Management’s Discussion and Analysis
36
Loss on Trade and Other Receivables The loss on trade and other receivables was $1 million in 2025-26, compared to a recovery of $1 million in 2024-25. Last year’s recovery was atypical, primarily driven by lower outstanding receivables resulting from the elimination of carbon charges on customer bills. These favourable conditions were not present in the current year and, as a result, a comparable recovery was not realized. Net Finance Expenses Net finance expenses for 2025-26 were $1 million higher than the previous year. Although a loss of approximately $2 million was realized on the redemption of a debt retirement fund used to extinguish a long-term debt maturity during the year, interest rates have declined year over year, lowering interest costs on both long- and short-term debt, almost fully offsetting the one-time loss. Other Net Losses The Corporation reported other net losses of $8 million for the fiscal year 2025-26, which represents a $1 million decrease compared to the $9 million recorded in 2024-25. Decommissioning costs of $4 million were consistent with the prior year and related to non-operational assets for TransGas and Bayhurst. The year-over-year decrease was primarily attributable to lower impairment losses, which declined to $1 million from $5 million in the prior year. This improvement was partially offset by $2 million in project cancellation costs and $1 million in net losses on the disposal of assets recognized in 2025-26.
Energy efficiency program costs were higher than the prior year, as the Corporation paid approximately $1 million more in customer rebates. This increase was primarily driven by higher participation in energy efficiency programs, including the Homes Beyond Code and Residential Equipment Replacement Rebate programs. The Homes Beyond Code program, introduced in the prior year, continued to gain momentum as awareness increased and construction activity remained strong. These programs support SaskEnergy’s energy efficiency and emissions reduction objectives while delivering long-term benefits to customers — lowering their energy use, reducing emissions and providing bill savings. Overall, the increase in operating and maintenance expenses reflects inflation-related pressures, continued investment in modernized systems, and the servicing requirements of a growing customer base. These cost pressures were mitigated, in part, through ongoing cost management initiatives and operational efficiencies undertaken in support of the Corporation’s mandate to deliver safe, reliable and affordable natural gas service to its customers. Depreciation and Amortization To balance safety and system integrity with the increasing demand for natural gas services, strategic capital investment is essential to ensure the necessary infrastructure is in place to meet growing customer needs. Depreciation and amortization expenses were $5 million higher than the same period in 2024-25, primarily due to an expanding asset base to serve customer requirements.
Liquidity and Capital Resources As a Crown corporation, SaskEnergy’s primary sources of capital are cash from operations and debt — which is borrowed through the Province’s General Revenue Fund. Cash from operations is SaskEnergy’s most important source of capital. As a utility, cash from operations is relatively stable, and the Corporation relies on it to fund a significant proportion of its investment in its natural gas facilities, as well as the debt servicing costs on those investments. Long- and short- term debt can be borrowed through the Province of Saskatchewan to meet any long- or short-term incremental capital requirements, and to repay debt as it matures. Sources of liquidity include an Order in Council authority to borrow up to $500 million in short-term loans, including a $50 million line of credit with the Toronto-Dominion Bank. Within this line of credit, the Corporation provides a $20 million letter of credit with ICE NGX as security for natural gas purchases and sales conducted by the Corporation on the ICE NGX natural gas exchange in Alberta, leaving $30 million uncommitted. Under The SaskEnergy Act , the Corporation may borrow up to $2,500 million of debt upon approval of the Lieutenant Governor
in Council. (millions)
March 31, 2026
March 31, 2025
Change
$
348 $
Cash provided by operating activities Cash used in investing activities
410 $
(62) (84)
(439)
(355)
90
Cash provided by (used in) financing activities Decrease in cash and cash equivalents
(73)
163
$
(1) $
(18) $
17
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