D&L express optimism amid declining fuel prices

Oleochemicals, specialty plastics, and food ingredients manufacturer D&L Industries Inc. has expressed optimism on a financial turnaround this year driven by a plunge in global commodity prices and an industrial demand boom.

"While it is hard to predict the future, I believe the worst is over with the lower price of crude oil," D&L president and CEO Alvin Lao said.

Global crude oil has leveled off around $95 a barrel from its dizzying $120 peak, while coconut oil—a critical lifeblood that makes up 39% of D&L's raw material matrix—has plummeted 30% from a historic high of $3,000 a ton down to $2,100 a ton.

"We thankfully have our non-food side, which was up by a lot, and that growth more than offset the weakness or drop in the food side," Lao said.

The industrial surge was fueled by manufacturing clients in the packaging, plastics, and construction sectors who aggressively stocked up on raw materials, spooked by potential supply chain gridlocks stemming from conflicts in the Middle East, according to the D&L chief.

Lao said the company’s specialized clients operate on high margins and possess the unique leverage to absorb price increases without scaling back their order volumes.

During its annual stockholders meeting on June 8, 2026, D&L declared a total dividend of P0.236 per share, maintaining its ironclad four-year streak of returning 65% of the prior year's net income to shareholders.

The package includes a regular cash dividend of P0.182 alongside a special cash dividend of P0.054—marking the sixth consecutive year since the 2020 pandemic peak that the company has rewarded investors with a special payout.

Based on a recent closing stock price of P3.59, the dividend serves up a potent 6.6% yield.

Shareholders of record as of June 23 will see their payouts on July 8, with the ex-dividend date locked for June 22.

During the stockholders’ meeting D&L’s elected two new independent directors, namely former Pilipinas Shell Petroleum Corporation president and CEO Cesar Romero and former Energy Development Corporation president and CEO Richard Raymond Tantoco.

The company added that the founding Lao family—CEO Alvin Lao, Chairman Yin Yong Lao, and Vice Chairman John Lao—now holds a minority block within the seven-seat board. --VAL, GMA News