PRYCE CORP. reported an 8.01% increase in its consolidated net income in the nine months to September to P1.204 billion largely because of the growth in its sales of liquefied petroleum gas (LPG), the listed company said on Monday.
Revenues during the period rose by 4.18% to P7.887 billion, the company said in a disclosure. The company did not release its income and revenue figures for the third quarter alone.
“The above growth in revenues was achieved mainly due to a 9.0% growth in sales of LPG content, the company’s principal source of revenues,” the listed company told the stock exchange.
Sales volume of LPG content rose to 162,560 metric tons in 2019 from 149,160 metric tons in 2018.
“The completion of certain refilling plants and the increase in bulk sales in the Vis-Min areas contributed to the said rise in sales volume,” the company said.
During the nine-month period, the average LPG contract price dropped by 18.85% to $439 per metric tons from $541 per metric ton in the same period last year.
Pryce said its LPG sales revenues, which include sales of LPG content, cylinders, LPG generators, and LPG stoves and accessories, accounted for the bulk of its revenues at 93.64% in 2019, equivalent to P7.386 billion.
Revenues from other product lines such as industrial gases, real estate, and pharmaceutical products contributed P501.43 million or 6.36% of total revenues.
Sales of industrial gases rose by 6.68% to P341.46 million from P320.08 million, while those of pharmaceutical products climbed by 18.01% to P37.32 million from P31.62 million.
“Although a modest contributor to total revenues, this pharmaceutical business of the company has consistently grown in terms of revenues and income over the past recent years,” Pryce said.
The company said it was optimistic of meeting its 2019 projected net income of P1.6 billion “plus or minus 10%.”
“The last quarter is usually the strongest in terms of LPG sales and income for the company because of the December festivities/holidays. In addition, incremental LPG volume is starting to be generated from the expansions of the company’s refilling plants and sales centers,” it said.
On Monday, shares in Pryce rose by 1.85% to P5.50 each. — Victor V. Saulon
