Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) has reported a net profit of P25.6 million in the second quarter of 2017, which is 42% lower than the P44 million it earned in the same period last year.
Net profit for the first half of the year was likewise down, dipping by 27.7% to P48.7 million from P67.4 million in the same period in 2016, HSSSI stated in a regulatory disclosure.
The group, for the first half of the year, delivered total service income of P632.2 million, 7% lower than the P678.2 million posted for the same period in 2016.
Revenues from harbor assistance dropped 7% to P476.5 million from P512.8 million for the same period in 2016 due to price war with new entrants in the tugboat industry. Also, during the first semester of 2016, HSSSI recognized a one-time gain from a major jetty repair contract.
Lighterage services posted an 11% decline to P53.2 million from P60.1 million.
The major dip in revenue streams was partially offset by the recognition of salvage income amounting to P33.2 million, mostly from wreck removal works for an LCT vessel which ran aground off Saranggani Province. HSSSI’s other marine services doubled to P35 million from P15.1 million in 2016, arising from buoy dry-docking repairs.
Towing services, meanwhile, showed a positive growth of 4% year-on-year. Additional revenue from equipment rental was likewise generated during the first half of 2017.
Revenue contribution from subsidiary Malaysian tug operator Peak Flag Sdn Bhd grew 145.9% to P20.9 million in the first half of 2017 from P8.5 million in the same period last year.
HSSSI earlier said it 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.
In a separate disclosure, the group said the Securities and Exchange Commission (SEC) on August 4 issued a Certificate of Filing of Amended Articles of Incorporation, approving the amendment to the Seventh Article of the Incorporation of HSSSI. This allows the firm to increase its authorized capital stock to P2 billion divided into 2 billion shares, with all common and voting and the par value of each share of P1.
The amendment is intended to drive the group’s business expansion. The marine services provider has been expanding its business portfolio, which includes a new diving and marine maintenance unit; the further development of its new wholly owned subsidiary Harbor Star Subic Corporation, which offers marine-related ancillary services within the Subic Bay Freeport Zone; and establishment of a joint-venture company to operate several floating dry-dock facilities in the Philippines.
HSSSI has recently ventured in the construction contracting business, and incorporated a new subsidiary, Harbor Star Energy Corp., which will be engaged in the generation, distribution, and storage of electric power derived from solar energy, other renewable energy sources, and fuels, for wholesale to private electric utilities, electric cooperatives, the spot market, and other consumers.
As of December 2016, Harbor Star has established operations in 15 base ports all over 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.
Photo from www.harborstar.com.ph
