Management’s Discussion and Analysis
Investing Activities Cash used in investing activities increased $31 million compared to 2024, primarily due to major capital investments in customer growth and system expansion projects. Financing Activities Cash provided by financing activities grew $77 million in 2025 compared to 2024, primarily due utilizing short term debt, at lower rates, to fund operating activities and short-term liabilities. During the first quarter of 2025-26, the Corporation borrowed an additional $75 million of long-term debt at a discount of $1 million and used it and the associated to debt retirement fund proceeds of $44 million, to pay down a long-term debt maturity of $75 million and capital activities throughout the quarter. In addition, the Corporation used $29 million for interest payments and $16 million for dividend payments.
Capital Additions Capital additions, as reported in the condensed consolidated financial statements, were as follows:
Three months ended June 30,
(millions)
2025
2024
Change
Customer growth System expansion Risk management
$
31
$
11
$
20
7
2
5 1 4 2
17
16
Reliability of natural gas service
7 4
3 2
Business and technology optimization
Capital additions
$
66
$
34
$
32
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 three months ended June 30, 2025, were $32 million higher than the investment made in 2024, primarily due to increasing expenditures in customer growth and system expansion projects. Customer Growth Investment in customer growth projects of $31 million was $20 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 $5 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. Risk management capital projects concentrate on mitigating the likelihood of a negative consequence occurring on the SaskEnergy system, such as damage or loss of gas containment. These consequences typically include damage to infrastructure, environment and potential harm to or loss of human life. Risk management spending of $17 million is
10
Made with FlippingBook Ebook Creator