Management’s Discussion and Analysis
Cash provided by and used in activities, as reported in the condensed consolidated financial statements are as follows:
Three months ended December 31,
Nine months ended December 31,
(millions)
2023
2022 Change 2023
2022 Change
$
67
$
209 $
Cash provided by operating activities Cash used in investing activities
$
$
66
$
1
162
47
(196)
(85)
(35) (29) (17)
(23)
(161)
(62)
14
(19)
Cash (used in) provided by financing activities (Decrease) increase in cash and cash equivalents
(1)
15
10 11
$
(4)
(6)
$
$
3
$
(7)
$
$
Operating Activities Cash provided by operating activities increased $47 million through the nine months ended December 31, 2023, compared to the same period in 2022, due to favourable changes in working capital. High accounts receivable balances at March 31, 2023 were collected through the nine months ending December 31, 2023 as the Corporation was emerging from the winter heating season. Account receivable balances at December 31, 2022 were comparable to balances at March 31, 2022, however warmer than normal weather through December 2023 compared to December 2022 are resulting in lower customer account receivable balances outstanding at December 31, 2023 and a favourable impact to working capital. Investing Activities Cash used in investing activities increased $35 million compared to 2022, primarily due to capital investment required for system expansion, risk management and reliability of natural gas service projects increasing in 2023. This was partially offset by lower investment in customer growth initiatives. Financing Activities Cash used in financing activities of $19 million in 2023 was $29 million more than the $10 million provided by financing activities in 2022, primarily due to higher cash from operating activities decreasing the Corporation’s reliance on short-term debt, a positive result taking into account short-term market interest rates are continuing to trend higher through 2023. The Corporation used $62 million for interest payments, $17 million for dividend payments and $14 million to pay debt retirement fund installments. In addition, the Corporation borrowed an additional $125 million of long-term debt in three increments in the first quarter to support its capital investment requirements.
CAPITAL ADDITIONS Capital additions, as reported in the condensed consolidated financial statements, were as follows:
Three months ended December 31,
Nine months ended December 31,
(millions)
2023
2022 Change 2023
2022 Change
$
20 18 23 16
$
41 49 64 29
Customer growth System expansion Risk management
$
16
$
4 9 3 7
$
59 14 54 19
$
(18)
9
35 10 10
20
Reliability of natural gas service
9 4
2
5
Business and technology optimization
(2)
6
(1)
$
79
$
188 $
Capital additions
$
58
$
21
152
$
36
The Corporation continues to strategically invest in high priority projects while identifying cost saving opportunities including optimizing resources, streamlining construction processes and collaborating with other Crown Corporations. Capital additions through the nine months ended December 31, 2023, were $36 million higher than the investment made in 2022. Investment in customer growth projects was $18 million lower than 2022 investment levels, as the Corporation focuses on investing in urban and rural mains and services in 2023 to support existing and future customer connections to the distribution system. In 2022, the Corporation focused on customer growth by enhancing the transmission system to meet the increasing demand for natural gas within the province’s value-added agriculture sector and gas-fired power generation industry.
12
Made with FlippingBook Ebook Creator