Cagayan de Oro Oil Co., Inc.’s oil mill located at Tablon, Cagayan de Oro is expected to get major boost as the Coconut Industry Investment Fund (CIIF) Oil Mills Group is investing P250 million for the purchase of 7 power generator sets to provide the 15-megawatt power requirement for its four oil refineries in Mindanao.
“We need this to ensure continuous production in our plants since Mindanao is badly hit by the worsening power crisis in the region,” Jesus L. Arranza, president and chief executive of the CIIF Oil Mills Group said.
The CIIF Group is targetting an annual operating income of P160 million. The first quarter income was estimated at P42 million, which is well within the target.
Accordingly, the big factor for the target operating income is the sustainability of the company’s P398-million capital expenditures for the year.
Money will be used to repair equipment and buy new ones for coconut oil mills in Davao, Cagayan de Oro and Iligan. Chief Finance Officer Tony Felipe said the operating income recorded in the first quarter of the year is a big turnaround from a “negative” last year. The negative operating income during the first quarter of last year was attributed to low supply of copra.
Aside from Cagayan de Oro Oil Co., Inc. the CIIF Group also includes Legaspi Oil Company, Inc. , San Pablo Manufacturing Corporation, Southern Luzon Coconut Oil Mill, Inc., and Granexport Manufacturing Corporation (Iligan).
Its local brand “MINOLA” coconut edible oil dominates the consumer pack market segment with overall leadership in the Philippine edible oil business.