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SaskEnergy tabled its annual report Tuesday describing the year that was, but looking to the future, things are a lot less clear.
The minister responsible for the Crown corporation, Bronwyn Eyre, called the current situation “challenging business conditions.”
“In addition to the global economic impact of the COVID-19 pandemic, the oil industry, of course, has experienced a significant downturn, which has a number of implications for SaskEnergy,” said Eyre.
Eyre said as the company’s industrial clients pull back on their own projects, that means demand for SaskEnergy’s services has decreased and likely will continue to do so. Eyre said the company’s capital budgets and plans will likely have to be adjusted moving forward.
When it comes to the pandemic, SaskEnergy president and CEO Ken From said the company is stable now, but it will have to turn its attention down the road and figure out where customers and demand might be then.
Eyre said it’s tough to know what effect the pandemic will have on the company itself; the last fiscal year ended just as the pandemic impacts were starting.
Despite those uncertainties, Eyre said the company will not be changing rates this year and has no timeline in place to do so.
“We feel that’s the responsible thing to do at this time in light of everything we’re facing — and in light of gas prices, of course — but just to actually provide that security for residential customers, among others,” said Eyre.
Eyre is touting this as a strong year for SaskEnergy despite the fact the net income, adjusted ($43 million) and not ($66 million), is lower than the previous five years. Eyre said this year should be looked at as a return to normal, traditional income for the company.
In the 2019-20 fiscal year, Saskatchewan had its highest level of transportation and storage revenue ever, stemming in part from increased demand from industrial transmission customers.
The company saw income before market adjustments of $66 million, and paid a dividend back to the province of $24 million.
In its report, the company points out highlights for the year including the completion of the South Saskatoon transmission gas line project, putting $111 million into safety and integrity programs in the province, providing nearly $1 million in rebates to customers for installing energy efficient natural gas furnace and heating systems, and saving $3.3 million in cost reductions through a focus on efficiency.
SaskWater report
As the minister responsible for SaskWater, Eyre also tabled that corporation’s annual report Tuesday.
The Crown posted earnings of $8.5 million in 2019-20, which the report said was a record. The company paid a dividend of $4.17 million to the province.
During the year, SaskWater commissioned the new Melville Regional Water Supply System, signed a purchase agreement with the City of Meadow Lake for its water treatment plant, completed the design for an $8.47-million upgrade to Melfort’s regional water treatment plant, and designed a $3.6-million sewage lagoon expansion in Pierceland.
