Management’s Discussion and Analysis
Long-term debt activity also contributed to financing cash flows. During the period, the Corporation issued $150 million of long-term debt at a $1 million discount. Proceeds from this issuance, together with $44 million released from debt retirement funds, were used to repay a $75 million maturity and to help fund capital expenditures across the system. Other notable financing cash flows include $67 million in interest payments and the distribution of $28 million in dividends to the shareholder. Capital Additions Capital additions, as reported in the condensed consolidated financial statements, were as follows:
Three months ended December 31,
Nine months ended December 31,
(millions)
2025
2024
Change
2025
2024
Change
Customer growth System expansion Risk management
$
45 21 30 11
$
25 26 33 10
$
20
$
129
$
52 49 73 19
$
77
(5) (3)
47 79 28
(2)
6 9 1
Reliability of natural gas service
1 1
Business and technology optimization
3
2
7
6
Capital additions
$
110
$
96
$
14
$
290 $
199
$
91
SaskEnergy is committed to providing solutions and services that benefit customers and Saskatchewan, leveraging the Corporation’s expertise and Saskatchewan’s private sector. The Corporation deploys its strategic capital to fund customer growth and create new business capabilities. Fulfilling customer demand for additional natural gas capacity is a core responsibility for the Corporation and demand is forecasted to moderately increase as a result of the growing industrial and power generation sectors. Key focus areas include maintaining the safety and reliability of the natural gas transmission and distribution systems, enhancing customer experience, and supporting the Corporation’s emissions reduction strategy. Capital additions through the nine months ended December 31, 2025, were $91 million higher than the investment made in 2024, primarily due to increasing expenditures in customer growth projects. Customer Growth Investment in customer growth projects of $129 million were $77 million higher than 2024 investment levels, as the Corporation continues to focus on investments that connect customers to the transmission system, particularly larger projects connecting major power generation facilities. System Expansion System expansion capital projects provide incremental capacity for the transmission and distribution systems, through the installation of new or expanded gas line or facility assets, thus enabling demand growth and the addition of new customers. A lower investment of $2 million in system expansion projects through 2025 compared to 2024 is resulting from components of some large multi-year system expansion projects coming to a close in the fiscal year, such as Regina East Expansion. Risk Management Capital investment in safety and system integrity continues to be SaskEnergy’s top priority. SaskEnergy takes a long-term view and uses a risk-based approach to determine project priorities and the appropriate level of total integrity spending. Industry comparable data also provides reference, as the industry as a whole has progressively elevated safety and system integrity capital investment over the last number of years. Risk management capital projects concentrate on mitigating the likelihood of a negative consequence occurring on the SaskEnergy system, such as damage or loss of gas containment. These consequences typically include damage to infrastructure, environment and potential harm to or loss of human life. Risk management spending of $79 million is moderately higher in 2025 than the prior year as the Corporation continues its focus on cathodic protection, measurement and service replacement projects.
10
Made with FlippingBook Ebook Creator