Management’s Discussion and Analysis
37
Operating Activities Cash provided by operating activities decreased by $62 million for the 12 months ended March 31, 2026, primarily due to unfavourable changes in working capital offsetting the positive operating results. High short- term liability balances were paid down during the fiscal year, particularly in the first quarter, which more than offset the positive cash flow from asset optimization activities and customer capital contributions. The prior year operating activities were also impacted by an accumulation of higher-than-normal customer account balance payments, as the organization’s equalized payment program adapted to changes in customer bills resulting from adjustments such as removal of the carbon tax and the last rate changes implemented in October 2023.
Investing Activities Cash used in investing activities increased by $84 million in 2025-26 compared to 2024-25. This increase was primarily driven by the Corporation’s ongoing investment in expanding infrastructure to meet the growing customer demand for natural gas services. Financing Activities Cash provided by financing activities increased by $163 million for the 12 months ended March 31, 2026, compared to the same period in 2024-25. The increase primarily reflects greater reliance on short-term debt at comparatively lower interest rates to support operating requirements through the winter heating season. In the prior year, the Corporation had a net short-term debt repayment of $58 million, while the current year saw net proceeds of $108 million.
Capital Additions
(millions)
March 31, 2026
March 31, 2025
Change
$
208 $
Customer growth Risk management System expansion
128 $
80
103
99 48 52 11
4
77 34 12
29
Reliability of natural gas service
(18)
Business and technology optimization
1
$
434 $
Capital additions
338 $
96
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 12 months ended March 31, 2026, were $96 million higher than the investment made in 2024-25, primarily due to increasing expenditures in customer growth projects. Customer Growth Investment in customer growth projects of $208 million was $80 million higher than 2024-25 investment levels, as the Corporation continues to focus on investments that connect customers to the transmission system. In
particular, significant work was completed in 2025-26 to support SaskPower’s new natural gas power station near Lanigan. 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 or environment and potential harm to, or loss of, human life. Risk management spending of $103 million in 2025-26 was $4 million more than in 2024-25 as the Corporation continues its focus on cathodic protection, measurement improvement and service replacement projects.
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