Abstract
Using panel data analysis based on annual reports of major oil companies (OMCs), namely Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited, Reliance Industries Limited (RIL) and NAYARA Energy (formerly Essar Oil Ltd), this article examines key financial metrics, such as debt-to-equity ratio, return on long-term funds, earnings per share and dividend payout ratio, of these OMCs from 2019 to 2023. The analysis reveals that government-owned OMCs exhibit variability in financial performance and often maintain high-dividend payouts even during low earnings during this period. In contrast, the private-sector OMCs RIL and NAYARA focus on stable growth and reinvestment for long-term financial health. The interplay between international oil price fluctuations, capital structure adjustments and financial performance is complex for OMCs in India. While public-sector OMCs benefit from government support, their financial strategies must adapt to the volatile oil market to sustain profitability and financial stability. more...