Petron Corp. remained profitable in the first nine months of 2026, but net income fell 44 percent to P5.4 billion as higher crude costs, freight, and import premiums squeezed margins amid a volatile oil market.
The country’s largest oil company recorded consolidated sales of 103.5 million barrels during the period, up 3 percent from a year earlier, including volumes from its Singapore-based regional trading arm, which grew 33 percent.
Retail sales provided much of the volume support, rising 16 percent in the Philippines and 2 percent in Malaysia. However, combined volumes in the two core markets fell 3 percent to 82 million barrels, mainly because of lower refinery production.
Revenue surged 56 percent to P928.2 billion, largely reflecting higher oil prices and increased sales. But the revenue gain did little for the bottom line as benchmark Dubai crude averaged USD92 per barrel in the first nine months, 29 percent higher than a year earlier.
Oil prices climbed sharply in the third quarter, with Dubai crude rising from an average of USD77 per barrel in July to USD114 in September, as geopolitical tensions disrupted regional trade routes and affected oil infrastructure.
Petron’s operating income consequently declined 28 percent to P19.1 billion as higher crude costs, import premiums and freight weighed on margins. Refining margins in Malaysia also weakened amid operational constraints caused by the continued unavailability of the Port Dickson product jetty.
Petron Malaysia is building a replacement jetty after the facility was damaged by Tropical Storm Senyar nearly a year ago. The replacement is targeted for commissioning in the first quarter of 2027, which could ease a key constraint on the Malaysian refining business.
Chairman and CEO Ramon S. Ang said Petron’s diversified operations, financial discipline and risk management were helping the company navigate external pressures while maintaining fuel security and competitiveness.
Petron is also expanding its retail and non-fuel businesses, including the recent opening of its fourth Treats convenience store at Ninoy Aquino International Airport, while continuing to optimize its refining, storage and distribution network.
Petron profit falls 44% as oil costs squeeze margins
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