Financial Performance Evaluation of the Gas Distribution Companies of National Iranian Gas Company1

The purpose of this study is to evaluate the financial performance of 31 provincial gas distribution companies as the affiliates of National Iranian Gas Company (NIGC). To this end, we identified financial performance indicators in accordance with the requirements of NIGC through a review of theoretical foundations and interviews with a number of financial and planning experts and then prioritized them using the analytical hierarchy process (AHP) method. These indicators lied in four groups of liquidity, capital structure, profitability, and activity criteria. Then, the weighted indicators were analyzed using TOPSIS technique and with help of the Expert-Choice (EC) software, and the final ranking of the companies was provided. The results showed that, based on the identified criteria, provincial gas companies of Hormozgan, Yazd, Markazi, and Kermanshah had a favorable financial performance and Ilam, Mazandaran, Chaharmahal and Bakhtiari, and Zanjan provincial gas companies had a weak financial performance with respect to the other companies in the three years reviewed. Finally, some suggestions have been made in this regard.