SaskEnergy Incorporated First Quarter Report
March 31, 2011
AECO Monthly Index Historical Prices
$14.00
Conventional Natural Gas Production
$12.00
$10.00
$8.00
Shale Gas Revolution
$6.00
Forward Price at December 31, 2018
$4.00
$2.00
$0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
CONSOLIDATED FINANCIAL RESULTS
Consolidated Net Income
Three months ended December 31
Nine months ended December 31
(millions)
2018
2017 Change
2018
2017 Change
Income before unrealized market value adjustments Impact of fair value adjustments Revaluation of natural gas in storage
$
66 12
$
58 10
$
8 2
$
73 13 14
$
57 14
$
16
(1)
(2)
-
(2)
(7)
21
Consolidated net income (loss)
$
76
$
68
$
8
$
100
$
64
$
36
Net income before unrealized market value adjustments was $73 million for the nine months ended December 31, 2018, $16 million favourable compared to the net income of $57 million in 2017. The primary driver of the higher year to date results is a $13 million gain relating to two natural gas liquid extraction plants that were sold effective October 1, 2018. Higher commodity, delivery and transportation and storage revenue also contributed to the favourable variance over 2017. With respect to core operations, the delivery rate increase effective November 1, 2017 and 2018, combined with increased transportation loads and a transportation rate increase effective May 1, 2018, will continue to contribute to higher revenues compared to 2017. A large portion of SaskEnergy’s revenue is dependent on customers’ use of natural gas to heat their premises. Weather was 6 per cent colder than normal through the nine months ending December 31, 2018 compared to 2 per cent colder than normal for the same period in 2017, which also contributed to higher delivery revenue. While employee benefits and operating and maintenance costs have increased compared to 2017, the Corporation continues to focus on cost management efforts while continuing to provide safe and reliable service.
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2018-19 THIRD QUARTER REPORT
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