SaskEnergy Incorporated First Quarter Report
The following chart shows AECO natural gas prices:
March 31, 2011
Constraints of Existing Infrastructure
Despite the shift to horizontal drilling methods improving gas supply economics, getting western Canadian gas to market has remained a major concern. Gas well drilling west of Saskatchewan has tended to move farther into northwestern Alberta and northeastern British Columbia. This has resulted in delivery infrastructure that is constrained due to undersized facilities. NOVA Gas Transmission Ltd. (NGTL) currently has a project before the Canada Energy Regulator which is intended to relieve this constraint by adding additional gas line and compressor facilities. SaskEnergy will continue to monitor this situation and take an active role in the process to ensure access to a reliable source of natural gas. CONSOLIDATED FINANCIAL RESULTS
Consolidated Net Income (Loss)
Three months ended September 30
September 30 Six months ended
(millions)
2019
2018 Change
2019
2018 Change
Impact of fair value adjustments Revaluation of natural gas in storage Income before unrealized market value adjustments
$
1 7 4
$
(3)
$
7 1
$
3
$
(2)
$
10
(24)
(28) (16) (41)
(17)
(27)
(2)
16 24
2
-
Consolidated net income
$
12
$
(29)
$
$
$
(17)
$
(17)
Excluding market value adjustments, financial results for the six months ending September 30, 2019 are $3 million higher than the same period in 2018. The increase in net income is due to increased transportation revenue and higher customer contributions relating to both transmission and distribution customers, which was partially offset by a lower commodity margin in 2019-20.
4
2019-20 SECOND QUARTER REPORT
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