Industry leader Petron Corporation posted a net income of P3.8 billion for the first half of 2026, 27% lower than the same period last year. The 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.
The global oil market remained highly volatile following the onset of the US-Iran conflict. The benchmark Dubai crude prices fell to US$79 per barrel in June after peaking at US$129 per barrel in March. Despite the sharp decline, Dubai crude averaged US$96 per barrel in the second quarter, up from US$86 per barrel in the first quarter. As a result, Dubai crude averaged US$91 per barrel in the first half of the year, a 27% increase from the same period in 2025.
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. 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, 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’s 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 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 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 S. Ang.
Petron’s coco-methyl ester (CME) plant, with an annual capacity of 180,000 tons, in the Philippines is nearing completion. The facility situated within the Petron Bataan Refinery complex will provide a more reliable CME supply for the Philippines’ only remaining refiner. The company is also expanding the storage capacity of its terminals to improve supply reliability and operational efficiency. Among those in the pipeline, the company 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 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.