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Capturing the Effect of the COVID-19 Pandemic Outbreak on the Financial Performance Disparities in the Energy Sector: A Hybrid MCDM-Based Evaluation Approach

Author

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  • Anas A. Makki

    (Department of Industrial Engineering, Faculty of Engineering—Rabigh, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Ammar Y. Alqahtani

    (Department of Industrial Engineering, Faculty of Engineering, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

Abstract

The COVID-19 pandemic has impacted the financial performance of companies in different sectors. One of the most important sectors affected is the energy sector. Therefore, this research study aims to conduct a financial performance evaluation of companies in the Saudi energy sector in 2019, 2020, and 2021. This is to capture and analyze the effect on companies before, during, and post the COVID-19 pandemic, respectively. A hybrid multicriteria decision-making (MCDM) approach is followed to achieve the objective. The financial performance evaluation of energy companies is based on four financial dimensions and 11 performance indicators. Results revealed that energy companies’ efficiency and profitability were relatively the most important dimensions, followed by leverage and liquidity. Furthermore, results revealed the relative importance of the indicators from the most to the least important. Results also revealed the effect of COVID-19 on energy companies’ financial performance, demonstrating the change over the three years. Implications include providing insights for energy companies on the financial dimensions and indicators to be maintained and monitored in the case of pandemics. Furthermore, to assist decision-makers in the energy sector in developing strategies to mitigate financial performance disparities during and post-pandemics.

Suggested Citation

  • Anas A. Makki & Ammar Y. Alqahtani, 2023. "Capturing the Effect of the COVID-19 Pandemic Outbreak on the Financial Performance Disparities in the Energy Sector: A Hybrid MCDM-Based Evaluation Approach," Economies, MDPI, vol. 11(2), pages 1-21, February.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:2:p:61-:d:1066910
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    References listed on IDEAS

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    2. Galip Cihan Yalçın & Karahan Kara & Hamide Özyürek & Vladimir Simic & Dragan Pamucar, 2026. "Benchmarking the financial performance of initial public offering companies via a Z score normalization-based MPSI-RBNAR hybrid approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-38, December.
    3. Azize Kahramani Koc & Alper Tazegul & Savas Durmus, 2024. "Financial Performance Analysis of Energy Companies Using Multi-Criteria Decision-Making Techniques: An Application in the BIST Electricity, Gas and Water Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 379-391, October.
    4. Faruk Dayi & Ali Cilesiz & Mustafa Yucel, 2024. "Strategic Management of Clean Energy Investments: Financial Performance Insights by Using BWM-based VIKOR and TOPSIS Methods," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 566-574, September.

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