Chemrez sees profit boost in 2014
Green technology firm Chemrez Technologies Inc. expects better revenues and sales this year compared to 2013, said a top company official who cited better-than-expected results in the first quarter.
CFO and EVP Alvin Lao said on the sidelines of the stockholders meeting that the company would benefit from a strong Philippine economy and high demand for oleochemicals.
The company declared dividends of P0.12 a share, payable on June 30. Shareholders of record as of June 18 are entitled to it.
Oleochemicals are plant- and animal fat-based substances used in such products as cosmetics, detergents and food additives.
Lao said the company posted a 39-percent growth in net income and 16-percent rise in revenue.
“We expected mid-teens growth, about 15- to 19-percent, so we performed better than expected,” he said.
The company expects to sustain growth for the rest of the year and is poised to book higher topline and bottomline figures from 2013, Lao said.
In 2013, Chemrez posted P308 million in net income, and P4.3 billion in revenue.
In considering the growth target, the company has not factored in the potential growth in demand for oleochemicals due to a government mandate requiring the increase of the biodiesel blend to five percent—a product referred to as B5, Lao said.
A 2-percent biodiesel blend has been in force since 2009, as mandated by the Biofuels Act of 2006.
The local coconut industry has been seeing prices cut by half due to competition with cheaper palm oil products.
The move to B5 is expected to ease the plight of Filipino coconut farmers. In particular, the Department of Agriculture advocates higher biodiesel blend to directly benefit the farmers—a goal now attainable, given the new business opportunities that will be created because of the resulting increase in biodiesel consumption.
Likewise, the blend of coco biodiesel will reduce the country’s dependence on imported oil, enabling the Philippines to attain energy independence over the next decade.
A simple 5-percent blend of coco biodiesel can save the Philippines an estimated P13 billion worth of imported crude oil each year. Riza T. Olchondra
