Financial sustainability of oil and gas companies—basis for building resilience strategies
The crisis situations that have affected the oil and gas market have had a significant impact on the companies’ performance from this sector and especially on their customers. In these circumstances, many companies faced increasing difficulties and in some cases, in order to survive, they had to res...
| Main Authors: | , , , , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-05-01
|
| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1205522/full |
| _version_ | 1797829284093493248 |
|---|---|
| author | Veronica Grosu Adriana Tiron-Tudor Marian Socoliuc Marius-Sorin Ciubotariu Elena Hlaciuc Anamaria-Geanina Macovei Mihaela Tulvinschi Camelia-Cătălina Mihalciuc Anatol Melega |
| author_facet | Veronica Grosu Adriana Tiron-Tudor Marian Socoliuc Marius-Sorin Ciubotariu Elena Hlaciuc Anamaria-Geanina Macovei Mihaela Tulvinschi Camelia-Cătălina Mihalciuc Anatol Melega |
| author_sort | Veronica Grosu |
| collection | DOAJ |
| description | The crisis situations that have affected the oil and gas market have had a significant impact on the companies’ performance from this sector and especially on their customers. In these circumstances, many companies faced increasing difficulties and in some cases, in order to survive, they had to restructure their business or even leave the market. Considering this context, this kind of situations are also manifesting in Romania where we can identify companies facing the erosion of their competitive position, with economic, financial and capital consequences, while other companies still managed to react positively to the crisis generated by the energy sector through innovation and internationalization. This article analyses the sustainability of the operational activity of oil and gas extraction companies from Romania, based on financial and economic data and information, having the aim of investigating the way in which the performance of different markets has influenced the economic and financial results and consequently, the implications of this influence for the structure of the activity and on the financial-economic sustainability. The research methodology is specific to a quantitative research, based on a sample of financial and economic data reported by all 29 oil and gas extraction companies from Romania over the period of 2008–2022. The data collected from the financial reports formed the basis for the calculation of the financial indicators and ratios considered relevant in forecasting the economic and financial sustainability of these companies. The results obtained are materialised in the development of a model whose aim is to assess the financial and economic sustainability, its independent variables being grouped into performance, activity and risk indicators. The usefulness of the results obtained is relevant both for the companies concerned and for their customers and suppliers who will show a visible dependence on energy costs, but also for investors and financiers directly interested in performance and sustainability information, on the basis of which they will determine the value of their own economic benefits. |
| first_indexed | 2024-04-09T13:19:02Z |
| format | Article |
| id | doaj.art-905051abb9d94785862753e59852b75c |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-09T13:19:02Z |
| publishDate | 2023-05-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-905051abb9d94785862753e59852b75c2023-05-11T11:20:54ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2023-05-011110.3389/fenvs.2023.12055221205522Financial sustainability of oil and gas companies—basis for building resilience strategiesVeronica Grosu0Adriana Tiron-Tudor1Marian Socoliuc2Marius-Sorin Ciubotariu3Elena Hlaciuc4Anamaria-Geanina Macovei5Mihaela Tulvinschi6Camelia-Cătălina Mihalciuc7Anatol Melega8Accounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting and Auditing Department, Babes-Bolyai University, Cluj-Napoca, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaAccounting, Audit and Finance Department, Stefan cel Mare University, Suceava, RomaniaThe crisis situations that have affected the oil and gas market have had a significant impact on the companies’ performance from this sector and especially on their customers. In these circumstances, many companies faced increasing difficulties and in some cases, in order to survive, they had to restructure their business or even leave the market. Considering this context, this kind of situations are also manifesting in Romania where we can identify companies facing the erosion of their competitive position, with economic, financial and capital consequences, while other companies still managed to react positively to the crisis generated by the energy sector through innovation and internationalization. This article analyses the sustainability of the operational activity of oil and gas extraction companies from Romania, based on financial and economic data and information, having the aim of investigating the way in which the performance of different markets has influenced the economic and financial results and consequently, the implications of this influence for the structure of the activity and on the financial-economic sustainability. The research methodology is specific to a quantitative research, based on a sample of financial and economic data reported by all 29 oil and gas extraction companies from Romania over the period of 2008–2022. The data collected from the financial reports formed the basis for the calculation of the financial indicators and ratios considered relevant in forecasting the economic and financial sustainability of these companies. The results obtained are materialised in the development of a model whose aim is to assess the financial and economic sustainability, its independent variables being grouped into performance, activity and risk indicators. The usefulness of the results obtained is relevant both for the companies concerned and for their customers and suppliers who will show a visible dependence on energy costs, but also for investors and financiers directly interested in performance and sustainability information, on the basis of which they will determine the value of their own economic benefits.https://www.frontiersin.org/articles/10.3389/fenvs.2023.1205522/fullenvironmental sustainability, economic sustainability, social sustainabilityriskscrisisfirms performancebusiness model |
| spellingShingle | Veronica Grosu Adriana Tiron-Tudor Marian Socoliuc Marius-Sorin Ciubotariu Elena Hlaciuc Anamaria-Geanina Macovei Mihaela Tulvinschi Camelia-Cătălina Mihalciuc Anatol Melega Financial sustainability of oil and gas companies—basis for building resilience strategies Frontiers in Environmental Science environmental sustainability, economic sustainability, social sustainability risks crisis firms performance business model |
| title | Financial sustainability of oil and gas companies—basis for building resilience strategies |
| title_full | Financial sustainability of oil and gas companies—basis for building resilience strategies |
| title_fullStr | Financial sustainability of oil and gas companies—basis for building resilience strategies |
| title_full_unstemmed | Financial sustainability of oil and gas companies—basis for building resilience strategies |
| title_short | Financial sustainability of oil and gas companies—basis for building resilience strategies |
| title_sort | financial sustainability of oil and gas companies basis for building resilience strategies |
| topic | environmental sustainability, economic sustainability, social sustainability risks crisis firms performance business model |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1205522/full |
| work_keys_str_mv | AT veronicagrosu financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT adrianatirontudor financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT mariansocoliuc financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT mariussorinciubotariu financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT elenahlaciuc financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT anamariageaninamacovei financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT mihaelatulvinschi financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT cameliacatalinamihalciuc financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies AT anatolmelega financialsustainabilityofoilandgascompaniesbasisforbuildingresiliencestrategies |