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Pryce Corp Must Rein In Market Bets and Put Shareholders First


Pryce Corporation’s latest quarterly filing paints a tale of two realities. On one hand, the company boasts a ₱2.99 billion nine-month net income, up 35% year-on-year, and improved profitability metrics. On the other hand, its core LPG business—the backbone of its operations—has begun to wobble, while its growing reliance on stock market gains introduces a risk profile that shareholders should not ignore.

The Cracks in the Core

LPG accounts for 86% of Pryce’s revenue, yet sales growth is losing steam. For the first nine months of 2025, LPG revenue rose modestly by 3.8%, but in the third quarter it fell 5.8% year on year. This is not a blip; it’s a warning. With international contract prices down 4.19%, margins may hold for now, but volume softness in Luzon and NCR signals competitive and demand pressures that could persist.

Industrial gases delivered a stellar 32% growth, and real estate and pharma chipped in, but these segments are too small to offset a prolonged LPG slowdown. If Pryce cannot reignite its core engine, the growth narrative will weaken—regardless of how strong the headline profit looks today.

The Market Mirage

Behind the earnings surge lies a different story: ₱847 million in fair-value gains on financial assets and ₱310 million in dividends and other income. Together, these non-core items make up roughly one-third of pre-tax income. The FVPL portfolio has ballooned to ₱5.23 billion, up 167% from last year. That’s not just diversification—it’s a pivot toward speculative exposure.

Here’s the kicker: Pryce itself admits that a 5% market drop could erase ₱262 million in pre-tax income. A 10% correction? That’s half a billion pesos gone—more than the company’s entire quarterly profit. In a volatile market, these are not theoretical risks; they are real and immediate.

Why Pryce Should Cash Out and Pay More Dividends

Pryce is not an investment fund. Its strength lies in LPG distribution and industrial gas production, not in timing equity markets. While the FVPL gains look impressive now, they are paper profits vulnerable to reversal. Shareholders deserve stability, not a roller coaster tied to the PSE index.

The solution is simple: liquidate a significant portion of the FVPL portfolio and redirect those funds to higher cash dividends. Doing so would:

  • Deliver tangible returns to investors.
  • Reduce earnings volatility and restore operational focus.
  • Signal confidence in the core business, not reliance on market swings.

With ₱9.34 billion in liquid assets, a current ratio of 2.19, and a debt-to-equity ratio of 0.41, Pryce has the balance sheet strength to make this pivot. In an era where investors prize predictability, bigger dividends—not bigger bets—will secure Pryce’s credibility and long-term valuation.

The Bottom Line

Pryce’s management faces a strategic crossroads. Will it double down on speculative gains or reaffirm its commitment to core operations and shareholder value? The answer will shape not just the next quarter, but the company’s reputation for years to come.

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