CREATING VALUE The Creating Value strategic mandate requires SaskEnergy to perform with an entrepreneurial spirit, consistently demonstrating that the Corporation is nimble, adaptable and flexible, while always focused on efficiency and results. SaskEnergy’s Creating Value mandate measures are in place to ensure that the Corporation is adding value for its shareholder, customers and employees through financially strong and sustainable operations, sound corporate governance and relationships within the communities it serves. Within Creating Value, there are three categories of measures — Financial Strength, Environmental and Community Relationship.
Creating Value
March 31, 2021 Target
March 31, 2016 Actual 1
March 31, 2020 Target
December 31, 2015 Target
March 31, 2019 Target
December 31, 2015 Actual
March 31, 2018 Target
December 31, 2014 Actual
March 31, 2017 Target
Strategic Measure
Financial Strength
62/38 12.3%
Debt/Equity Ratio Consolidated Return on Equity
63/37 6.5%
63/37
61/39
60/40 9.9%
61/39 8.8%
61/39 8.6%
60/40 8.1%
59/41 8.2%
10.2% 18.8%
$88
$47
$73
$135
$77
$73
$76
$76
$80
Income Before Unrealized Market Value Adjustments (millions)
Environmental
394
Environmental Greenhouse Gas Emissions (Tonnes of CO 2 e/million running horsepower hours)
390
440
391
425
410
395
395
395
Community Relationship
0.6%
1.3%
1.1%
0.6%
0.8%
0.8%
0.8%
0.8%
0.8%
Community Sponsorships as a Percentage of Net Income Total Contracts – Percentage of Aboriginal Labour Content
14%
15%
13%
15%
14%
14%
15%
16%
16%
1 For the 15 months ended March 31, 2016
Financial Strength SaskEnergy strives to maintain an appropriate capital structure while providing reasonable financial returns to its statutory holding company, CIC, and competitive rates to customers. The Corporation works hard to balance the interests of both CIC and its customers — focusing on annual profitability and long-term financial sustainability. Operating net income results were higher despite warmer than normal weather – which negatively impacted delivery revenue – and higher third-party transport costs necessary to import natural gas from Alberta to meet supply requirements. Higher commodity gains — a result of the declining market price of natural gas, higher transmission revenues due to industrial load growth and effectively managing costs in alignment with the Province’s restraint measures all contributed to higher net income in 2015. Equity levels were negatively impacted by the unfavourable market value adjustments for natural gas inventory. Outstanding debt was slightly lower than planned due to capital expenditure levels, which were also lower than planned for the period.
28
Management’s Discussion & Analysis
Made with FlippingBook Ebook Creator