Pryce sets P900-M profit target this year

MANILA, Philippines - Pryce Corp.’s strong performance in the first half of the year puts it on track to meet its P900-million income target for 2016.

Based on first half results, demand and price for liquefied petroleum gas (LPG) is expected to rise in the second half of the year, particularly in the last quarter, Pryce said.

“Taking this into account, management is confident that the group remains on track to achieving its target full year net income of P900 million plus or minus 10 percent,” it said.

The company said strong LPG sales lifted its net profit 45.85 percent from P297.08 million in the first six months of 2015 to P433.28 million in the comparable period this year.

This represents a 14.2 percent return on sales from last year’s 10.9 percent, indicating an increased efficiency in generating profit from sales. Earnings per share for the first half of the year is computed at P0.2166.

Revenues reached P3.04 billion, an 11.56 percent increase from P2.73 billion last year.

“The group’s main product, LPG, accounted for 91.1 percent of total revenues, while remaining revenues were accounted for by sales of industrial gases, real estate, pharmaceutical products, and hotel operations,” Pryce said.

In particular, LPG sales volume grew 27.35 percent to 86,342 metric tons (MT), which “substantially exceeds the industry growth,” according to company.

This surge in sales volume allowed the company to mitigate the impact of the 12 percent drop in LPG selling prices from P35,644 per MT to P31,289  per MT.

“This follows the trend of falling fuel prices that had been ongoing since 2014. It is management’s opinion that prices will hover at relatively low levels for some time to come given the recently completed expansion of the Panama Canal,” Pryce said.

“This expansion will allow the transport of products, including fuel, from the United States to Asia at more competitive prices and curb the influence of Middle Eastern countries on fuel pricing, including the pricing of LPG,” it said.