Pryce profit jumps 5-fold in H1

MANILA, Philippines - Pryce Corp. recorded a five-fold jump in its six-month net profit this year on the back of the brisk volume sales of liquefied petroleum gas (LPG) under its unit despite falling prices in the market.

The company booked a net income of 297.08 million in the January to June period this year, a 433 percent increase from P55.70 million in the same period in 2014.

“This stems principally from the increased earnings arising from the surge of 54.82 percent in volume sales of LPG to 67,800 metric tons (MT) from the prior-year figure of 43,794 MT, as well as lower cost of sales and operating costs,” the firm said.

The company also noted the profit level was achieved even with the downturn in selling prices in the local market, which reflects the declining prices of petroleum and LPG products globally.

“Notwithstanding the fall in prices, the company has been able to protect its margins, specially in LPG sales, the company’s principal product,” Pryce said.

Consolidated revenues totaled P2.728 billion, with LPG sales contributing 90.02 percent of the total amounting to P2.46 billion.

The rest of the revenue generators are as follows: industrial gases, P197.32 million (7.23 percent); real estate sales, P58.31 million (2.14 percent); and hotel operations, P15.19 million (0.56 percent), and the balance from the sales of fuels (.05 percent).  

Pryce, however, noted the total revenue figure was “actually flat, growth-wise” versus the P2.741 billion booked last year. 

“This divergence is attributable to the 37 percent decline year-on-year in average price of household LPG sold by the company to its dealers, following the downturn in international contract price of the product,” it said.