Abstract

 
 
 As we know that the oil and gas industry is a huge industry and a big contributor to government revenue. However, a signiicant decline in government revenues from this sector is in 2014 by 14.11% to 4.46% in 2015, and in 2016 the value is not too far from the previous year that is 4.58%. This is due to the decline in world oil prices and also the decline in production of Indonesian private oil and gas companies. The purpose of this study is to analyze the financial performance of Indonesia’s private oil and gas company before and after declining the national oil and gas production. The data were collected from financial report of PT. Medco Internasional, Tbk and divided into two periods. The period before the decline in production from 2011 to 2013, and after the decline in production from 2014 to 2016. Financial ratio analysis (FRA) and paired sample t-test were used to analyze the data. The results show that Indonesia’s private oil and gas company is still in good performance even in one year suffered considerable losses. The value of cash ratio, inventory turnover, and collection period signiicantly different before and after the decline in oil and gas production. The authors believe that findings will be helpful for managers who continuously attempt to explore opportunities to provide a higher return.
 
 
Highlights
The world contains great amount of nonconventional oil, and various oil substitutes
Among the top ten companies worldwide based on revenue, six are in the oil business (Statistica, 2016)
PT Medco Energi Internasional Tbk is selected because it is the market leader of Oil & Gas private company in Indonesia
Summary
The world contains great amount of nonconventional oil, and various oil substitutes. In any case, the speed of the decrease in the production of conventional oil makes it probable that these non-conventional sources cannot come on-stream suf iciently quick to completely adjust (Bentley, 2002). The pattern towards renewable and alternatives energy is likewise another threat to traditional oil and gas companies. The oil and gas industry are still remarkably successful and still experiences massive growth (Dutta, 2013). At this moment, crude oil is one of the most present and essential resource in everyday life. The oil business is a standout amongst the most powerful branches in the world of economy. Oil and gas companies are among the biggest corporation around the world. Among the top ten companies worldwide based on revenue, six are in the oil business (Statistica, 2016)
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