Pryce Corporation's total revenue rose by 62.5% to P6.35 billion in 2014 from P3.91 billion of the previous year. This upturn was mainly driven by liquefied petroleum das (LPG) sales, under the brand name PryceGas, which increased by 57.4% to P5.28 billion in Peso terms and by 78.2%, from 63,590 metric tons (MT) to 113,924 MT, in volume terms. The lower growth in LPG sales revenue as compared to volume growth sterms from the declining international contract price (CP) of LPG which fell from US$1,017 per MT in Januaty, to US$835 in June and to US$ 564 in December, 2014. The most pronounced drop in CP in the last quarter of 2014 followed the general slide in petroleum prices in the world market during the period.
Also contributing to the upsurge in revenue was real estate sales which reached P627.83 million due to the non-recurring sale of a commercial lot in Iligan City to a mall developer. Total sales from real estate operations including hotel sales and interest on installment sales in 2014 amounted to P666.5 million. The bulk of recurring sales emanated from memorial parks of which the company has a dozen, with varying sizes, in the major cities of Mindanao.
Revenues from industrial gases (oxygen, acetylene, other gases) dipped slightly by 5.2% to P391.2 million due mainly to price adjustments in the face of stiff competition. Actually, total industrial gas cylinders sold in 2014 increased to 934,085 cylinders compared to the previous year's 897,594 cylinders.
Net income after tax of the company in 2014 rose to P287.67 million or an improvement of 190.8% from the year-before amount of P98.94 million. The bottom-line figure could have been higher without the slide in prices of LPG. With 2.0 billion in outstanding shares, this net income corresponds to earnings per share of 0.1438.
LPG, industrial gases and fuels are product lines of the subsidiary, Pryce Gases, Inc. (PGI), while real estate and hotel operations are under the mother company, Pryce Corporation. The figures also include the accounts of PGI's subsidiary, Oro Oxygen Corporation, which is involved in the same business as PGI's but focuses its operations in Luzon.
The company's principal product, PryceGas, which accounted for 83.2% of total revenue in 2014, is poised to grow appreciably in the near to medium term. The company has the biggest LPG storage capacity in the Visayas-Mindanao area with seven (7) marine-fed terminals and nine (9) refilling plants having an aggregate capacity of 10,350 MT. In Luzon, PGI recently competed the construction of a 6,300 MT marine-fed terminal in the coastal area of San Fabian, Pangasinan. It has also acquired, put up or leased a total of 22 refilling plants in various areas of Luzon, with storage capacities ranging from 25 MT to 120 MT.