Union Gas posts record profit on Cnergy petrol station growth, to open 2 more in 2027

[SINGAPORE] Union Gas Holdings will open two more service stations in Marsiling and Jurong West in 2027, bringing its retail network in Singapore to five service stations, after the business helped lift its net profit for the first six months of 2026 to record levels.

Union Gas, which mainly distributes liquefied petroleum gas (LPG) used for cooking, currently owns and operates three Cnergy petrol and diesel stations in Queensway, Dunman Road and Old Toh Tuck Road.

“We will continue to expand our retail footprint and sustain the long-term growth of our retail business. With our Marsiling and Jurong West service stations expected to commence operations next year, we are optimistic that these new additions to our network will contribute positively to our group,” chief executive Teo Hark Piang said in an Aug 13 statement.

The company on Aug 13 posted a record S$12 million in net profit for the six months ended Jun 30, nearly triple the S$4.3 million reported in the corresponding period a year earlier, as revenue surged 66.4 per cent to S$106 million.

This also exceeded the S$10.5 million in net profit earned for the whole of 2025.

Union Gas attributed the increase to higher liquid fuel sales and new revenue from the expansion of its Cnergy petrol-station business. Its Dunman Road and Queensway stations opened in October 2025 and February 2026 respectively.

The liquid fuel business involves the sale and distribution of diesel and petrol to industrial and commercial customers, and to vehicles through service stations, as well as bulk sales of diesel.

First-half revenue from this business jumped more than fivefold to S$51.7 million, from S$9.5 million.

Cnergy’s petrol and diesel prices, which are the lowest in Singapore, helped drive the increase in liquid fuel sales. It also sells compressed natural gas for natural gas vehicles and industrial customers.

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Union Gas buys diesel and imported natural gas for its Cnergy fuel stations. While prices have risen since the war in Iran started on Feb 28, the company accepts a smaller profit margin to keep Cnergy’s prices lower than those at rival fuel stations.

According to Union Gas, the member price of RON 95 petrol at Cnergy stations was S$2.03 per litre in March and hit its peak at S$2.58 per litre in April. The last price recorded in June was S$2.45 per litre.

Cnergy’s biggest costs, mainly fuel and land, are also more manageable than its competitors’.

Meanwhile, the group’s traditional gas fuel business remained stable, with sales of S$53.8 million in the first half, broadly unchanged from a year earlier.

The group declared an interim dividend of S$0.0048 per share and, following its stronger performance, its first special dividend of S$0.0032.

This brings its total first-half dividend to S$0.008 per share, up from S$0.0048 in the same period last year. THE STRAITS TIMES