Business Mirror Online Space
Written by Paul Anthony A. Isla / Reporter
Monday, 08 JUNE 2009 18:33

LISTED biochemicals and oleochemicals manufacturer Chemrez Technologies Inc. (ChemrezTech) announced on Monday that its board of directors has approved the declaration of cash dividends worth a total of about P119 million.

In a disclosure to the Philippine Stock Exchange (PSE), ChemrezTech declared a regular cash dividend of P0.06 per share and a special cash dividend of P0.03 per share.
The cash dividend of (P0.0) per share is equivalent to 32 percent of the company’s net income of P372 million in 2008.

ChemrezTech added that all stockholders of record of ChemrezTech as of July 6, 2009, are entitled to the cash dividends, which will be payable on July 30, 2009.

“This is the company’s way of sharing the profits from its operations with its shareholders. While we do not have a set dividend policy, ChemrezTech will endeavor to pay dividends whenever it is making money,” Alvin Lao, ChemrezTech chief finance officer, said.

The company added that its board has consistently been declaring cash and stock dividends since 2001.

PSE records show that ChemrezTech’s dividend payout ratio amounted to 33 percent, based on the P0.275 weighted earnings per share last year.

Lao said this year’s payout reflects the full-year impact of ChemrezTech’s entry into the wholesale biodiesel market owing to the implementation of the Biofuels Act in May 2007.

ChemrezTech reported a 37.2-percent jump in net income for the first quarter of 2009 to P131.7 million from the P96 million registered in the same period last year on account of higher oleochemical and biodiesel sales, as well as improved margins.

Net profit margin improved to 11.4 percent in the first quarter of 2009, compared with 9 percent in 2008.

With the company’s share buyback, ChemrezTech said the corresponding adjusted earnings per share for the first three months of 2009 was P0.10 as against P0.07 for the same period in 2008, representing a 42.9-percent increase.

Consolidated revenues for the first three months of 2009 reached P1.15 billion, up by 7.7 percent from the P1.07- billion recorded for the same period in 2008.

The bulk of revenue growth was in the domestic market, primarily due to the sizable volume contributed by coco-biodiesel sales driven by the step-up in local requirements after the national mandate for biodiesel blend was increased from 1 percent to 2 percent on February 6.

ChemrezTech said the gains from the strong volume growth for coco-biodiesel was partially dampened by the general soft pricing on account of much lower coconut feedstock costs and a more competitive market environment.