MidEast war weighs down on Petron’s first-half earnings     

Petron Corp. posted a 27-percent drop in its bottom line in the first semester as the hostilities in the Middle East drove up costs.

The company led by billionaire Ramon Ang, reported on Tuesday that its net income took a toll from the monthslong war in the oil-producing region. Its profit declined to P3.8 billion from P5.3 billion in the same period last year.

Its revenues surged by 57 percent to P605.9 billion in the January to June period on the back of stronger prices and sales volume improvement. But the higher cost of products sold, both from production and importation, coupled with an increase in operating expenses, took a chunk from its margins.

This led to a 17-percent drop in the operating income, which registered at P12.6 billion.

Crude oil prices, import premiums and freight costs all reached “record levels,” the Philippines’ only oil refiner said in a statement.

Although the benchmark Dubai crude prices had a sharp drop to $79 per barrel in June following a peak of $129 per barrel last March—the first month of the Middle East war—prices still averaged $91 per barrel in the first half of 2026. This was a 27-percent jump from a year earlier.

Meanwhile, consolidated sales volume went up by 6 percent to 67.9 million barrels, thanks to the robust trading transactions by its subsidiary in Singapore.

However, Petron’s combined sales volume in the Philippines and Malaysia decreased by 6 percent to 52.9 million barrels.

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Overall sales were weaker due to a drop in refining output blamed on the temporary shutdown of its refinery in Malaysia and the scheduled maintenance of the Bataan facility.

“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 Ang said.

“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.