Chemrez posts H1 net profit of P276.9 M

Chemrez Technologies Inc., the country’s leading producer of biopetroleum, oleochemicals, resins and powder coatings, posted a net profit of P276.9 million in the first half this year, up 37 percent from the same period a year ago on higher revenues.

Based on financial statements filed with the Securities and Exchange Commission (SEC), Chemrez registered revenues of P2.45 billion or an increase of 51.2 percent from the previous level.

Francis Caluag, chief finance officer of Chemrez, said the company’s strong performance was largely driven by its oleochemical segment under which biodiesel accounted for the bulk of revenue activity.

Other oleochemicals, which go mainly to the soap and detergent industry, also registered substantial upside as domestic and export tonnage hit 117 percent and 66 percent growth respectively, over last year.

Caluag said the oleochemical and biopetroleum lines contributed approximately 57 percent of consolidated revenues while resins accounted for 39 percent.

He said the earnings results were positive indicators of the company’s planned transformation into a green chemistry oriented enterprise.

Chemrez intends to progressively shift its revenue base to products that are made mainly from renewable sources and have varied applications that are friendlier to the environment and far less hazardous to humans.

As of the first half of 2008, the company’s green chemistry products already accounted for at least 75 percent of gross profits.

Other key growth contributors were resins which brought cost-effective and environmentally-friendly solutions for the paint, construction and durables industries.