Petron books P3.8B in H1 2026, down 27%

Petron Corporation saw a double-digit decline in its net income in the first six months of 2026.

In a statement on Tuesday, Petron said its net income stood at P3.8 billion, down 27% year-on-year.

The petroleum retailer and refiner said the net income decline is largely attributed to the

continued impact of geopolitical tensions in the Middle East, which pushed crude prices,

import premiums, and freight costs to record levels.

Petron said the global oil market remained highly volatile following the onset of the US-Iran conflict.

The company added that benchmark Dubai crude prices fell to $79 per barrel in June after peaking at $129 per barrel in March.

Despite the sharp decline, Dubai crude averaged $96 per barrel in the second quarter, up from $86 per barrel in the first quarter, it said.

As a result, Petron said Dubai crude averaged $91 per barrel in the first half of the year, up 27% a year ago.

It added that consolidated sales volume for the first six months rose by 6% to 67.9 million barrels driven by the 86% surge in the trading transactions by the company’s subsidiary in Singapore.

Petron said this more than offset the 6% decline in the combined sales volume of Petron’s operations in the Philippines and Malaysia which reached 52.9 million barrels during the period.

While the company’s retail fuel segment in the Philippines posted a strong 15% growth, the fuel retailer said its overall sales volume was affected by the decrease in refining output caused by the temporary production shutdown at the Port Dickson Refinery in Malaysia, as well as the scheduled first-quarter maintenance at the Petron Bataan Refinery in Limay.

Petron said its revenues jumped 57% to P605.9 billion in the first half compared to the same period last year on account of higher prices and sales volumes improvement.

However, the company said the higher cost of products sold, both from production and importation, as well as increased operating expenses, exerted pressure on the company’s margins, closing the first half with an operating income P12.6 billion, down 17% compared to the same period last year.

With the construction of the replacement jetty at Port Dickson Refinery already underway

and on track for commissioning in the first quarter of 2027, the company said it has begun limited and intermittent refining operations in Malaysia to process existing crude inventory to support product availability in the market.

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

Petron said it coco-methyl ester (CME) plant, with an annual capacity of 180,000 tons, in the Philippines is nearing completion.

The company added its facility situated within the Petron Bataan Refinery complex will provide a more reliable CME supply for the Philippines’ only remaining refiner.

Petron said it is also expanding the storage capacity of its terminals to improve supply reliability and operational efficiency.

Among those in the pipeline, the fuel retailer said it will build four new storage tanks in Limay, including one 25,000-barrel tank for jet-A1 and three CME storage facilities with a total capacity of 48,000 liters for completion by early 2028.

In Bacolod, Petron said its will construct a 1,500-MT LPG mounded tank and an LPG canister filling facility, both targeted for completion in the third quarter of 2028. — RSJ, GMA News