Chemrez earns P372 million in January-September

MANILA, Philippines - Chemrez Technologies Inc., the country’s top biodiesel, resins and oleochemical producer, reported that its unaudited consolidated net income improved by three percent to P371.9 million in the first nine months of 2009 from P359.4 million a year ago.

In a disclosure to the Philippine Stock Exchange (PSE), ChemrezTech said its consolidated sales for the first nine months of 2009 reached P3.6 billion, one percent higher than the P3.55 billion recorded for the same period in 2008.

The Green Technology developer said its sales volume for the first nine months actually jumped 63 percent from the same period last year. This was primarily due to the implementation of B2 (two percent biodiesel blend for all diesel) effective Feb. 6, 2009.

Exports of other oleochemical products experienced robust growth and good prices, pushed up by the high demand for fatty alcohols for the detergent, soap and cosmetic sectors in the export market.

The various resins product groups have registered mixed sales volume result for the first nine months of 2009. 

Despite lower sales volumes in certain product lines, industry sales have been generally lower due to the ongoing global economic crisis, ChemrezTech maintained its substantial lead in the overall market in the Philippines.

Net profit margin remained steady at 10 percent while adjusted earnings per share for the first nine months of 2009 slightly increased to 28 centavos from 27 centavos for the same period in 2008. 

To build on its CME (coco-methyl ester) or coconut oil-based chemicals export markets, ChemrezTech continues to develop new product applications of CMEs.

Through the use of pioneering process technology, CME fractions that have high potential as export products have been continuously being developed. 

Through these efforts, the ChemrezTech’s export volume of fractionated CMEs grew by 55 percent in 2008.

The firm also has a growing business in the export of additives and colorants as well as other green chemicals which mainly use organic substitutes for petroleum-based products.

For the local market, ChemrezTech continues to sell more biodiesel due to the increase in the mandated blend to  two percent despite strong competition from more players and an oversupply in the market.