Management’s Discussion and Analysis
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, and 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, 2025
March 31, 2024
Change
$
410 $
Cash provided by operating activities Cash used in investing activities Cash used in financing activities
345 $
65
(355)
(269)
(86) (11) (32)
(73)
(62)
$
(18) $
(Decrease) increase in cash and cash equivalents
14 $
Operating Activities Cash provided by operating activities increased by $65 million for the 12 months ending March 31, 2025, primarily due to higher customer demand, combined with the impact of rate increases for both distribution and transmission natural gas services, which were implemented to address rising costs and expansion of the Corporation’s natural gas system. Increasing customer capital contributions received through 2024-25 compared to 2023-24 in the distribution utility also contributed to the favourable cash flows. These favourable results were partially offset by higher employee benefit costs and higher operating and maintenance expenses. Investing Activities Cash used in investing activities increased by $86 million in 2024-25 compared to 2023-24. This increase was primarily driven by the Corporation’s ongoing investment in expanding infrastructure to meet the growing customer demand for natural gas services. Additionally, investments were made to enhance the safety and system integrity of the natural gas system.
Financing Activities Cash used in financing activities grew $11 million in 2024-25 compared to 2023-24, primarily due to the Corporation paying a long-term debt maturity of $100 million in 2024, as well as paying $58 million to reduce short-term debt, $78 million for interest payments and $21 million for dividend payments. During the first half of fiscal 2024-25, the Corporation borrowed an additional $200 million of long-term debt at a discount of $5 million.
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