Higher demand, exports to boost Chemrez income

MANILA, Philippines - Leading biodiesel manufacturer Chemrez Technologies expects this year’s profits to grow 15 to 19 percent from last year due to higher demand and export revenues, a ranking official said yesterday.

On the sidelines of the company’s annual stockholders’ meeting, Chemrez chief financial officer Alvin Lao said they expect higher income this year on the back of improving economic growth, which is expected to boost sales of biofuels and coconut oil-based specialty chemicals.

“Definitely, it will be better than last year because the economy is improving,” Lao told reporters. Chemrez earned P308 million in 2013.

He said while the country’s first quarter economic growth hit only 5.7 percent or below the expected range of six percent to 6.2 percent, it was still the third highest in Asia.

“Another reason for our growth is exports,” Lao said, adding that this business segment – which accounts for 21 percent of the company’s sales volume – has been steadily growing.

Lao said the oleochemicals business – chemicals from vegetable oil – is also contributing significantly.

“There’s a lot of growth from new segments. The oleochemicals business is something that has been growing quite a lot,” he said.

Last year’s revenues reached P4.34 billion or 12 percent higher than 2012 sales.

Moving forward, Chemrez said the company would continue to focus on opportunities in research and development to grow its margins higher.

Chemrez is also focusing on emerging product categories, particularly non-biodiesel, specialty oleochemicals.

These specialty oleochemicals, which are part of Chemrez’ green portfolio of products, are replacements for the petrochemical-based ingredients in personal care and home care products like shampoos and liquid soaps, the company said.

The other half of Chemrez’ business – consumer durables and building materials also contributed positively to growth.

The company’s export business also boosted growth, with export sales up 20 percent in 2013.

An affiliate of D&L Industries, Chemrez advocates green technology. It is an active product innovator, producing biodiesel and other chemicals such oleochemicals. The chemicals have been proven to be more environment-friendly substitutes of petroleum-based raw materials used by various industries.