Marine services provider Harbor Star Shipping Services, Inc. (HSSI) reported a 49% surge in net income for 2016 as a result of stronger operating income and positive performances by most of its services.
In a disclosure to the Philippine Stock Exchange, HSSI said net income for 2016 reached P100.9 million from P67.7 million in 2015.
Likewise, consolidated service income grew 30.8% to P1.4 billion in 2016 from P1 billion in the previous year. HSSI said the growth was due to increased ship calls in major ports, consummation of a construction contract entered into in 2015, several high-value towing and salvage contracts, and the revenue contribution of Malaysian tugboat operator Peak Flag Sdn. Bhd, where HSSI owns a 45% stake.
The positive indicators were partially offset by the decrease in income from lighterage services resulting from the decline in mining activities. Revenues from lighterage services, which contributed 7.8% to the total, fell 47.7% to P105.972 million from P202.430 million.
Harbor assistance, which accounted for 76.7% of the group’s total revenues, generated P1 billion in 2016, or 40.7% higher than the P741.914 million earned in 2015.
Registering one of the highest increases in 2016 was towing services, which earned P64.3 million, 280.3% up from P16.894 million in 2015 and equivalent to 4.7% of the total.
Earning the highest last year was construction contracts, which posted a 355% rise to P57.466 million from P12.629 million.
Revenue from salvage operations amounting to P39.9 million registered a 28.3% increment from P31.060 million, equivalent to 2.9% of the total revenue.
Revenues from other marine services hit P49.6 million, 40.5% higher than the P35.317 million delivered in 2015.
Cost of services grew last year by 37.7% to P956.6 million from P694.6 million in 2015.
As of December 2016, Harbor Star has established operations in 15 base ports all over the country, providing services to 10,549 ships as of the end of that year. The major ports it services include Manila International Container Terminal, Bataan, Batangas, Cagayan de Oro, and Davao.
The company manages a fleet of 40 domestically and internationally classed tugboats, five barges, a cargo vessel, an oil spill response vessel, and an anchor-handling tug supply vessel.
For 2017, the group said its capital expenditure is expected to be around P1 billion, which will go to acquiring tugboats for domestic and international fleet expansion, shipyard business, domestic chassis roll-on roll-off shuttle services, and a renewable- energy project.
The group expects to fund these capital expenditures partly through planned follow-on offering and fund raising activities and a combination of internally generated funds and bank financing.
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