Released on April 30, 2007
Saskatchewan’s Crown corporation sector had another strong year financially in 2006, posting increased revenue and profits, while providing Saskatchewan people with the lowest-cost bundle of basic utility rates in Canada for the third consecutive year.
The results were made public today when the 2006 Annual Report for Crown Investments Corporation of Saskatchewan (CIC) was tabled in the Legislative Assembly. CIC is the financial holding company for 11 subsidiary commercial Crown corporations and the province’s investment in NewGrade Energy Inc.
“On a consolidated basis, CIC and its holdings made a profit of $441.1 million on revenue of $5.1 billion in 2006,” CIC Minister Maynard Sonntag said. “This represents an increase of $134 million in earnings and $226 million in revenue over 2005.
“This solid financial position allowed the Crown sector to pay a dividend of $167 million to the province’s General Revenue Fund (GRF). Since 2002, the sector has provided almost $1.1 billion to the GRF to support health care, education, infrastructure, agriculture and other priorities for Saskatchewan people.”
Good management of rates by the four major Crowns – SaskPower, SaskEnergy, SaskTel and SGI – allowed Government to keep its commitment to the lowest-cost residential utility bundle for the third year in a row. The bundle includes residential electricity and natural gas, basic phone service and auto insurance.
“We were able to meet our commitment in 2006 without needing to subsidize rates or provide a year-end utility bundle rebate,” Sonntag said. “We commend the Crowns for performing very well financially while at the same time continuing to provide safe, reliable, high quality services to Saskatchewan people at the lowest rates in the country.”
Other highlights for 2006 include:
- Reduction of $105 million in the consolidated debt, to $3.5 billion at the end of 2006, compared to $3.6 billion at the end of 2005;
- Debt ratio of 49.9 per cent, compared with 51.7 per cent in 2005;
- CIC and its holdings:
o employed more than 11,400 people all across Saskatchewan;
o purchased almost $2 billion worth of goods and services from more than 20,000 local suppliers;
o partnered with more than 1,200 local businesses to provide services and/or products to Saskatchewan people;
o spent $624 million on capital projects; and
o provided almost $7 million in sponsorships to community events and organizations all across the province. - CIC established the $20 million First Nations and Métis Fund to create employment and economic opportunities for Aboriginal people. The Fund will make investments of between $1 million and $3 million in businesses which are majority-owned or operated by First Nations or Métis people. The Fund complements The Saskatchewan Entrepreneurial Fund, established in 2005 (investments of up to $1 million), the Apex Investment Fund, established in 2007 (investments of between $1 million and $4 million), and investments made by Investment Saskatchewan Inc. (investments of more than $3 million); and
- CIC continued to make progress on its $20 million initiative to hire more young and Aboriginal people in Saskatchewan’s Crown corporations. The most successful program, Gradworks, provides internships in the Crowns for recent post-secondary graduates. Up to February 2007, 94 per cent of those who had completed internships had found permanent jobs, and 81 former interns were employed in the Crown sector.
CIC’s 2006 Annual Report and the 2006 Basic Utility Bundle Review by Meyers Norris Penny LLP are available online at www.cicorp.sk.ca.
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For more information, contact:
Karen Schmidt
Crown Investments Corporation
Regina
Phone: 306-787-5889
Email: kschmidt@cicorp.sk.ca