Petron Reports 27% Drop in First-Half Net Income Amid Rising Oil Prices

Petron Corporation, the Philippines' largest oil refiner and retailer, announced a 27% decline in its net income for the first half of 2026, amounting to PHP 3.8 billion (approximately USD 68 million), down from PHP 5.3 billion (around USD 95 million) in the same period last year. This decrease is largely attributed to the ongoing geopolitical tensions in the Middle East, which have significantly impacted crude oil prices and operational costs.

In a statement released on August 1, Petron reported that its revenues surged by 57% to PHP 605.9 billion (about USD 10.8 billion), primarily driven by higher fuel prices and improved sales volumes. The average price of Dubai crude oil averaged USD 91 per barrel in the first half, reflecting a 27% increase from the previous year. However, the company faced squeezed margins due to rising production and import costs, which outpaced revenue growth, resulting in an operating income of PHP 12.6 billion (approximately USD 224 million), a 17% decline year-on-year.

“While the first half of the year has been challenging, we are confident that our financial discipline, operational resilience, and competitive strengths will enable us to navigate these temporary headwinds.”Ramon S. Ang, Chairman and CEO

Petron's consolidated sales volume increased by 6% to 67.9 million barrels, bolstered by an 86% rise in trading transactions from its subsidiary in Singapore. Despite a 15% growth in retail fuel sales in the Philippines, overall sales were adversely affected by a 6% decline in combined sales from its operations in the Philippines and Malaysia, totaling 52.9 million barrels. This decline was attributed to a temporary shutdown at the Port Dickson Refinery in Malaysia and scheduled maintenance at the Petron Bataan Refinery in Limay.

Petron has initiated limited refining operations in Malaysia to manage existing crude inventories while repairs are underway at the Port Dickson facility, which is expected to be commissioned in the first quarter of 2027. The company is also nearing completion of its coco-methyl ester (CME) plant at the Bataan refinery, which will have an annual capacity of 180,000 tons.

“We remain focused on delivering on our commitment to ensure fuel security and meet the nation’s fuel demand amid the continued market volatility.”Ramon S. Ang, Chairman and CEO

In addition, Petron is expanding its storage capacity with the construction of new facilities, including a 1,500-metric-ton liquefied petroleum gas (LPG) mounded tank and an LPG canister filling facility in Bacolod, both targeted for completion in the third quarter of 2028.

Petron shares closed at PHP 2.38 (approximately USD 0.04) on Tuesday, reflecting a slight decrease of 0.42%.