Industry leader Petron Corporation sustained profitability amid rising costs and external headwinds, stemming from ongoing geopolitical tensions in the Middle East, as the company posted a net income of P5.4 billion for the first nine months of 2026, albeit down 44% from the same period last year.
The Philippines’ largest oil company, with an extensive presence in Malaysia, continued to navigate market volatility, as the US-Iran war disrupted regional oil trade flows and weighed on the global economy in the third quarter. The benchmark Dubai crude rebounded sharply from an average of US$77 per barrel in July to US$114 in September, bringing its average price for the first nine months to US$92 per barrel, up 29% year-on-year, largely due to threats on critical shipping routes and damage to key oil infrastructure across the Middle East.
Including sales from its Singapore-based regional trading arm, which grew 33% during the nine-month period, Petron’s consolidated sales volume rose 3% to 103.5 million barrels. Growth was supported by stronger retail sales in both the Philippines and Malaysia, registering a 16% and 2% improvement, respectively. Meanwhile, combined sales volume in these two markets declined 3% to 82 million barrels, attributable to reduced refinery production.
Revenues rose 56% to P928.2 billion for the first nine months, driven by higher oil prices and increased sales volume. However, margins remained under pressure from rising crude costs, import premiums, and freight amid escalating tensions in the Middle East. This was further compounded by the reduction in refining margins in Malaysia, reflecting refinery operational constraints resulting from the continued unavailability of the Port Dickson’s product jetty. As a result, Petron’s operating income declined 28% year-on-year to P19.1 billion.
Despite these challenges, Petron Malaysia remains on track to complete construction of its replacement product jetty, which was damaged almost a year ago during Tropical Storm Senyar. The project is targeted to be commissioned in the first quarter of next year.
“Our diversified portfolio, financial discipline, and robust risk management equip us with the resilience needed to navigate these challenging times, while still keeping our business viable and competitive. Despite external pressures, our commitment to help ensure fuel security, meet the needs of our customers, and fulfill our responsibility as the nation’s energy backbone remains strong and unwavering,” said Petron Chairman and CEO Ramon S. Ang.
The company remains focused on driving sustainable growth through its strategic retail expansion, aggressive customer acquisition, and the continued optimization of its refining, storage, and distribution facilities. Strengthening the business beyond its core operations, Petron recently opened its fourth Treats convenience store at the Ninoy Aquino International Airport (NAIA) in line with the consistent expansion of its non-fuel business. Across the company, these growth efforts are met with equally deliberate initiatives to increase operational efficiency, reinforce sustainability, and mitigate business risks amid a particularly precarious industry environment.