Harbor Star bags R118-M Cebu contract

Harbor Star Shipping Services, Inc. (TUGS) has been awarded a R118- million contract by the Cebu Link Joint Venture (CLJV) to provide two specialized barges.

In a disclosure to the Philippine Stock Exchange, the firm said the barges will be used for the construction of the Cebu-Cordova Link Expressway.

CLJV is a joint venture of Spain-based Acciona Construccion S. A. and Philippine-based First Balfour, Inc. and D.M. Consunji, Inc.

The joint venture is the main contractor for the 8.5 kilometer bridge that will connect Cebu City to the Municipality of Cordova in the island of Mactan.

TUGS reported a 29 percent jump in attributable net income to R27.27 million in the first quarter of 2018 from the R21.12 million earned in the same period last year.

The Group’s recognized total service income of R308.4 million is 3 percent higher than the R299.3 million reported for the same period of 2017.

Harbor assistance increased to R250.0 million from R220.2 million for the same period in 2017 due to higher ship calls served.

Lighterage and other marine services likewise grew, posting a combined revenue of R49.9 million as of March 31, 2018 from R26.4 million as of March 31, 2017.

The total revenue increase of R53.4 million identified above was offset by the dip in towing service revenues which significantly decreased from R33.9 million as of March 31, 2017 to R3.8 million as of March 31, 2018.

The Company managed to recognize salvage revenue in the amount of R4.7 million as of March 31, 2018 while the recognized salvage income in the first quarter of 2017 amounted to R18.5 million from the wreck removal works for an LCT vessel which ran aground off the Saranggani Province.

The Company also recognized additional revenue stream from equipment rental which was generated during the first quarter of 2017.

Revenue contribution from subsidiary, Peak Flag Sdn Bhd, as of March 31, 2018 amounted to R14.6 million from R12.9 million as of March 31, 2017.