MANILA - Biodiesel producer Chemrez Technologies Inc. (ChemrezTech) has declared P119 million in cash dividends to shareholders after the company reported strong profits with the implementation of the Biofuels law.

In a disclosure to the Philippine Stock Exchange (PSE) Monday, ChemrezTech said its board has approved a regular cash dividend of P0.06 per share and a special cash dividend of P0.03 per share.

The dividends, totaling P0.09 per share, are equivalent to 32 percent of the company’s net income of P372 million in 2008. All stockholders of record as of July 6, 2009 are entitled to the cash dividends, which are payable on July 30.

"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," said ChemrezTech chief finance officer Alvin Lao.

ChemrezTech’s board has consistently been declaring cash and stock dividends since 2001. According to PSE records, ChemrezTech’s dividend payout ratio amounted to 33 percent based on the P0.275 weighted earnings per share last year.

Lao noted that this year’s payout reflects the full year impact of ChemrezTech’s substantial entry into the wholesale biodiesel market which resulted from 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 P96.0 million registered in the same period last year mainly on account of higher oleochemical and biodiesel sales.

Consolidated revenues during the period reached P1.15 billion, up by 7.7 percent from the P1.07 billion recorded in 2008.

The bulk of revenue growth was attributed to the domestic market as demand for coco-biodiesel surged, driven by the step-up in local biodiesel blend requirements from 1 percent to 2 percent last February 6.

However, gains from the strong volume growth for coco-biodiesel was partially dampened by the softening of its prices because of much lower coconut feedstock costs and a more competitive market environment.