2019-20 SaskEnergy Annual Report

Management’s Discussion and Analysis

INDUSTRY LEADER SaskEnergy is a leader in the categories that matter most. Strong personal, public, and process safety programs generate leading results. Integrated asset management practices support infrastructure systems,

programs and plans. SaskEnergy achieves consistent profitability from operations while maintaining a debt-to- equity ratio benchmarked against industry standards.

March 31, 2019 Actual

March 31, 2020 Actual

March 31, 2020 Target

Strategic Measure

Safety Total Recordable Injury Frequency Rate

2.31

Second Quartile

1.73*

Enterprise Risk Management SaskEnergy Leaks per 1,000 Kilometres of Mains

8.5

10.1

5.3

TransGas Natural Gas Line Failures per 1,000 Kilometres of Gas Line

0.00

0.28

0.07

7.63%

Safety and Integrity

6.72%

6.80%

Financial Strength Debt/Equity Ratio

58/42

55/45

59/41

6.1%

Consolidated Return on Equity

12.9%

6.1%

$

66

Income Before Unrealized Market Value Adjustments (millions)

$

134

$

64

*Beginning in 2019-20, the Corporation is reporting its actual Total Reportable Injury Frequency Rate.

Safety SaskEnergy focuses on a ‘safety first’ work

This is an increase from the 2018-19 TRIF of 2.08 and is higher than the corporate TRIF target of 1.73. Key safety initiatives undertaken during 2019-20 included: • public safety efforts to continue decreasing the number of third-party line contacts with buried infrastructure; • collaboration with industry peers and third-party consultants to measure, evaluate and effectively manage safety culture; and, • a continued focus on process safety, as well as streamlined business processes to assess and mitigate risk.

environment. Employee and public safety are at the core of every activity. Hazard identification, risk assessment and mitigation, and sharing learnings to promote awareness and continued improvement, are safety priorities throughout the organization. SaskEnergy believes that a strong safety culture informs individual and collective decisions made each day by employees and contractors, and will ultimately result in success in this prioritized area. In 2019-20, SaskEnergy achieved a Total Recordable Injury Frequency (TRIF) of 2.31, meaning there were 2.31 recordable injuries for every 100 full-time employees.

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