Pryce profit jumps 12.8% in Q1 2018

MANILA, Philippines — Pryce Corp. saw a 12.8 percent jump in net earnings in the first quarter to P340.3 million despite lower liquefied petroleum gas (LPG) sales volume at the start of the year due to the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) Law and lower contract prices.

In a disclosure to the Philippine Stock Exchange yesterday, Pryce said consolidated revenues rose 6.3 percent to P2.35 billion mainly on higher sales in the Visayas and Mindanao regions.

First quarter volume sales of LPG in the VisMin regions increased by 12.9 percent to 21,992 MT. However, sales volume in Luzon dropped 2.1 percent as management gave more emphasis to margins than volume sales.

“The anticipation of an increased LPG price due to the Jan. 1, effectivity of the TRAIN Law, which would slap a P1 per kilo excise tax on LPG, probably took away two to three days worth of sales from January and instead added these to December 2017 sales,” Pryce said.

During the quarter, the average LPG contract price (CP) was $19 per MT, which is lower than the $538 per MT recorded the same period last year. This also contributed to the lower growth in peso sales.

“Sometime this July, the company will declare its second regular dividend for the year. A policy of giving out regular cash dividends was promised to shareholders in our stockholders’ meeting last year and is now being implemented,” Pryce said.