By Myrna M. Velasco
The net income of Pryce Corporation, which has its core business in the liquefied petroleum gas (LPG), had climbed 29 percent to P1.248 billion last year from the 2016 level of P966.091 million.
The Escano-led firm noted that profitability has been on upswing generally due to rise in contract prices of LPG in the world market, somehow offsetting soft upswing in volume growth.
“Despite modest volume growth, revenues were up 37 percent because of the sharp increases in LPG contract prices during the year,” the company stressed.
Notably, global contract prices of the commodity had reached US$491 per metric ton last year, which had been up $145 per MT comparative to the 2016 average price of $346 per MT.
On the revenues terrain, the company reported 37-percent increase to P9.226 billion in 2017 from the previous year’s P6.722 billion.
Sales of its LPG brand, it noted, had expanded 11 percent to 210,000 metric tons from a leaner level of 189,000 metric tons the year before.
Pryce Gas indicated that “volume growth was achieved mainly in the Visayas and Mindanao (VisMin) regions, where demand is more concentrated on fuel for household cooking.”
It stressed that sales in these two regions have been on 22 percent uptrend year-on-year compared to a narrower volume growth of 4.0 percent in 2016.
The company further emphasized that “sales of LPG along with cylinders and accessories stood at R8.656 billion,” which then accounts for 94 percent of total revenues.
Mainly for its industrial gas sales, the company noted that such account for 4.0 percent of sales in the amount of P391.498 million; while the balance had been attributed to sales with real estate and pharmaceutical industries.
With buoyant profitability, Pryce Gas said it can already move headway with its expansion projects this 2018 – some of which have already been kicked off two years ago.
It emphasized that the main goal would be “to increase the storage capacities of its marine terminals and to bring its product closer to the markets.”