Philippine Daily Inquirer
First Posted 21:13:00 06/22/2010

Filed Under: Oil & Gas - Upstream activities, Economy and Business and Finance

CHEMREZ TECHNOLOGIES INC—THE country’s top biodiesel, resins and oleochemicals producer—said its board had approved the declaration of cash dividends worth a total of P158.6 million.

In a disclosure to the Philippine Stock Exchange, Chemrez declared a regular cash dividend of six centavos (P0.06) per share and a special cash dividend of another six centavos (P0.06) per share.

The total dividend to be paid is equivalent to 33 percent of the company’s net income of P474 million in 2009. Stockholders of record as of July 20, 2010 are entitled to the cash dividends.

“It is the policy of Chemrez to share the fruits of its operations with its shareholders. In line with this policy, Chemrez has consistently been paying dividends since 2001,” the company said.

Chemrez added it was able to deliver a strong financial performance in 2009, despite an uncertain economic environment, with consolidated sales growing 10 percent and net income rising by 27 percent.

It said the company was expecting demand for biodiesel to significantly increase in light of the government’s plan to further increase the required biodiesel content of vehicle fuel and move from the current B2 blend (2-percent coco-methyl esther blending in diesel) to a higher B5 blend (5 percent).

B2 was implemented starting February 2009 and contributed significantly to the 22 percent growth in the company’s oleochemical sales. B3 is expected to be mandated before the end of the year, it added. Amy R. Remo