Chemrez profits surge on higher oleochemical sales

MANILA, Philippines - Higher oleochemical sales boosted earnings of Chemrez Technologies Inc. after a law mandated the use of the substance in diesel fuel. Profits for the first three months this year jumped by more than a third to P131.7 million, 37.2 percent higher than the same period last year, the company said in a disclosure to the Philippine Stock Exchange (PSE). The income hike was the result of on higher oleochemical and biodiesel sales, the company said. Net profit margin improved to 11.4 percent from January to March, compared to nine percent last year, the company said. Consolidated revenues for the first three months reached P1.15 billion, up by 7.7 percent from the P1.07 billion recorded for the same period in 2008. Bulk of revenue growth came from coco-biodiesel sales which were driven by a law that increased the use of biodiesel blend to two percent from one percent last February. However, gains from coco-biodiesel’s strong volume growth were partially dampened by soft prices on account of much lower coconut feedstock costs and a more competitive market environment. Total registered annual capacity of local bio-diesel manufacturers expanded further to 380 million liters as of March 31, 2009, more than double the 150 million liters required under the B2 mandate, latest data from the Department of Energy (DOE) said. Sales volumes in the various resins products groups registered mixed results in the first three months of 2009 depending on the unusually high across-the-board cost increases experienced in the same period in 2008. The company had no substantial capital expenditures during the first three months of 2009, and currently does not expect any substantial capital expenditures for the year. - GMANews.TV