SaskEnergy Third Quarter Report - December 31, 2017

7. Long-term debt

During 2017-18, the Corporation issued $119 million in long-term debt, in increments of $100 million and $19 million with effective interest rates of 3.2% and 2.9%, respectively. The long-term debt issuance of $100 million was issued at a premium of $2 million.

During the period, the Corporation also repaid $59 million in long-term debt, in increments of $19 million and $40 million with effective interest rates of 4.7% and 4.8%.

8. Commitments and contingencies

a. Commitments

At period end, the Corporation had $73 million of outstanding contractual commitments for the procurement of goods and services in the future.

The Corporation has entered into commodity contracts for the physical purchase of natural gas that qualify as own- use contracts. As at December 31, 2017 own-use natural gas derivative instruments had the following notional values and maturities for the next five years:

(millions)

2018

2019

2020

2021

2022

Total

Own-use physical natural gas contracts

Notional value

$

(42)

$

(62)

$

(66)

$

(62)

$

(44)

$

(276)

Notional value - estimated undiscounted net cash outflow

b. Contingencies

The Corporation is involved in litigation resulting from the 2014 natural gas incident in the community of Regina Beach, Saskatchewan. The Corporation does not expect the outcomes to result in any material financial impact.

9. Unrealized market value adjustments

For the Three Months Ended December 31

For the Nine Months Ended December 31

2017

2016

2017

2016

(millions)

Change in fair value of debt retirement funds

$

-

$

(5)

$

-

$

(1)

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

10

18

16

70

-

13

(7)

27

$

10

$

26

$

9

$

96

23

2017-18 THIRD QUARTER REPORT

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