Pryce Corporation reported a 45.85 percent increase in its profit for the first half of 2016, up to P433.28 million from P297.08 million in the comparable period last year, attributed to its strong liquefied petroleum gas (LPG) sales.
Pryce’s LPG sales volume went up 27.35 percent to 86, 342 metric tons (MT). This allowed the firm to lighten the impact of the drop in LPG’s selling prices by 12 percent from P35, 644 per metric ton (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.
Their revenues also rose 11.56 percent, up P3.04 million from last year’s P2.73 million. LPG consisted of 91.1 percent of total revenue, with the rest supplied by sales of industrial gases, real estate, pharmaceutical products, and hotel operations, the company said.
This means their return on sales also increased from last year’s 10.9 percent to 14.2 percent. Earnings per share for the first half is pinned at P0.2166.
Pryce disclosed yesterday that the demand and prices for LPG is estimated to rise in the second half of the year.
However, amid the increase in sales and revenue, the company believes they are on track to meet their P900-million income target for 2016.
“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,” their disclosure read.