Pryce Corp H1 profit jumps 34% to P581M

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DIVERSIFIED firm Pryce Corp. said Thursday its consolidated net income for the first half of 2017 rose to P581.31 million, higher by 34 percent compared to the P433.28 million registered in the same period last year, driven by strong revenue growth.

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Revenue in the period rose 39 percent to P4.2 billion from last year’s comparative figure of P3 billion.

Its core business, liquefied petroleum gas (LPG), accounted for 93.5 percent of the company’s total revenues while industrial gases, real estate, and pharmaceutical products accounted for the remaining 6.5 percent.

Sales volume jumped 15.39 percent, or still above the benchmark industry growth rate of 14 percent nationwide in 2016.

During the first six months, Pryce sold 99,628 metric tons of LPG or 14 percent higher than last year’s 86,342 MT.

“This growth was achieved notwithstanding the substantial (almost 40-percent) increase in average LPG contract prices, from $342 per MT in the first half of 2016 to $477 per MT in the first half of 2017,” the company said in a disclosure to the Philippine Stock Exchange.

Pryce’s operating expenses rose to P404 million or by 20.7 percent due to a hike in depreciation expenses as a result of a reappraisal conducted as of the end of the fiscal year, as well as some one-time termination benefits incurred due to the closure of the company’s hotel last December 31.

Operating income rose 23.5 percent to P555.4 million from last year’s P449.8 million as the increase in revenue outpaced the rise in expenses.

The first-half net income of P581.31 million translates to earnings per share of P0.2907.

“As the second half, especially the last quarter, is historically stronger than the first half in terms of sales volumes, the management expects that its yearly net income target of P1.255 billion–plus or minus 10 percent–is within reach,” the company said.

Pryce is a diversified company that operates 12 memorial parks in major cities in Mindanao and is also engaged in manufacturing, distributing and marketing industrial gases and LPG under Pryce Gases Inc. and Oro Oxygen Corp.

It also trades pharmaceutical products through Pryce Pharmaceuticals Inc.

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