PRYCE CORP. posted a 12.8% increase in first-quarter net income to P340.3 million, the company said, as volume of sales of liquefied petroleum gas (LPG) grew by around the same pace.
In a statement, Pryce said consolidated revenues rose by 6.3% to P2.35 billion during the January to March period, from P2.21 billion in the same period last year.
First-quarter volume sales of LPG in the Visayas-Mindanao regions increased by 12.9% to 21,992 metric tons (MT) from 19,487 MT previously. Comparable sales volume in Luzon fell by 2.1%.
“The anticipation of an increased LPG price due to the Jan. 1, 2018 effectivity of the TRAIN (Tax Reform for Acceleration and Inclusion) law, which would slap a P1 per kilo excise tax on LPG, probably took away 2 to 3 days worth of sales from January 2018 and instead added these to December 2017 sales. Thus, volume sales in January 2018 came out lower than they would have been otherwise,” the company said.
During the first quarter, the average LPG contract price was $519 per MT, which is lower by $19/MT than $538/MT, the average contract price for the same period last year.
“This also contributed to the lower growth in peso sales during the first quarter,” the company said.
Pryce said it was confident of achieving its target of 15% sales volume growth in the Visayas-Mindanao area and 20% net income growth in 2018.
“[The company’s] ongoing expansions in its marine-fed terminals and refilling plants across the country are expected to gradually show its effects, yield positive results and validate the company’s growth expectations for volume and net income in 2018,” it said.
Earnings during the first three months of the year translate to an earnings per share of P0.155, it said.
“Sometime this July 2018, the company will declare its second regular dividend for the year. A policy of giving out regular cash dividends was promised to shareholders in our stockholders’ meeting last year and is now being implemented,” Pryce said. — Victor V. Saulon
