“Strong financial performances enabled major projects and initiatives to move forward. The positive impact of these initiatives was felt across the province.”
Alec Salloum
Regina Leader-Post
After spending $1.9 billion on capital projects, Saskatchewan Crown corporations earned more than half a billion dollars in net income last fiscal year.
Crown Investments Corporation (CIC) released those details and more in its annual report Thursday morning. The entity functions as the holding company for Saskatchewan’s Crown corporations — including SaskPower, SaskEnergy, SaskTel, and SaskWater — while also offering policy guidance and assistance with accountability and governance.
Along with $578.3 million in net earnings, Crowns in Saskatchewan also saw a 9.2-per-cent consolidated return on equity. Looking at the previous year, Crowns registered $7.4 million in net profits, though the adoption of new accounting standards meant that net earnings from 2022-23 came in at $17.2 million.
“I kind of view that previous year as a bit of an anomaly for a couple of reasons,” said Kent Campbell, president and CEO of CIC.
Chief among them is lower earnings from SaskPower due to drought affecting hydro power, which forced the Crown to rely more on natural gas. This caused a jump in price, which has since come down.
Also, SGI saw lower returns from the market last year while a new Crown — Lottery and Gaming Saskatchewan (LGS) — just began generating money this past fiscal year.
“Strong financial performances enabled major projects and initiatives to move forward,” said Dustin Duncan, minister responsible for all major Crowns. “The positive impact of these initiatives was felt across the province.”
Given the net income from Crowns, Duncan was asked why the government didn’t do more to address affordability concerns in Saskatchewan.
“We’re in a good position this year and we have done measures that have tried to address the affordability issue that Saskatchewan families are facing and part of that is holding rates steady across the sector,” said Duncan.
Campbell added that “very consistently, it’s Saskatchewan and Manitoba that have the lowest cost utility bundle.”
Over the past five years, the Crowns have contributed $854 million to the province’s general revenue fund. They also employ north of 11,000 people.
With respect to capital projects, Duncan highlighted the Great Plains and Aspen Power Station initiative, gas line projects around Melfort and Regina, 65 kilometres of water pipeline for industrial development, as well as increased 5G wireless connectivity and greater access in rural settings.
On average, it’s anticipated Crowns will contribute an average of $2.3 billion annually in capital investment over the next five years.
Duncan said Saskatchewan’s growing population is reliant on capital projects funded by Crowns, adding that those projects are crucial to successfully attracting private sector investment.
“The more co-ordinated a government can be in its approach to major investors, the better,” he added.
