Pryce Corp. is considering bringing its biggest revenue-generating business to the stock market through a separate listing of Pryce Gases Inc., following a 15.4-percent increase in consolidated net income in the first nine months of the year.
In a disclosure to the Philippine Stock Exchange on Tuesday, Pryce said it has approved the engagement of an investment bank to assess the feasibility of listing its shares in Pryce Gases by way of introduction through a property dividend.
The proposed transaction could pave the way for a separate stock market listing of the gas subsidiary, which accounts for the bulk of group revenues, although no final decision has been made pending a feasibility assessment.
Pryce Gases operates in the group's dominant business segment, with liquefied petroleum gas (LPG) and industrial gases generating P17.70 billion in revenues during the January-to-September period.
The segment accounted for 92.06 percent of consolidated revenues, underscoring its importance to the group's financial performance.
Pryce reported a 15.4-percent increase in consolidated net income for the first nine months, equivalent to an additional P461 million in earnings compared with the same period last year.
Consolidated revenues also rose 14.05 percent, or approximately P2.22 billion, mainly driven by higher average LPG contract prices during the period.
The stronger performance highlights the group's heavy reliance on its gas operations, while contributions from its other businesses remained comparatively small.
Real estate and memorial park operations generated P293 million in revenues, while pharmaceutical products contributed P36 million.
Pryce is also removing its pharmaceutical business from consolidated financial reporting following its exclusion from the group's subsidiary companies.
The company said its latest financial disclosure would be the last to include the performance of pharmaceutical products in its consolidated financial statements.
Meanwhile, Pryce has declared cash dividends of P0.33 per common share, payable on 11 December to shareholders of record as of 13 November.
The company is expected to submit its full financial report for the period ending 30 September to regulators on or before 13 November.
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