Pryce: No plans for major projects after 2019

PRYCE CORP. is putting on hold any major capital expenditure projects after the end of its P2-billion expansion program in late 2019, its chairman said.

“It’s [ expansion program] not exactly [ a] two- year [ program], maybe two-year and a quarter. [ It cost us] roughly I think about P2 billion,” Pryce Chief Executive Officer Salvador P. Escaño told reporters.

The expenditure program covered the expansion of Pryce’s liquefied petroleum gas ( LPG) terminals in the Visayas and Mindanao, and adding new refilling plants in both island groups and in Luzon.

“Maybe half [ of the capex] has already been spent,” Mr. Escaño said, adding that the capital spending will cover projects that will be completed by the third quarter of 2019.

Asked about the company’s capital expenditure program after 2019, he said: “Wala na siguro ( Maybe none) for a while. I will concentrate on increasing the cash dividends.”

Mr. Escaño declined to comment when asked whether Pryce was approached by competitors in the industry, including Phoenix Petroleum Philippines, Inc., which bought Petronas Energy Philippines, Inc. last year.

“We always welcome overtures. It would be irresponsible for me to my shareholders if I don’t do that because there might be something good that could come out of it,” he said.

“But the company is in such good shape at the moment that I hesitate to sell it or to open us equity because it’s doing very well. I might be unfair to my shareholders.”

He said Pryce also not looking for acquisitions.

This year, Pryce will continue with its expansion projects that aim to increase the storage capacities of its marine terminals and to bring its products closer to the markets.

All of the company’s seven import terminals in the Visayas and Mindanao have been or will be expanded to enable each one to accommodate at least a shipload of 2,500 metric tons cargo. The expansion of its terminals in Albuera, Leyte and Sta. Cruz, Davao del Sur were completed last year.

Set to be completed by July and August are the expansion of the terminals in Sogod in Cebu, and Balingasag in Misamis Oriental. The ability to discharge one shipload in a single terminal will reduce Pryce’s import costs by $10 to $20 per MT, Mr. Escaño said.

Pryce will also continue building at least 15 refilling plants in the Visayas- Mindanao areas to make its products closer to the consumers.

The expansion projects are expected to be completed by the end of 2019. They are all funded by internally generated funds, Mr. Escaño said.