Pryce Corp. net profits enjoy a 53.6% raise of over P301.7 million in the first quarter of 2017.
The property and real estate holdings is now the third biggest player nationwide in terms of market share as per the figures provided by the Department of Energy.
The company was fueled by the improved liquefied petroleum gas (LPG) exchange, gaining a 22% increase in sales volume under the PryceGas subsidiary. From 40,583 metric tons (MT), Pryce’s sales shot up to 49,560 MT this year.
The LPG industry had brought in P2.08 billion in sales, delivering around 94% to the consolidated revenues. This is a 57% update of P1.32 billion earnings of the same period last year.
“Revenues evidently grew faster than volume considering the rise in LPG contract prices (CP) from $408 per MT in December of 2016 to $477, $573 and $564 per MT in January, February and March of 2017, respectively,” Pryce said in a statement.
Pryce’s industrial gas products segment bore P102.3 million or 4.6% shares, while sales from the company’s real estate and pharmaceuticals divisions had brought in 1.15% and 0.33%, respectively.
Gross margin decreased to 23% from 25%, causing LPG’s high contract prices. Operating expenses was controlled at 8.5% of revenues.
Meanwhile, Pryce Plaza Hotel, the group’s lone hotel operations, is not part of the income contribution since its shutdown on December 31, 2016.
“Management believes that similar growths in revenues and income can be achieved in the next quarters of 2017 on account of continued gains from infrastructure expansions begun the past two years, a determined effort to scale growth in the sales of LPG cylinders to new users, and, strong household consumption brought about by higher purchasing power,” Pryce said.