Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a profit of P23.098 million in the first quarter of 2017, slightly lower by 0.7% from the P23.269 million earned in the same period last year.
Total service income was 7% lower, down to P299.3 million in Q1 from P320.7 million for the same period in 2016, HSSSI disclosed to the Philippine Stock Exchange.
Revenues from harbor assistance during the period dropped 7% to P220.2 million from P237.5 million last year due to the price war with new entrants in the tugboat industry. The decline was also because of a major jetty repair contract that was almost completed during the first quarter of 2016.
The dip in harbor assistance was partially offset by an increase in towing service revenues, which more than doubled to P33.9 million from P13.9 million, arising from an offshore towage activity.
The group also secured salvage income in the first quarter of 2017 amounting to P18.5 million from wreck removal works for an LCT vessel that ran aground off Saranggani Province.
Revenue from lighterage services showed a 7% increase to P27 million from P25.1 million year-on-year. The group likewise recognized additional revenue stream from equipment rental generated during the first quarter of 2017.
Meanwhile, revenue contribution from subsidiary Peak Flag Sdn Bhd, a Malaysian tug company in which HSSSI has a 45% ownership, increased 72% in January-March 2017 to P12.9 million from P7.5 million in the first quarter of 2016.
As this developed, HSSSI, in a separate disclosure, said the Securities and Exchange Commission approved May 11 the incorporation of its new energy unit Harbor Star Energy Corporation (HSEC), a wholly owned subsidiary.
HSEC will engage in generating, distributing, and storing 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.
To do this, it will also go into developing, acquiring, building, maintaining, and operating all necessary facilities, machinery, sub-stations, transmission lines, poles, wires, and other devices, as well as set up corporations or entities needed for its operations. Further, it seeks to acquire and hold water and flowage rights, and to acquire land rights-of-way and easements as needed.
The marine services provider has been expanding its business portfolio, which includes a new diving and marine maintenance unit; the further development and strengthening 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.
It has also secured its contractor’s license, allowing it to engage in the construction business.
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 served include the Manila International Container Terminal, Bataan, Batangas, Cagayan de Oro, and Davao.
