Measuring Financial Performance of National Oil and Gas Companies in Southeast Asia

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Daryanto, Wiwiek Mardawiyah and Wibisono, Iman (2019) Measuring Financial Performance of National Oil and Gas Companies in Southeast Asia. International Journal of Innovation, Creativity and Change, 6 (3). pp. 191-206. ISSN 2201-1323

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Abstract

Since the Industrial Revolution, oil and natural gas have played an instrumental role in economic transformation and mobility in everyday life for the majority of the world’s population. However, since mid of 2014, oil prices have dropped almost 50% and this has an impact on the performance of national oil and gas companies (NOCs). This study aims to measure the financial performances of two NOCs in Southeast Asia; Pertamina in Indonesia and Petronas in Malaysia. The data was collected from the audited financial reports of both NOCs for the period 2011 – 2016. The research methodology used was financial ratio analysis, which was classified into profitability, liquidity, activity, and solvency ratios. A comparison with industry benchmarks and Data Envelopment Analysis (DEA) was used to confirm the financial performance and the performance efficiency of related firms. The result shows that Petronas has achieved better financial performance compared to Pertamina. Confirmation uses comparisons with industry benchmarks, revealing that both NOCs overall financial performance were above industry benchmark. However, confirmation using DEA, shows that the most superior performance efficiency is in Pertamina, followed by Petronas. The authors believe that the findings will be helpful for managers who continuously attempt to explore opportunities to provide a higher return. Key words: Data Envelopment Analysis, Financial Ratios, National Oil & Gas Company, Oil & Gas Industry.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Rizky Amalia
Date Deposited: 27 Jan 2020 04:35
Last Modified: 19 Feb 2021 05:23
URI: http://repository.ipmi.ac.id/id/eprint/631

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