Petron Q1 profit drops amid Middle East tensions

Petron Corporation, the country’s largest oil firm and only remaining refiner, posted a net income of P1.8 billion for the first quarter of 2026, marking a sharp 56% decline compared to the same period last year.

The company attributed the drop in earnings primarily to reduced refinery production, which significantly impacted its overall output and margins during the quarter.

Petron said the situation was worsened by escalating geopolitical tensions in the Middle East, a key region for global oil supply, which disrupted market stability and affected crude sourcing and pricing.

These developments led to operational challenges for the company’s refining business, resulting in lower efficiency and constrained production capacity.

Despite the downturn, Petron continues to monitor global market conditions and is expected to adjust its strategies to mitigate the impact of ongoing supply uncertainties.