2019-20 SaskEnergy Annual Report

Notes to the Consolidated Financial Statements

18. COMMITMENTS AND CONTINGENCIES a. Commitments As at March 31, 2020, the Corporation had $144 million (2019 - $79 million) of outstanding contractual commitments for the procurement of goods and services in the future. During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at March 31, 2020, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years:

(millions)

2021 2022 2023 2024 2025 Total

OWN-USE PHYSICAL NATURAL GAS CONTRACTS Notional value

$ 373

$

74 $

73 $

71 $

70 $

85

Notional value - estimated undiscounted cash outflow

b. Contingencies The Corporation is involved in litigation claims, which the Corporation does not expect the outcomes to result in any material financial impact. 19. UNREALIZED MARKET VALUE ADJUSTMENTS

(millions)

2020

2019

$

(30) $

Change in fair value of natural gas derivative instruments

13 19 32

7

Change in revaluation of natural gas in storage to net realizable value

$

(23) $

Unrealized market value adjustments represent the net income impact of measuring certain financial and derivative instruments at fair value subsequent to initial recognition (Note 8) and measuring natural gas in storage at the lower of weighted average cost and net realizable value (Note 6). These adjustments represent the change in the carrying amount of the related item during the period and are dependent on the market prices and expected delivery dates at the end of the reporting period.

p.79

Made with FlippingBook Ebook Creator