Petron reports P3.8-B net income in H1 2026
Company revenue is up by 57 percent
MANILA: Local petroleum player Petron posted a net income of P3.8 billion in the first half of 2026.
KEY TAKEAWAYS
How did Petron perform financially in the first half of 2026 compared to the previous year?
Petron posted a net income of P3.8 billion for the first half of 2026, which is 27 percent lower than the same period in 2025.Why did Petron’s net profit decrease despite the significant rise in revenue?
Per Petron, the profit squeeze was mainly caused by geopolitical tensions, higher operating and product costs, as well as refining output distributions.According to one of the country’s industry leaders, the said figure is 27 percent lower than its net profit in the same period last year.
The company cited the continued impact of geopolitical tensions in the Middle East — which pushed crude prices, import premiums, and freight costs to record levels — as one of the main reasons for its reduced profit.
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Increased revenues
Despite reporting a net income lower than what the company achieved from January to June of 2025, Petron still enjoyed increased revenue.
Per the petroleum company its earnings jumped by 57 percent 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.
As such, Petron closed the first half with an operating income P12.6 billion, down 17 percent compared to the same period last year.
Other ups and downs
Petron shared that the first half of 2026 was quite challenging.
Dubai crude prices dropped in June after peaking in March. But due to increased prices in the second quarter, Dubai crude averaged 27 percent higher than its going price in the first half of 2025.
In addition, the company’s consolidated sales rose by six percent, driven by the 86 percent surge in the trading transactions by Petron’s subsidiary in Singapore. It shared that the increase more than offset the six percent decline in the combined sales volume of its operations in the Philippines and Malaysia.
While Petron’s retail fuel segment in the Philippines posted a strong 15 percent 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.
However, construction of the replacement jetty at Port Dickson Refinery is already underway and on track for commissioning in the first quarter of 2027, which means that the company was able to commence limited and intermittent refining operations in Malaysia to process existing crude inventory to support product availability in the market.
Moreover, Petron’s coco-methyl ester plant in the Philippines is nearing completion and will provide a more reliable supply for the Philippines’ only remaining refiner.
Petron 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, as well as liquefied petroleum gas facilities in Bacolod.
“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,” Petron Chairman and Chief Executive Officer Ramon Ang was quoted as saying.
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