Released on April 26, 2005
Investment Saskatchewan Inc. tabled its 2004 annual report before the Saskatchewan Legislature today.Investment Saskatchewan realized net earnings of $19.3 million, up from $7.5 million in 2003, a year-end cash position of $168 million, and growth of assets to $629 million. Positive performance of five of its six major investments made the largest contribution to financial results.
"Given the economic uncertainties faced by many of our investees as the result of the strong Canadian dollar and fluctuating commodity prices, we are very pleased with these results," Minister responsible for Investment Saskatchewan Eric Cline said. "The portfolio continues to demonstrate its ability to deliver solid returns to the province."
The process of systematically valuing investments by the Corporation resulted in provisions for loan losses and writedowns of investments totaling $34 million in the year. The strong Canadian dollar and poor commodity prices had a particularly severe impact on one of the Corporation's major investments, Meadow Lake Pulp Limited Partnership, which resulted in a significant portion of the loan loss provision. Despite this, Investment Saskatchewan was able to post solid net earnings.
Investment Saskatchewan Inc., formerly CIC Industrial Interests Inc. (CIC III), went through significant organizational changes in 2004 including the hiring of Janet Wightman as its first President and CEO. "The efforts to structure the organization are essentially complete and we will be focusing on developing strong deal flow and attracting co-investors to the province in 2005," Wightman said. "We are well positioned with a strong asset base, sound investment policies and a progressive plan for the future."
The Investment Saskatchewan Inc. Annual Report can be accessed at www.investsask.com.
About Investment Saskatchewan
Investment Saskatchewan Inc. is a designated subsidiary Crown corporation under The Crown Corporations Act, 1993 and an incorporated entity under the Saskatchewan Business Corporations Act. Formerly known as CIC Industrial Interests Inc., the Corporation presently holds an investment portfolio of $459 million in a variety of industries and can place up to $50 million in new investments annually. Its head office is located in Regina, Saskatchewan. A satellite office is located in Saskatoon, Saskatchewan.
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For More Information, Contact:
| Patrick Brophy Investment Saskatchewan Regina Phone: (306) 787-7273 |