Chemrez profit expands 5-fold to P480.6M

Chemrez Technologies Inc., the country’s leading producer of biopetroleum, resins, oleochemicals, and powder coatings, posted a net income of P480.6 million last year or five times the 2006 figure of P94.4 million on higher revenues and the improving performances of most of its product groups.

ChemrezTech said consolidated revenues grew 62 percent to P3.79 billion from P2.34 billion while gross profit margin was 16.8 percent versus 9.4 percent a year earlier.

The company’s strong performance was also attributed to the “ record performance of the Philippine economy in 2007 and the implementation of the mandated one-percent biodiesel blend under the Biofuels Act of 2006.”

ChemrezTech’s oleochemical and biopetroleum product lines, which include coco-biodiesel, contributed 36 percent of consolidated revenues, while the resins group and powder coatings group accounted for the balance of 64 percent.

Oleochemicals serve mainly the soap and detergent industry while resins and powder coatings are found in numerous end-user products such as house and building paints (liquid and powder), housewares and decorative items, office and consumer electronics, home appliances and food packaging.

ChemrezTech has been gradually buying back its shares since November last year under a P500-million share buyback program announced in August of the same year.

Records from the Philippine Stock Exchange (PSE) show that ChemrezTech has already acquired some 12 million Treasury shares over the last 2-1/2 months with a purchase value of approximately P43.3 million.

The reacquired shares represent less than one percent of the firm’s issued shares.