PRYCE Corp. reported a net income of P708.79 million in the first six months of the year, down nearly 5% from P745.92 million in 2021, due to the impact of high operating expenses driven by inflation and successive fuel price hikes.
In a disclosure to the stock exchange, the company said revenues during the first semester rose by 39.2% to P9.91 billion from P7.12 billion in the same period last year.
However, operating expenses increased by 16.8% to P1 billion from P862 million due to the effect of faster inflation and hikes in fuel prices, which resulted in increases in the cost of transport, wages, services, logistics, and supplies.
Pryce also said that the opening of new sales centers and refilling plants further increased the company’s operating expenses, pulling down the company’s profit.
Pryce said that its liquefied petroleum gas (LPG) business provided the biggest contribution to its consolidated revenues at almost 95% share. The industrial gas business contributed 3.6%, while the real estate and pharmaceuticals segments accounted for 1.46%.
The company said that the increase in consolidated revenues was due to the increase in the average international LPG contract price, which directly influenced local prices. It also cited the growth in LPG sales volume, which largely occurred in Luzon, where margins are lower. Growth was also recorded in the Visayas and Mindanao.
On Thursday, shares in Pryce slipped by P0.17 or 3.11% to close at P5.30 each. — Ashley Erika O. Jose