April 20, 2004
SASKENERGY POSTS SOLID FINANCIAL YEAR
Led by a vibrant industry that drilled a
record number of natural gas wells in Saskatchewan,
SaskEnergy posted a profit of $41 million for 2003, up
$34 million from 2002.
The Corporation's annual report was
tabled today in the Saskatchewan legislature.
2003 SaskEnergy/TransGas Annual Report
"SaskEnergy continues to be one of the
most-efficiently operated natural gas utilities in
Canada," Minister responsible for SaskEnergy Harry Van
Mulligen said. "While continuing to offer its customers
rates that are among the lowest in Canada, the 2003
financial performance shows that management continues to
focus on building the business for the future."
Highlights of the 2003 business year are
SaskEnergy's distribution utility,
which serves the province's 325,000 customers,
recorded income from operations of $16 million
compared to $8 million for 2002. A combination of
increased revenue and lower expenses contributed to
the improvement in net income.
The accounting treatment of the
deficit in the Gas Cost Variance Account (GCVA) led
to an overall loss in the utility in 2003. The
continued recovery of the GCVA will result in higher
than normal profits in the distribution utility in
TransGas, SaskEnergy's transmission
subsidiary, recorded a net income of $26 million, up
$4 million from 2002. Close to 2,300 gas wells were
drilled in the province in 2003, increasing the
volumes transported compared to 2002. Saskatchewan
remains one of the few jurisdictions in North
America where the amount of proven natural gas
resources are increasing.
Net income from non-core operations
in 2003 was $35 million. These incremental revenues
were generated from sources such as increased
utilization of pipeline and storage assets during
off peak periods.
SaskEnergy's two international
investments were both profitable in 2003. Gas Sur
S.A., a Chilean distribution utility 30 per cent
owned by SaskEnergy International, recorded a net
income of $400,000, while Igasamex, a Mexican
transmission business 40 per cent owned by
SaskEnergy International, recorded profits of $1
million. Both businesses are expected to be
profitable in 2004.
Van Mulligen also confirmed that given
current prices in the natural gas market, no commodity
rate changes are planned for 2004.
A dividend of $26 million was declared
to the Crown Investments Corporation representing 65 per
cent of SaskEnergy's profits.
For more information, contact:
Phone: (306) 777-9432