Marine services provider Harbor Star Shipping Services, Inc. (HSSSI) reported a net income of P108.8 million in 2017, which is 7.8% higher than the P100.9 million earned in 2016, as a result of stronger profits.
In a regulatory disclosure, HSSSI said its gross profit last year increased 4% to P420.447 million from P404.249 million in 2016, primarily due to lower cost of services.
Consolidated service income, however, dropped 2.5% to P1.327 billion from P1.361 billion in 2016.
HSSSI said the drop in service income was due to the decrease in lighterage services resulting from the decline in activities in the mining sector; no income from the construction contract for 2017; and lower income from other services, such as underwater marine, diving, and ancillary services.
The dip in revenue streams was partially augmented by the recognition of salvage income mostly from wreck removal works for an LCT (landing craft tank) vessel which ran aground off Saranggani Province, as well as the revenue contribution amounting to P60.2 million of Peak Flag Sdn. Bhd., a Malaysian tugboat operator in which HSSSI has a 45% stake.
The group also gained from a minimal increase in harbor assistance and towing services of 0.5% and 0.2%, respectively, as the price war with new entrants in the tugboat industry heightened.
As of December 2017, revenues from harbor assistance amounted to P1.05 billion, equivalent to 79% of the total revenue, while lighterage services accounted for 7% with P91 million.
Revenues from salvage operations amounted to P77 million, equivalent to 6% of the total, while towing services contributed 5% or P64 million.
Revenues from other marine services amounted to P45 million, equivalent to 3% of the total revenue.
As of last year, HSSSI has established operations in 16 base ports all over the country, providing services to some 10,033 ships as of yearend.
The major ports serviced by the company include Manila International Container Terminal, Bataan, Batangas, Cagayan de Oro, Davao, and the newly opened branch in Iloilo.
The company maintains and manages a fleet of 43 domestically and internationally classed tugboats; one anchor handling tug supply vessel; six barges; one LCT; one cargo vessel; and one oil spill response vessel.
The company has been expanding its business portfolio, and now includes a renewable energy company and a venture into the construction business. It is also looking to further develop and strengthen its wholly owned subsidiary Harbor Star Subic Corp., which offers marine-related ancillary services within the Subic Bay Freeport Zone; and to establish, through a joint venture, several floating dry-dock facilities in the Philippines.
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