Management’s Discussion and Analysis
The following chart shows AECO natural gas prices:
AECO Monthly Index Historical Prices
$8.00
$7.00
Forward Price at December 31, 2024 Average Price: $2.82/GJ
Limited Export Capacity from Alberta 2015-Present Average Price: $2.48/GJ
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Consolidated Financial Results Consolidated Net Income (Loss)
Three months ended December 31,
Nine months ended December 31,
(millions)
2024
2023 Change 2024
2023 Change
Net income before unrealized market value adjustments Impact of fair value adjustments
$
45
$
24
$
28
$
17 26 43
$
14
$
10 35 45
2
(3)
(24)
(38) (24)
$
47
$
21
Consolidated net income (loss)
$
4
$
$
$
The Corporation is focused on balancing the challenges of maintaining affordability of natural gas services, while increasing environmental responsibility. These two priorities are strategic imperatives for the next three years as SaskEnergy works toward achieving the corporate vision of providing critical energy to support Saskatchewan. The net income before unrealized market value adjustments for the nine months ended, December 31, 2024 was $24 million, reflecting a $10 million increase compared to the net income of $14 million in December 2023. This improvement is primarily attributed to higher revenue from delivery, transportation, and storage services, as well as increased customer capital contributions in 2024. These favourable results were partially offset by lower net commodity sales realized, increased employee benefit costs, and higher operating and maintenance expenses. Higher delivery service revenues were driven by rate increases effective October 1, 2023, combined with the impact of colder weather than the prior year increasing customer demand for natural gas as heating energy. Higher transportation and storage revenues are resulting from higher demand to meet customers’ operating requirements, combined with a 2 per cent average rate increase for transportation and storage services being implemented effective April 1, 2024, to address expansion of the transmission system and meet growing demand for natural gas services in Saskatchewan. The Corporation’s net commodity sales realized for the period ended December 31, 2024, were lower than in 2023, as the net commodity sales realized declined $0.18 per GJ compared to prior year. The Corporation received approval to decrease the commodity rate from $4.20 per GJ to $3.20 per GJ effective October 1, 2023, therefore reducing sales revenue realized. This was partially offset by natural gas prices declining $1.26 per GJ in 2024 compared to 2023, which favourably reduced commodity cost of sales compared to 2023. In addition, weather through the nine months ended December 31, 2024, was 10 per cent colder than the same period in 2023 and favorably increased customer demand.
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