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Harbor Star Shipping Services recorded a net loss of P84.9 million in 2020, lower than the P376.3 million net loss suffered in 2019
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The group’s consolidated service income increased 20.5% in 2020, as it realized revenues from its solar power and construction businesses, and increased revenues from lighterage services and salvage
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Revenues from harbor assistance and towing services declined 2.3% and 52%, respectively, due to the impact of the COVID-19 pandemic and lockdowns
Harbor Star Shipping Services, Inc. (HSSSI) recorded a net loss of P84.9 million in 2020, lower than the P376.3 million net loss it sustained in 2019.
In a regulatory disclosure, HSSSI said the reduction in net loss was due mainly to higher increase in service income, lower general and administrative expenses, and other income.
The group’s consolidated service income increased 20.5% to P1.683 billion this year from P1.396 billion in 2019.
HSSSI said the major positive contributor is the revenue generated from its solar power business, which grew to P305.4 million from P107.1 million in 2019 due to higher solar energy generated as the group had its first full year of operations.
Revenues from lighterage services grew 6.5% to P110.097 million from P103.338 million, while salvage income rose 242.3% to P109.039 million from P31.856 million. HSSSI last year also recognized P24.832 million in revenues from its construction business.
Revenues from harbor assistance, meanwhile, decreased 2.3% to P1.031 billion from P1.054 billion, while revenues from towing services likewise went down 52% to P17.7 million from P36.9 million. The decline was due to the impact of the COVID-19 pandemic as the group was not able to fully operate due to lockdowns.
HSSSI subsidiaries Astronergy Development Gensan, Inc. and Harbor Star Subic Corp. contributed P305.4 million and P52.3 million, respectively.
Cost of services increased by 10.6% to P1.229 billion in 2020 from P1.111 billion in 2019, mainly due to higher depreciation and amortization as there were additional capital expenditures recognized, personnel costs for employees, construction costs for supplies, labor and materials, insurance, outside services for various projects, rent, repair and maintenance and professional fees.
With the shipping industry severely affected by the COVID-19 pandemic, HSSSI initiated internal cost saving measures to reduce income loss while also focusing on generating more revenue from its other service lines such as the special projects division which focuses 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 as of year-end 2020.
The company maintains and manages a fleet of 48 domestically and internationally classed tugboats; seven barges; one landing craft tank; one cargo ship; one tanker, and one dredger.
