Chemrez buys back P43.3M of its shares

Chemrez Technologies Inc., the country’s leading producer of coco-biodiesel, oleochemicals, powder coatings, plastics and paints resins, has accumulated since November last year a total of 12 million company shares valued at P43.3 million.

ChemrezTech chief finance officer Francis Caluag said the company’s buyback program will continue as part of efforts to enhance shareholder value.

The reacquired shares account for less than one percent of the company’s issued shares and the amount spent was far below the P500-million share buyback ceiling announced in August 2007 together with its cash dividend declaration.

“We will reacquire the company’s shares on the basis of opportune timing and in amounts that we believe are adequate.  It is the continuing view of management and certain shareholders that current share price levels are not commensurate with the firm fundamentals of the company and its prospects,” Caluag said.

The share buyback program of ChemrezTech reflects an increasing trend for several listed companies to launch their own share buyback programs as problems overseas have caused local share prices to fall below their true value.

Caluag assured investors that ChemrezTech remains conscious of the need to maintain market liquidity and is ready to release the treasury shares back into the market at the appropriate time.

In the nine months ending September 2007, ChemrezTech posted a net income of P353 million, up 572 percent from the income level a year earlier. Gross revenues rose 60 percent to P2.74 billion.

ChemrezTech is the country’s leading producer of biofuel and other environment-friendly industrial products such as water-based solvents, paints and resins that provide an alternative to traditional chemicals that emit harmful fumes and are non-biodegradable.