Financial Performance Analysis During 2017-2021 in Oil Production: Case Study in Indonesian Oil and Gas Industry

Indonesia’s oil and gas industry is the huge contributor to government export revenues and contributes a substantial amount to state revenue. However, the total oil production dramatic declined around 17% in year 2019, and the sharpest decline was in 2020. This situation gives impact to performance of oil and gas industry, especially government revenues. Therefore, the purpose of this study is to measure the financial performance of Oil and Gas Industry. The data were collected from financial report during 2017-2021. Paired sample t-test and financial ratio analysis (FRA) were used to analyzed the data. The finding shows that the largest oil and gas company in Indonesia is still in good financial condition, although it gained loss. In addition, current ratio and return on equity had significance in oil and gas production. The authors believe that findings will be helpful for management who continuously attempt to explore opportunities to provide a higher return.