ChemrezTech says Q1 net income rose 22% to P160M

Chemrez Technologies Inc. (ChemrezTech), the country’s top biodiesel, resins and oleochemical producer, said its first quarter consolidated net income rose 22 percent to P160 million from P131.7 million a year earlier. The company, whose shares are traded at the Philippine Stock Exchange, said the improvement in profit could be attributed to the strong growth in all the firm’s product segments: biodiesel, oleochemicals, resins and powder coating. Biodiesel remains its biggest revenue driver, contributing about half of sales, with higher sales volume, primarily brought about by the approval of the 2 percent biodiesel (B2) mandate, which took effect in February 2009. The green technology company reported its consolidated revenues are back to the pre-crisis levels in 2008. It said consolidated revenues rose to P1.4 billion in the first quarter from P1.15 billion a year earlier. A higher portion of its profits came from segments other than biodiesel. Sales of oleochemicals and resins doubled during the quarter as demand for amides and esters used by the detergent, soap and cosmetic sectors also increased. Sales grew for the whole of 2009 despite the global economic crisis and the impact of deadly typhoons that the firm reported a 26-percent hike in consolidated net income to P468 million from P372 million in 2008. Its net profit margin improved to 9 percent from 8 percent in 2008, while earnings per share rose to 35 centavos from 28 centavos. The higher profits came on the back of a 10-percent gain in consolidated sales to P5.1 billion from P4.66 billion. “This was due to higher sales volume and higher sales of other oleochemicals," ChemrezTech said. While the company sold more biodiesel in 2009 than in 2008, the profit margin for the product decreased due to intense competition. —VS, GMANews.TV