Petron Corp.'s first-half net income fell 27 percent to P3.8 billion from P5 billion a year ago as higher crude prices, import premiums and freight costs triggered by Middle East tensions weighed on margins despite stronger sales. 

The country's largest oil refiner and fuel retailer said Tuesday revenues jumped 57 percent to P605.9 billion in the first six months from the same period last year, driven by higher fuel prices and a 6 percent increase in consolidated sales volume to 67.9 million barrels. 

However, higher production and import costs, along with increased operating expenses, pulled operating income down 17 percent to P12.6 billion. 

"While the first half of the year has been challenging, we are confident that our financial discipline, operational resilience, and competitive strengths will enable us to navigate these temporary headwinds. 

We remain focused on delivering on our commitment to ensure fuel security and meet the nation’s fuel demand amid the continued market volatility," Petron Chairman and CEO Ramon S. Ang said. 

Petron said the global oil market remained highly volatile following the onset of the US-Iran conflict. 

Benchmark Dubai crude prices averaged $91 per barrel in the first half, up 27 percent from a year earlier, after surging to as high as $129 per barrel in March before easing to $79 per barrel in June. 

The elevated crude prices increased the company's feedstock and logistics costs, pressuring profitability. 

Consolidated sales volume rose 6 percent as an 86 percent surge in trading transactions by Petron's Singapore subsidiary more than offset a 6 percent decline in combined sales volumes from its Philippine and Malaysian operations, which reached 52.9 million barrels during the period. 

In the Philippines, retail fuel sales grew 15 percent, while refining output was affected by the temporary production shutdown at the Port Dickson Refinery in Malaysia and scheduled first-quarter maintenance at the Petron Bataan Refinery in Limay. 

Petron said construction of the replacement jetty at its Port Dickson Refinery is underway and remains on track for commissioning in the first quarter of 2027. 

The company has also begun limited and intermittent refining operations in Malaysia using existing crude inventory to support product availability in the market. 

The company is also expanding its downstream infrastructure. Its 180,000-ton annual capacity coco-methyl ester plant at the Petron Bataan Refinery is nearing completion to secure a more reliable biodiesel supply.

New storage facilities in Limay and Bacolod, on the other hand, are planned to improve fuel supply reliability and operational efficiency, with completion targeted between early and the third quarter of 2028.