Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a profit of P68.439 million for the first nine months of 2017, 16.8% lower than the P82.288 million earned in the same period in 2016.
HSSSI also posted a 6% decline in revenues for the first three quarters of 2017 to P915.6 million from P978.3 million posted for the same period in 2016.
Revenues from harbor assistance dropped 5% to P713.8 million from P754 million in 2016 due to a price war with new entrants in the tugboat industry. Lighterage services likewise posted an P11.6 million decline to P72.7 million, down from P84.3 million in the first nine months of 2016. Revenues from towing services showed a dip of 2% year-on-year.
The major dip in revenue streams was partially offset by the recognition of salvage income amounting to P33.2 million, mostly from the wreck removal works for an LCT vessel which ran aground off Saranggani Province. Other marine services revenue doubled to P31.8 million from P15.2 million, arising from buoy dry docking repair. Additional revenue from equipment rental was likewise generated as of September 30, 2017. HSSSI said it also recognized a one-time gain from a major jetty repair contract this year.
Revenue contribution by its subsidiary, Malaysian tug company Peak Flag Sdn Bhd, amounted to P32.4 million from P22.1 million in 2016.
HSSSI is spending almost P1 billion this year to expand and diversify its business operations locally and overseas. The group is allocating US$8 million, or almost P400 million, mainly to acquiring more tugs for domestic operations and up to P400 million more for its regional operations.
The marine services provider’s expanded business portfolio now includes a new diving and marine maintenance unit, a renewable energy company, and a venture into the construction business. It is also looking to further develop and strengthen its new wholly owned subsidiary Harbor Star Subic Corporation, which offers marine-related ancillary services within the Subic Bay Freeport Zone, and to establish a joint-venture company to operate several floating dry-dock facilities in the Philippines.
As of December 2016, Harbor Star has established operations at 15 base ports across the country, providing services to about 10,549 ships. Major ports being served include the Manila International Container Terminal and those in Bataan, Batangas, Cagayan de Oro, and Davao.
Image courtesy of dream designs at FreeDigitalPhotos.net
