Chemrez income drops to P224 million in January-September

MANILA, Philippines - Net income of biodiesel, oleochemicals and resins producer Chemrez Technologies Inc. declined by more than a third in the nine months to September as revenues fell.

In its financial report, Chemrez said its nine-month earnings slipped 38 percent to P224 million from P364 million a year ago.

“Sales for the period were P2.9 billion, 28 percent lower than the P4 billion recorded for the same period in 2011,” Chemrez said.

Specifically, oleochemical sales were nearly halved to P1.2 billion from P2.3 billion due to tight market competition.

Resin sales decreased to P1.4 billion from P1.5 billion but turnover of powder coating grew to P252 million from P220 million last year.

Export sales, which accounted for 19 percent of total sales, dropped 29 percent to P763 million from P542 million.

Chemrez said the cost of goods sold slumped 28 percent to P2.5 billion, on the back of lower sales volume this year.

Net profit margin eased to 7.8 percent from nine percent a year ago.

Last year, the country’s top biodiesel firm said it plans to invest up to $15 million to expand its capacity in the next three years to serve its growing US export market.

Chemrez was originally incorporated in 1989 as Corro-Coat, Inc. before entering the manufacturing business in 2006.