Management’s Discussion and Analysis
Managements Discussion and Analysis Contents 23 Introduction 24 Strategic Scorecard Measures 32 Operating Environment
42 Outlook 43 Risk Management and Disclosure 47 Critical Accounting Policies and Estimates 48 Accounting Policy Changes
33 Consolidated Financial Results 40 Liquidity and Capital Resources 41 Capital Additions
Introduction The Management’s Discussion and Analysis (MD&A) highlights the key factors influencing SaskEnergy’s consolidated financial performance for the 12 months ending March 31, 2025. Based on financial and operating results, the MD&A provides insights into the Corporation’s past performance and future prospects from management’s perspective. The MD&A is presented as at May 22, 2025, and should be read alongside the Corporation’s audited consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS ® Accounting Standards). The MD&A contains forward-looking statements, which are subject to inherent uncertainties and risks, as described in the Risk Management and Disclosure section of the MD&A. These forward-looking statements reflect the Corporation’s best estimates and assumptions based on information available at the time. However, actual results and events may vary significantly from those included in, contemplated by, or implied by such statements. The Corporation’s financial results are subject to variation, especially given the volatility of natural gas prices. To compare financial performance from period
to period, the Corporation uses the following measures: income before unrealized market value adjustments; realized margin on commodity sales; and, realized margin on asset optimization sales. Each measure removes the impact of fair value adjustments on financial and derivative instruments and the revaluation of natural gas in storage to the lower of cost and net realizable value. Unrealized market value adjustments vary considerably with the market prices of natural gas, significantly impact the Corporation’s consolidated net income and may obscure other business factors that are important to understand the Corporation’s financial results. The measures mentioned above are non-IFRS measures, meaning they lack a standardized definition and may not be comparable to similar measures presented by other entities. The discussion of the Corporation’s results in the MD&A, set out on the following pages, is a comparison of the results for the 12 months ending March 31, 2025, to the results for the 12 months ending March 31, 2024, unless otherwise noted.
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