Pryce Corporation (PPC) reported a strong start to 2025, posting a 48.8% increase in net income for the first quarter at PHP 1.06 billion, compared to PHP 713.67 million in the same period last year.
While LPG sales continued to dominate the company’s performance, accounting for 93.03% of total revenues, the real standout was PPC’s PHP 362 million gain from marketable securities, adding a significant lift to its bottom line. Consolidated revenues also grew by 14.24%, reaching PHP 5.36 billion from last year’s PHP 4.69 billion.
Operational efficiency played a supporting role. “Operating expenses went down by 1.6% due to turnover of selected sales centers to the dealers, thus saving the company of rent, fuel and maintenance expenses,” PPC stated. Income from operations rose by 3.75% to PHP 889.01 million.
The industrial gas business showed impressive momentum, with sales volume rising by 66.2% year-on-year. PPC credited this growth to “aggressive marketing of its Oxygen products following the start of operations of its Liquid Oxygen Facility (LOF) in Cagayan de Oro City.” The company projects that, if sales utilization reaches 90% to 95% of LOF capacity, the industrial gas segment could add PHP 400 million to PHP 600 million annually to its net income over the next two to three years.
Earnings per share climbed in step with net income, rising 48.8% to PHP 0.56 from PHP 0.38.
What impact do you think Pryce Corporation’s growing industrial gas business could have on its future earnings mix? How sustainable is the boost from securities gains? Share your thoughts!
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