Notes to the Consolidated Financial Statements
4. Capital Management The Corporation’s objective when managing its capital is to maintain financial stability through the effective management of liquidity and capital structure. The Corporation finances its capital requirements through internally generated funds and injections of capital from the Province, typically in the form of debt. Under The SaskEnergy Act , the Corporation may borrow up to $2,500 million of debt upon approval of the Lieutenant Governor in Council (2024 - $2,500 million). Within this limit, the Corporation may borrow up to $500 million in temporary loans (2024 - $500 million). The Corporation currently holds a $50 million line of credit with Toronto-Dominion Bank (2024 - $50 million). Within this line of credit, $20 million is designated as a letter of credit with ICE NGX to secure natural gas transactions on the ICE NGX exchange in Alberta, leaving $30 million of the line of credit uncommitted (2024 - $35 million). The Corporation also has a Parental Guarantee Agreement of $10 million posted with one of its subsidiaries. As at March 31, 2025, the Corporation had $2,049 million of total debt outstanding (2024 - $2,012 million). Temporary loans of $187 million (2024 - $245 million), combined with the letter of credit and the Parental Guarantee, leaves $283 million (2024 - $245 million) uncommitted of the $500 million of temporary loans available. The Corporation borrows all its capital, with the exception of occasional overnight loans from the Toronto-Dominion Bank, from the Province. The Corporation’s borrowing requirements constitute a minor portion of the Province’s total borrowings, and given the Province’s strong credit rating, the Corporation was able to satisfy all its funding requirements during the period. The Corporation does not have share capital. However, it has received advances from CIC, which reflect an equity investment in the Corporation, to form its equity capitalization. The Corporation’s capital structure consists of long-term debt, short-term debt, equity advances and retained earnings, net of debt retirement funds, and cash and cash equivalents. The Corporation monitors capital on the basis of the proportion of debt in the capital structure, with a long-term target range of 58.0 per cent to 63.0 per cent. The purpose of this strategy is to ensure the Corporation’s debt is self-supporting and does not adversely affect the Province’s access to capital markets. The debt ratio is calculated as net debt divided by total capital at the end of the fiscal year as follows: (millions) 2025 2024 Long-term debt $ 1,862 $ 1,767 Short-term debt 187 245 Lease liability 13 13 Debt retirement funds (197) (179) Cash and cash equivalents (2) (20) Total net debt 1,863 1,826
22
Equity advances Retained earnings
22
1,294
1,235 3,083 59.2%
$
3,179 $
Total capital
58.6%
Debt ratio
The Corporation’s objectives, policies and processes for managing its capital were consistent with the prior period. The Corporation complied with all externally imposed requirements for its capital throughout the period, which include compliance with the approved borrowing limits for short-term and long-term debt, and the annual investment requirement to the debt retirement funds.
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