Management’s Discussion and Analysis
Investing Activities Cash used in investing activities increased $76 million compared to 2024, primarily due to major capital investments in customer growth projects. Financing Activities Cash provided by financing activities increased by $144 million in 2025 compared to the same period in 2024, primarily due to the use of short-term debt at lower interest rates to support operating activities. In the first half of the fiscal year, the Corporation borrowed an additional $75 million of long-term debt at a discount of $1 million. These proceeds, along with $44 million from the associated debt retirement funds, were used to repay a $75 million long-term debt maturity and to support capital expenditures throughout the period. Additionally, the Corporation made interest payments totaling $39 million and distributed $20 million in dividends. Capital Additions Capital additions, as reported in the condensed consolidated financial statements, were as follows:
Three months ended September 30,
Six months ended September 30,
(millions)
2025
2024
Change
2025
2024
Change
Customer growth System expansion Risk management
$
53 19 32 10
$
16 21 24
$
37
$
84 26 49 17
$
27 23 40
$
57
(2)
3 9 8
8 4
Reliability of natural gas service
6 2
9 4
Business and technology optimization
-
(2)
4
-
Capital additions
$
114
$
69
$
45
$
180 $
103
$
77
SaskEnergy is committed to providing solutions and services that benefit customers and Saskatchewan, leveraging the Corporation’s expertise and Saskatchewan’s private sector. The Corporation deploys its strategic capital to fund customer growth and create new business capabilities. Fulfilling customer demand for additional natural gas capacity is a core responsibility for the Corporation and demand is forecasted to moderately increase as a result of the growing industrial and power generation sectors. Key focus areas include maintaining the safety and reliability of the natural gas transmission and distribution systems, enhancing customer experience, and supporting the emissions reduction strategy. Capital additions through the six months ended September 30, 2025, were $77 million higher than the investment made in 2024, primarily due to increasing expenditures in customer growth, system expansion and risk management projects. Customer Growth Investment in customer growth projects of $84 million were $57 million higher than 2024 investment levels, as the Corporation continues to focus on investments that connect customers to the transmission system, particularly larger projects connecting major power generation facilities. System Expansion System expansion capital projects provide incremental capacity for the transmission and distribution systems, through the installation of new or expanded gas line or facility assets, thus enabling demand growth and the addition of new customers. A higher investment of $3 million in system expansion projects through 2025 compared to 2024 is resulting from spending on compression projects around the province including east Regina, Bayhurst and Unity. Risk Management Capital investment in safety and system integrity continues to be SaskEnergy’s top priority. SaskEnergy takes a long-term view and uses a risk-based approach to determine project priorities and the appropriate level of total integrity spending. Industry comparable data also provides reference, as the industry as a whole has progressively elevated safety and system integrity capital investment over the last number of years.
10
Made with FlippingBook Ebook Creator