SaskEnergy Second Quarter Report - September 30, 2019

12. Delivery revenue

For the Three Months Ended September 30,

For the Six Months Ended September 30,

2019

2018

2019

2018

(millions)

$

30 11

$

60 33

Basic monthly charge

$

29 13

$

59 33

Delivery revenue

-

2

Other

1

3

$

41

$

95

$

43

$

95

13. Transportation and storage revenue

For the Three Months Ended September 30,

For the Six Months Ended September 30,

2019

2018

2019

2018

(millions)

Transportation Firm

$

42

$

84

$

31

$

62

2 1

4 1

Interruptible

2 1

4 2

Other

45

89

34

68

3

5

Storage

2

5

$

48

$

94

$

36

$

73

14. Net finance expenses

For the Three Months Ended September 30,

For the Six Months Ended September 30,

2019

2018

2019

2018

(millions)

Debt retirement funds earnings

$

1 1

$

- -

$

2 2

$

1 1

Finance income

Interest expense on short-term debt Interest expense on long-term debt Unwinding of discount on provisions

(1)

-

(2)

(1)

(14)

(12)

(27)

(24)

(1)

(1)

(2)

(2)

Borrowing costs capitalized to qualifying assets

1

-

2

1

Finance expenses

(15)

(13)

(29)

(26)

Net finance expenses

$

(14)

$

(13)

$

(27)

$

(25)

15. Financial risk management

Through the normal course of business, the Corporation has exposure to market risk (natural gas price risk and interest rate risk), liquidity risk and credit risk related to its financial and derivative instruments. The Board of Directors, through the Audit and Finance Committee, has the overall responsibility for the establishment and oversight of the Corporation's risk management efforts. The risk management policies and strategies, approved by the Board of Directors and reviewed regularly by the Audit and Finance Committee, provide the framework within which financial and derivative instruments may be used to manage its risks. The Corporation’s significant risk management policies include the Corporate Derivatives Policy, the Commodity Risk Management Policy, the Corporate Debt and Interest Rate Risk Management Policy and the Corporate Credit Risk Management Policy. The objectives, policies and processes for managing risk were consistent with the prior period.

27

2019-20 SECOND QUARTER REPORT

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