SaskEnergy Second Quarter Report - June 30, 2015

10. Natural gas sales and purchases (continued)

For the Six Months Ended June 30

2015 Gas

2014 Gas

Commodity Marketing Total

(millions)

Commodity Marketing Total

Natural gas sales Natural gas sales to commodity customers

$

152

$

-

$

152

$

143

$

-

$

143

Realized on natural gas derivative instruments

19

69

88

15

251

266

Change in fair value of natural gas derivative instruments

(1)

(7)

(8)

-

(13)

(13)

170

62

232

158

238

396

Natural gas purchases Realized on natural gas derivative instruments

(147)

(61)

(208)

(162)

(241)

(403)

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

19

1

20

10

1

11

-

1

1

-

11

11

(128)

(59)

(187)

(152)

(229)

(381)

$

42

$

3

$

45

$

6

$

9

$

15

11. Net change in non-cash working capital related to operations

For the Six Months Ended June 30

(millions)

2015

2014

Trade and other receivables

$

53 28

$

25 40

Natural gas in storage held for resale

Inventories of supplies Trade and other payables

(2)

(1) (7)

(23)

Deferred revenue

3

24

$

59

$

81

12. Financial risk management

Through the normal course of business, the Corporation has exposure to market risk (natural gas price risk, interest rate risk, and foreign currency risk), liquidity risk, and credit risk related to its financial and derivative instruments. The Board of Directors, through the Audit and Finance Committee, has the overall responsibility for the establishment and oversight of the Corporation's risk management efforts. The Corporation’s risk management policies and strategies, approved by the Board of Directors and reviewed regularly by the Audit and Finance Committee, provide the framework within which the Corporation may use financial and derivative instruments to manage its risks. The Corporation’s significant risk management policies include the Corporate Derivatives Policy, the Commodity Risk Management Policy, the Corporate Debt and Interest Rate Risk Management Policy, the Foreign Currency Risk Management Policy and the Corporate Credit Risk Management Policy. The objectives, policies, and processes for managing risk were consistent with the prior period. The significant risks in relation to financial instruments that impact the Corporation are discussed below.

23

2015 SECOND QUARTER REPORT

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