Chemrez profit up 30% on strong biodiesel demand

Listed firm Chemrez Technologies Inc. booked 30 percent more profit in 2013 from the previous year on strong demand for biodiesel and other oleochemicals.

In a disclosure to the Philippine Stock Exchange, Chemrez said its net income in 2013 reached P318 million, equivalent to earnings per share (EPS) of P0.24, 30 percent higher than year-ago level. Revenue was higher by 12 percent year-on-year at P4.34 billion.

The oleochemicals business posted very strong results, with volume up 66 percent year-on-year. Biodiesel volume increased by 59 percent, while the non-biodiesel specialty olecochemicals grew by 92 percent.

Combined oleochemical revenue was higher by 21 percent year-on-year, Chemrez said.

“Cognizant of the competitive marketplace as well as opportunities, the company continues to focus on research and development to grow its higher-margin specialty chemicals business,” Chemrez said in the statement.

Some 19 percent of its workforce is dedicated to R&D and engineering activities.

Chemrez said it also performed well in the emerging product categories, particularly in the non-biodiesel, specialty oleochemicals. These specialty oleochemicals, which are part of Chemrez’ green portfolio of products, are replacements of petrochemical-based ingredients in personal care and home care products such as shampoos and liquid soaps.

In the meantime, the other half of Chemrez’ business, which go mostly to consumer durables and building materials, also delivered positive revenue growth.

Export sales, which grew by 20 percent year-on-year, also contributed to the overall growth.