Petron (PCOR) investor relations material

Executive summary

• Philippine GDP growth slowed to 2.6% in 1H 2026, with persistent inflation, peso depreciation, and geopolitical disruptions impacting sentiment and business confidence.

• Despite macroeconomic headwinds, core net income rose 48% and consolidated operating income increased 17% year-on-year, driven by strong energy, food, spirits, and infrastructure contributions.

• Reported net income declined 44% to PHP 37.7 billion due to absence of prior year one-off gains and a PHP 16.5 billion forex loss.

• Sustainability initiatives advanced, with climate risk assessment, net zero roadmap, and people upliftment framework integrated into operations, highlighted by the Better Rivers Program and multiple international awards.

Financial highlights

• Consolidated revenues reached PHP 964.1 billion, up 34% year-on-year, led by Petron, energy, and food businesses.

• Operating income was PHP 102.3 billion, up 17% year-on-year; EBITDA rose 12% to PHP 141.9 billion.

• Core net income (excluding FOREX & one-offs) up 48% to PHP 54.2 billion; reported net income at PHP 37.7 billion, down 44%.

• Total assets as of June 30, 2026: PHP 3.0 trillion; liabilities: PHP 2.2 trillion; equity: PHP 794 billion; cash: PHP 454 billion; interest-bearing debt: PHP 1.8 trillion.

Outlook and guidance

• Cautiously optimistic for 2H 2026, expecting benefits from infrastructure development, rising energy demand, and resilient consumer spending.

• No immediate impact expected from proposed excise tax increases; price hikes for beer and spirits unlikely to preserve margins and market share.

• Group CapEx for 2026 projected above PHP 200 billion, with power segment accounting for about half.

• Recent PHP 30 billion preferred shares offering was over 3x oversubscribed, reflecting strong investor confidence.