Home » Maritime, Ports/Terminals » Finance costs take 1.7% off Harbor Star’s 2018 profit

Harbor Star tug image from www.harborstar.com.ph

Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a net income of P106.911 million in 2018, or 1.7% lower than the P108.806 million earned in 2017, the decrease due mainly to higher finance cost.

Consolidated service income last year improved 8.3% to P1.437 billion from P1.327 million in 2017, HSSSI said in a disclosure to the Philippine Stock Exchange.

A major contributor to the improved service income was its salvage business, which grew almost thrice from P77.2 million in 2017 to P210.1 million in 2018. The salvage income came from the combined revenue realized from re-floating MV Jinming Hao 16, a Chinese vessel which capsized in Rawis, Samar; salvaging Barge Robby in Davao; and re-floating the 50-meter liftboat Teras Lyza which capsized while being towed from Vietnam to Taiwan.

Other marine services provided revenue inflow of P108.7 million, a P64.0 million increase from P44.7 million in 2017. Higher revenue from lighterage services of P127.3 million last year from P91.4 million in 2017 also contributed to the improved consolidated revenue of the group.

Towing services, however, decreased by 70.5% to P19 million in 2018 from P64.4 million in 2017, as HSSSI sold its main towing tug M/V Rho Cas in the first quarter of last year.

Harbor assistance last year was not at its peak as it dropped by 7.4% year-on-year as price war with new entrants in the tugboat assistance industry heightened, HSSSI noted.

Subsidiaries Peak Flag Sdn. Bhd and Harbor Star Subic Corp. contributed P61 million and P23 million, respectively, to the group’s revenue.

Cost of services in 2018 increased by 4.9% to P951 million from P906.5 million in 2017, mainly due to higher personnel cost and fuel charges. This was brought about by additional manpower requirement for the additional vessels acquired and the surge of fuel cost per liter. Insurance likewise contributed to the rise in cost of services relative to additional vessels covered.

As of end-2018, HSSSI, including its subsidiaries and affiliates, has services in about 89 ports within the Philippines, providing services to some 10,033 ships. The major ports serviced by the company include Manila International Container Terminal, Manila South Harbor, Bataan, Batangas, Cagayan de Oro, Davao, and the newly opened branch at Iloilo.

The company maintains and manages a fleet of 55 vessels including 45 domestically and internationally classed tugboats; seven barges; one landing craft tank; one cargo vessel; and one oil spill response vessel.

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