Pryce says 1st half income likely hit P750M

PRYCE Corp. expects to record a net income of P750 million in the first semester of 2018, or a little below half of its P1.55- billion target for the year, its chief executive said.

“We probably made P750 million in the first half,” Pryce Chief Executive Officer Salvador P. Escaño told reporters on Thursday after the company’s annual stockholders’ meeting in Makati City.

“However, you must realize that 55%60% of revenues and income is made in the second half because the rainy season happens in the second half,” he said.

Mr. Escaño, who is also Pryce chairman, said the weather towards the end is favorable for the consumption of liquefied petroleum gas ( LPG), the company’s main business.

Earlier this year, Pryce said it expects to post a 20% increase in net income to P1.55 billion in 2018 as it sees the tax reform law driving revenues of its LPG business. It also expects sales volume to grow by as much as 15%.

With the Tax Reform for Acceleration and Inclusion (TRAIN) law’s implementation and company’s expansion of its LPG projects, Mr. Escaño is confident of meeting this year’s targets.

In 2017, Pryce Corp. posted a 29% increase in net income to P1.25 billion, driven by higher revenues from the sale of LPG products. The listed firm, which imports and distributes LPG under the brand name PryceGas, previously said last year’s profit was within target.

Mr. Escaño said the passage of the TRAIN Law or Republic Act No. 10963 had a positive impact on the LPG industry, as the law imposes relatively lower taxes on the product as opposed to other fuels.

On Thursday, shares in the company slipped 0.17% to close at P5.80 apiece. —