Released on April 30, 2008
Saskatchewan's Crown corporation sector had another solid year financially in 2007, recording increased revenue and profits and providing a significant dividend to the Province.
The results were made public today when the 2007 Annual Report for Crown Investments Corporation of Saskatchewan (CIC) was tabled in the Legislative Assembly. CIC is the financial holding company for 12 subsidiary commercial Crown corporations. Eleven of these subsidiaries also tabled their 2007 Annual Reports during April. Saskatchewan Gaming Corporation, which became a CIC subsidiary on April 1, 2008, will begin tabling annual reports with the other CIC Crowns next year.
"On a consolidated basis, CIC and its subsidiaries made a profit of $696.3 million on revenue of $4.5 billion in 2007," Crown Corporations Minister Ken Cheveldayoff said. "This represents an increase of $255.2 million in profits and $49.5 million in revenue over 2006."
CIC's earnings as a holding company, which are recorded as non-consolidated earnings, determine the corporation's ability to pay dividends to the province's General Revenue Fund (GRF). Earnings for 2007 were $576.9 million, up $254.6 million from 2006. The increase was due mainly to the sale of CIC's 50 per cent interest in NewGrade Energy Inc., the heavy oil upgrader in Regina, which generated net proceeds of $383.1 million.
This allowed CIC to pay a dividend of $200 million to the GRF for 2007. In 2008, CIC will declare a dividend of $550 million, which will include a regular dividend of $185 million and a special dividend of $365 million.
"The special dividend is coming from proceeds from the NewGrade sale," Cheveldayoff said. "We made a commitment during last fall's election campaign that we would use the money for things that are priorities for Saskatchewan people, and we will keep that commitment. We will contribute $215 million to debt reduction, while $140 million will be used to repair roads and highways, and $10 million will go toward green initiatives."
Other highlights for CIC and the Crown sector in 2007 include:
- A return on equity of 17.8 per cent, compared with 12.6 per cent in 2006;
- Continued stability in the debt ratio, which was 49.6 per cent, compared with 49.9 per cent in 2006;
- Placement of 74 new interns in the Crowns under the Gradworks internship program, which provides work experience and mentorship for recent post-secondary graduates. Since the program's inception in 2004 to the end of 2007, there were 260 internships. More than 88 per cent of those who have completed their internships have stayed in Saskatchewan, where they have found permanent jobs in the Crowns and other companies;
- During the year, CIC and its holdings:
- employed more than 11,700 people across Saskatchewan;
- purchased $2 billion worth of goods and services from more than 21,000 local suppliers;
- partnered with more than 1,200 local businesses to provide services and/or products to Saskatchewan people;
- spent more than $600 million on capital projects; and
- provided $6.7 million in sponsorships to community events and organizations all across the province.
CIC's 2007 Annual Report is 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
Cell: 306-539-2716