Financial Leverage and Performance of the Energy and Petroleum Sector Companies Listed in the Nairobi Securities Exchange

Financial leverage and financial performance are fundamental issues in corporate finance. In Kenya, some companies listed at the Nairobi Securities Exchange have had performance improvement. However, most of them have experienced declining fortunes which has been attributed to the fact that corporate managers another practitioner lack adequate guidance required to attain optimal financing decisions. Financial leverage comprises of loans and other forms of debts where the proceeds from these loans are reinvested to earn higher return than the cost of loans. Financial use is the company's capacity to utilization of settled money related charges to amplify the impacts of changes in the profit before premium and duty on the company's income per share. The extent of obligation to value is a vital decision for corporate supervisors. The poor performance of Energy and Petroleum sector companies is of great concern. Financial leverage ranges from debt ratio, debt/equity ratio and interest coverage ratio which are vital since they directly affect the financial performance of firms. The general objective as to determine the effect of financial leverage on the financial performance of energy and petroleum sector companies listed in the NSE. While the specific objectives were; to establish the effect of debt ratio, debt -equity ratio and interest coverage ratio on financial performance of energy and petroleum sector companies recorded in the NSE. The research was anchored on the following theories: Modigliani-Miller theorem, Pecking Order Theory and Trade-off Theory. The empirical literature review was based on the three objectives of the study and gaps established. The study adopted a descriptive research design. Management of all the 5 energy and petroleum companies listed with the NSE was involved in the study which mainly used secondary data to conclude. Data was analyzed using regression analysis. Analyzed data was presented using tables. Confidence interval of 95% was used by the researcher. The study adopted a multiple regression model (Y = β0 + β1X1 + β2X2 + β3X3 +ε). The findings indicate that the independent variables Debt ratio, Debt to Equity ratio and interest cover ratio affected the financial performance of the firms in the Energy and petroleum sector. Their effect was up to 75.4%. Debt ratio and Debt to Equity ratio had a positive relationship whereas Interest cover ratio had a negative relationship to the firms in the Energy and petroleum sector listed in the NSE. This study recommends that the firms handle their capital structure decisions prudently as the changes in the factors like Debt ratio, Debt to Equity ratio and Interest cover ratio enhance profitability of firms when prudently employed and hence affect the performance of Energy and petroleum firms listed at the Nairobi Securities Exchange. This study also recommends that firms control the amount of interest expense since an increase in interest expense has an effect in that it reduces the financial performance of firms in the Energy and petroleum sector listed in the NSE.

Examining Determinants of Absenteeism among Blue Collar Employees in Petroleum Sector of Pakistan

The study focuses on the relationship between job satisfaction, job performance, and social / family compulsion and absenteeism in blue collar employees working in petroleum sector of Pakistan.150 blue collar employees from refineries and oil marketing companies were included in the survey and responded the questionnaire, encompassing all variables. Results prove hypothesis 1 whereas, hypothesis 2 could not be proven. Results will help Pakistani organization to reduce absence rate in their blue collar employees by understanding the social and family compulsions.

Electrochemical remediation of wastewater contaminated by phenol

One of the most significant contributors to water contamination is the petroleum sector. Large volumes of refinery effluent contaminated with numerous sorts of contaminants are discharged into water sources, causing substantial environmental harm. As a result, researchers looked at the use of a variety of treatment techniques to mitigate the impacts of refinery effluent. Utilising hybrid electrodes (iron as cathodes, and aluminium as anodes) electrodes, this investigation intends to use the electrocoagulation method to minimised phenol contaminants from refinery effluent. In addition, the influence of experimental parameters such as electrical current density, electrode spacing, and duration of treatment on the elimination of phenols was investigated in this study. To eliminate the phenols from the effluent, batch flow investigations were employed. According to the findings, the electrocoagulation technique decreased the number of phenols in petroleum effluent. The hybrid electrocoagulation unit was able to decrease the phenol content by around 45%. With a current density of 4 mA/cm2 and electrode separation of 2cm, the highest removal efficiency was reached after 110 minutes of treatment. Other experiment factors, such as the original amount of the phenols, must be examined.

The Extent of Applying ISO 14001 Requirements in the Environmental Auditing Practices of Iraq

The research aims to evaluate the environmental auditing practices in the petroleum sector of Kurdistan Region of Iraq by measuring the application of ISO 14001 requirements, diagnosing the main environmental auditing practices, reducing the negative effects of the organization's activities on the environment and complying with local and international laws related to the environment. Also, determining the most important weaknesses in environmental auditing practices of the petroleum companies in Kurdistan region of Iraq. Therefore, the importance of this research stems from the value of applying the requirements of ISO 14001 in environmental auditing practices to enhance sustainability, reduce pollution, conserve the environment, and reduce the negative effects of the organization's activities. The researcher designs a questionnaire according to the ISO 14001 requirements in order to evaluate the quality of environmental auditing practices in a sample of petroleum companies. The researcher concludes that the level of environmental auditing practices in Iraq is acceptable, and the ISO 14001 requirement can be applied easily with some instructions, institutional awareness, governmental follow-up and public review.

The socio-economic impact of COVID-19 on the petroleum sector in Egypt: a descriptive analysis

PurposeThis study explored the impact of COVID-19 on the petroleum sector in Egypt, both economically and socially. Of all sectors of the economy, the oil industry has been one of the most negatively impacted by the pandemic, with oil prices plummeting at the start of the pandemic. Use to decrease demand. This paper aimed to analyse the main economic and social effects of the pandemic on the Egypt oil industry through an examination of the macroeconomic data reflected in the Egyptian balance of payments, the country's general budget and the oil industry's performance data. The study also conducted a survey of a set of workers from the Egyptian petroleum sector. The study thus concluded two levels of analysis; a macrolevel and a micro level analysis of the effect of COVID-19 on the Egyptian oil industry.Design/methodology/approachThe paper builds upon the experience gained from evaluating market change caused by COVID-19 (Agosta et al., 2020), to analyse the socioeconomic implications of COVID-19 on the Egyptian oil industry. This study employed a survey analysis of questionnaires filled by on a sample of workers in the petroleum sector in Egypt. Data were analysed using the SPSS software, version 18.0. Descriptive analysis was reported as frequencies and percentages. The macroeconomic impact analysis was done by analysing macro-economic data pertaining the oil industry's levels of production as well as the data pertaining to Egypt's external balance of payment and public finance.FindingsThe paper concludes that although the COVID-19 pandemic had negatively impacted the socioeconomics of oil sector workers, reducing their incomes and costing them jobs, these effects appeared to be short term effects that could be minimised with the end of the pandemic and be mitigated through the adequate social and economic policies. No permanent socioeconomic losses were thus deemed to be a serious concern with respect to these workers. The study also concluded that, macroeconomically, lower global oil prices has had a net positive effect on the Egyptian economy as the causing an expected shrinkage of the overall trade deficit. It also has reduced the national budget deficit and has helped mobilise money into the economy, financing both investments and social expenses.Research limitations/implicationsThe survey was very hard to reach, where lot of workers in the petroleum sector (governmental) refused to answer the questions.Practical implicationsSome African countries may not have all the necessary most recent data of economic indicators needed to ascertain with certainty the economic impact of the COVID-19 pandemic. And, at the event that data are completely available, analysts must consider that any worsening of the economy may not stem directly from the pandemic itself. Causality has to be clearly established. The survey therefore focused on the attitudes and perceptions of oil sector workers, irrespective of whether a given indicator had been affected by the pandemic or is seen likely to be affected by it in the future. All those responding have reported the belief that economic indicators, such as GDP growth, inflation and trade had been impacted negatively by the spread of COVID-19. They also believed the effects of the pandemic on transport to have had direct effects on the oil industry.Social implicationsThe social impact of the pandemic was less apparent, particularly among governmental sector workers compared with those in the private sector. However, freelancers have reported some issues that may be become more apparent through aggregated data.Originality/valueThis study has presented some preliminary estimates of the impact of the COVID-19 outbreak on petroleum sector in Egypt. The goal was not to be definitive about the virus outbreak, but rather to provide information about a range of possible economic costs of the disease. While, a detailed quantification of the socioeconomic impact of the coronavirus pandemic may not be feasible, it is still useful to identify possible transmission channels through which the pandemic may affect the Egypt economy and society. It is also useful to identify key issues that are likely shape short- and medium-term socioeconomic prospects in Egypt as a result of the COVID-19 pandemic outbreak in Egypt.

Egypt gold mining boom comes with risks for investors

Significance The government is prioritising expansion of the mining sector, including attracting foreign investment, after many years of neglect. However, the military's increasing dominance of parts of the economy, including the mining sector, creates risks, especially for foreign investors. Impacts The Egyptian bureaucracy and lack of specialist service providers will create obstacles for private sector investors. There is no immediate prospect of a legal framework to govern business relations between the military and international mining companies. Investors will not face the same credit risk in the mining sector as operators in the petroleum sector face.

Nigeria oil bill will disappoint

Significance Discussed since 2008, the bill’s passage comes in response to worsening macroeconomic conditions. These include falling government revenues, declining foreign exchange reserves and increasing difficulties in raising loans from international financial institutions. The bill aims to address some of the underlying causes of these difficulties through wholesale reforms to the petroleum sector. Impacts The law will reduce government revenues in the short term by cutting taxes on profits. The law will encourage the development of marginal oil fields, with production expected by early 2022. Barring substantial increases in reinvestment of oil funds into host communities, insecurity will persist in the Niger Delta.