Petron Corporation, one of the leading oil companies in the Philippines, announced that it earned P3.8 billion in net income during the first six months of 2026, according to their media release dated August 4, 2026. This profit is 27% lower compared to what they made during the same period last year.

Why Did Profits Go Down?

The main reason for the lower earnings was the trouble happening in the Middle East, particularly conflicts involving the US and Iran. Think of it like this: when there’s fighting in areas where oil comes from, it becomes harder and more expensive to get that oil. This pushed up the prices of crude oil (the raw material used to make gasoline and other fuel products), as well as the costs of shipping and importing oil.

The price of Dubai crude oil (a type of oil used as a benchmark or reference price) went on a wild ride during this period. It jumped to as high as US$129 per barrel in March, then fell to US$79 per barrel by June. On average, Dubai crude cost US$91 per barrel in the first half of 2026 – that’s 27% more expensive than the same period in 2025.

Sales Volume Increased

Despite the challenges, Petron actually sold more fuel overall. Their total consolidated sales volume grew by 6% to 67.9 million barrels in the first six months. This increase was mainly because their subsidiary company in Singapore did 86% more trading transactions.

However, when looking at just their Philippine and Malaysian operations combined, sales actually went down by 6% to 52.9 million barrels. This was because they had to temporarily stop production at their Port Dickson Refinery in Malaysia, and they also had scheduled maintenance work at their Petron Bataan Refinery in Limay during the first quarter.

On a positive note, Petron’s retail fuel stations in the Philippines performed very well, with sales growing by 15%.

Revenue vs. Expenses

Petron’s total revenues (the money coming in from sales) jumped significantly by 57% to P605.9 billion in the first half of 2026 compared to last year. This was because both prices and sales volumes were higher.

However, making money isn’t just about how much you sell – it’s also about how much it costs you to make and sell your products. Unfortunately for Petron, the cost of producing and importing their products went up a lot, and their operating expenses also increased. These higher costs squeezed their profit margins. Their operating income (profit from their main business operations) ended up at P12.6 billion, which is 17% lower than the same period last year.

What’s Petron Doing About It?

According to Petron Chairman and CEO Ramon S. Ang, the company is working on getting back on track. They’ve already started building a replacement jetty (a structure where ships dock to load and unload) at their Port Dickson Refinery in Malaysia, which should be ready by the first quarter of 2027. In the meantime, they’ve begun limited refining operations there to process their existing crude oil inventory.

Ang stated that despite the challenges, Petron is confident they can handle these temporary problems through financial discipline, operational resilience, and their competitive strengths. The company remains committed to ensuring fuel security and meeting the nation’s fuel demand.

Future Projects

Petron is also working on several expansion projects:

• CME Plant: Their coco-methyl ester (CME) plant in the Philippines is almost finished. This facility, located within the Petron Bataan Refinery complex, can produce 180,000 tons per year and will provide a more reliable supply of CME for the Philippines’ only remaining refiner.
• Storage Expansion in Limay: Petron plans to build four new storage tanks – one 25,000-barrel tank for jet-A1 fuel (airplane fuel) and three CME storage facilities that can hold a total of 48,000 liters. These are expected to be completed by early 2028.
• Facilities in Bacolod: The company will construct a 1,500-metric ton LPG mounded tank and an LPG canister filling facility, both scheduled for completion in the third quarter of 2028.

These expansion projects show that Petron is preparing for future growth and working to improve their ability to supply fuel reliably and efficiently despite current market challenges.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.