South Pacific Inc. continues to spur phenomenal growth in the LPG
market as it posts a dramatic 39% rise in sales quantity for the first
quarter of 2019.
SPI only went fully operational in 2016, then capturing market share
of 6.5%, which was not at all bad for a budding firm up against giant
local and global LPG players. By the end of 2018, SPI upped its market
share to 13.43% gaining a firm foothold of 3rd spot in the competitive
industry behind leaders Petron and Liquigaz.
For the first quarter of 2019, SPI continued its impressive sales
performance with its numbers rising from 64,502 metric tons last year
to 89,591 metric tons in Q1 2019.
Net sales also grew by 50% in this year’s first quarter and unit
margin improved by 183%. Total liabilities declined by 13% while
stockholders’ equity spiraled by 92% between corresponding quarters.
Data from the Department of Energy (DOE) show that the uptrend for the
LPG market could continue. The total LPG market now stands at 1.75
million metric tons (MT) per year.
2018 figures show the top three gainers year-on-year were liquefied
petroleum gas (LPG) at 10.5%. This was followed by diesel oil at 5.0%
and gasoline at 2.4%.
SPI officials attribute the phenomenal growth to its smart
investments, security of supply and customer service. The company
invested on two jetties and technical equipment for marine loading. It
also has the biggest LPG storage facility and has its own fleet of
trucks to prevent pilferage. This has boosted reliability of supply
and customer service. It recently signed up Wanhua Chemical Group as
its supplier to ensure security of supply. The Wanhua Group has been
repeatedly cited for its products’ quality, commercial value,
delivery, documentation, innovation, responsiveness and
sustainability.
Several factors are propping up opportunities for LPG power generation
in the Philippines. Soaring energy prices, concerns on energy
security, limited infrastructure in several areas and robust economic
growth are among these catalysts.
With expected production and revenues emanating from its Vis-Min
operations, SPI is now projecting a market share of at least 16% and
be No. 2 in the industry soon.
