I was watching the public news station on channel 4 and was able to catch some news regarding SeaOil. Because of the passage of the 2006 Philippine Biofuels Act into Law they are now going ahead with their expansion. Their current depot which has a capacity of 20 Million liters will be expanded to 60 Million.
In order to fund this expansion they are setting for an IPO this year.
SeaOil is one of the small oil marketers in the Philippines but one of the first to offer biofuel blended gasoline at the pumps. With the passage of the biofuel bill, this will call for a mandatory 5% mixture of ethanol in gasoline for the first four years and 1% biodiesel in Petrodiesel for the first 2 years. These mandatory blending percentage will amount to a $167 million savings annually for the Philippines.
Since biofuel blenders won’t be VAT taxed for the purchase of biofuel feedstock and selling of blended products, this could equate to larger profits for them. Because of this, I’m tempted to buy some stocks of SeaOil myself.
Category: Bioethanol
February 7th, 2007 at 12:22 am
[…] Hot in the heels of SeaOil’s announcement that they are expanding their storage areas to accomodate more biofuels. Chemrez, a manufacturer of biodiesel, announced that they too are expanding their facilities in anticipation of the implementation of the Biofuel Act of 2006 by April 2007. […]