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Harbor Star Shipping Services, Inc. (HSSSI) posted a significantly higher loss of P66.262 million in the first half of 2021 due to increased expenses and cost of services
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Service income rose 20.46% as most business operations recorded more revenues
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Cost of services went up 10.88% while general and administrative expenses grew 103.75%
Harbor Star Shipping Services, Inc. (HSSSI) posted a loss of P66.262 million in the first half of 2021, significantly higher than the P5.315 million loss recorded in the same period last year due to higher expenses and cost of services.
The group’s total service income, on the other hand, grew 20.46% to P874.792 million from January to June 2021 from P726.19 million posted in the same period in 2020.
In a regulatory disclosure, HSSSI said the increase was mainly due to revenues from its harbor assistance, salvage, construction, and solar power operations.
Revenues from harbor assistance grew 16.9% to P549.836 million from P470.398 million, while revenues from lighterage improved 9.1% to P76.432 million from P70.039 million. Towing services earned P10.870 million, up 19% from P9.138 million.
HSSSI also recognized salvage income amounting to P29.4 million for a 2019 salvage operation, while also recording P19.445 million revenues from a construction project.
Revenues from the generation of solar power went up 6.5% to P148.289 million from P139.279 million, while revenues from underwater services jumped 120.9% to P2.281 million from P1.033 million.
Revenues from other marine services, on the other hand, dropped 75% to P8.450 million from P33.713 million.
Subsidiaries Peak Flag Sdn Bhd, Harbor Star Subic Corp., and Astroenergy Development Gensan, Inc. contributed P48.35 million, P37.67 million, and P148.29 million, respectively, to the group’s total revenues.
Cost of services for the first six months of 2021 increased by 10.88% to P589.59 million from P531.75 million in the same period last year mainly due to outside services, supplies, fuel and lubricants, charter hire, personnel costs, repairs and maintenance, insurance and others.
The group’s general and administrative expenses also went up 103.75% to P236.30 million from P115.98 million, mainly due to depreciation and amortization, bad debts to personnel costs, repairs and maintenance, taxes and licenses, transportation and outside services.
With the shipping industry severely affected by the COVID-19 pandemic, HSSSI earlier said it initiated internal cost-saving measures to reduce income loss, while also focusing on generating more revenue from other service lines, such as special projects with focus on construction and specialized marine services.
As of last year, HSSSI, including its domestic subsidiaries and affiliates, has established operations in 15 base ports all over the country, providing services to 6,589 ships.
The company maintains and manages a fleet of domestically and internationally classed tugboats, barges, a landing craft tank, cargo ship, tanker, and a dredger.
HSSSI’s subsidiaries include Harbor Star Subic Corp., Peak Flag, Harbor Star Energy Corp., Harbor Star East Asia (Myanmar) Ltd., Astronergy Development Gensan Inc., Astronergy Development F1, Inc., and Astronergy Development F2, Inc.
