Investing Activities Cash used in investing activities totaled $186 million for the nine months ended December 31, 2020, $72 million less than the nine months ended December 31, 2019. Capital investment levels declined in 2020-21 due to the deferral of some system expansion projects resulting from changing customer requirements. In addition, the prior year included substantial system expansion spending around the city of Saskatoon. Lower capital maintenance work is also contributing to the reduced investing activity however the risk profile of the Corporation has not been negatively impacted as a result. Financing Activities Cash provided by financing activities of $76 million through the nine months ended December 31, 2020 declined $9 million compared to the $85 million provided in 2019-20. The Corporation used $50 million for interest payments and $34 million to pay long-term debt. The Corporation borrowed an additional $150 million in long-term debt at a premium of $10 million to support its capital investment requirements and increased short-term debt by $10 million. SaskEnergy’s debt ratio at the end of December 31, 2020 of 59 per cent debt and 41 per cent equity is within the Corporation’s long-term target range of 58 to 63 per cent debt.
Coronavirus (COVID - 19) impact assessment
The COVID-19 pandemic has caused material disruption to businesses and has resulted in an economic slowdown. The Corporation has assessed and continues to monitor the impact of COVID-19 on its operations. The magnitude and duration of COVID-19 is uncertain and, if it causes significant disruption for an extended period of time, the impacts to the Corporation will increase. Potential impacts include loss of revenue, supply chain disruption, challenges associated with a remote or unavailable workforce and potential asset impairment. The Corporation’s business continuity plans are currently in place while continuing to effectively operate assets, conduct commercial activities and execute on projects with a focus on health, safety and reliability. SaskEnergy is considered essential for the Province given the important role the Corporation’s infrastructure plays in providing energy to customers. While it is too early to determine long-term impacts that COVID-19 may have on capital programs, a slowdown of construction activities and capital expenditures, relating to customers deferring their expansion plans in 2020 have been observed.
2020-21 Third Quarter Report
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