Recent decline in oil prices have affected the global economy in general but more specifically the economy of major oil exporting countries. Companies operating in this region have also felt the impact and consequently their various financial indicators have been effected. There is a need to study such an impact to help companies and regulators to better understand current economic scenario arising after volatile decline in oil prices. This study intends to analyse impact of oil prices on financial performance of companies in Sultanate of Oman. The key indicators used to evaluate the financial performance are revenue, profitability and earnings per share. Quantitative analysis has been conducted whereby data has been collected over four years which represent period of high and low oil prices. Data has been analysed by using correlation, scatter diagram and by conducting pair t test. It is found that companies’ profitability and earnings per share has been severely affected by falling oil prices, which initially recorded decline in growth but now is showing negative growth.

Recent decline in oil prices have affected the global economy in general but more specifically the economy of major oil exporting countries. Companies operating in this region have also felt the impact and consequently their various financial indicators have been effected. There is a need to study...