Listed maritime services provider Harbor Star Shipping Services, Inc. reported an 80% decline in net income in the first half of 2015 due to lower ship calls and the stoppage of commercial operations in one of its major income-generating ports.
From P90.828 million in the same period last year, net income slid to P17.998 million, the company disclosed to the Philippine Stock Exchange.
In the second quarter alone, Harbor Star posted a net loss of P4.357 million, a reversal from P48.206 million income made in the same period last year.
Service income fell 17% to P461.6 million in the first half from P555.7 million last year.
Harbor Star said contributing to the decline in revenue is the lower income from towing services (a business that is not regular in nature), which fell to P12.4 million from P75.6 million last year.
Net revenue from its harbor assistance business also decreased by P34.5 million because of the closure of commercial operations in Bohol, which was one of Harbor Star’s major income-producing ports in 2014; the sharp decline in ship calls at its banner port, Manila International Port; and lower or almost nil bunker adjustment factor in tariff rates resulting from diesel price rollbacks.
According to the Philippine Ports Authority, ship calls for the first four months of 2015 went down by 1% to 115,880 from 117,052 in 2014.
Harbor Star also has yet to bag salvage projects in 2015. This compares with revenues of P37.5 million in the first half of 2014.
Lighterage services was a bright spot, however, with revenues amounting to P114.4 million in the first half, more than double the amount posted in the same period last year.
Earlier, Harbor Star president Geronimo Bella, Jr. said the group was optimistic it would exceed this year the P1.1 billion revenue it earned in 2014 with its planned entry into new markets.
