Harbor Star Shipping Services Inc. said its board approved P170 million worth of share buyback to enhance the company’s shareholder value.
Harbor Star said in a disclosure to the stock exchange it would implement the buyback program over a three-year period using the company’s unrestricted earnings.
“The board believes that the company’s share prices are undervalued. With the company’s current financial performance and growth potentials, it is well positioned to deliver outstanding shareholder value,” Harbor Star said.
The shares to be acquired the from the buyback program will be placed under the company’s treasury shares.
Harbor Star will do the buy-back program in the open market through the trading facilities of the Philippine Stock Exchange.
Share price of Harbor Star on Tuesday dropped 3.2 percent to P2.91, down 3.2 percent from the previous day’s close.
Harbor Star posted a net income of P41.01 million in the first half of the year, down 15.7 percent from P48.69 million recorded in the same period a year ago.
Gross revenues rose to P655.1 million, up four percent from P6.32.1 million a year ago.
Revenues from lighterage and other marine services increased to P113.9 million from P88.1 million in the first half of 2017.
Salvage income rose 63 percent to P54.1 million from P33.2 million after the company successfully refloated MV Jinming Hao 16, a Chinese vessel that capsized off Rawis, Northern Samar province.
Towing services declined to P12.8 million from P34 million on year.
