SASKENERGY 2017-18 ANNUAL REPORT
CREATING VALUE SaskEnergy is focused on creating value through financial results, ensuring efficient and effective service to customers and providing a reasonable return to the shareholder. SaskEnergy’s metrics related to the Creating Value mandate are in place to ensure the Corporation is adding value for its shareholder, customers and employees through
financially strong and sustainable operations, sound corporate governance and fostering positive relationships within the communities we serve. Within Creating Value, there are three categories of measures — Financial Strength, Environmental and Community Relationship.
March 31, 2017 Actual
March 31, 2018 Actual
March 31, 2018 Target
March 31, 2019 Target
March 31, 2020 Target
March 31, 2021 Target
March 31, 2022 Target
Strategic Measure Financial Strength Debt/Equity Ratio Consolidated Return on Equity Income Before Unrealized Market Value Adjustments (millions) Environmental Greenhouse Gas Emissions (Tonnes of CO 2 e/ million Running Horsepower Hours)
56/44 12.2%
59/41 8.8%
60/40
61/39
61/39
61/39
60/40
10.5% 6.9% 7.3% 8.0% 8.5%
$110
$70
$91
$63
$70
$80
$90
324
338
410
395
395
395
395
Community Relationship
16%
Total Contracts – Percentage of Aboriginal Labour Content
14%
14% 15% 16% 16% 16%
Financial Strength SaskEnergy maintains an appropriate capital structure while providing reasonable financial returns to its holding company, CIC, and competitive rates to customers. The Corporation works hard to balance the interests of both CIC and its customers, while focusing on annual profitability and efficient operations with a long-term view of financial sustainability. Income from operations was positively affected by the colder than normal weather and increased load growth in 2017-18. In addition, by utilizing off peak transportation and storage capacity, the Corporation was able to generate gas marketing margins that were higher than planned. Continued focus on cost management resulted in lower
operating costs; however, these savings were partially offset by an increase in TransCanada Pipeline (TCPL) Mainline contracts to ensure adequate capacity for the 2017-18 winter heating season. Due to the current low natural gas price environment, SaskEnergy recognized impairments on its gathering and processing assets, which also negatively impacted financial results. Capital investment levels during the year were less than planned due to a lower amount of spending in pipeline and storage facility integrity, operations system improvements, and geographical information. As a result, the Corporation’s debt levels were also lower than planned for the period.
22
Made with FlippingBook Ebook Creator