Mideast war drags Petron Q1 profit

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May 6, 2026 | 12:00am

MANILA, Philippines — After a record-breaking 2025, oil giant Petron Corp. saw its earnings fall in the first quarter as refinery output in the Philippines and Malaysia declined amid the ongoing Middle East crisis.

The country’s only remaining oil refiner reported a net income of P1.8 billion in the first three months, marking a steep 56-percent drop from the previous year’s P4 billion.

Operating income plunged by 36 percent year-on-year to P6.1 billion, with margins coming under pressure from higher costs and lower production.

On the other hand, revenues increased by 27 percent to P246 billion from P194.38 billion.

“The geopolitical developments in the Middle East have presented severe supply disruptions in our industry,” Petron president and CEO Ramon Ang said yesterday.

“As we work to manage its impact on our business, our main priority has been to secure adequate fuel supply and make sure we can continue to meet the demand,” Ang added.

In Malaysia, Petron’s Port Dickson Refinery has been shut since November 2025 after its product jetty was damaged by a typhoon. The company has activated its business continuity plan while repairs continue.

The Petron Bataan Refinery in the Philippines, meanwhile, completed scheduled maintenance during the quarter.

The disruption to Petron’s refineries has been further exacerbated by the outbreak of the US-Israel war with Iran, which has intensified global supply chain pressures.

Global energy markets continue to be volatile amid restricted maritime traffic in the Strait of Hormuz, a vital chokepoint that typically carries around 20 percent of the world’s oil and gas supplies.

To augment the country’s existing fuel buffer and avert potential supply shortages, Petron has procured 2.48 million barrels of Russian oil.

This comes after the company’s initial shipments could not pass safely through the strait.

In response to the current situation, the country’s largest oil firm has also implemented strict cost-saving and efficiency measures while trying to sustain operations and meet product demand.

In 2025, Petron delivered record high earnings of P15.6 billion.