CIIF group profit up 21% in 1st half

Government-sequestered CIIF-Oil Mills Group said it posted a 21-percent increase in revenue to P9.1 billion in the first half of the year, as high prices made up for lower export volume.

For January to June, CIIF reported sales volume of 164,148 metric tons in copra terms, which was 49 percent lower than the 323,257 tons sold in the same period last year. The decline was due to lower copra supply.

However, the group said its management’s trading strategy allowed it to take advantage of the huge jump in the selling price of coconut oil (CNO) to $1,800 per ton from last year’s $772 per ton.

CIIF group president Jesus L. Arranza said in a statement that the group was optimistic on its sales for the rest of the year.

“There is now a gradual increase in the supply of copra and we hope this will continue until the end of the year and even up to the first quarter of next year. This will definitely increase our capacity utilization and sales, and increase our revenue and income from operations further,” Arranza said.

The company’s income from operations reached P81 million in the first semester of the year. On top of this, the CIIF-OMG said, the group had a position gain (or inventory that was already contracted but not yet delivered) of P91 million as of July. This puts CIIF-OMG’s total income from operations at P173 million as of July. Income for the January-June period of 2010 was 86 million.

“Despite lower volume, revenue has gone up due to high prices of the commodity and trading was properly managed,” Arranza said.

The Office of the President, through a transmittal letter sent by Executive Secretary Paquito Ochoa to PCGG chairman Andres Bautista dated August 10, announced Arranza’s reappointment as president and CEO of the CIIF group.