Petron Malaysia posts Q2 net loss of RM35mil amid refinery woes

Petron Malaysia reported a net loss of RM35 million for the second quarter of 2026, mirroring the loss from the previous quarter. The company cited volatile oil prices and high supply costs as the primary factors that squeezed its margins during this period, while its refinery operations were operating at a limited capacity. Revenue for the quarter surged by 45%, reaching RM4.7 billion, buoyed by a rise in oil prices compared to the same period last year.

The company has restarted its refinery operations to ensure a steady supply of local regulated products, while simultaneously constructing a replacement jetty at its Port Dickson refinery. The company continues to depend heavily on imported products, which have contributed to overall margin compression throughout the quarter. The benchmark Dated Brent crude oil price plummeted to US$85 a barrel in June, a 29% drop from its April peak of US$121, amidst the ongoing US-Iran conflict.

Consequently, product prices followed a similar downward trend, exacerbating the pressure on margins due to elevated crude premiums and other supply costs. Petron Malaysia's retail business demonstrated resilience, generating sales of 4.5 million barrels during the quarter, which was marginally higher than the same period in the previous year.

However, overall volumes declined due to weaker commercial sales and the lack of exports, all of which were affected by the constrained refinery production. The company's gross profit fell to just RM4 million, largely due to the significant decline in oil prices towards the end of the quarter. Petron Malaysia's Chairman, Ramon S. Ang, affirmed the company's commitment to maintaining dependable fuel supplies despite the operational challenges and volatile market conditions.

He emphasized the company's focus on enhancing operational resilience, executing strategic plans, and managing costs prudently as the construction of the new product jetty persists. Furthermore, Petron Malaysia is pursuing long-term growth through the expansion of its retail network, the development of its Port Dickson palm oil methyl ester plant for sustainable biodiesel production, and optimizing its refining, supply, and distribution facilities.