IRPC (IRPC) Q2 2025 earnings summary

Executive summary

• 2Q25 and 1H25 performance was significantly impacted by a sharp decline in Dubai crude oil prices, leading to substantial stock losses and lower profitability.

• Market Gross Integrated Margin (GIM) improved due to higher product spreads, especially in petroleum and olefins, but was offset by inventory losses.

• Net income turned negative, with a loss of -2,132 MB in 2Q25, down 77% QoQ, mainly due to stock loss, unrealized oil hedging losses, and asset impairment.

• EBITDA dropped 86% QoQ to 223 MB in 2Q25.

Financial highlights

• Net sales in 2Q25 were 56,802 MB, down 9% QoQ and 23% YoY; 1H25 net sales were 119,026 MB, down 20% YTD.

• 2Q25 EBITDA was 223 MB, down 86% QoQ and 85% YoY; 1H25 EBITDA was 1,819 MB, down 70% YTD.

• Net income for 2Q25 was -2,132 MB, a 77% QoQ decline; 1H25 net loss was -3,338 MB.

• Market GIM in 2Q25 was $8.41/bbl, up 33% QoQ; accounting GIM was $5.16/bbl, down 30% QoQ due to inventory losses.

• Refinery utilization rate reached 99% in 2Q25.

Outlook and guidance

• Petroleum product spreads are expected to remain volatile, with potential supply concerns from geopolitical tensions and seasonal demand support.

• Petrochemical spreads face pressure from new supply in China and U.S. tariffs, with HDPE and PP spreads forecasted to remain subdued.

• Oil demand growth is expected to be led by India, while China’s growth slows due to economic headwinds and tariffs.

• OPEC+ production increases and U.S. output are expected to keep oil supply ample, maintaining a challenging market.