Petron Malaysia Refining and Marketing Bhd (Petron) reported a net loss of RM35.04 million for the first quarter ended March 31, 2026. This figure was significantly higher than the net profit of RM81.03 million recorded in the same quarter the previous year.
In a filing to Bursa Malaysia today, the net loss was attributed mainly to two main factors:
No Production: The Port Dickson Refinery Plant remains closed following the collapse of the product jetty caused by tropical storm Senyar in November 2025.
Increasing Supply Costs: The war in West Asia in March 2026 significantly affected oil supplies and market prices, resulting in a sharp increase in the company's supply costs.
Financial Performance Declines
For the quarter under review, Petron’s revenue declined to RM2.94 billion, compared to RM3.67 billion in the first quarter of 2025. The decline was driven by lower sales volume, which declined 25 percent to 6.9 million barrels, from 9.2 million barrels in the previous year. The sales decline was due to the absence of exports due to refinery closures.
Efforts to Maintain Domestic Supply
Despite the ongoing oil supply crisis caused by the conflict, Petron has shifted to full importation and local purchasing mode to ensure the availability of regulated products such as petrol, diesel, and liquefied petroleum gas (LPG) in the domestic market.
The company admitted that sourcing of refined products from the region has become limited amid the sudden surge in crude oil prices, thus increasing supply costs.
Outlook and Recovery Plan
Petron announced that it has commenced limited and periodic refining operations. The move is aimed at processing crude oil inventories ‘in tanks’ to increase product availability in the market, in line with its commitment to the country’s energy security.
The company is continuously working to address all operational constraints, including securing stable crude oil supplies pending the construction of a new jetty. Petron expressed confidence that current market conditions could improve in the future, while its operational constraints are being addressed in parallel.
