Sask. Crowns report $353M decrease in net profit

In 2022-23 consolidated net earnings from the Crowns totalled $7.4 million. In 2021-22 consolidated net earnings equalled $361 million.

Published Aug 01, 2023  •  Last updated 3 hours ago  •  2 minute read

The SaskPower head office in Regina. Photo by TROY FLEECE /Regina Leader-Post

Provincial NDP leader Carla Beck says the Government of Saskatchewan tried to “slip these financial reports by the public with no scrutiny” after dismal Crown financial reports were released with no fanfare last Friday afternoon.

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“What those reports show is that under (Premier) Scott Moe’s leadership our Crowns are bleeding hundreds of millions of dollars in lost profit,” Beck said Tuesday.

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The Crowns did still turn a profit in 2022 but it is drastically lower than the previous reporting period. In 2022-23 consolidated net earnings from the Crowns totalled $7.4 million. In 2021-22 consolidated net earnings equalled $361 million.

Beck said this might be the reason why “there were no news releases no technical briefings for journalists and it meant no press conferences.”

According to the Crown Investments Corporation (CIC) report “consolidated earnings were $7.4 million in 2022-23, which is $242.5 million under target.”

The main reason identified in the report was “a $172.1 million loss at SaskPower, which was a result of increased fuel costs driven by improved economic conditions.” This meant higher natural gas prices and increased coal burnt to meet demand. “Also contributing to the decrease in earnings was increased storm maintenance and overhaul costs, small modular reactor feasibility studies, and higher interest rates on debt,” continued the report.

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But Beck highlighted that this is a decrease of $353.6 million in revenues from the Crowns compared to 2021-22.

Don Morgan, minister responsible for all major Crown corporations, said this was the worst year for SaskPower during his tenure in the role.

He attributed the losses to “changes at SaskPower.”

Trent Wotherspoon, NDP MLA and finance critic, said the report should not have been published on a Friday without any publication or fanfare.

“There’s no reason to have hidden these reports other than the fact that this was a government that didn’t want Saskatchewan people to see their failings,” said Wotherspoon.

And while this news comes now after the reports have been released Beck mentioned the byelection as a possible reason for the lack of transparency.

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“I understand why they didn’t want these reports to be particularly widely circulated, but that is a function of government,” said Beck.

Morgan said the byelection precluded the government of Saskatchewan from handling the news release as it typically would with a tech briefing and a week of reports rolling out.

“This year we have the byelections underway, which precludes us from doing that,” said Morgan speaking Tuesday. “They have to be tabled within three months of the fiscal year end, which was the end of March so there was no way we were going to be able to have them filed before the byelections.”

Asked if a press release would have broken conduct, Morgan said it would have.

“The rules regarding byelections is we’re not supposed to advertise, not supposed to do anything to promote,” said Morgan.

As for other Crowns: SaskTel made $104 million, which is the same as last year; SaskEnergy, made $59 million in 2022-23 compared to $158 million in 2021-22; and SGI posted profits to the tune of $24 million, which is significantly less than $82 million recorded last year.

Morgan said part of the decrease in income from SGI was largely attributable to “more frequent severe weather events, inflation, supply chain pressures, and labour market issues.”

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