Released on April 8, 2009
Strong customer growth, national leadership in energy efficiency and competitive customer rates were the 2008 highlights of SaskEnergy's business. The corporation, which tabled its annual report in the legislature today, recorded a net income of $30 million.
"SaskEnergy's customer focus was demonstrated through connecting more than 6,000 customers to its distribution system, the highest total since the 1980s, and assisting an additional 10,000 through its role in administering and delivering energy efficiency programming," Crown Corporations Minister Ken Cheveldayoff said.
Thanks to a comprehensive gas price management strategy, SaskEnergy's customers also paid the lowest commodity and delivery rates in the country in 2008, the seventh time in the last 10 years. In addition, a strong operational performance resulted in the lowest delivery rates in Canada while achieving safe and reliable service with high customer service standards.
Other 2008 operational and financial highlights include:
- Effectively managed increased customer activity related to Saskatchewan's strong economic growth. Underground facility locating activity increased by 10,000 locates (15 per cent increase).
- $117 million Saskatchewan-focused capital program connected new customers in over 500 communities as well as continued storage growth. (25 per cent storage service expansion 2007-2011)
SaskEnergy's distribution business and gas marketing activities had strong revenues, while TransGas revenues were lower than 2007, reflective of the lower drilling and volumes transported associated with the slowing of the world economy in the latter part of 2008. Operational net income before fair value adjustments was $55 million ($25 million of non-cash fair value adjustment resulted in $30 million Consolidated Income). A dividend of 80 per cent of net income before fair value adjustments ($43 million) was paid to Crown Investments Corporation. This dividend structure was similar to 2007 dividend calculations.
Cheveldayoff also focused on the SaskEnergy Network, a partnership with private-sector industry, which celebrated 10 years of success in 2008.
"This key alliance reached a major milestone in 2008, Cheveldayoff said. "After 10 years as a successful partnership, SaskEnergy and its network members are providing Saskatchewan homeowners and businesses with natural gas appliances, services and energy efficiency programs that are leading in Canada."
In 2009, the corporation is committed to meeting the customer needs of a growing Saskatchewan as well as providing safe and reliable operation of SaskEnergy/TransGas' extensive provincial natural gas network. SaskEnergy will also continue to focus its objectives on developing new alliances with private-sector industry to increase the value and effectiveness of service delivery as demonstrated by the SaskEnergy Network.
To view a copy of the 2008 SaskEnergy Annual Report, please visit http://www.saskenergy.com/about_saskenergy/annual_report/default.asp.
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For more information, contact:
Ron Podbielski
SaskEnergy
Regina
Phone: 306-777-9432
Email: rpodbielski@saskenergy.com
Cell: 306-537-0274