PPC 1H 2020 Revenues Up by 11%
During the first half of 2020, Pryce Corporation (PPC) generated total revenues of P5.90 billion, 10.90% higher than last year’s PhP5.32 billion. Sales of liquefied petroleum gas (LPG) and LPG-related products accounted for 95.10% of the group’s total revenues, while sale of industrial gases, real estate, and pharmaceutical products accounted for the balance.
LPG sales volume increased by 15.63% for the first half of 2020, from 102.30 thousand metric tons (MT) in the comparable period last year to 118.29 thousand metric tons. The average LPG contract price, which influences local LPG prices, decreased to $415.58 per MT from last year’s $478.67 per MT, or about 13.18%. The big drop in global crude and LPG prices, which started in the middle of March, was reflected in our April and May operations thereby resulting in appreciable inventory losses. This is the main reason why the second quarter financial results were weaker than the first quarters.
Revenues from the other business units such as industrial gases, real estate, and pharmaceutical products contributed an aggregate of PhP 288.82 million in 2020. This is 9.9% lower than the previous year’s PhP 320.55 million due to decreased sales in industrial gases and real estate products on account of the effects of the Coronavirus Pandemic.
Net income after tax registered at PhP759.25 million, 15.22% lower than the year-ago figure of PhP895.57 million.
As previously disclosed, the Company expects the remaining quarters of the year to be adversely affected by the Coronavirus Pandemic. We hope this disrupting phenomenon will be resolved soon.
