The consolidated revenues of the company rose to Php 8.994 billion for the period ended September 30, 2020, which is 14.03% higher than last year’s Php 7.887 billion. The increase in gross revenues is largely explained by the growth in sales volume of LPG content. Over the same period, net income also increased to Php 1.222 billion from Php 1.207 billion in 2019, a percentage growth of 1.24%.
The 14.03% growth in consolidated revenues was primarily due to the 15.45% increase in LPG revenues, which accounts for more than 90% of the company’s revenues. LPG revenues consist of sales of LPG content, cylinders, LPG generators, and LPG stoves & accessories. This product group accounted for almost 95% of the consolidated Php 8.994-billion revenues mentioned above.
Sales volume of LPG content increased by 9.5% to 178.05 thousand metric tons in 2020 from 162.56 thousand metric tons in 2019. Owing to the Coronavirus Pandemic, which caused a drastic fall in global LPG demand, the average international LPG contract price (“CP”) during the period under review dropped to U.S.$ 394.28 per metric ton, 10.23% lower than 2019’s U.S.$
439.22 per metric ton over the same period. The peso-sale of LPG content would have been higher had it not been for such drop in average CP and, consequently, of local LPG prices.
Revenues from other products such as industrial gases, real estate, and pharmaceutical products contributed a total of Php 466.70 million or 5.19% of the consolidated revenues. Sales of industrial gases decreased by 5.12% to Php
323.97 million in 2020 from Php 341.46 million in 2019. Sales of real estate products also decreased by 18.25% to Php 100.26 million while sales of pharmaceutical products rose by 13.80% to Php 42.47 million.
Notwithstanding the Coronavirus Pandemic, the management still sees the last quarter as the strongest in terms of LPG sales and income because of the December festivities/holidays.
October 16, 2020