• Pryce Corporation 2016 Net Income Up 58.9%

    Strong  volume  growth  helped  Pryce  Corporation  (PS:PPC)  achieve  solid  results for the year ending December 31, 2016.  Sales volume of liquefied petroleum gas (LPG), the  group’s  main  product,  went  up  30%  to  189,000  metric  tons  (MT)  from  2015’s 146,000 MT.

     

    Consolidated revenues grew 16.5% to Php 6.726 Billion in 2016 from Php 5.773 Billion in 2015.   Of this, 94%, or Php 6.133 Billion, was derived from sales of LPG.   Volume growth in LPG sales noticeably outpaced revenue growth since the average Saudi  Aramco LPG  contract  price  for  the  year  2016  was  only  US$  346.08/MT,  or  US$ 84.46/MT lower than the preceding year’s average of US$ 430.54/MT.

     

    Sales of industrial gases at Php 382.504 Million accounted for 5.7% of total revenue, with the balance accounted for by revenues from real estate sales, hotel operations, and sales of pharmaceutical products.  Hotel operations however would no longer contribute to revenues starting 2017 as the Pryce Plaza Hotel ceased operations last December 31, 2016.

     

    PPC’s  unaudited  consolidated  net  income  for  the  year  was  at  Php  936.137 Million.  This is 58.9% over its net income for the year 2015, which was at Php 589.061 Million, and well within its net income target of Php 900 Million plus or minus 10% for the year. Its operating expenses, which even declined by about 1.0% (to Php 711.482 Million) notwithstanding the growth in volume, aided the rise in net income.

     

    PPC  expects  its  stockholders  to  approve  the  increase  in  its  authorized  capital  to 2.098 Billion shares at the upcoming stockholders’ meeting on February 2, 2017. If we compute at the current authorized capital stock of PPC of 2.000 Billion shares, earnings per share (EPS) is at about Php 0.46 for the year 2016.  

     

    February 1, 2017

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