IRPC (IRPC) Q2 2026 earnings summary

Executive summary

• Net sales in 2Q26 rose 19% QoQ and 42% YoY, driven by higher crude oil prices and improved product spreads, but profitability was pressured by higher crude procurement costs and significant inventory valuation losses.

• EBITDA dropped 72% QoQ but rose over 100% YoY; net income fell 63% QoQ but was also up over 100% YoY, reflecting volatility from inventory and hedging impacts.

• Market GIM improved to $17.12/bbl (+30% QoQ), while accounting GIM fell to $11.03/bbl due to a net inventory loss of 3,687 MB.

• 1H26 net sales totaled 148,576 MB, up 25% YoY, with net profit of 10,810 MB versus a net loss in 1H25.

Financial highlights

• 2Q26 net sales reached 80,797 MB (+19% QoQ, +42% YoY); 1H26 net sales were 148,576 MB (+25% YoY).

• 2Q26 EBITDA was 4,070 MB (down 72% QoQ, up >100% YoY); 1H26 EBITDA was 18,819 MB (>100% YoY).

• 2Q26 net income was 2,921 MB (down 63% QoQ, up >100% YoY); 1H26 net income was 10,810 MB (vs. loss in 1H25).

• 2Q26 Accounting GIM: 6,667 MB (-63% QoQ, >100% YoY); 1H26: 24,483 MB (>100% YoY).

• Inventory valuation and hedging losses significantly reduced reported earnings in 2Q26.

Outlook and guidance

• 2H26 petroleum product spreads are expected to remain volatile due to Middle East geopolitical uncertainty and fluctuating demand, with Dubai crude forecasted at $76–81/bbl.

• Petrochemical spreads are forecast to recover in 2H26, supported by seasonal restocking and supply recovery, but price volatility and cautious buying persist.

• Dubai crude oil price expected to soften as transportation through Strait of Hormuz recovers and OPEC+ raises output.

• Petrochemical market faces pressure from increasing supply as Asian producers resume operations; Middle East tensions remain a key risk.

• Global oil demand is projected to contract in 2026 amid supply disruptions and high prices, with a rebound expected in 2027.