Pryce Corp. said Wednesday net income climbed 29 percent in 2017 to P1.248 billion from P966 million in 2016, driven by the liquefied petroleum gas business.
Pryce said in a disclosure to the stock exchange revenues jumped 37 percent to P9.226 billion in 2017 from P6.722 billion the previous year.
Sales volume of LPG grew 11 percent to 210,000 metric tons in 2017 from 189,000 MT in 2016.
The company said it was optimistic of achieving 15-percent sales growth and 20-percent net income growth that would bring it to P1.55 billion this year, on the back of expansion projects and the implementation of the Tax Reform for Acceleration and Inclusion law.
“Despite this modest volume growth, revenues were up 37 percent because of the sharp increases in LPG contract prices during the year,” the company said.
LPG contract prices averaged $491 per metric ton in 2016, or $145 metric ton higher than the 2016 contract price of $346 per metric ton.
Pryce said sales volume grew in the Visayas and Mindanao regions, where demand was more concentrated on fuel for household cooking.
Sales in Visayas and Mindanao grew 22 percent versus four percent in growth in Luzon.
The company said sales of LPG including cylinders and accessories reached P8.656 billion and accounted for 94 percent of revenues.
Industrial gases accounted for 4 percent of revenues at P391.498 million, while real estate sales and sales of pharmaceutical products accounted for the balance.
Pryce said the company would continue its expansion, which was started two years ago and would increase storage capacities of marine terminals and to bring the products closer to the markets.
The company said it would expand all its seven import terminals to enable each one to accommodate at least one shipload of 2,500 MT cargo.