Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a net loss of P376.2 million in 2019 from a net income of P106.9 million in 2018 due mainly to higher finance cost.
The group’s consolidated service income declined 2.8% to P1.396 billion last year from P1.437 billion in 2018, HSSSI said in a regulatory disclosure.
Harbor assistance was a key contributor to HSSSI’s service income last year, earning P1.054 billion, 8.5% higher than the 2018 figure of P971.8 million.
Towing services provided a revenue inflow of P36.9 million, up 94.1% from P19 million in 2018.
Revenues from lighterage services, on the other hand, decreased 18.8% in 2019 to P103.3 million from P127.3 million.
Salvage income likewise dropped 84.8% to P31.8 million from P210 million. HSSSI noted the “decline is something that could not be controlled as the service is fortuitous in nature.”
Other marine services declined 42.6% to P62.3 million in 2019 from P108.6 million.
Revenue generated from energy company Astroenergy Development Gensan Inc., all shares of which were acquired by HSSSI in 2018, amounted to P107.1 million.
Subsidiaries such as Malaysia-based Peak Flag Sdn. Bhd and Harbor Star Subic Corp., contributed P55.6 million and P35.4 million, respectively.
Cost of services last year increased 16.9% to P1.111 billion from P950.9 million in 2018. The increase was mainly due to higher depreciation cost and fuel charges brought about by additional manpower requirement for additional vessels acquired and the surge of fuel cost per liter, respectively. Insurance contributed to the rise in cost of services relative to additional vessels covered.
HSSSI’s capital expenditures for 2019 was approximately P220 million for acquisition of tugboats M/T Pollux for its international fleet expansion and Tug Jabbah. For domestic expansion, it acquired dredger Hydra for its Davao project and barge Auriga and M/T Caph for feeder services.
In the third quarter of 2019, HSSSI as part of its expansion of business activities in Southeast Asia, acquired 29% of Harbor Star East Asia (Thailand) Co. (HSEAT). HSEAT is primarily engaged in providing transportation and warehousing in Thailand. In 2018, HSSSI also incorporated a wholly-owned subsidiary, Harbor Star East Asia (Myanmar) Ltd., which provides maritime services in Myanmar.
As of December 2019, HSSSI, including its domestic subsidiaries and affiliates, has services to approximately 89 ports, of which 16 are base or hub ports, all over the Philippines. It has provided services to approximately 9,300 ships as of yearend.
Since end-2019, HSSSI managed a fleet of 45 domestically and internationally classed tugboats; seven barges; one landing craft tank; one cargo ship; one tanker, and one dredger. The company has a total of 57 vessels.
