Petron Corp reported a 27% decline in first‑half net income, falling to P3.8 billion. The drop came despite a 57% increase in revenue.
Revenue rose to P605.9 billion, driven by higher fuel prices and stronger sales volume. The growth reflected a rebound in the company's core operations.
Higher crude oil prices, linked to ongoing conflict in the Middle East, lifted production and import costs. These cost pressures squeezed profit margins. Operating expenses also rose, offsetting the revenue gains.
Dubai crude averaged $91 per barrel during the period, up 27% from a year earlier. The price surge kept global oil markets volatile.
Company leadership highlighted confidence in financial discipline and operational resilience to navigate the temporary headwinds. The focus remains on ensuring fuel security and meeting national demand.
Consolidated sales volume increased 6% to 67.9 million barrels. The growth was largely driven by higher trading volumes at the Singapore subsidiary. This uplift helped offset weaker performance elsewhere.
Combined sales volume in the Philippines and Malaysia fell 6% to 52.9 million barrels. The decline was partly offset by a 15% rise in Philippine retail fuel sales. Overall sales were pressured by reduced refining output.
Refining capacity was constrained by the temporary shutdown of the Port Dickson refinery in Malaysia and scheduled first‑quarter maintenance at the Bataan refinery in Limay. These disruptions limited the company's ability to process crude. The firm has begun limited refining in Malaysia to handle existing inventory.
A new jetty at the Port Dickson refinery is being replaced, with full commissioning targeted for the first quarter of 2027. The infrastructure upgrade aims to restore full processing capability. The company expects the facility to resume normal operations thereafter.
The cocoa‑methyl ester (CME) plant at the Bataan refinery is nearing completion. Once operational, it will have an annual capacity of 180,000 tons, providing a stable CME supply.
Construction is also under way for a 1,500‑metric‑ton LPG storage tank and an LPG canister filling facility in Bacolod. Both projects are slated for completion in the third quarter of 2028.
Petron Corp's shares fell 0.42%, or one centavo, to P2.38 per share. The modest decline reflected investor reaction to the earnings report.
