Singapore (Platts)--13Apr2008

The introduction of a biodiesel consumption mandate in the Philippines
last year helped boost revenues at local biodiesel producer Chemrez by a total
of 62% in 2007, the Manila-listed producer of coconut-based biodiesel and
other oleo-chemical products said over the weekend.
In a statement filed with the Philippines Stock Exchange, Chemrez said it
generated net after-tax earnings of Philippine Peso 480.6 million ($11.45
million) on revenues of Peso 2.34 billion ($55.72 million). These figures were
up 409% and 62% from 2006, respectively.
"The record performance of the Philippine economy in 2007 and the
implementation of the mandated 1% biodiesel blend under the Biofuels Act of
2006 were the key revenue enhancers for the company," Chemrez said.
Oleo-chemical and biopetroleum products, which include coco-biodiesel,
contributed 36% of consolidated revenues. Resins group and powder coatings
made up for the rest.
Oil suppliers in the Philippines switched their diesel supply nationwide
to a 1% biodiesel blend on May 6 last year. The Philippines consumes about 40
million barrels of gasoil a year, pointing to about 60 million liters of
annual coco-biodiesel demand (1,034 b/d).
Existing coco-biodiesel production capacity in the country is 140 million
liters/year (2,400 b/d) from two major companies alone -- Chemrez and Senbel
Fine Chemicals.
Chemrez is said to supply about two-thirds of the coco-biodiesel used
by local major oil companies. The company runs a "continuous process" methyl
ester plant inaugurated in May 2006 in Quezon City near Manila, with a
production capacity of 60,000 mt/year (about 1,176 b/d).
--Dave Ernsberger, dave_ernsberger@platts.com