Petron profit falls 44% to 5.4 billion pesos despite 56% revenue jump
Key Facts
Petron’s net income fell 44% to 5.4 billion pesos in the first nine months of 2026, from 9.7 billion pesos in the same period a year earlier, BILYONARYO Business reported. The profit decline came despite a 56% increase in consolidated revenue to 928.2 billion pesos. The company attributed revenue growth to higher global oil prices and increased sales volumes. But the higher revenue did not translate into higher net income, coinciding with rising supply costs and pressure on refining operations. The divergence between revenue and profit highlights the impact of higher crude prices and operating costs on a company that combines refining, trading and fuel sales.
Operating income fell 28% to 19.1 billion pesos during the period, as higher import premiums and shipping costs eroded profitability, according to the report. Dubai crude averaged $92 a barrel in the first nine months, up 29% year on year. During the same period, the average price of crude rose from $77 a barrel in July to $114 in September, according to figures reported by BILYONARYO Business. The rise in crude prices coincided with disruption to regional oil trade and threats to key shipping routes from the conflict in the Middle East, adding to market volatility in the third quarter. Petron had reported first-half net income of 3.8 billion pesos, down 27% from the corresponding period, while revenue rose 57% to 605.9 billion pesos and operating income fell 17% to 12.6 billion pesos.
Petron’s consolidated sales volume rose 3% to 103.5 million barrels in the first nine months, supported by 33% growth in trading operations in Singapore. At retail, sales increased 16% in the Philippines and 2% in Malaysia. However, combined volumes in the two markets fell 3% to 82 million barrels as refining output declined. The figures show a divergence between growth in retail sales and trading on one hand, and a contraction in total volumes across the company’s two main markets on the other. Revenue growth was therefore not driven by uniform expansion across all markets or sales channels.
In Malaysia, refining margins declined after operational restrictions tied to the product jetty at the Port Dickson refinery, which was damaged during Tropical Storm Senyar. The restrictions affected refining output, while nine-month data showed a decline in combined volumes in the Philippines and Malaysia. Petron said in August that operation of the replacement jetty at Port Dickson was still targeted for the first quarter of 2027, and that it had begun limited, intermittent refining operations in Malaysia. The replacement jetty is expected to begin operating in the first quarter of 2027, according to coverage of the results. The timeline is a milestone to watch for Malaysia operations affected by the jetty restrictions and refining output.
Chairman and Chief Executive Ramon Ang said, "Our diversified portfolio, financial discipline and strong risk management give us the flexibility needed to navigate these challenging times." The statement came as operating and net income declined alongside higher revenue and crude prices. The company’s explanation of the results combines sales growth with pressure from import premiums and shipping costs and lower refining output. The third quarter was also marked by increased market volatility, with regional oil trade disrupted and key shipping routes threatened by the conflict in the Middle East. Attention in Malaysia is on the replacement jetty at Port Dickson beginning operations in the first quarter of 2027.