D&L optimistic as crude, coconut oil prices drop

MANILA, Philippines — D&L Industries Inc., the country’s largest producer of oleochemicals and specialty plastics and food products, has expressed its growing optimism as crude oil and coconut oil prices have significantly dropped from their peaks.

While the operating environment remains uncertain amid ongoing geopolitical tensions, elevated oil prices, inflationary pressures and higher interest rates, D&L’s management remains confident in the company’s ability to emerge stronger through each business cycle.

“It’s hard to predict, but I think the worst is over with a lower price of crude oil,” D&L president and CEO Alvin Lao said in a media briefing yesterday.

Lao said crude oil prices have fallen to about $95 a barrel from its peak of $120 a barrel.

He also said prices of coconut oil, which accounts for about 39 percent of D&L’s raw materials, have declined by 30 percent to the current $2,100 a ton from its peak of $3,000 a ton last August.

“In that sense, we’re comfortable. If we could survive at $3,000 a ton, we’re definitely okay at $2,100 a ton,” Lao said.

D&L’s non-food business also continues to enjoy heightened demand, offsetting the weakness in the sales of its food products due to inflation.

Overall, the company believes that ongoing disruptions create opportunities to further strengthen its position as a reliable supplier and trusted partner.

By delivering customized solutions and dependable support, D&L said it continues to help customers navigate an increasingly complex and evolving business environment.

During the company’s annual stockholders’ meeting yesterday, D&L welcomed Cesar Romero and Richard Raymond Tantoco as its new independent directors.

They will succeed Lydia Balatbat-Echauz and Corazon de la Paz-Bernardo, who served as independent directors from 2017 to 2026, completing the nine-year term limit for independent directors prescribed by the Securities and Exchange Commission.