PROPERTY developer and gas marketer Pryce Corp. said net profit nearly doubled in 2015, driven by a sharp increase in sales volume, which more than countered the effects of much lower liquefied petroleum gas (LPG) prices during the year.
In a disclosure to the Philippine Stock Exchange Monday, the company said its net income for the full year rose 98 percent to P586.3 million from P296.9 million in 2014.
This came despite an 8 percent fall in revenue to P5.85 billion as LPG prices dropped 40 percent last year, the company said.
Profit was boosted by a 29 percent growth in sales of its unit that sells the Prycegas brand to 146,000 metric tons from the previous year’s 113,000 metric tons.
“This volume surge parried the negative effects of the continued fall in the world price of LPG and the absence of non-recurring income from real estate sales,” the company said.
LPG sales accounted for about 90 percent of its total revenues in 2015, while real estate sales and other operations generated revenues of P232 million.
Operating income also more than doubled last year to P890.8 million from the previous year’s P362 million as gross margins from LPG sales jumped to 24.1 percent from 13.1 percent in the previous year.
“Additionally, it is also the result of the notable reduction in operating expenses despite the increase in volume handled, an indication of increased productivity and/or greater efficiency in the company’s operations,” Pryce told the Exchange.
After provision for income tax, the company’s net income last year translated to a 10 percent return on sales, a marked improvement from the 4.65 percent return on sales achieved in 2014, it said.
“Performance in 2016 is expected to result in substantial increases in revenue as the company starts to reap the benefits from the infrastructure and logistics expansion projects put in place in 2013 to 2015,” the company said.
Its unit Pryce Gases Inc. produces and sells industrial gases and engages in the importation and distribution of LPG. It holds a majority interest in Oro Oxygen Corp., the distributor of its brand of LPG in Luzon and Metro Manila.
Pryce, which recovered from corporate rehabilitation last year, also owns and operates memorial parks in Mindanao’s major cities such as Cagayan de Oro, Iligan, Ozamiz, Dipolog, Zamboanga and Davao. It also operates a convention hotel called Pryce Plaza in Cagayan de Oro City.