Chemical manufacturer D and L Industries Inc. on Wednesday said its income narrowed 29 percent over nine months this year to P1.79 billion from last year’s P2.54 billion as a result of a tougher business environment, the lingering effects of high inflation and incremental expenses related to the commercial operations of its new Batangas plant.
Excluding the Batangas plant, which started operations in the third quarter, its income narrowed by 11 percent to P2.35 billion from last year’s P2.63 billion.
Company president Alvin Lao reported an 11 percent income growth in the third quarter to P866 million, which excludes Batangas plant. Its second-quarter income totaled P778 million.
Growth was driven by a rebound in high margin specialty products and commodity volumes which were up 11 percent and 23 percent quarter-on-quarter, respectively.
Lao said the new Batangas plant will allow the company to explore opportunities that were previously beyond its capabilities.
“With the new plant, we will open new markets, expand our range of higher value added products, and deepen innovations that will further push our boundaries. We are profoundly inspired by its potential and we are steadfast in our commitment to see it to fruition,” Lao said.
DNL targets export sales to account for at least 50 percent of total revenue in the long-term.
Lao also sees strong growth potential of the government plan to increase the coco-biodiesel blend by 50 percent to 3 percent from the current 2 percent.
DNL, through its subsidiary Chemrez, is a major player in the biodiesel industry.
The benefits of a higher biodiesel blend include lower pollution, import substitution, value adding of coconut oil, and mileage improvement.
