Petron first half 2026 profit pressured as high oil costs outweigh revenue surge

Insider Spotlight

• A 57 percent jump in revenue usually means a banner period. For Petron, it still translated into lower profits because costs rose even faster.
• The numbers suggest the Singapore trading business is becoming increasingly important, cushioning the impact of refinery disruptions elsewhere in the group.
• Investors should watch the Malaysia refinery. A return to normal operations could do more for earnings than another spike in oil prices.

San Miguel Corp.-backed Petron Corp. reported lower first-half earnings despite a sharp jump in revenue, as higher crude prices, import costs and freight rates squeezed refining margins.

Net income fell 27 percent to P3.8 billion in the six months ended June even as revenue climbed 57 percent to P605.9 billion, reflecting higher oil prices and improved sales volumes.

The contrasting results underscore the economics of the oil business: while higher crude prices lifted the value of every barrel sold, they also drove up production and import costs faster than Petron could recover them, pulling operating income down 17 percent to P12.6 billion.

Ramon S. Ang 

Petron chair, CEO 

Management’s view

“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,” Petron chair and CEO Ramon S. Ang said in a statement on Tuesday. 

“We remain focused on delivering on our commitment to ensure fuel security and meet the nation’s fuel demand amid the continued market volatility,” he added. 

Key figures

• Consolidated sales volumes rose 6 percent to 67.9 million barrels.
• An 86 percent surge in Singapore trading more than offset weaker refining operations in the Philippines and Malaysia.
• Combined sales volumes in the Philippines and Malaysia fell 6 percent after refinery maintenance in Bataan and a temporary shutdown in Port Dickson.
• Philippine retail fuel sales bucked the trend, with volumes growing 15 percent during the first half.

Expansion continues

The company has resumed limited refining operations at Port Dickson while construction of a replacement jetty remains on track for completion in the first quarter of 2027.

Petron is also nearing completion of its coco-methyl ester plant at the Bataan refinery and expanding storage facilities in Limay and Bacolod as it strengthens fuel supply and distribution capacity.

—Edited by Miguel R. Camus