ChemrezTech declared cash dividends
Posted on June 20th, 2010
The Philippine’s top producer of biodiesel, resins and oleochemicals, Chemrez Technologies, Inc. (ChemrezTech), has announced that its board of directors has approved the cash dividends worth a total of about P158.6 million to be declared. The company said in its disclosure to the Philippine Stock Exchange (PSE) that a regular cash dividend of six centavos (P0.06) per share and a special cash dividend of another six centavos (P0.06) centavo per share.
Entitled to the cash dividends are all stockholders of record of ChemrezTech as of July 20, 2010. The total cash dividend of P12 centavos (P0.12) per share is equivalent to 33 percent of the company’s net income of P474 million in 2009.
“It is the policy of ChemrezTech to share the fruits of its operations with its shareholders. In line with this policy, ChemrezTech has consistently been paying dividends since 2001,” the company said.
In spite of the uncertain economic condition last year, the company said they were able to deliver a strong financial performance. ChemrezTech was able to generate consolidated sales growing 10 percent and net income rising by 27 percent.
Because of the government’s plan to further increase biodiesel content of vehicle fuel and move from the B2 blend (2 percent Coco-biodiesel in Diesel) to a B5 blend, ChemrezTech believes that there will a significant increase in the demand for biodiesel.
B2, which was implemented in February 2009, contributed significantly to the 22 percent growth in ChemrezTech’s oleochemical sales. Before the end of 2010, B3 is expected to be mandated. Coco-biodiesel and other oleochemical specialties will continue to be the biggest operating business of the ChemrezTech for the year, and contributing to the majority of the company’s revenues.
Biodiesel is the lowest value application for coco-menthly ester, that is why ChemrezTech is continuously developing more value-added downstream products which it can eventually market. And as it expects tough competition in the biofuel business, the company is finding ways to reduce production costs while increasing efficiency.
