Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a loss of P139.752 million in the first nine months of 2019 from a profit of P72.813 million in the same period last year as its costs increased.
Service income for January to September 2019 declined 1% to P1.028 billion from P1.034 billion for the same period of 2018, HSSSI said in a regulatory disclosure.
Harbor assistance contributed P774.1 million, 9% higher than the P709 million registered in 2018.
Feeder services, a new revenue segment for 2019, added P22.6 million to the total while towing posted a slight increase of 1% to P17.9 million from P17.7 million.
HSSSI also participated in the salvage of MV Diamond Highway, a 200-meter car carrier that caught fire close to Recto Bank on the West Philippine Sea. As first salvor responder, HSSSI helped put out the fire then towed the abandoned vessel to prevent it from drifting to protected marine areas and populated places.
Revenue from salvage in the first nine months was P82.1 million, down 31% from P119 million in the first nine months of 2018.
Lighterage and other marine services revenue segments, meanwhile, have yet to recover, as they still declined by 20% and 42%, respectively, to a combined P130.8 million from P187.9 million last year.
Revenue contribution from subsidiaries Peak Flag Sdn Bhd and Harbor Star Subic Corp. amounted to P55.2 million and P15.3 million, respectively.
Cost of services increased 21% to P818.4 million from P676.8 million, mainly due to higher depreciation in relation to the group’s growing fleet. Moreover, fuel purchases, charter hire, and rent expense increased by P30.1 million, P26.6 million, and P24.7 million, respectively, as a result of the group’s continuous effort to boost revenue-generating activities.
HSSSI said that on top of higher fuel price per liter, fuel consumption also went up, causing fuel expense to rise. Meanwhile, charter of a tugboat to supply the requirement of feeder services mainly caused the increase in charter hire, while renting of various heavy equipment for different projects pushed up rent expense.
Other HSSSI subsidiaries include Harbor Star Energy Corporation; Astronergy Development Gensan Inc.; Astronergy Development F1, Inc.; Astronergy Development F2, Inc.; and Harbor Star East Asia (Myanmar) Limited.
Last year, the group also subscribed to 31% of the shares of Hi-Energy Marine Services, Inc., which is now an associate of HSSSI.
As of end-2018, HSSSI, including its subsidiaries and affiliates, has services in about 89 ports within the Philippines, providing services to 10,033 ships. Major ports serviced include Manila International Container Terminal, Manila South Harbor, Bataan, Batangas, Cagayan de Oro, Davao, and Iloilo.
The company maintains and manages a fleet of more than 50 vessels, including domestically and internationally classed tugboats, barges, a landing craft tank, a cargo vessel, and an oil spill response vessel.