Pryce Corp. said Thursday consolidated net income increased 32 percent in the first nine months to P942.69 million from P712.9 million a year ago.
“Income growth stemmed from a similarly strong growth in revenue of almost 37 percent, fueled mainly by a nearly 23.3-percent growth in liquefied petroleum gas sales volumes in the Visayas and Mindanao markets,” Pryce said in a disclosure to the stock exchange.
Pryce said sales volume posted strong growth in the Visayas and Mindanao “notwithstanding a sharp increase in average LPG contract prices” which went up to $463 per metric ton this year from $329 per metric ton last year.
LPG, the group’s main product, accounted for 93 percent of total sales reeves, while sales of industrial gases, real estate and pharmaceutical products accounted for the 7-percent balance.
Pryce is optimistic of achieving its full-year net income goal, amid the strong nine-month financial performance.
“The last quarter is historically the strongest of the year in terms of sales volume. Management expects to attain its net income target of P1.254 billion for the year, plus or minus 10 percent,” the company said.
Operating expenses rose 16 percent to P612.47 million, on higher depreciation expenses as a result of the reappraisal conducted.
Operating income, however, still rose 27 percent to P964.55 million from P759.15 million in the same period last year.
Pryce said the company expanded its storage capacity at the Sta. Cruz, Davao del Sur marine terminal.
“Expansion of storage capacities at our terminals in Balingasag, Misamis Oriental and Sogod, Cebu are ongoing and will be completed by June to July 2018,” it said.