Pryce Corporation’s 3rd-quarter consolidated net income increased by 8.01% from Php 1.115 billion in 2018 to Php 1.204 billion in 2019. Over the same period, gross revenues improved by 4.18%, from Php 7.570 billion in 2018 to Php 7.887 billion in 2019.
The above growth in revenues was achieved mainly due to a 9.0% growth in sales of LPG content, the company’s principal source of revenues. Sales volume of LPG content rose to 162.56 thousand metric tons in 2019 from 149.16 thousand metric tons in 2018. The completion of certain refilling plants and the increase in bulk sales in the Vis-Min areas contributed to the said rise in sales volume. Average LPG contract price (“CP”) during the 9-month period under review was U.S.$ 439 per metric ton, 18.85% lower than 2018’s U.S.$ 541 per metric ton.
LPG sales revenues, which include sales of LPG content, cylinders, LPG generators, and LPG stoves & accessories, accounted for the bulk of the company’s revenues at 93.64% in 2019, equivalent to Php 7.386 billion. Revenues from other product lines such as industrial gases, real estate, and pharmaceutical products contributed a total of Php 501.43 million in 2019 or 6.36% of total revenues. Sales of industrial gases increased by 6.68% to Php 341.46 million from Php 320.08 million. Sales of pharmaceutical products rose by 18.01%, from Php 31.62 million to Php 37.32 million. Although a modest contributor to total revenues, this pharmaceutical business of the company has consistently grown in terms of revenues and income over the past recent years.
The company is optimistic that it will meet its projected net income of Php
1.6 billion (plus or minus 10%) for 2019. The last quarter is usually the strongest in terms of LPG sales and income for the company because of the December festivities/holidays. In addition, incremental LPG volume is starting to be generated from the expansions of the company’s refilling plants and sales centers.
October 31, 2019