PETRON Corp. on Tuesday reported a net income of P1.80 billion for the first quarter, down 56 percent from P4.0 billion a year earlier and attributed to lower output at refineries in the Philippines and Malaysia.
In a disclosure, the oil firm said the earnings decline was also due in part to the impact of the war in the Middle East, which affected supply chains and operating costs.
It said revenues rose to P246 billion in the first three months of 2026, from P194.38 billion a year earlier, but operating income dropped 36 percent to P6.10 billion from P9.47 billion.
Petron blamed higher production costs with the absence of refinery production in Malaysia and reduced output in the Philippines.
“The geopolitical developments in the Middle East have presented severe supply disruptions in our industry,” Petron President and CEO Ramon Ang said.
“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,” he added.
Petron said its Port Dickson refinery in Malaysia had been shut since November last year after a tropical storm damaged a jetty, while a refinery in Limay, Bataan, had completed scheduled maintenance activities.
The company noted that the US-Israel war with Iran had significantly cut crude and petroleum product flows from the Middle East.
It added that benchmark Dubai crude soared to $129 per barrel in March, almost double the $68 per barrel price in February.
For the first quarter, Dubai crude averaged $86 per barrel, 12 percent higher compared to the same period last year.
Excluding trading transactions from the company’s operations in Singapore, Petron said it sold 25.7 million barrels in the Philippines and Malaysia, 7 percent lower than the year-earlier 27.6 million barrels as a result of lower production.
The company said it deliberately reduced fuel exports to sustain the growth in the Philippine retail and commercial segments.
In response to the current situation, Petron said it had adopted strict cost-saving and efficiency measures while trying to sustain operations to meet demand.
Petron shares on Tuesday went down by P0.12, or 4.18 percent, to close at P2.75 apiece.
