Pryce sees banner year

MANILA, Philippines - Listed Pryce Corp. expects a banner year after it doubled its net profits in the first nine months of the year due to higher sales in liquefied petroleum gas (LPG) products and continued improvement in margins.

In statement yesterday, Pryce said it expects 2015 to be another breakout year after net income surged by 124.7 percent to P453.2 million in the January to September period.

“Sustained efforts to expand market reach through various marketing initiatives and the continued beefing up of its import and distribution infrastructure in Luzon will enable the company to have a stronger foothold in the market,” Pryce said.

Income from operations jumped by 116.2 percent to P578.3 million, driven mainly by the large increase in LPG sales volume, with improvement in consolidated gross margin and tighter cost control.

Revenues, however, declined by 16.2 percent to P4.1 billion as LPG prices fell by 60 percent.

However, LPG sales volume rose by 42.8 percent to 103,769 metric tons.  This accounted for the bulk of the company’s revenues at 90.7 percent.

Among the factors that contributed to the notable growth in sales volume include lower retail price, overall economic growth, and the expansion in the company’s import and distribution infrastructure for LPG, particularly in Luzon.

Gross margin from LPG widened to 23.9 percent from 14.1 percent following the gradual stabilization of the international contract price for LPG.

Meanwhile, revenues from the other businesses, namely industrial gases, fuels, real estate, hotel operations and pharmaceutical products, contributed an aggregate of P383 million in the first nine months.

Despite the increase in volume, operating expenses slid by 18.8 percent to P436 million.