Petron Q1 profit plunges 56% to P1.8B
Petron Corp. reported a steep decline in its profit in the first three months of 2026 due to weaker production at its refineries, further hit by the Middle East turmoil.
The Philippines’ sole crude oil refiner said its net income had plunged by 56 percent to P1.8 billion from the year-ago P4 billion.
This was attributed mainly to reduced output at its facilities in the Philippines and Malaysia.
Petron said on Tuesday that the Port Dickson Refinery in Malaysia has been on shutdown since late 2025 due to storm damage. Its refinery in Bataan, meanwhile, went through maintenance activities during the period.
Further weighing down Petron’s performance was the supply disruption caused by bombing attacks in the Middle East, which has led to soaring fuel prices.
Based on government data, up to 98 percent of the country’s crude oil imports come from the Middle East, with the remaining 2 percent sourced from its neighbors.
Petron posted a 27-percent improvement in revenues to P246 billion, but operating income decreased by 36 percent to P6.1 billion. This was due to higher fuel costs and reduced refinery output, squeezing its margins.
In the first quarter, Dubai crude averaged at $86 per barrel, 12 percent up from a year ago.
The firm said that, following the attacks of the United States and Israel against Iran that started on Feb. 28, Dubai crude immediately surged to $129 per barrel in March from $68 in February.
“The geopolitical developments in the Middle East have presented severe supply disruptions in our industry. As we work to manage its impact on our business, our main priority has been to secure an adequate fuel supply and make sure we can continue to meet the demand,” Petron president and CEO Ramon Ang said in a statement.
“We know these are uncertain times, and we are committed to doing everything we can to sustain our operation and keep the economy moving. As the Philippines’ sole remaining oil refiner, we recognize our responsibility to help address the nation’s fuel challenges,” Ang added.
Late in March, Petron said it had acquired 2.48 million barrels of crude oil from Russia to boost its stockpile until June of this year.
The company said pursuing additional crude oil shipments from Russia remained on the table if supply uncertainty persisted.
