A Comparative Study of The Financial Performance of Joint Venture and Subsidiary Companies in The Oil and Natural Gas Sector.

Abstract

It is essential to research the financial performance of oil and natural gas companies for several reasons. To begin, these businesses' effect on the economy as a whole, including aspects such as energy pricing, supply chains, and general economic steadiness, is significant. Analyzing their financial health enables investors, stakeholders, and policymakers to make educated decisions on investments, partnerships, and laws, influencing the market dynamics. Second, the energy industry is extremely capital-intensive, and to finance its business operations, oil and gas corporations frequently carry a significant amount of debt. A better understanding of their financial performance allows a more accurate evaluation of their capacity to fulfill their debt commitments and effectively manage financial risks. Thirdly, these businesses are susceptible to fluctuating commodity prices, geopolitical circumstances, and environmental restrictions; therefore, evaluating their ability to remain financially stable and react to shifting market conditions is vital. In conclusion, analyzing the financial performance of oil and natural gas firms is essential for various reasons, including those about the economy, finances, and the environment. This research can provide essential insights for a wide range of stakeholders in the energy industry. The present study is based on secondary data. The convenience sampling method is used to collect the financial information of 10 joint venture and ten subsidiary companies of the oil and natural gas sector are considered. For analysis of data SPSS software is used.