MANILA: D and L Industries, Inc., the parent company of the country’s largest biodiesel manufacturer Chemrez Technologies, said the firm is getting orders from its clients ahead of the higher coco methyl ester (CME) blend for all diesel fuel that will be implemented on Oct. 1.
In a virtual press briefing Tuesday, D and L president and chief executive officer Alvin Lao said more biofuel orders are expected to come in during the current quarter of the year, which will boost the company’s performance for the second half of 2024.
‘We’re definitely optimistic about the increase in the biodiesel blend from 2 percent to 3 percent, although that will only take effect Oct. 1,’ Lao said.
‘Even before the deadline or the date when the higher blend takes into effect, we already saw a lot of advance ordering from our customers because they wanted to be ready.’
Through the Department of Energy’s Circular 2024-05-0014, CME mix in all diesel fuel in the country should be at least 3 percent, to be gradually increased to 4
percent next year and to 5 percent after two years.
This policy promotes the use of cleaner energy, lower pump prices, and additional markets for local coconut farmers and biodiesel producers.
From January to June 2024, Chemrez’s income was down by 3 percent compared to the same period last year. However, in the second quarter of 2024 alone, it already posted a 3 percent growth versus the previous quarter and a 13 percent growth compared to Q2 2023.
Meanwhile, D and L also reported that its Batangas factory turned profitable in Q2 2024, which is ahead of schedule. This is the first time the Batangas plant posted a net profit of PHP149 million since it operated in July last year.
‘The second quarter of this year marks the turning point in our Batangas operations as it booked a quarterly profit for the first time since we started commercial operations in July 2023. As we further ramp up operations and onboard new customers, we see gradually increasing earnings contribution from this new plant over time,’ La
o said.
For the first half of the year, D and L earnings rose 6 percent to PHP1.3 billion from PHP1.24 billion in H1 2023.
‘While there are uncertainties in the near-term macroeconomic environment, we remain optimistic on the long-term prospects of our business. Our investments over the past couple of years are starting to bear fruit and we see higher and more sustainable growth coming from it. Moreover, our Batangas plant puts us in a very good position to capture opportunities not just in the Philippines, but globally,’ the D and L chief said.
Source: Philippines News Agency