Listed oleochemicals and specialty plastics producer D&L Industries, Inc. said it is cautiously optimistic about its prospects for 2027, citing recent movements in oil prices and the Philippine peso, as well as expectations of easing geopolitical tensions.

"The good news, it looks like, after the blue tsunami at the US midterm elections, there's finally a light at the end of the tunnel of when the war with Iran might end," D&L President and Chief Executive Officer Alvin D. Lao said in a media statement on Sunday.

According to Mr. Lao, Brent crude oil prices had fallen by around 20% during the previous week, while the peso had also strengthened against the dollar.

"So there are a lot of reasons to be optimistic about next year… But you never know, we cannot relax yet," he said.

Brent crude futures ended last week about 13% lower, amid market expectations of a possible easing of the conflict involving the United States and Iran. The peso, meanwhile, closed at P63.055 against the dollar on Friday, slightly weaker than its P62.97 finish on Thursday. The local currency had earlier weakened to a record low of P64.17 against the dollar on Oct. 27.

Oil and exchange-rate swings are among the most closely watched cost signals for manufacturers like D&L, whose inputs trade in global markets.

Commodity and Geopolitical Risks Persist

Despite the recent developments, Mr. Lao said the industry remained exposed to volatility in commodity markets and geopolitical uncertainties. He cited raw materials such as ethylene, helium, aluminum, and urea, whose supply and prices could be affected by disruptions in global markets.

"The reality is, even if the war ends, for a lot of raw materials, a lot of these manufacturing plants in the Middle East were (already) destroyed. Those plants will take years to rebuild," he said. By that reckoning, supply relief for such inputs would trail any end to hostilities by years.

First-Half Earnings Up on Margins, Food Ingredients Recovery

D&L reported an 8% increase in net income to P1.5 billion in the first half of 2026 from P1.4 billion in the same period last year, supported by improved margins in its specialty products business and a recovery in its food ingredients segment. Consolidated revenues for the January-to-June period rose 0.6% to P26.77 billion from P26.61 billion a year earlier. Margin expansion is also the lever behind the company's continued research-and-development push into higher-margin products.

Mr. Lao also cited the potential impact on businesses of drier conditions associated with El Niño, adding to uncertainties surrounding the operating environment. He said spending related to the 2028 Philippine presidential election could provide additional support to business activity beginning in the second half of 2027. Between now and then, the signposts to watch include the pace of Middle East plant rebuilding, the direction of oil and the peso, and how El Niño develops.

"So, there are a lot of reasons to think that things will hopefully get better. But you never know. This is the Philippines," he said.

R&D and Export Push

D&L will continue investing in research and development to introduce new, higher-margin products and attract customers, Mr. Lao said. The company also plans to expand its overseas customer base to boost exports and increase utilization of the additional production capacity at its Batangas manufacturing facility.

— Ashley Erika O. Jose

Source: BusinessWorld