- November 9, 2015
- News & Events, Press Releases
Harbor Star Shipping Earnings Fall in Q3
TUGBOAT operator Harbor Star Shipping Services, Inc. saw its bottom line fall by more than a quarter from July to September, dragged by weakness in its towing and harbor assistance businesses.
Net income after tax fell by 26.55% to P9.18 million in the third quarter from P12.49 million in 2014’s comparable period, according to its financial statement released yesterday.
Operating revenue declined by 5.06% to P248.08 million, “due to lower income from towing services (which are not regular in nature),” it said in the report.
The company also suffered from lower net revenues from its harbor assistance business because of the temporary stoppage of commercial operations in Bohol, which is one of its major income-generating ports in 2014; decline in ship calls in Manila International Port; and “lower or almost nil bunker adjustment factor in our tariff rates resulting from diesel price rollbacks.”
Harbor Star added that it clinched a salvage project in September, but has yet to recognize salvage revenue because it has not yet finalized the estimated fair value of the claim and official confirmation from its solicitors.
Still, its lighterage services provided P158 million in revenue which is “almost double” year on year, while other marine services “also picked up on the latter part of third quarter” of 2015.
The company’s operating expense in the same period shrank by 6.52% to P221.51 million.
Year to date, Harbor Star’s net income after tax plunged by 73.7% to P27.17 million.
Operating revenue contracted by 13.14% to P709.67 million, while operating expense fell by 4.86% to P646.81 million.
Harbor Star was incorporated in 1988 mainly to engage in harbor assistance (docking and undocking), ship salvage, towage or lighterage, specialized cargo handling operations, and other marine services.
Its shares inched up by two centavos or 1.64% to end at P1.24 each yesterday.