The Impact of Global Oil Price Movements and Foreign Exchange Rates on Return on Assets of PT Medco Energi Internasional Tbk

Elfina Okto Posmaida Damanik (), Yusniar Lubis, Robert Tua Siregar, Sri Martina () and Resna Napitu ()
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Elfina Okto Posmaida Damanik: Universitas Prima Indonesia (UNPRI), Faculty of Economics
Yusniar Lubis: Universitas Prima Indonesia (UNPRI), Faculty of Economics
Robert Tua Siregar: Universitas Prima Indonesia (UNPRI), Faculty of Economics
Sri Martina: Universitas Simalungun
Resna Napitu: Universitas Simalungun

A chapter in Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025), 2025, pp 7-18 from Springer

Abstract: Abstract This study investigates the influence of global oil price fluctuations and exchange rate movements on the profitability of PT Medco Energi Internasional Tbk, measured by return on assets (ROA). The research adopts a quantitative descriptive approach, utilizing time series data from 2004 to 2024 and applying multiple linear regression analysis with SPSS version 26. The findings reveal that crude oil prices have no statistically significant effect on ROA ( $$t = -1.628; p = 0.121 > 0.05$$ t = - 1.628 ; p = 0.121 > 0.05 ), while exchange rates also show no significant impact ( $$t = --0.283; p = 0.780 > 0.05$$ t = - - 0.283 ; p = 0.780 > 0.05 ). Furthermore, the simultaneous F-test confirms that both variables together do not significantly affect ROA. These results suggest that external macroeconomic factors are not the primary drivers of profitability. The study is limited to one company and linear modeling, yet it contributes to financial management literature by emphasizing the importance of strengthening internal corporate strategies to ensure sustainable profitability.

Keywords: Global Oil Prices; Exchange Rates; ROA (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-960-5_2

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