Harbor Star Shipping Services, Inc. (TUGS) made a disclosure yesterday regarding the company salvaging a deck barge in Indonesia.
The 270-foot Indonesian deck barge was build in 2012 and was fully loaded with aggregates on August 15, 2018. The abandoned barge drifted towards Barangay Upi, Sultan Kudarat.
TUGS towed the Indonesian deck barge using its tugboats’ Schedar and Arneb. The deck barge and cargo have a combined estimated value of USD 1 million.
The company generated PHP 70 million from the salvage operations alone in 2017. Since then, the salvage prices became the highest gross profit margin among the company’s service lines.
This salvage operation is the second of its kind this year. It recently completed activities on a 50-meter lifeboat Teras Lyza, which is valued at USD 56 million.
Harbor Star Shipping Services Acquired HEMSI
Furthermore, TUGS announced the 31 percent acquisition of the outstanding stock of High Energy Marine Services Inc. (HEMSI) on August 17, 2018.
The latter is the dominant tugboat operator in the Manila South Harbor which is also managed by the Asian Terminals Inc (ATI).
After the purchase, TUGS held an interest in the two largest and most active terminals in the country.
ICTSI is the closest competitor, holding the Manila International Container Terminal port. Both terminals have a combined arrival of more than 4,000 foreign vessels.
For the first half of the year, the company booked a service income of PHP 655.20 million. This figure is 4 percent higher than the PHP 632.2 million in the same period last year.
Other marine services and lighterage booked revenues of PHP 113.90 million, which is higher by 29.28 percent versus the same period in 2017. Salvage income totaled to PHP 54.10 million, a 63 percent increase from the PHP 33.20 million in 2017.
However, the towing services remained depressed at only PHP 12.80 million, lower by 62.35 percent versus last year’s PHP 34.0 million.
Net income before tax for the first six months of the year totaled PHP 49.80 million, 28 percent lower than the recorded PHP 69.50 million the same period in 2017.
Technical Analysis
TUGS appears to have breached immediate support and is set to test medium-term support. The stock has been making higher highs and higher lows since July.
Moreover, the 15 EMA and 20 SMA were acting as support but also breached today. Now, the 50 SMA is expected as the next support.
Meanwhile, the volume profile appears to support a bullish outlook. MACD is bearish. RSI is also bearish and is nearing oversold levels. Estimated support is at 3.65 while expected resistance is at 4.30.
Volume
As of September 5, 2018, at 03:30 PM, the volume of TUGS is 23.43% of the previous trading day.
Remember the correlation between price and volume.
- bullish price + high volume = high sustainability (price)
- bullish price + low volume = low sustainability (price)
- bearish price + high volume = high sustainability (price)
- bearish price + low volume = low sustainability (price)
Risk Level
TUGS has a MODERATE RISK level due to its risk percentage of 46.49%.
Foreign Fund Flow
TUGS registered a Net Foreign Selling worth P417,110.00 as of September 05, 2018.
On a 30-day trading period, TUGS is on a Net Foreign Buying worth PHP3,004,579.00.
Top 10 Players’ Sentiment
Trading participants of TUGS with a 100% Buying and Selling Activity as of Sep-05-2018 at 03:30 PM:
13 out of 33 participants or 39.39% of all participants registered a 100% BUYING activity
9 out of 33 participants or 27.27% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 3.8166
Top 10 Players’ Selling Average: 3.8097
The psychological average price of the top 10 players as of Sep-05-2018 is from 3.8097 to 3.8097.
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