Pryce Corporation (“the Company”) posted a 36% growth in consolidated revenues, from Php 3.470 billion in the first quarter of 2021 to Php 4.716 billion in the same period this year. Net income, however, dropped by 4.8% from Php 423.22 million last year to Php 402.77 million this year.
The company’s Liquefied Petroleum Gas (LPG) business made the largest contribution to the Company’s consolidated revenues at 94.8%. The industrial gas products segment provided 3.8%. Sales from the group’s real estate and pharmaceuticals businesses accounted for the balance of 1.4%.
The Company’s growth in revenues stemmed from the growth in sales volume of LPG (cooking gas) and the increase in average international LPG contract price (“CP”). Sales volume of LPG grew by 17% from 59,247 metric tons (MT) in the previous year’s first quarter to 69,426 MT in this year’s first quarter. Average CP, which directly affects local LPG prices, increased by 39%, from U.S.$ 577 per MT in last year’s first quarter to U.S.$ 802.17 per MT during the first quarter of this year. The CP reached US$ 912.50 per MT in March, the highest in the past 7 years. This was due to the disruption of the oil supply chain, brought about by Russia’s invasion of Ukraine that started in late part of February 2022.
Operating expenses in the first quarter rose by 23%, to Php 583.36 million from the previous year’s Php 474.89 million. The Company’s continuing expansions, such as the nationwide establishment of refilling plants and sales centers, along with the recruitment of personnel, purchase of equipment and transport vehicles, caused such rise in operating expenses. The fruits of these expansions are expected to be seen within the next 2 years or so.
As a result of higher operating expenses, net income dipped by 4.8% to Php402.77 million from last year’s Php 423.22 million. This is equivalent to an earnings per share of Php 0.195.