San Miguel Corporation relied on strong earnings from power subsidiary San Miguel Global Power Holdings Corp. to offset a sharp drop in profits at fuel and oil unit Petron Corporation in the first quarter of 2026.

In its disclosure to the Philippine Stock Exchange, SMC said consolidated revenues rose 19% year-on-year to PHP 428.3 billion, while operating income increased 31% to PHP 59.6 billion on broad-based growth across its major businesses. 

Net income declined to PHP 22.5 billion from PHP 43.4 billion a year earlier, mainly because the first quarter of 2025 included a PHP 21.9-billion gain from the partial sale of power assets. 

San Miguel Global Power posted a 26% increase in first-quarter revenues to PHP 53.6 billion, driven by contributions from five battery energy storage system (BESS) facilities and power supply agreements for the Mariveles and San Roque power plants.

Operating income at the power unit surged 163% to PHP 28.1 billion as improved gross margins and higher contributions from BESS facilities more than offset a 13% decline in offtake volumes to 6.5 million MWh following the deconsolidation of the Ilijan and Batangas combined-cycle plants. Net income slipped to PHP 23.9 billion as the prior-year period included gains from asset sales. 

Petron reported a 56% drop in net income to PHP 1.8 billion from PHP 4.0 billion a year ago.

The company said its Port Dickson refinery in Malaysia has remained shut since November 2025 after Tropical Storm Senyar damaged its product jetty, while the Bataan refinery underwent scheduled maintenance. The disruptions were compounded by escalating tensions in the Middle East.

Despite lower profitability, Petron’s revenues climbed 27% to PHP 246.0 billion as stronger sales and higher crude prices boosted topline results. Average Dubai crude prices rose 12% to USD 86 per barrel from USD 77 per barrel a year earlier, while operating income fell 36% to PHP 6.1 billion as refining margins narrowed. 

“Our businesses performed well in the first quarter, supported by steady demand and the hard work of our teams across the group,” said SMC Chairman and CEO Ramon S. Ang. “While global conditions remain challenging, we will stay disciplined in how we operate, serve our customers well, and continue investing where we can support our country’s growth.” 

What are your thoughts on the increasing importance of power assets in balancing the earnings of diversified energy companies like SMC?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more news and updates on the Philippine energy sector.