Union Gas Reports Record Profit on Cnergy Station Expansion

Station Network to Reach Five by 2027

Union Gas Holdings will add two more Cnergy service stations in Marsiling and Jurong West during 2027, expanding its Singapore retail footprint to five locations. The liquefied petroleum gas distributor currently operates three stations in Queensway, Dunman Road, and Old Toh Tuck Road.

The expansion follows a record first half that saw net profit reach $12 million for the six months ended June 30, up from $4.3 million in the same period of 2025. Revenue climbed 66.4 percent to $106 million, according to the company's August 13 filing.

Chief executive Teo Hark Piang said the Marsiling and Jurong West locations are expected to contribute positively when they begin operations next year. The company opened its Dunman Road station in October 2025 and the Queensway site in February 2026.

Low-Price Strategy Lifts Liquid Fuel Sales

Liquid fuel revenue jumped more than fivefold to $51.7 million in the first half from $9.5 million a year earlier. Cnergy stations offer the lowest petrol and diesel prices in Singapore, a positioning that has driven volume growth across the network.

Union Gas sources diesel and imported natural gas for its Cnergy outlets. Despite cost pressures from the Iran conflict that began February 28, the company has maintained tighter profit margins to keep pump prices below competitors. Member pricing for RON 95 petrol stood at $2.03 per litre in March, peaked at $2.58 in April, and closed June at $2.45.

The liquid fuel segment includes bulk diesel sales and distribution to industrial and commercial customers in addition to retail pump sales. Cnergy stations also supply compressed natural gas for vehicles and industrial users.

Traditional Gas Business Holds Steady

Union Gas's core LPG distribution business, which supplies cooking gas to households and commercial kitchens, generated $53.8 million in first-half sales, roughly flat compared with the prior year. The stability in this segment provided a base while the retail fuel expansion drove overall growth.

The company's first-half profit exceeded the $10.5 million it earned for the full year 2025, reflecting the accelerated pace of the Cnergy rollout and market acceptance of the discount pricing model.

First Special Dividend Declared

Union Gas declared an interim dividend of 0.48 cent per share and its first special dividend of 0.32 cent, bringing total first-half payout to 0.8 cent per share. The prior-year first half saw a 0.48 cent dividend.

The special dividend reflects management confidence in the retail fuel strategy and cash generation from the expanded network. Union Gas manages fuel and land costs more efficiently than larger rivals, according to company statements, allowing it to sustain the low-price approach while still delivering profit growth.

With two additional stations scheduled for 2027, Union Gas is positioning Cnergy as a volume-focused alternative in Singapore's competitive fuel retail market. The company has not disclosed capital expenditure for the new sites or long-term station targets beyond the five-location network.