Saskatchewan's Crown corporation sector posted increases in revenues and earnings in 2000, while continuing to provide quality services to Saskatchewan people at rates that are among the lowest in Canada.

Crown Investments Corporation of Saskatchewan (CIC) and its subsidiary Crown corporations, including SaskPower, SaskTel, SaskEnergy, Saskatchewan Government Insurance (SGI CANADA), Saskatchewan Transportation Company (STC), Sask Water, Saskatchewan Opportunities Corporation (SOCO), Saskatchewan Government Growth Fund Management Corporation (SGGFMC), and Information Services Corporation of Saskatchewan (ISC) tabled their 2000 annual reports with the Legislative Assembly today. These Crown corporations also tabled annual financial statements for their pension plans and wholly-owned subsidiaries.

"Consolidated earnings for 2000 were $293 million, compared with $216 million in 1999," Crown Investments Corporation Minister Maynard Sonntag said. "Revenues also increased, by more than $411 million, mainly because of higher operating revenues and investment earnings.

"It's important to note these increases are balanced by good management within our Crown corporations that is resulting in even higher quality services at rates that are among the lowest in Canada for natural gas, vehicle insurance, electricity and telecommunications services."

Other noteworthy results for 2000, as compared with 1999 unless otherwise stated, include:

• consolidated operating revenues increased by more than $391 million, mainly because of higher sales by commodity-based investments and higher utility sales;
• consolidated investment earnings increased by $15 million, mainly due to increased earnings from SGI's investment portfolio and from Saskferco;
• consolidated debt increased by $35 million to $3.13 billion. However, there has been an overall reduction of $1.04 billion in this debt since 1996, and of close to $2.3 billion since 1991 when consolidated debt stood at $5.4 billion;
• the consolidated debt ratio dropped to 49 per cent at the end of 2000, compared with 62 per cent at the end of 1996;
• the consolidated return on equity increased to nine per cent from seven per cent, mainly due to higher earnings from the major subsidiary Crowns and higher overall earnings from commodity based investments;
• SaskPower's earnings rose $11.8 million to $125.7 million mainly due to record high export sales and strong sales to key accounts and oilfield customers. The corporation spent $210 million on capital projects, which included the Queen Elizabeth Power Station repowering project and the Cory cogeneration project, as well as connecting more customers to the SaskPower grid, and improving and extending the life of generation plants and transmission and distribution infrastructure;
• SaskTel's earnings were up $29.5 million to $97 million mainly due to increased revenues from Internet, cellular and local service. The corporation also recorded gains of $13.7 million on the sale of shares in Austar United Communications Ltd. and $7.7 million on the divestiture of its interest in Regional Cable Systems Inc.;
• SaskEnergy's earnings were $44.4 million, an increase of $7.8 million over the year before, mainly due to increased revenue from a royalty interest on properties in Saskatchewan and Alberta, and the sale of natural gas assets from a storage facility in west central Saskatchewan. SaskEnergy's natural gas rates were the lowest in Canada in 2000;
• SGI CANADA's earnings were up $11.6 million, mainly due to higher than anticipated gains on the sale of investments. The Saskatchewan Auto Fund, a stand-alone, compulsory auto insurance program administered by SGI, is not included in SGI CANADA's or CIC's consolidated financial statements. The Auto Fund reduced its accumulated deficit to $16.9 million, compared with $62.1 million a year earlier, also due mainly to higher than anticipated gains on the sale of investments;
• ISC is a new Crown corporation established in 2000. The corporation's mandate includes the redesign and automation of Saskatchewan's land titles system and its integration with the provincial survey, mapping and geographic systems. ISC had a start-up loss of $10.9 million;
• STC continued its efforts to contain costs while meeting the challenge of providing passenger and freight service to Saskatchewan people. The provincial bus company's loss before grant (including depreciation) was $200,000 lower at $2.9 million, despite rising fuel costs;
• Sask Water lost $2 million, due mainly to losses in its former SPUDCO unit prior to its transfer to CIC in mid-2000 and lower than average Water Power Act revenues;
• SOCO's earnings were down $0.2 million to $0.1 million due to higher interest costs and expenses related to new development at its research parks in Saskatoon and Regina, and an increase in investment provisions; and
• SGGF Management Corporation had a loss of $8.5 million, due mainly to an $8.2 million provision for investment losses. Through its fund companies, SGGF has raised more than $266 million of immigrant investor capital since its inception in 1989, making it one of the largest immigrant investor funds in Canada.

Ted Boyle
Crown Investments Corporation
Regina
Phone: (306) 787-9039