Manila: An official of publicly listed D and L Industries Inc. on Monday expressed optimism about the company's operations in the coming months, citing the decline in crude oil prices from record highs seen when the Middle East crisis began. During an online briefing, D and L president and chief executive officer Alvin Lao said crude oil prices are now at around USD95 per barrel, down from about USD120 per barrel a few months ago.

According to Philippines News Agency, coconut prices have also declined by around 30 percent to about USD2,100 per ton from roughly USD3,000 per ton in August 2025. Lao explained that coconut oil accounts for around 39 percent of the company's raw material requirements. He said the decline in the prices of both raw materials benefits the listed firm's non-food business and helps offset higher costs for its food-related operations.

'It's hard to predict, but I think the worst is over with a lower price of crude oil,' he said, when asked about his outlook for the business in light of movements in fuel and coconut prices. 'Thankfully we have our non-food side, which was up by a lot, and that growth more than offset the weakness or drop in the food side,' he added.

Lao noted that because the bulk of the company's customers are engaged in the manufacture of plastics, packaging, and construction materials such as paints, these businesses have been stocking up on more raw materials than usual due to concerns over potential supply disruptions arising from the ongoing conflict in the Middle East. He added that these manufacturers generally enjoy high margins on their products, allowing them to absorb higher costs without affecting their production volumes.

Citing the ongoing shift toward electric vehicles, Lao said D and L, which supplies biodiesel, has not been significantly affected by any decline in demand. He explained that the impact on biodiesel demand has been negligible because diesel is used primarily by public transportation and freight trucks, while private vehicles account for only a small portion of the market.