Harbor Star Post 74% Profit Slip in First 9 Months

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.

Marine services provider Harbor Star Shipping Services, Inc. reported a 74% decline in net income for the first nine months of 2015 to P27.173 million, down from P103.320 million in the same period last year, mainly due to lower revenues from its harbor assistance and towing operations.

Revenues fell 13% to P709.7 million from P817.1 million, Harbor Star said in a disclosure to the Philippine Stock Exchange.

For the third quarter alone, net income dropped 27% to P9.176 million from P12.492 million year-on-year. The company said the decline was prompted by lower income from its towing services, which are irregular by nature.

For the first three quarters, revenue from towing reached P12.4 million, 84% lower than the P77.3 million posted last year.

Revenues from harbor assistance also dropped to P78.1 million for the first three quarters because of the temporary stoppage of commercial operations in Bohol, one of Harbor Star’s major income-generating ports in 2014; decline in ship calls at its banner port, Manila International Container Port; and lower or almost nil bunker adjustment factor tariff rates resulting from diesel price rollbacks.

Lighterage services generated revenues of P158 million for the first three quarters, almost double the amount posted in the same period last year. Other marine services also picked up in the latter part of the third quarter of 2015, resulting from sludge removal services rendered by the company and billed at P20.1 million, Harbor Star said.

As for salvage operations, Harbor Star said it clinched a project in September 2015 but that fair value of the claim and official confirmation from the company’s solicitors had yet to be finalized by September 30.

Cost of services decreased 9% to P507.8 million from P560.8 million, mostly due to lower costs of fuel and lubricants and repairs and maintenance, Harbor Star noted.

The company offers services at 64 ports in the Philippines, with 13 of these as base or hub ports including Bataan, Batangas, Bohol, Cagayan de Oro, Davao, General Santos, Leyte, Manila International Container Terminal, Palawan, Semirara, Surigao, and Maubay and Sariaya in Quezon.

Harbor Star has two subsidiaries—Malaysia-based Peak Flag Sdn Bhd and the recently incorporated Harbor Star Subic Corp.

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