Pryce Corp. posted a consolidated net income of P711.89 million in the first half of 2018, up 22 percent P581.9 million year-on-year.
Pryce disclosed to the Philippine Stock Exchange that growth in the company’s consolidated revenues drove the improvement in the net income during the period.
Gross revenue reached P4.83 billion in the first six months, up 14.2 percent from P4.23 billion a year ago.
Sales of liquefied petroleum gas accounted for the bulk or 91 percent of the group’s total revenue, while those industrial gases, real estate, and pharmaceutical products contributed the balance.
LPG sales volume rose 13.5 percent in the Visayas and Mindanao regions and 2.35 percent in Luzon.
Overall sales of LPG increased 7 percent in the first half of 2018 to 97,590 metric tons from 91,243 MT a year ago.
“The growth in sales volume was achieved despite the rising LPG prices mainly because of the growing demand in fuel for household cooking,” Pryce said.
The average LPG contract prices which affected LPG consumer behavior increased about 8 percent to $515 per MT from last year’s U$477.
Revenue from the property business jumped 167 percent due to the sale of office condominium units of Pryce Tower in Davao City.
Pryce said other subsidiaries also posted positive growths, namely industrial gases (up 10 percent) and pharmaceutical products (up 47 percent).
The company’s operating income jumped 47 percent to P817.67 million from last year’s P555.40 million due to the increase in revenue and efficient management of operating expenses.
“The ongoing expansion projects on the company’s marine-fed terminals and refilling plants nationwide are expected to encourage growth in LPG sales volume in the second half of the year as the LPG product becomes available over a wider area and brought even closer to the market dealers and consumers,” Pryce said.
Pryce is optimistic of achieving a 15-percent increase in LPG sales volume in the Vis-Min areas and consequently earn a projected net income of P1.5 billion for the year.