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April 26, 2006 - Strong Operational Performance Helps SaskEnergy Post Solid Financial
April 26, 2006
Strong Operational Performance
Post Solid Financial Results
Strong operational performance helped SaskEnergy post a $77 million profit in 2005,
while the Saskatchewan Energy Share Plan shielded consumers from record-high natural
gas prices in the wake of hurricanes Katrina and Rita. These results were contained
in the SaskEnergy 2005 Annual Report, tabled today in the Saskatchewan Legislature.
"SaskEnergy's overall 2005 financial and operational performance once again demonstrates
that the Corporation is one of the best-run natural gas utilities in the country,"
Minister responsible for SaskEnergy Andrew Thomson said. "Saskatchewan residents
continue to benefit from SaskEnergy's careful management of commodity rates and
the Provincial Government's Saskatchewan Energy Share Plan.
Other highlights of the 2005 business year included:
Earnings from operations, which contributed $65 million of net income, were consistent
with past years. This included $23 million from SaskEnergy's primary business operations
in distribution, transmission and storage. Gas marketing activities, which include
optimizing pipeline and storage capacity during off-peak periods, contributed another
$42 million in net earnings.
SaskEnergy's delivery rate for its 329,000 distribution customers, reflecting the
Corporation's internal costs, remained unchanged for the eighth consecutive year.
The natural gas industry benefited from the full-year effect of a 3.4% reduction
in TransGas' transmission and storage rates announced in late 2004. These benefits
will continue with a further 2.6% reduction in TransGas rates effective January
SaskEnergy's external investments were profitable in 2005.
Thomson noted several other ways SaskEnergy provided outstanding service for Saskatchewan
residents over the past year. The Corporation declared $29 million in dividends
to Crown Investments Corporation (CIC) in 2005, and played a key role in promoting
and delivering a series of long-term energy efficiency programs as part of the Saskatchewan
Energy Share Plan. SaskEnergy also invested $1.6 million to support close to 1,300
community and charitable activities during Saskatchewan's Centennial year.