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Financial Analysis During the Pandemic and New Consumption: Oil and Gas Sector

Financial Analysis During the Pandemic and New Consumption: Oil and Gas Sector
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Author(s): Liliane Cristina Segura (Universidade Presbiteriana Mackenzie, Brazil)and Murillo Jose Torelli Pinto (Universidade Presbiteriana Mackenzie, Brazil)
Copyright: 2021
Pages: 14
Source title: Handbook of Research on Financial Management During Economic Downturn and Recovery
Source Author(s)/Editor(s): Nuno Miguel Teixeira (Center for Research in Business and Administration, School of Business Sciences, Polytechnic Institute of Setúbal, Portugal)and Inês Lisboa (CARME, School of Management and Technology, Polytechnic of Leiria, Portugal)
DOI: 10.4018/978-1-7998-6643-5.ch007

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Abstract

The economic consequences of the COVID-19 pandemic are not yet known. It is, however, observed that the consumptions in the world have changed dramatically in 2020, and it will keep changing as the pandemic evolves. It is already observed that in consumer confidence, there is a change in the use of energy and petroleum. People are not moving a lot during this pandemic, and they also discovered that they might stay this way in some occasions. It is affecting the petrol sector, maybe one of the most affected in the pandemic, because of the social isolation. This chapter analyzed 44 companies from the oil and gas sector around the world in relation to their financial distress. The Altman´s Z-score was the methodology used, and the mean of the sector was compared with the five most distressed firms and the five least distressed. It is possible to observe that the sector suffered with this pandemic, and most of the companies are already in financial distress.

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