By Tony Lopez
You will know if a company is properly managed or not by how it behaves or thrives in good and bad times, especially in bad times.
Beer, beverages, food, infra, power and petroleum refining behemoth San Miguel Corp. has shown how strategic visioning, management discipline, and marvelous execution can build the resilience needed for it not just to thrive but to prosper and be the market leader in nearly every sector of its vast portfolio of businesses.
When the Iran war erupted on Feb. 28, 2026, the share price of Petron Corp. leaped 9.6% from its Feb. 27, 2026 closing of P2.81 to close at P3.08. As of March 18, Petron’s share price was P3.15, up 13.5% from P2.81. The market reads that the Iran war will reap dividends for Petron.
Trillions in sales expected
In 2025, Petron profits swelled 84% to P15.6 billion from P8.5 billion in 2024 despite a 6.7% drop in revenues to P810 billion (from P868 billion) due to lower oil prices.
If current crude levels of $110 per barrel and above hold, up 57% from February 2026’s $70, before the war, expect Petron revenues to reach a record P1 trillion, enabling parent company San Miguel Corp. to scale a new high P1.7 trillion in revenues.
Only refinery
Petron is the Philippines’ only petroleum refinery. Its close competitors Shell and Chevron shut down their refineries years ago. Petron, under CEO Ramon S. Ang went the other way. Instead of closing its Bataan facility, he launched an aggressive expansion and efficiency optimization program. He has invested $3 billion since 2009 to make Petron’s refinery one of the most modern, most efficient, and most profitable in the region. It gets its crude for local refining from Saudi Aramco. Its Port Dickson Refinery in Malaysia gets its crude from Exxon Mobil and Shell. Petron has 39.2% market share, with 1,800 Philippine retail outlets. About 400 participants compete for the remaining 40%.
“The company believes that its competitive advantages include organization, technology, assets, resources and infrastructure. The company continues to implement initiatives aimed at improving operational efficiencies, managing costs and risks, and maximizing utilization of its assets and opportunities,” says Petron in its recent P32-billion bond offering. Petron is owned 76% by SMC.
SMC’s share price closed at P70 on March 18, 2026, up 2,94% from its Feb. 27, 2026 closing. In contrast, between Feb. 27, 2026 and March 18, oldest conglomerate Ayala Corp.’s share price declined 12.5% from P600 to P525; that of SM Investments Corp., the most valuable company in market cap, dropped by 11%, from P705 to P627, reflecting challenges and uncertainties amid the Iran war. “We are in good stead,” beamed SMC Chair and CEO Ramon S. Ang when asked about the risks and challenges posed by the war.
SMC beats SM group and Ayala
in profits and profit growth
SMC bested its top two rivals SMIC and Ayala Corp. in net income and net income growth despite reporting a decline in net revenues in 2025.
SMC reported net income of P94.7 billion in 2025, a whopping 81% jump from 2024’s P52.3 billion profits, beating the P90 billion net of SMIC which was up 10% from 2024’s P82.6 billion, a record, and Ayala Corp.’s P48.3 billion, which was up 7%, from P45 billion in 2024, the property, telco and banking conglomerate’s previous best year.
SMC’s 2025 core net income surged 52% to P79.6 billion. “We had a clear focus on execution,” said Ang, explaining SMC’s spectacular performance amid a severe economic downturn, with GDP growth diving, from 5.7% in 2024 to 4.4% in 2025, a drop of 22% in rate or P1.3 trillion in value of output of goods and services.
SMC’s P1.5 trillion sales are equivalent to 5.2% of estimated 2025 GDP of P28.5 trillion.
Ang also attributes the conglomerate’s performance to a diversified portfolio, improved margins, and disciplined investment strategies that allowed the group to navigate volatile market changes, including softer crude prices.
AI highlights of SMC’s 2025 performance under Ang’s leadership:
• Financial Growth: Consolidated revenues reached P1.5 trillion, with operating income increasing by 13% to P181.6 billion and EBITDA rising 16% to P262 billion.
• Key Driver Performance:
• Food & Beverage: San Miguel Food and Beverage, Inc. (SMFB) reported a 13% increase in consolidated net income to P46.3 billion, driven by record performance in the food unit, strong poultry demand, and increased international beer sales.
• Power: San Miguel Global Power saw a 290% surge in net income to P48.3 billion, heavily supported by a P21.9 billion one-off gain from the Chromite transaction, despite a 23% drop in revenue due to the divestment and deconsolidation of the Ilijan and EERI power plants.
• Fuel: Petron Corp. recorded an 84% increase in net income to P15.6 billion, driven by improved refinery efficiency.• Strategic Focus: Ang emphasized a “clear focus on execution” and continues to prioritize major infrastructure projects, including the completion of the New Manila International Airport (NMIA) in Bulacan, now targeted for 2028