SaskEnergy Second Quarter Report - September 30, 2016

4. Natural gas in storage held for resale

As at September 30, 2016

As at March 31, 2016

(millions)

Cost

$

161

$

120

Revaluation to net realizable value

(20)

(34)

$

141

$

86

With the decline in natural gas market prices over recent years, the net realizable value of natural gas in storage at the end of the quarter was $20 million below cost (March 31, 2016 - $34 million below cost). As at September 30, 2016, the Corporation expected that $119 million of the current inventory value would be sold or consumed within the next year, and $22 million of the current inventory value would be sold or consumed after more than one year.

5. Financial and derivative instruments

As at September

As at March

30, 2016

31, 2016

Classifi- Fair Value Carrying cation Hierarchy Amount

Fair

Carrying Amount

Fair

(millions)

Value

Value

Financial and derivative assets Cash Trade and other receivables

FVTPL

n/a n/a

$

-

$

-

$

11

$

11

LAR

61

61

104 102

104 102

Debt retirement funds

FVTPL Level 2

103

103

Fair value of derivative instrument assets

FVTPL Level 2

7

7

11

11

Financial and derivative liabilities Short-term debt

OL OL OL OL

n/a n/a n/a

379 126

379 126

299 105

299 105

Trade and other payables

Dividends payable

-

-

21

21

Long-term debt

Level 2

925

1,134

970

1,099

Fair value of derivative instrument liabilities

FVTPL Level 2

53

53

109

109

Classification details: FVTPL - fair value through profit or loss LAR - loans and receivables OL - other liabilities

The fair value hierarchy is not applicable where the carrying amount approximates fair value due to the short-term nature of the financial instrument.

20

2016-17 SECOND QUARTER REPORT

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