PPC greeted 2018 with a 12.8% growth in net income from Php 301.7 million to Php 340.3 million for the first quarter of the year. Over the same period, consolidated revenues correspondingly grew from Php 2.21 billion to Php 2.35 billion, registering a modest 6.3% growth.
First quarter volume sales of liquefied petroleum gas (LPG) in the Vis-Min regions increased to 21,992 MT from 19,487 MT of the same period in 2017, a growth of 12.9%. Comparable sales volume in Luzon dropped by 2.1% as management gave more emphasis to margins than to volume sales. The anticipation of an increased LPG price due to the January 1, 2018 effectivity of the TRAIN Law, which would slap a P1 per kilo excise tax on LPG, probably took away 2 to 3 days worth of sales from January 2018 and instead added these to December 2017 sales. Thus, volume sales in January 2018 came out lower than they would have been otherwise. The average LPG contract price (CP) during the first quarter of the year was US$519/MT, which is US$19/MT lower than US$ 538/MT, the average CP for the same period in 2017. This also contributed to the lower growth in peso sales during the first quarter.
The above-mentioned net income of Php 340.3 million is equivalent to an earnings per share of Php 0.1550. Sometime this July 2018, the company will declare its second regular dividend for the year. A policy of giving out regular cash dividends was promised to shareholders in our stockholders’ meeting last year and is now being implemented.
The company is confident that it will achieve its target of 15% sales volume growth in Vis-Min and 20% net income growth for the company in 2018. PPC’s ongoing expansions in its marine-fed terminals and refilling plants across the country are expected to gradually show its effects, yield positive results and validate the company’s growth expectations for volume and net income in 2018.
May 7, 2018