TransAlta Corporation ("TransAlta") (TSX: TA) (NYSE: TAC) today
reported fourth quarter 2009 comparable earnings(1) of $84 million
($0.40 per share) versus $79 million ($0.40 per share) in 2008.
Reported net earnings for the fourth quarter were $79 million
($0.37 per share) compared to $94 million ($0.47 per share) in
2008.
Comparable results for the quarter were primarily driven by
lower planned and unplanned outages at the Alberta Thermal plants
and lower unplanned outages at Genesee 3. These results were offset
by lower hydro volumes and pricing in Alberta, and lower Energy
Trading gross margins. Fourth quarter 2008 comparable earnings also
benefited from an increase in interest income as a result of a
favourable tax assessment. Net earnings in the quarter were lower
due to the writedown of mining development costs at Centralia,
Washington, and due to a $15 million tax recovery in 2008.
Cash flow from operations for the quarter was $246 million
versus $428 million in the fourth quarter of 2008. Higher cash
earnings in the quarter were offset by less favourable changes in
working capital.
Fleet availability for the fourth quarter increased to 87.0 per
cent compared to 86.2 per cent in the fourth quarter of 2008 due to
lower planned and unplanned outages at Alberta Thermal and lower
unplanned outages at Genesee 3, partially offset by higher
unplanned outages at Centralia Thermal.
"We are confident in our ability to deliver better performance
from our coal plants and achieve our fleet availability target in
2010," said Steve Snyder, TransAlta's President and CEO. "The major
maintenance work we did in 2009 resulted in improved and more
consistent performance from our Alberta Keephills and Sundance
units. In addition to improving operating performance, we
successfully implemented several other key initiatives in 2009 that
will help drive the Company's success in the years ahead. These
included the long-term recontracting of our Sarnia plant, the
acquisition and successful integration of Canadian Hydro
Developers, and securing government funding for Project Pioneer,
one of the world's first and largest scale retrofit carbon capture
and storage demonstration facilities," Snyder added.
(1) Comparable earnings and comparable earnings per share are
not defined under Canadian Generally Accepted Accounting Principles
("Canadian GAAP"). Presenting these measures from period to period
help management and shareholders evaluate earnings trends more
readily in comparison with prior periods' results. Refer to the
Non-GAAP Measures section of the extended news release for further
discussion of these items, including a reconciliation to net
earnings.
Results for the 12 months ended December 31, 2009
For the 12 months ended Dec. 31, 2009, comparable earnings were
$181 million ($0.90 per share) compared to $290 million ($1.46 per
share) for the 12 months ended Dec. 31, 2008. Net earnings were
$181 million ($0.90 per share) compared to $235 million ($1.18 per
share) in 2008. Earnings decreased in 2009 primarily due to higher
planned and unplanned outages at Alberta Thermal, lower hydro
volumes and pricing, and lower Energy Trading gross margins.
Cash flow from operations for the 12 months ended Dec. 31, 2009
was $580 million, compared to $1,038 million for the 12 months
ended Dec. 31, 2008. The decrease in cash flow from operations in
2009 was driven by lower cash earnings and unfavourable movements
in working capital compared to last year. In addition, in 2008
TransAlta received an additional Power Purchase Agreement ("PPA")
payment of $116 million.
Fleet availability for the year was 85.1 per cent compared to
85.8 per cent in 2008. The decrease in availability is attributed
to the higher planned and unplanned outages at Alberta Thermal and
higher unplanned outages at Centralia Thermal, partially offset by
lower planned outages at Centralia Thermal and lower planned and
unplanned outages at Genesee 3.
Subsequent Events
Summerview 2 Wind Farm begins commercial operation
TransAlta announced today its 66-megawatt ("MW"), $123 million
Summerview 2 Wind Farm began commercial operation on February 23,
2010; on budget and ahead of schedule. The Summerview expansion is
located adjacent to the original site and includes 22, three-MW,
V90 Vestas wind turbines. The Summerview site now has a total
installed capacity of 136 MW and will provide on average a total of
395,000 megawatt hours per year - enough electricity to meet the
annual needs of approximately 55,000 homes, while offsetting
257,000 tonnes of CO2.
TransAlta's renewable generation portfolio now totals 2,032 MW
in operation and includes 950 MW of wind energy, 893 MW of
hydroelectric, 164 MW of geothermal energy in California through a
50 per cent interest in CE Generation LLC and 25 MW of biomass. The
Company also has another 123 MW of wind generation and 18 MW of
hydro under construction which are scheduled to come on line in
2010 and 2011.
TransAlta files year end disclosure documents
TransAlta announced it will file today its Annual Information
Form, Audited Consolidated Financial Statements and accompanying
notes, as well as the Management Discussion and Analysis
(MD&A). These documents will be available through TransAlta's
website at www.transalta.com or through Sedar at www.sedar.com.
TransAlta will also file today its 40-F with the U.S. Securities
and Exchange Commission. The form will be available through their
website at www.sec.gov/edgar.shtml. Paper copies of all documents
are available to shareholders free of charge upon request.
Fourth Quarter and 12 Months Ended Dec. 31 2009 Highlights:
----------------------------------------------------------------------------
In millions, unless otherwise 3 months 3 months 12 months 12 months
stated ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2009 2008 2009 2008
----------------------------------------------------------------------------
Availability (%) 87 86.2 85.1 85.8
----------------------------------------------------------------------------
Production (GWh) 12,297 12,656 45,736 48,891
----------------------------------------------------------------------------
Revenue ($MM) $ 763 $ 808 $ 2,770 $ 3,110
----------------------------------------------------------------------------
Gross margin ($MM)(1) $ 435 $ 410 $ 1,542 $ 1,617
----------------------------------------------------------------------------
Operating income (loss) ($MM) (1) $ 159 $ 127 $ 378 $ 533
----------------------------------------------------------------------------
Net earnings ($MM) $ 79 $ 94 $ 181 $ 235
----------------------------------------------------------------------------
Comparable earnings ($MM) (1) $ 84 $ 79 $ 181 $ 290
----------------------------------------------------------------------------
Basic and diluted earnings per
share $ 0.37 $ 0.47 $ 0.90 $ 1.18
----------------------------------------------------------------------------
Comparable earnings per share(1) $ 0.40 $ 0.40 $ 0.90 $ 1.46
----------------------------------------------------------------------------
Cash flow from operations ($MM) $ 246 $ 428 $ 580 $ 1,038
----------------------------------------------------------------------------
(1) Gross margin, operating income, and comparable earnings are not defined
under Canadian GAAP. Refer to the non-GAAP financial measures section
beginning on page 23 of the extended news release for an explanation and
reconciliation.
A complete copy of TransAlta's fourth quarter extended news
release is available on the Investors section of our website:
www.transalta.com.
TransAlta will hold a conference call and web cast at 9 a.m. MT
(11 a.m. ET) today to discuss results. The call will begin with a
short address by Steve Snyder, President and CEO, and Brian Burden,
Chief Financial Officer, followed by a question and answer period
for investment analysts, investors, and other interested parties. A
question and answer period for the media will immediately
follow.
Please contact the conference operator five minutes prior to the
call, noting "TransAlta Corporation" as the company and "Jennifer
Pierce" as moderator.
Dial-in numbers:
For local Toronto participants - 1-416-340-8061
Toll-free North American participants - 1-866-225-0198
A link to the live webcast will be available via TransAlta's
website, www.transalta.com, under Web Casts in the Investor
Relations section. If you are unable to participate in the call,
the instant replay is accessible at 1-800-408-3053 with TransAlta
pass code 8782314. A transcript of the broadcast will be posted on
TransAlta's website once it becomes available. Note: If using a
hands-free phone, lift the handset and press one to ask a
question.
TransAlta is a power generation and wholesale marketing company
focused on creating long-term shareholder value. TransAlta
maintains a low-to-moderate risk profile by operating a highly
contracted portfolio of assets in Canada, the United States and
Australia. TransAlta's focus is to efficiently operate our biomass,
geothermal, wind, hydro, natural gas and coal facilities in order
to provide our customers with a reliable, low-cost source of power.
For 100 years, TransAlta has been a responsible operator and a
proud contributor to the communities where we work and live.
TransAlta is recognized for its leadership on sustainability by the
Dow Jones Sustainability North America Index, the FTSE4Good Index
and the Jantzi Social Index.
This news release may contain forward looking statements,
including statements regarding the business and anticipated
financial performance of TransAlta Corporation. These statements
are based on TransAlta Corporation's belief and assumptions based
on information available at the time the assumption was made. These
statements are subject to a number of risks and uncertainties that
may cause actual results to differ materially from those
contemplated by the forward-looking statements. Some of the factors
that could cause such differences include legislative or regulatory
developments, competition, global capital markets activity, changes
in prevailing interest rates, currency exchange rates, inflation
levels and general economic conditions in geographic areas where
TransAlta Corporation operates.
Contacts: TransAlta Corporation - Media inquiries Michael
Lawrence Manager, External Relations (403) 267-7330
michael_lawrence@transalta.com TransAlta Corporation - Investor
inquiries Jennifer Pierce Vice President, Communications &
Investor Relations (403) 267-7622 TransAlta Corporation - Investor
inquiries Jess Nieukerk Manager, Investor Relations (403) 267-3607
investor_relations@transalta.com www.transalta.com
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