. We are major dredging and reclamation works. We committed to ensuring that we lead the way serve the marine sector ensuring that the in the businesses we have developed and country’s transport and fisheries sectors sustain the position we have achieved both have access to engines, equipment and locally and internationally in an increasingly the services to support their requirements. challenging and competitive environment. 7 MTCC INFRASTRUCTURE DEVELOPMENT, CONSTRUCTION & DREDGING We are the pioneer and leading local contractor in infrastructure development and construction in the Maldives. While retaining our strengths in key areas Our portfolio of projects completed during of our work, during the last 40 years we the recent years includes the construction have diversified into a variety of new areas of several airports, road in a large number of infrastructure development, in line with of islands, and water and sewerage the changing needs of the country. Our infrastructure projects executed across traditional areas of work in the area of the country. We have diversified into sub- harbour development, shore protection and sectors related to our line of work such as reclamation has expanded and evolved environmental consultancy, surveying and over the years. Dredging, which is one of architectural design, to serve the growing the Company’s core activities commenced and evolving needs of the Company and in 1995 with just a few excavators. Today the market. We are recognized for our we own the largest dredging fleet in the adaptability and our capacity to mobilize country and have attained a position to and execute major projects in the area offer customers, cutting-edge solutions of infrastructure development. With the to meet their requirements. Our dredging largest fleet of equipment in the country fleet, which includes Mahaa Jarraafu, the combined with our team’s collective 3700 cubic meter hopper dredger has experience in project design, management revolutionized the dredging industry in the and execution, we have the capacity to Maldives and established us as one of the execute several projects simultaneously largest dredging companies in the region. in multiple locations across the country. 8 Annual Report 2020 TRANSPORT Our transport services began in 1980 with rental of speedboats to cater to the growing needs of the tourism sector and corporate travel. Our public transport service began on selected routes and contracted travel in 2001 with ferry services to offer arrangements for hotels and resorts. scheduled connectivity between Male’ and Villingili. Today our transport service Today we serve more than 8 million is an integral part of Maldivian life. With passengers a year on our transport network. our services accessible to more than 90% With well-structured and reliable scheduled of the population our transport network transport services we offer the public, connects the atolls and islands of the the possibility to plan ahead and make Maldives from Haa Alifu Atoll in the north travel plans for business or pleasure. to Gaafu Dhaalu Atoll in the south, with inter-atoll and intra-atoll ferry services. As the country’s largest public transport network, our objective is to provides safe, While our comprehensive transport network affordable and convenient land and sea connects the dispersed island and atolls transportation services. We continually of the country, our services in the Male’ review our ferry schedules and service Region consists of passenger and cargo standards and adapt them to synchronize ferry services between the islands of with the needs of our customers. While the Greater Male’ Region, scheduled bus we continue to expand our network, we services in Hulhumale’, and scheduled have introduced modern technology such bus services between Hulhumale’ and as automation of fare collection, online Velana International Airport. We offer platforms to access our services and live a range of value-added
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