Petron Corp. experienced a sharp decline in its net income for the first quarter of 2026, reporting only P1.8 billion, a 56% decrease from P4 billion in the same period last year.
The drop in earnings is largely due to reduced production at its refineries, exacerbated by the ongoing geopolitical situation in the Middle East.
In a statement, Petron indicated that its facilities in both Malaysia and the Philippines operated below full capacity, impacted by scheduled maintenance and damage from a recent tropical storm.
Additionally, the conflict in the Middle East has caused significant supply disruptions, leading to increased fuel prices, which further affected the company's performance.
The geopolitical developments in the Middle East have presented severe supply disruptions in our industry. Our main priority has been to secure an adequate fuel supply and ensure we can continue to meet the demand.
Ramon Ang, Petron President and CEO
According to government data, approximately 98% of the Philippines' crude oil imports originate from the Middle East, making the country highly vulnerable to fluctuations in that region.
As Petron navigates these challenges, the company remains focused on stabilizing its operations and maintaining its market position amid ongoing economic pressures.