Asia/Pacific News
Fuel Prices, New Ships Drive Down Company's Profits
Philippine company Harbor Star Shipping Services Inc. (Harbor Star) saw its net income fall 26.8 percent to P108.5 million ($2.4 million) in 2013 as it paid for new ships and faced rising fuel costs, local newspaper the Manila Bulletin reports.
The firm's total service income rose 11.3 percent to P898.7 million ($20.2 million), with the increase mainly in lighterage services, a market the company began serving in May 2012.
Income from salvage services dropped 48.6 percent to P21 million ($470,000) as fewer projects were undertaken.
Harbor Star added four vessels over the course of the year, increasing its costs for personnel, depreciation, fuel, insurance, supplies, and repairs, while the new ships have not yet generated an increase in revenues.
Along with increased fuel costs, the company also faced higher costs due to salary increases and changes in exchange rates.
The company operates more than 20 tugs, according to its website.
