August 05, 2022
RHI Completes its Stand-Alone Refinery Project
MANILA, PHILIPPINES – Listed sugar and ethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) today reported the Group’s improved performance, after completion of the stand-alone refinery project at Central Azucarera Don Pedro, Inc. (CADP) plant in Batangas.
The Chairman Pedro E. Roxas stated that, “out of 12 refineries in the Philippines operating this crop year, CADP is now the lone refinery continuously producing refined sugar for the industrial and consumer markets beyond the sugarcane harvest season that ended in May. This shows that refining can be achieved year-round to add value to raw sugar produced by the millers and famers across the Philippines. The fundamentals to recovery have been set, and gains brought from this pivotal project on the refinery will be more significantly realized in the near-term, with the expected increase in refined sugar production and in tolling agreements with customers.” Earlier on, CADP embarked on a strategy to maximize refinery production through expanding its fuel sources, thus de-coupling from its milling operations and the limited availability of mill-generated bagasse used as fuel.
As the entire sugar industry grapples with the decline in local sugar production by around 17% this year brought about by unfavorable weather conditions, this early, planters and millers have expressed their intention to mill ahead this August as compared with the usual start of September. This is seen to address the tightness in sugar supply, particularly on refined sugar.
President and CEO, Mr. Celso T. Dimarucut, stated that “with a projected earlier start of milling for the other mills, CADP can be ensured of ample supply of raw sugar for its sustained refinery operations. This crop year, CADP is set to produce an estimate of 2.7Mn LKG bags (equivalent of 50 kg. bags) of refined sugar, and is poised to reach maximized capacity of 5.0Mn LKG bags next crop year. This emboldened step towards a stand-alone refinery will also be beneficial for the other stakeholders, as RHI plays its role in helping the Government ensure sustainable supply of quality refined sugar and decrease our country’s refined sugar importation. Likewise, it will enable the other millers to value-add to their raw sugar output through partnerships with CADP.” Over the years, CADP has built its brand and reputation in the market for its refined sugar, having passed the most stringent scrutiny of multinational customers and obtaining certifications from independent agencies. “We shall continue to leverage on this leader-advantage as well as the strategic location of CADP enabling it to service most of the industrial customers in the key manufacturing hubs in Southern Luzon and Metro Manila,” he added.
Overall, RHI narrowed the Group’s net loss for the nine months ended 30 June 2022 to PhP596 million compared to a net loss of PhP727 million in the prior period.
RHI remain focused on unlocking profit and addressing the various factors causing volatility and higher costs in the Group, including its ethanol plant in Negros. Previous manpower right-sizing and terming-out of loans have resulted in decreases in operating expenses and interest expenses, and these are constantly being reviewed. ?
RHI is listed in the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph