Pryce almost doubles profit as LPG price drops | mb.com.ph | Philippine News
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Pryce almost doubles profit as LPG price drops

Pryce Corporation almost doubled its unaudited, consolidated net income to P586.3 million last year, up 98 percent from the P296.9 million earned in 2014 despite a drop in revenues.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues declined 9 percent to P6.381 billion in 2015 from R5.86 billion in the previous year due mainly to the roughly 40 percent fall in liquefied petroleum gas prices last year.

“Consolidated revenues managed to hold largely due to the remarkable growth of 29 percent in subsidiary’s PRYCEGAS brand liquefied petroleum gas (LPG) sales volume from 113,000 metric tons (MT) in 2014 to 146,000 MT in 2015,” Pryce said.

This volume surge parried the negative effects of the continued fall in the world price of LPG and the absence of non-recurring income from real estate sales.

LPG sales alone accounted for about 90.3 percent of total revenues in 2015. Real estate sales and other operations generated revenues of R232 million in 2015.

The jump in consolidated operating income by 146.1 percent from P362.0 million in 2014 to P890.8 million in 2015 is largely the result of the widening of gross margins from LPG from 13.1 percent in 2014 to 24.1 percent in 2015.

Additionally, it is also the result of the reduction in operating expenses despite the increase in volume handled, an indication of increased productivity and greater efficiency in the company’s operations.

After provision for income tax, the net income of P586.3 million earned in 2015 translates to a 10.0 percent return on sales, an improvement over the 4.65 percent return on sales achieved in 2014.

The firm said 2015 was a banner year for Pryce Corporation, especially for its subsidiary, Pryce Gases, Inc.

Performance in 2016 is expected to result in substantial increases in revenue as the company starts to reap the benefits from the infrastructure and logistics expansion projects put in place in 2013 to 2015.