Chemrez Tech sees 2006 profit at P131.62M

Alternative fuel maker Chemrez Technologies, said on Wednesday it expects full-year to come in at P131.62 million, and further rise to P536.67 million in 2007, boosted by sales of its coco-biodiesel product BioActiv. Total sales are expected at P2.67 billion in 2006 and P4.72 billion next year. "Biodiesel is expected to be a major revenue driver and profit generator for Chemrez ... on the back of anticipated strong demand for the alternative fuel in the domestic and export markets," Chemrez said in a statement. Chemrez Tech was formerly known as Corro-Coat before the powder coating firm acquired its affiliate Chemrez Inc., which manufactures resins and oleo-chemicals, including international grade biodiesel. Chemrez currently exports its premium coco-biodiesel to rapidly expanding export markets, such as Europe and Japan, which are seeking alternatives to petro-diesel but have limited capacity to produce crops for the manufacture of biodiesel. Company officials said they expect domestic demand to catch up once Congress passes the Biofuel bill. The Biofuel bill mandates a one percent blend of biodiesel for all petrodiesel sold in the country and up to a two percent blend two years after the law’s implementation. The domestic demand for coco-biodiesel is estimated at 70 million liters a year based on the 7 billion liters of petrodiesel consumed by the country last year. The company said the figure will more than double if the mandated blend is raised to two percent. - GMANews.TV