Released on April 20, 2011
Saskatchewan's Crown sector recorded another successful year in 2010, managing the challenges of increasing demands for services while posting positive earnings, and providing both regular and special dividends to the provincial treasury.
On a consolidated basis, Crown Investments Corporation (CIC) and its subsidiaries earned a profit of $394.8 million on revenue of $4.5 billion in 2010. The sector's return on equity was ahead of target at 9.6 per cent. The consolidated debt ratio was 50.4 per cent, also ahead of target.
"During 2010, our Crown sector experienced extreme weather conditions, ongoing global economic volatility and unprecedented increases in customer growth," Minister responsible for Crown Investments Corporation Tim McMillan said. "Our Crowns met these challenges, and ensured that the people of Saskatchewan have access to secure, reliable services."
In 2010 CIC's earnings as a holding company, which are recorded as non-consolidated earnings, were $308.7 million, up $132 million from 2009. CIC paid a regular dividend of $266 million, as well as special dividends of $10 million for green initiatives and $195 million for the Children's Hospital.
"Thanks to the financial health of the Crown sector, we were able to meet the budgeted dividend with only a 90 per cent payout from all the Crowns, excluding SaskPower, rather than 100 per cent as budgeted," McMillan said. "In addition, we invested $960 million in the capital program for the necessary infrastructure to support sustainable economic development in the province."
To achieve this capital investment there was an increase in borrowing which resulted in Crown debt increasing by $317 million in 2010.
Highlights for CIC and the Crown sector in 2010 include:
- Capital investment in projects such as Boundary Dam 3 refurbishment at SaskPower; launch of a new cellular wireless network by SaskTel and growth of the natural gas pipeline system and storage capacity at SaskEnergy to support increased customer demand;
- SaskPower partnerships for gas and wind power production, SaskEnergy partnerships for waste heat recovery and flare gas capture and processing, all supporting a private sector driven economy;
- SaskTel had its best operational year ever;
- SaskGaming worked through a labour disruption and a market downturn;
- ISC began work on the single window business portal.
CIC's 2010 Annual Report is available online at www.cicorp.sk.ca.
-30-
For more information, contact:
Debbie Clark
Crown Investments Corporation
Regina
Phone: 306-787-5451
Email: dclark@cicorp.sk.ca