Financial and Operating Highlights
Quarterly Year-Over-Year Analysis Operating results typically fluctuate from quarter to quarter due to variations in economic conditions and seasonal factors. Consequently, one quarter’s results may not accurately predict future performance. Natural gas consumption exhibits distinct seasonal patterns, as customers predominantly use natural gas for heating during the cold winter months, particularly in the third and fourth quarter. The quarterly year-over-year analysis, excluding market value adjustments, follows:
First Quarter (three months ending June 30)
first quarter continued through the second quarter of 2024. Additionally, operating and maintenance expenses increased due to inflationary increases to third-party transportation costs. Customer capital contributions grew year-over-year, reflecting increased activity among distribution utility customers compared to the second quarter of 2023. Third Quarter (three months ending December 31) Net income for the third quarter was $45 million, which is $17 million higher than $28 million in 2023. The year-over-year impacts highlighted in previous quarters persisted throughout the third quarter. In addition to these items, net commodity sales transitioned to being higher in 2024, resulting from weather conditions being 14 per cent colder than the previous year. The Corporation’s energy efficiency programs saw increased customer activity, partly due to three new programs introduced in 2024-25. Additionally, the Residential Equipment Replacement Rebate program experienced a surge in activity, with December seeing the second highest monthly customer participation since its introduction in 2019.
The Corporation reported a net loss of $6 million in June 2024, which is $6 million unfavourable compared to the income of $nil in 2023. The commodity rate adjustment to $3.20 per GJ effective October 1, 2023, lowered net commodity sales year-over-year. Employee benefit costs increased in 2024 due to a new Collective Bargaining Agreement effective February 2024, resulting in higher employee compensation. Full-time equivalent employees rose in 2024 as the Corporation filled previously vacant positions in construction and engineering to support growing customer demand for natural gas services, and in the digital, technology, and security areas to aid digital transformation. The Corporation’s unfavourable results were partially mitigated by higher delivery service revenues, driven by rate increases effective October 1, 2023, to address inflation. The Corporation continues its focus on operating efficiencies to help reduce rate pressure. Higher transportation and storage revenues resulted from increasing intra-provincial delivery service revenues, as customers executed higher contract demand to meet their operating requirements. Additionally, a two per cent average rate increase for transportation and storage services was implemented effective April 1, 2024, to address the expansion of the transmission system and meet the growing demand for natural gas services in Saskatchewan.
Fourth Quarter (three months ending March 31)
Net income for the fourth quarter of 2024-25 was $58 million, which is $17 million higher than the $41 million in the final quarter of fiscal 2023-24. Trends present in the first three quarters continued, with net commodity sales increasing further due to February 2025 being 23 per cent colder than normal and February 2024 being 15 per cent warmer than normal. The asset optimization margin also increased through the quarter, due to opportunities arising from the favourable natural gas price differential between Western Canada and other markets which allowed optimization of under-utilized transportation volumes at off peak periods.
Second Quarter (three months ending September 30)
The net loss for the second quarter of 2024 was $15 million, which is $1 million higher than the $14 million loss in 2023. Year over year impacts such as the lower commodity rate, warmer weather, higher employee benefit costs, higher delivery rates and higher demand and rates for transportation services highlighted in the
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