Star Petroleum Refining (SPRC) Q1 2026 earnings summary

Executive summary

• Navigated a volatile Q1 2026 marked by geopolitical disruptions, logistics constraints, and rapid crude/product market shifts, focusing on operational stability and resilience.

• Achieved adjusted net profit of $51.1 million in Q1 2026, up 236% year-over-year, excluding a significant stock gain.

• Total revenue for Q1 2026 ranged from $1.63 billion to $2.59 billion, with gross profit surging to as high as $302.1 million.

• Maintained robust cash flow from operations and improved liquidity position.

• Diversified crude sourcing, reducing Middle East dependency to 25% by June, and optimized logistics and distribution to maintain high utilization and product margins.

Financial highlights

• Adjusted net profit for Q1 2026 was $51.1 million, a significant year-on-year improvement.

• Reported net profit reached up to $228.6 million, with a $221 million inventory gain due to sharp oil price increases.

• Enterprise margin (excluding stock gain) was $14.60/bbl, up from previous quarter and year-over-year.

• Consolidated EBITDA was $312 million, up significantly from last quarter and prior year.

• Basic earnings per share rose to $0.05 from a loss per share of $0.01 year-over-year.

Outlook and guidance

• Expect Dubai crude prices to remain elevated ($95–$100/bbl) due to ongoing geopolitical risks and supply normalization.

• Refining margins anticipated to stay firm in near term, with potential for gradual softening as supply normalizes.

• Plans to double retail volume by 2030 and unlock higher jet production yields post-turnaround.

• Management expects continued revenue growth and profitability, supported by strong operational performance and favorable market conditions.

• Board to review base dividend policy, considering sustainable earnings and cash requirements through the cycle.