PRYCE Corp. posted a 4.8% decline in first-quarter net income to P402.77 million despite a double-digit growth in consolidated revenues, it disclosed on Thursday.
Revenues during the first three months of the year rose by 36% to P4.72 billion. Operating expenses increased by 23% to P583.36 million.
The company said its continuing expansion caused the rise in operating expenses, weighing down its bottom line. Its profit for the period is equivalent to an earnings per share of P0.195.
Pryce Corp. said its liquefied petroleum gas (LPG) business contributed the most to consolidated revenues at a 94.8% share. Industrial gas products accounted for 3.8%, while sales from the group’s real estate and pharmaceuticals businesses accounted for the rest at 1.4%.
The listed company, whose major subsidiary is into the importation and distribution of LPG, said the growth in revenues came from the increase in the sales volume of cooking gas as well as the rise in the average international LPG contract price.
Sales volume of LPG grew by 17% to 69,426 metric tons (MT) from 59,247 MT, while the average contract price, which directly affects local LPG prices, rose 39% to $802.17 per MT from $577 per MT.
Pryce Corp. said the contract price hit $912.50 per MT in March, the highest in the past seven years. It attributed the jump to the disruption in oil supply resulting from Russia’s invasion of Ukraine that started in late-February.
The company’s expansion plan includes putting up refilling plants and sales centers nationwide, along with the recruitment of personnel, purchase of equipment and transport vehicles.
Pryce Corp. said the “fruits” of its expansion activities are expected to be seen within the next two years or so.
On Thursday, shares in the company inched up 0.36% or P0.02 to close at P5.60 each.
