Integrated marine service provider Harbor Star Shipping Services, Inc. reported a decline of 45.2% in net income in 2015 due to lower revenues from towing services, fewer salvage jobs, and the temporary stoppage of its Bohol operations.
Harbor Star disclosed to the Philippine Stock Exchange a net income of P67.717 million in 2015, down from P123.658 million in 2014.
Service income likewise declined 5.8% to P1.040 billion in 2015 from P1.104 billion in the previous year.
The listed company received a smaller income from towing services (irregular by nature) of P16.9 million in 2015 compared to P99.9 million in 2014; fewer and relatively smaller (in peso value terms) salvage jobs; and decreased harbor assistance work mainly due to the cessation of commercial operations in Bohol following the 2015 earthquake.
The drop was partially offset by an increase in lighterage services as additional clients were obtained in 2015. Jetty repair in Mauban, Quezon accounted for the P12.6-million income from the company’s construction contracts as of December 2015.
By business unit, harbor assistance contributed the bulk of revenue with P741.9 million or 71.3% of the total. This unit’s revenue is 6.8% lower than the P796.226 million earned in 2014.
Revenue from lighterage services, on the other hand, increased 61.3% to P202.4 million from P125.515 million in 2014.
Towing services recorded the biggest decrease in revenue, contracting 83.1% to P16.9 million from P99.994 million, while salvage operations likewise slipped 38.8% to P31.1 million from P50.7 million.
Revenues from other marine services, meanwhile, rose 12.4% to P35.3 million from P31.4 million.
Harbor Star also strengthened its marine ancillary services by offering port construction, pier repair, and other port-related development works. In 2015, revenues from marine construction contracts amounted to P12.6 million.
As of December 31, 2015, Harbor Star services 69 Philippine ports, of which 14 are base or hub ports. Base ports include the Manila International Container Terminal, as well as those in Quezon, Cagayan de Oro, Surigao, Bohol, Bataan, Batangas, Davao, Semirara, Leyte, Palawan, General Santos, and Cebu.
Last year Harbor Star created its diving and marine maintenance unit in a bid to further develop its other business lines that show revenue potential. Moreover, the company expanded its presence in Cebu by opening a branch office. Later in 2015, Harbor Star opened a wholly owned subsidiary, Harbor Star Subic Corporation, with the intention of operating at the Subic Bay Freeport Zone by 2016.
This year, it signed an agreement with Guam Industrial Services, Inc. to establish a joint venture company that will operate several floating dry dock facilities in the Philippines.
Aside from domestic operations, Harbor Star has operations in Malaysia through subsidiary Peak Flag Sdn Bhd. Peak Flag officially began operating in February last year with two tugboats, M/T Hamal and M/T Mirzam, serving Malaysia’s major ports North Port and Kuantan Port.
The company manages a fleet of 37 domestically and internationally classed tug boats, five barges, a cargo vessel, an oil spill response vessel, and an anchor handling tug supply vessel.
