Economic Impact of Covid-19 in Petroecuador and its consequences on the Ecuadorian Oil Industry in 2020

Abstract

The aftermath of the COVID-19 pandemic caused damage to the global economy and the Ecuadorian oil industry. Petroecuador, Ecuador's main oil company, is currently facing a series of situations due to several factors that affected its economic and operational stability. This study was carried out with the objective of analyzing the effects of the pandemic on the profitability of Petroecuador, specifically based on net sales and net profit. The methodology focused on a non-experimental design, with a mixed approach and descriptive and correlational scope, for the detailed analysis of economic figures before and during the pandemic, with a view to their modeling through Linear Regression Analysis. A multiple linear regression model with good fit was obtained, which explained 96% of the relationship between the dependent variable profitability and the independent variables, sales and profit. The proposed regression model constitutes a valuable tool for future research and decision making in the business field. The conclusions highlight the need to explore non-traditional variables that could determine profitability, and the importance of innovation and diversification to improve resilience in future crises.  It is concluded that the pandemic had severe consequences on the economic profitability of Petroecuador and the application of the regression model is proposed as a resource to optimize management in future crises.