Gas manufacturer and memorial park operator Pryce Corporation posted a 57-percent increase in net income for the first nine months of the year driven by strong sales of liquefied petroleum gas (LPG).
In a disclosure to the Philippine Stock Exchange on Wednesday, the company noted its net income rose to P712.5 million from P453.2 million a year earlier.
Consolidated revenues increased by 14.9 percent at P4.7 billion from P4.1 billion.
“This is underpinned by strong sales volume growth of liquefied petroleum gas (LPG), the Group’s main product line, which grew 31 percent to 135,939 metric tons (MT) from 103,769 MT in the same period last year,” Pryce said.
The strong sales volume countered the impact of a nearly 15-percent drop in the average selling price of LPG. “Sales of LPG account for 90 percent of revenues for the period,” the company said.
The firm also reported a rise in the volume of cylinders sold to new users, which soared by 73 percent at 143,000 units from 83,000 units.
Pryce is positive it would reach this year’s net income guidance at P900 million.
“With the fourth quarter of the year typically the strongest in terms of LPG sales, the Group’s target income of P900 million “plus or minus 10 percent” would be well within reach,” Pryce said.
Earlier this year, the company announced an income of 53 percent over net earnings of P586.3 million in 2015.
Achieving the target will enable the company to declare cash dividends in the aftermath of a corporate rehabilitation.
Pryce only emerged from rehabilitation last year after bearing the brunt of the 1997 Asian financial crisis that caused the company to renege on financial obligations.