The Diversified Non-Core Business measures reflect the value of developing new revenue streams within the commodity and unregulated business environment. Successful efforts in this area create a wider revenue base and strongly align SaskEnergy with the Crown Sector Priority of forming partnerships and joint arrangements with the private sector to facilitate growth in the Saskatchewan economy.
Achieving Growth Achieving Growth includes all areas of our business — continuing to build on the foundation of our core business of serving growing residential, commercial, and industrial customers’ needs as well as finding new opportunities through partnerships and technology developments. The measures within Achieving Growth represent the Corporation’s commitment to facilitating growth in Saskatchewan. The Business Growth Investment measure recognizes the fundamental importance of core revenue growth in the Corporation’s two utilities as a key indicator of the success of the business. In this regard, provincial growth has directly contributed to an increased distribution customer base and increased demand for natural gas from industrial facilities.
Achieving Growth
2013 Actual
2014 Actual
2014 Target
2015 Target
Strategic Measure
Comments
Business Growth Investment • Core Growth – SaskEnergy and TransGas Revenue Growth
2.2%
4.3%
2.8% Target was exceeded, as the Distribution Utility earned additional delivery revenues as a result of the colder than normal weather in 2014.
3.6%
Diversified Non-Core Business • Net Revenue (millions)
$30.5
$28.0
$22.9 Net revenue was generated primarily from unregulated businesses in the areas of gas storage/commodity activities at the Pierceland and Totnes facilities, gas processing at the Kisbey Gas Processing Plant, and the CNG fuelling station in Weyburn. $62.0 Total capital investment in non-core projects is above the target due
$22.1
$45.6
• Total Capital Investment (millions) Percentage of Third-Party Capital Investment
$6.9
$87.0
primarily to the increased third-party capital investment in the southeast Saskatchewan ethane extraction plant during 2014. assets reduced 2014 income and lowered the Return on Equity below target. The 2013 result was favourable given the previous volatility in the natural gas commodity price, which allowed for gas marketing transactions to be undertaken at a significant margin.
26%
83%
66%
87%
19.6%
• Return on Equity
20.1%
12.5% The impairment of gas processing
10.6%
21
2014 Annual Report SaskEnergy
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