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| South Pacific Inc. President Jun Golingay awards Class A Champion Danilo Robles in the recently-concluded South Pacific Invitational Golf Tournament held at the Tagaytay Midlands |
Local LPG company South Pacific Inc. (SPI) reported a 48% increase in its revenues during the first six months of 2019, citing impressive growth in sales and client patronage from its operations.
While several companies experienced a slump during the first two quarters of the year, SPI saw its net income surge in the first half compared to the same period last year.
SPI president Jun Golingay attributes the huge uptick in revenues to several factors. “We have increased our customer base by 22% which has positively impacted our sales volume by as much as 37%, “ he reveals.
But the robust 1H performance was also the end result of factors beyond the numbers. Golingay cites SPI’s prompt and reliable customer service as key in making the business grow. Add to that, Golingay says, is the timely and accurate planning of product procurement.
Golingay said its core client spend increased to 37% as of June 2019 compared to the first half of 2018. SPI’s EBITDA for the first half of 2019 is P530.516mm compared to 1H 2018 where EBITDA was at P154.276mm.
Several similar companies reeled from the effects of the second phase of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which brought further increases in excise taxes, coupled by a higher product cost environment.
SPI countered these challenges on products cost and taxes by implementing proper Inventory Management through timely and adequate product procurement.
“Having the biggest storage facility in the country, SPI is able to enjoy the lowest importation costs. Lower gas costs translate to lower selling price,” Golingay adds. He also says that the increase in capitalization resulted to the industry acceptable financial indices.
SPI also attributed its strong first semester performance to a steadily growing volume on the back of strong Visayas operations and expansion in southern Philippines.
This trend has deepened SPI’s commitment to continue its expansion in the Visayas and eventually in Mindanao. SPI is planning to build seven (7) terminals nationwide.
Moving forward, SPI expects to continue this uptrend even as it acknowledges the changing LPG landscape. It is welcoming new channels in its VisMin operations. Golingay says, “LPG demand is increasing year-on-year, cost on the other hand is still fluctuating on a month-to-month basis depending on Middle East price.”
Even after LPG prices dipped on the months of May and June, SPI forecasts that for the second half of this year, revenues will still increase especially towards the fourth quarter.
Meantime, South Pacific Inc. recently held its first golf invitational tournament at the Tagaytay Midlands. It was participated in by its loyal corporate partners and valued clients. Barely four years in existence, SPI has already institutionalized its competitiveness by having the third largest market share in the local LPG industry.
SPI founder Arnel Ty and President Jun Golingay were among the executives that participated in the cordial event. The
Tournament winners were: Class A Champion - Danilo Robles Class B Champion - Dondon Dy
Class C Champion - Roger Tan Class D Champion - Alvin Diy
Ladies Champion - Riva Galveztan
Special Awards:
Longest Drive - Bernard Dy Most Accurate Drive - Carlo Layug Nearest to the Pin - Dante Carpio
Because of the tournament’s success and the enthusiastic clamour of its participants, SPI has committed to a second edition of the event. The second SPI Invitational Golf Tournament will be held on May 2020 with a promise of more exciting prizes up for grabs.
