Second Quarter 2022 Financial
Highlights
- Adjusted EBITDA(1),(2) of $279 million, in line with expectations, a
decrease of 13% over the same period in 2021
- Free Cash Flow ("FCF")(1) of $145 million, or $0.54 per share, a decrease of $0.03 on a per-share basis compared to the same
period in 2021
- Loss before income taxes of $22
million, a decrease of $94
million from the same period in 2021
- Net loss attributable to common shareholders of $80 million or $0.30 per share, compared to a loss of
$0.04 per share for the same period
in 2021
- Cash flow used in operating activities of $129 million, an increase of $209 million from same period in 2021
Other Business
Highlights
- Announced a 10-year contract extension, receipt of waiver from
bondholders and commencement of rehabilitation plan at Kent Hills
wind facilities
- Announced the 200 MW Horizon Hill wind project supplying Meta
with renewable power under a long-term Power Purchase Agreement
("PPA")
- Secured capacity commitment extensions for three of the large
industrial customers at the Sarnia
cogeneration facility (one to 2031 and two to 2032)
- Reached agreement with BHP Nickel West to expand the Mount
Keith 132kV transmission system in Western Australia
- Executed a long-term PPA for the remaining 30 MW of capacity at
the Garden Plain wind project
- Added 325 MW to our renewable development pipeline in
Canada and the United States
- Received an upgraded MSCI ESG Rating of 'A' from 'BBB'
- Announced a US$25 million
investment in Energy Impact Partners Deep Decarbonization Frontier
Fund 1
- Received a decision from the Court of Appeal upholding
TransAlta's favourable force majeure arbitration decision
- In the year-to-date returned $18
million of capital to common shareholders through share
buybacks of 1.4 million common shares
- Launched our new visual identity and "Energizing the Future"
campaign
- Completed the conversion of elected Series C to Series D
Preferred Shares which began trading on the TSX on June 30, 2022 under the symbol TA.PR.G
CALGARY,
AB, Aug. 5, 2022 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) today reported
its financial results for the three and six months ended
June 30, 2022.
"TransAlta delivered solid second quarter results for 2022. Our
Alberta Electricity Portfolio performed as anticipated, despite
higher natural gas prices and compressed market heat rates,
demonstrating the value of our strategically diversified fleet in
Alberta and its ability to
generate cash flow under dynamic market conditions. Our
Alberta Wind and Hydro segments led
our results, benefiting from the higher pricing environment and
stronger production. Our Alberta Gas segment had limited
opportunity to benefit from higher power prices realized in the
market as it was highly hedged during the quarter," said
John Kousinioris, President and
Chief Executive Officer. "The contributions from our new contracted
assets at Windrise and North Carolina Solar and the exceptional
results in our Energy Marketing segment further supported our
financial results for the quarter as we continue to track towards
the midpoint of our 2022 guidance."
Set out below are additional highlights from the quarter on
TransAlta's business activities, including the Company's progress
on advancing its Clean Electricity Growth Plan as well as details
regarding the Company's financial performance and liquidity.
Key Business
Developments
Kent Hills Wind Facility Outage
Update
On June 2, 2022, TransAlta
Renewables announced its rehabilitation plan for the Kent Hills
wind facilities together with the execution of amended and extended
contracts with New Brunswick Power Corporation ("NB Power") in
respect of each of the Kent Hills 1, 2 and 3 wind facilities
providing for an additional 10-year period to December 2045 and an effective 10 per cent
reduction to the original contract prices from January 2023 through December 2033. In addition, both parties have
agreed to work in good faith to evaluate the installation of a
battery energy storage system at Kent Hills and to consider a
potential repowering of Kent Hills at the end of life in 2045. The
Company also obtained a waiver for the Kent Hills wind non-recourse
bonds ("KH Bonds") from the project bond holders and entered into a
supplemental indenture with the bond holders that facilitates the
rehabilitation of the Kent Hills 1 and 2 wind facilities.
Horizon Hill Wind Project and
Fully Executed Corporate PPA with Meta
On April 5, 2022, TransAlta
executed a long-term renewable energy PPA with a subsidiary of Meta
Platforms Inc. ("Meta"), formerly known as Facebook, Inc., for 100
per cent of the generation from its 200 MW Horizon Hill wind
project to be located in Logan County,
Oklahoma. Under this agreement, Meta will receive both
renewable electricity and environmental attributes from the Horizon
Hill facility. The facility will consist of a total of 34 Vestas
turbines with construction expected to begin in late 2022 and a
target commercial operation date in the second half of 2023.
TransAlta will construct, operate and own the facility. Total
construction capital is estimated between US$290 million and US$310
million and is expected to be financed with a combination of
existing liquidity and tax equity financing. Over 90 per cent of
project costs are fixed under executed turbine supply agreements
and engineering, procurement and construction agreements. The
project is expected to generate average annual EBITDA between
US$27 million and US$30 million, inclusive of production tax
credits.
Sarnia Cogeneration Facility
Contract Extensions
During the second quarter of 2022, the Company executed contract
extensions for the supply of electricity and/or steam with the
remaining three of its industrial customers at the Sarnia cogeneration facility. These agreements
will extend the delivery term for electricity and/or steam from
Dec. 31, 2022 to April 30, 2031, in one case, and to Dec. 31, 2032, for the other two, with all
agreements being subject to certain conditions, including the
Company entering into a new contract with the Ontario Independent
Electricity System Operator (the "IESO"). The current contract with
the IESO, in respect of the Sarnia
cogeneration facility expires on Dec. 31,
2025. On July 19, 2021, the
IESO released its Annual Acquisition Report, which included draft
details for medium- and long-term procurement mechanisms for
capacity for 2026 and beyond for existing and new generation. The
Company has bid into the procurement process developed by the IESO
and is seeking to secure a contract extension for the Sarnia cogeneration facility following the end
of the current contract term. The Company expects the IESO to
announce the successful bids in the third quarter of 2022.
Mount Keith 132kV Transmission
Expansion
On May 3, 2022, TransAlta
Renewables exercised its option to acquire an economic interest in
the expansion of the Mount Keith 132kV transmission system in
Western Australia, to support the
Northern Goldfields-based operations of BHP Nickel West ("BHP").
Total construction capital is estimated at between AU$50 million
and AU$53 million. Southern Cross Energy, a subsidiary of the
Company, has entered into an engineering, procurement and
construction agreement for the expansion. The project is being
developed under the existing PPA with BHP, which has a term of 15
years. It is expected to be completed in the second half of 2023
and will generate annual EBITDA in the range of AU$6 million to
AU$7 million. The project will facilitate the connection of
additional generating capacity to our network to support BHP's
operations and increase their competitiveness as a supplier of
low-carbon nickel.
Executed Long Term PPA for
Remaining 30 MW at Garden Plain
During the second quarter of 2022, the Company entered into a
long-term PPA for the remaining 30 MW of renewable electricity and
environmental attributes at the Garden Plain wind project in
Alberta with a new
investment-grade globally recognized customer. The 130 MW Garden
Plain wind project, which was announced in May 2021 with a 100 MW PPA contracted to Pembina
Pipeline Corporation ("Pembina"), is now fully contracted with a
weighted average contract life of approximately 17 years.
Construction is underway with a target commercial operation date in
the second half of 2022.
Customer Update at White Rock Wind
Facilities
During the second quarter of 2022, TransAlta identified Amazon
Energy LLC ("Amazon") as the customer for the 300 MW White Rock
Wind projects, to be located in Caddo
County, Oklahoma. On Dec. 22,
2021, Amazon and TransAlta entered into two long-term PPAs
for the supply of 100 per cent of the generation from the projects.
Construction is expected to begin in the second half of 2022 with a
target commercial operation date in the second half of 2023.
Energy Impact Partners ("EIP")
Investment
During the second quarter of 2022, The Company has entered into
a commitment to invest US$25 million
over the next four years in EIP's Deep Decarbonization Frontier
Fund 1 (the "Frontier Fund") that will invest in early-stage,
innovative technology companies that will accelerate the transition
to net-zero greenhouse gas emissions. TransAlta's investment in the
Frontier Fund provides the Company with the opportunity to
identify, pilot, commercialize and bring to market emerging
technologies that will support its decarbonization goals.
MSCI Environmental, Social and
Governance ("ESG") Rating Upgrade
During the second quarter of 2022, TransAlta's MSCI ESG Rating
was upgraded to 'A' from 'BBB'. The upgrade reflects the Company's
strong renewable energy growth compared to peers. In 2021, the
Company grew its installed renewable energy capacity by 15 per cent
through acquisition and construction of solar and wind facilities
and secured 600 MW in additional renewable energy projects. In line
with its goal to reduce carbon emissions by 75 per cent from 2015
emissions levels by 2026, TransAlta also completed coal-to-gas
conversions of its Canadian coal-fired facilities in 2021, nine
years ahead of Alberta's coal phase-out plan.
Court of Appeal Upholds
TransAlta's Favourable Force Majeure Arbitration Decision
On June 9, 2022, the Alberta Court
of Appeal released a unanimous decision dismissing ENMAX Energy
Corporation's and the Balancing Pool's application seeking to set
aside an arbitration decision in favour of the Company. The Court
of Appeal upheld the Company's claim of force majeure that arose
when its Keephills 1 generating
unit tripped offline in 2013. As a result of the decision, the
Company's claim of force majeure remains valid and the associated
costs of the force majeure event will not be reassessed against
TransAlta.
TSX Acceptance of Normal Course
Issuer Bid
On May 24, 2022, the Toronto Stock
Exchange ("TSX") accepted the notice filed by the Company to renew
its normal course issuer bid ("NCIB") for a portion of its common
shares. Pursuant to the NCIB, TransAlta may repurchase up to a
maximum of 14,000,000 common shares, representing approximately
7.16 per cent of its public float of common shares as at
May 17, 2022. Purchases under the
NCIB may be made through open market transactions on the TSX and
any alternative Canadian trading platforms on which the common
shares are traded, based on the prevailing market price. Any common
shares purchased under the NCIB will be cancelled. The period
during which TransAlta is authorized to make purchases under the
NCIB commenced on May 31, 2022 and
ends on May 30, 2023, or such earlier
date on which the maximum number of common shares are purchased
under the NCIB or the NCIB is terminated at the Company's
election.
The NCIB provides the Company with a capital allocation
alternative with a view to ensuring long-term shareholder value.
TransAlta's Board of Directors and Management believe that, from
time to time, the market price of the common shares does not
reflect their underlying value and purchases of common shares for
cancellation under the NCIB may provide an opportunity to enhance
shareholder value.
During the six months ended June 30, 2022, the Company
purchased and cancelled a total of 1.4 million common shares at an
average price of $12.50 per common
share, for a total cost of $18
million.
Conversion Results for Series C
and D Preferred Shares
On June 16, 2022, the Company
announced that 1,044,299 of its 11,000,000 currently outstanding
Cumulative Redeemable Rate Reset First Preferred Shares, Series C
("Series C Shares") were tendered for conversion, on a one-for-one
basis, into Cumulative Redeemable Floating Rate First Preferred
Shares, Series D ("Series D Shares") after having taken into
account all election notices following the June 15, 2022 conversion deadline.
TransAlta Debuts New Brand
Reiterating Commitment to a Clean Energy Future
On June 20, 2022, the Company
announced a new visual identity including logo and tagline
"Energizing the Future". The new visual identity encapsulates the
TransAlta of today while reinforcing the Company's focus as a
leader in creating a carbon-neutral future for our customers.
Liquidity and Financial
Position
The Company continues to maintain a strong financial position in
part due to long-term contracts and hedged positions. At the end of
the second quarter, TransAlta had access to $1.9 billion in liquidity, including $0.9 billion in cash and cash equivalents.
Accelerated Clean Electricity
Growth Plan
On Sept 28, 2021, the Company
announced the strategic targets associated with its Clean
Electricity Growth Plan.
As of August 4, 2022, the Company
has made significant progress in achieving the targets of the
Clean Electricity Growth Plan. Refer to Strategy and Capability to
Deliver Results in the Company's Management's Discussion and
Analysis (MD&A) for further details.
Clean Electricity
Growth Plan Targets
|
Target
|
% of Target
Achieved
|
Renewable Energy
Capacity
|
2 GW
|
40 %
|
Capital
Investment
|
$3 Billion
|
48 %
|
Incremental
EBITDA
|
$250 Million
|
54 %
|
During the second quarter, the Company added 325 MW to its
renewable development pipeline across Canada and the
United States.
Second Quarter 2022
Highlights
$ millions,
unless otherwise stated
|
3 months
ended
|
6 months
ended
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Adjusted availability
(%)
|
87.3
|
84.8
|
88.2
|
86.7
|
Production
(GWh)
|
4,461
|
4,688
|
9,820
|
10,229
|
Revenues
|
458
|
619
|
1,193
|
1,261
|
Adjusted
EBITDA(1)
|
279
|
319
|
538
|
641
|
Earnings (loss) before
income taxes
|
(22)
|
72
|
220
|
93
|
Net earnings (loss)
attributable to common
shareholders
|
(80)
|
(12)
|
106
|
(42)
|
Cash flow (used in)
from operating activities
|
(129)
|
80
|
322
|
337
|
FFO(1)
|
220
|
267
|
399
|
490
|
FCF(1)
|
145
|
155
|
253
|
296
|
Net earnings (loss) per
share attributable to
common shareholders, basic and diluted
|
(0.30)
|
(0.04)
|
0.39
|
(0.16)
|
FFO per
share(1),(2)
|
0.81
|
0.99
|
1.47
|
1.81
|
FCF per
share(1),(2)
|
0.54
|
0.57
|
0.93
|
1.09
|
Second Quarter Financial Results
Summary
Adjusted EBITDA(1) for the three and six months ended
June 30, 2022 decreased by
$40 million and $103 million, respectively, compared to the same
periods in 2021. The decrease in second quarter financial
performance relative to the prior year was driven by changes in
market conditions and the positioning of the Company's Alberta
Electricity Portfolio. This was partly offset by exceptional
performance in the Energy Marketing segment from short-term trading
of both physical and financial power and gas products.
Earnings before income taxes for the three months ended
June 30, 2022 decreased $94 million compared to the same period in 2021.
For the six months ended June 30,
2022 earnings before income taxes increased by $127 million compared to the same period in
2021.
Net loss attributable to common shareholders for the three
months ended June 30 2022 was
$80 million compared to a net loss of
$12 million in the same period of
2021. Loss before income taxes and net loss attributable to common
shareholders in the three months ended June
30, 2022, increased primarily due to lower revenues and
higher fuel and purchased power costs, partially offset by lower
carbon compliance costs, reversal of asset impairment charges
impacted by the increase in discount rates, lower OM&A,
recognition of insurance related to the replacement costs for a
tower at the Kent Hills facility and liquidated damages recognized
related to turbine availability at the Windrise wind facility. The
previous period was impacted by higher gains on sales with the sale
of Pioneer Pipeline in the second quarter of 2021.
Net earnings attributable to common shareholders for the six
months ended June 30, 2022, increased
by $148 million to net earnings of
$106 million compared to a net loss
of $42 million in the same period in
2021. Earnings before income tax and net earnings attributable to
common shareholders in the six month period ended June 30, 2022, increased primarily due to
reversal of asset impairment charges impacted by the increase in
discount rates, lower carbon compliance costs, lower depreciation,
lower OM&A and recognition of insurance related to the
replacement costs for a tower at the Kent Hills facility and the
liquidated damages recognized related to turbine availability at
the Windrise wind facility partially offset by lower revenue and
higher fuel and purchased power costs. The previous period also was
impacted by higher gains on sales with the sale of Pioneer Pipeline
in the second quarter of 2021.
Cash flow from operating activities for the three and six months
ended June 30, 2022 decreased by
$209 million and $15 million respectively compared with the same
periods in 2021, primarily due to lower cash flows resulting from
lower production and lower revenues within all segments except for
the Wind and Solar segment. In addition, for the three months ended
June 30, 2022, operating cash flows
decreased with an unfavourable change in working capital; whereas,
for the six month period ended June 30,
2022, operating cash flow increased as a result of
favourable working capital changes. The change in working capital
for the three and six months ended, June 30,
2022 is primarily due to movements in our collateral
accounts related to high commodity prices and volatility in the
markets.
FCF(1) for the three and six months ended
June 30, 2022 decreased by
$10 and $43
million respectively compared with the same periods in 2021,
driven primarily by lower adjusted EBITDA, partially offset by
higher realized foreign exchange gains and a decrease in sustaining
capital spending related to fewer planned maintenance
turnarounds.
Alberta Electricity
Portfolio
The spot power price increased to $122/MWh and $106/MWh for the three and six months ending
June 30, 2022, respectively, from
$105/MWh and $100/MWh compared to the same periods in 2021,
mainly as a result of a higher natural gas prices. However, the
power price per MWh of production realized by the Company decreased
by $9 and $3 per MWh, respectively, compared with the same
periods in 2021.
The Alberta Electricity Portfolio generated gross margin of
$168 million and $332 million during the three and six months
ended June 30, 2022, a decrease of
$73 million and $89 million, respectively, compared to the same
periods in 2021. Gross margin was negatively impacted by lower
weather-driven demand and a better supplied market in 2022.
Ancillary services revenue from the Hydro segment was lower in both
periods as a result of lower ancillary prices driven by increasing
competition in the ancillary services market. In addition, the Gas
and Energy Transition segment results were impacted by lower
production due to unit retirements and higher dispatch optimization
in response to lower market heat rates. A significant portion of
the portfolio was hedged below spot prices, which was partially
offset by our favourable gas hedge positions and lower carbon
costs. The decrease in gross margins were partially offset by
higher gross margins in the Wind and Solar segment mainly due to
higher production and higher realized prices.
Hedged production for the balance of 2022 is 3,063 GWh at an
average price of $76 per MWh.
Segment
Results
($
millions)
|
3 months
ended
|
6 months
ended
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Hydro
|
88
|
96
|
149
|
173
|
Wind and
Solar
|
88
|
55
|
177
|
131
|
Gas
|
65
|
124
|
170
|
230
|
Energy
Transition
|
11
|
25
|
16
|
41
|
Energy
Marketing
|
50
|
43
|
67
|
98
|
Corporate
|
(23)
|
(24)
|
(41)
|
(32)
|
Adjusted
EBITDA(1)
|
279
|
319
|
538
|
641
|
Hydro:
- Adjusted EBITDA for the three and six months ended June 30, 2022 decreased by $8 million and $24
million, respectively, compared to the same periods in 2021,
primarily due to weaker ancillary service realized prices in the
Alberta market driven by increased participants and supply into the
ancillary services market as a result of higher gas prices, as well
as higher OM&A costs due to increased insurance premiums.
Wind and Solar:
- Adjusted EBITDA for the three and six months ended June 30, 2022, increased by $33 million and $46
million, respectively, compared to the same period in 2021,
primarily due to higher production, higher realized merchant
pricing in Alberta, higher
environmental attribute revenues and recognition of liquidated
damages related to turbine availability at the Windrise wind
facility, partially offset by an increase in transmission rates.
The three and six month periods in 2021 included a one-time
reimbursement as a result of the AESO transmission line loss
ruling.
Gas:
- Adjusted EBITDA for the three and six months ended June 30, 2022 decreased by $59 million and $60
million, respectively, compared to the same periods in 2021.
The decreases were primarily due to lower production, higher
natural gas prices and increased natural gas consumption, partially
offset by lower carbon costs. The three and six months ended
June 30, 2021, were additionally
impacted by the unplanned short-term steam supply outages at the
Sarnia cogeneration facility.
Carbon costs in the period were
lower as the facilities in the segment no longer operate on coal.
The Company utilized 0.7 million tonnes of emission credits to
settle the 2021 carbon compliance obligation, reducing our carbon
compliance costs by $7 million in the
period. In addition, during the three months ended June 30, 2022, adjusted EBITDA was negatively
impacted by lower realized prices in Alberta resulting from hedging activities.
Finally, for the six month period ended June
30, 2022, we realized lower legal fees related to the South
Hedland PPA dispute settlement.
Energy Transition:
- Adjusted EBITDA for the three and six months ended June 30, 2022, decreased by $14 million and $25
million compared to the same periods in 2021. The decrease
is primarily due to the retirements of Keephills Unit 1 and
Sundance Unit 4 and higher purchased power costs incurred due to
higher power prices during the planned outage at Centralia in 2022, partially offset by higher
production at Centralia and lower
carbon costs in Alberta.
Carbon costs were lower as the
Alberta facilities in the segment no longer operated on coal and
have now been retired. The Company utilized 0.5 million tonnes of
emission credits to settle the 2021 carbon compliance obligation,
reducing our carbon compliance costs by $5
million in both the three and six months ended June 30, 2022.
Energy Marketing:
- Adjusted EBITDA for the three and six months ended June 30, 2022 increased by $7 million and decreased by $31 million, respectively, compared to the same
period in 2021. The higher gross margin for the three months ended
June 30, 2022, was due to short-term
trading of both physical and financial power and gas products
across all North American markets. The Energy Marketing team was
able to capitalize on short-term volatility in the markets in which
we trade without materially changing the risk profile of the
business unit. For the six months ended June
30, 2022, results exceeded expectations due to favourable
trading of both physical and financial power and gas products
across all North American markets. The higher revenues for the six
months ended June 30, 2021 were due
to exceptional short-term volatility in the market.
Corporate:
- Our Corporate overhead costs for the three months ended were in
line with expectations and consistent with the prior period.
Corporate overhead costs for the six months ended June 30, 2022 increased by $9 million compared to the same period in 2021.
The increase was the result of the total return swap on our
share-based payment plans partially offset by the receipt of CEWS
funding in the first quarter 2021.
Conference call
TransAlta will hold a conference call and webcast at
9:00 a.m. MST (11:00 a.m. EST) today, August 5, 2022, to discuss our second quarter
2022 results. The call will begin with a short address by
John Kousinioris, President and CEO,
and Todd Stack, EVP Finance and
Chief Financial Officer, followed by a question-and-answer
period for investment analysts and investors. A question-and-answer
period for the media will immediately follow.
Dial-in numbers - Second Quarter
2022 Results:
Toll-free North American participants call:
1-888-664-6392
A link to the live webcast will be available on the Investor
Centre section of TransAlta's website at
https://transalta.com/investors/presentations-and-events. If you
are unable to participate in the call, the instant replay is
accessible at 1-888-390-0541 (Canada and USA toll free) with TransAlta pass code 715647
followed by the # sign. A transcript of the broadcast will be
posted on TransAlta's website once it becomes available.
Notes
(1)
|
These items are not
defined and have no standardized meaning under IFRS. Presenting
these items from period to period provides
management and investors with the ability to evaluate earnings
(loss) trends more readily in comparison with prior periods'
results. Please
refer to the Segmented Financial Performance and Operating Results
section of the MD&A for further discussion of these items,
including,
where applicable, reconciliations to measures calculated in
accordance with IFRS. See also the Additional IFRS Measures and
Non-IFRS
Measures section of this earnings release.
|
(2)
|
Funds from
operations ("FFO") per share and free cash flow ("FCF") per share
are calculated using the weighted average number of common
shares outstanding during the period. The weighted average number
of common shares outstanding for the three and six months ended
June
30, 2022 was 271 million shares (June 30, 2021 - 270 million
shares, respectively). Please refer to the Non-IFRS financial
measures section in
this earnings release for the purpose of these non-IFRS
ratios.
|
Non-IFRS financial measures and
other specified financial measures
We use a number of financial measures to evaluate our
performance and the performance of our business segments, including
measures and ratios that are presented on a non-IFRS basis, as
described below. Unless otherwise indicated, all amounts are in
Canadian dollars and have been derived from our audited annual 2021
consolidated financial statements and the unaudited interim
condensed consolidated statements of earnings (loss) for the three
and six months ended June 30, 2022,
prepared in accordance with IFRS. We believe that these non-IFRS
amounts, measures and ratios, read together with our IFRS amounts,
provide readers with a better understanding of how management
assesses results.
Non-IFRS amounts, measures and ratios do not have standardized
meanings under IFRS. They are unlikely to be comparable to similar
measures presented by other companies and should not be viewed in
isolation from, or as an alternative for, or more meaningful than
our IFRS results.
Adjusted EBITDA
In the fourth quarter of 2021, comparable EBITDA was relabeled
as adjusted EBITDA to align with industry standard terminology.
Each business segment assumes responsibility for its operating
results measured to adjusted EBITDA. Adjusted EBITDA is an
important metric for management that represents our core business
profitability. In the second quarter of 2022, our reported EBITDA
composition was adjusted to include the impact of closed positions
that are effectively settled by offsetting positions with the same
counterparty to reflect the performance of the assets and Energy
Marketing segment in the period in which the transactions occur.
Accordingly, the Company has applied this composition to all
previously reported periods. Interest, taxes, depreciation and
amortization are not included, as differences in accounting
treatments may distort our core business results. In addition,
certain reclassifications and adjustments are made to better assess
results excluding those items that may not be reflective of ongoing
business performance. This presentation may facilitate the readers
analysis of trends. Adjusted EBITDA is a non-IFRS measure.
Average Annual EBITDA
Average annual EBITDA is a non-IFRS financial measure that is
forward-looking, used to show the average annual EBITDA that the
project currently under construction is expected to generate upon
completion.
Funds From Operations ("FFO")
FFO is an important metric as it provides a proxy for cash
generated from operating activities before changes in working
capital and provides the ability to evaluate cash flow trends in
comparison with results from prior periods. FFO is a non-IFRS
measure.
Free Cash Flow ("FCF")
FCF is an important metric as it represents the amount of cash
that is available to invest in growth initiatives, make scheduled
principal repayments on debt, repay maturing debt, pay common share
dividends or repurchase common shares. Changes in working capital
are excluded so FFO and FCF are not distorted by changes that we
consider temporary in nature, reflecting, among other things, the
impact of seasonal factors and timing of receipts and payments. FCF
is a non-IFRS measure.
Non-IFRS Ratios
FFO per share, FCF per share and adjusted net debt to adjusted
EBITDA are non-IFRS ratios that are presented in the MD&A. See
the Reconciliation of Cash Flow from Operations to FFO and FCF and
Key Financial Non-IFRS Ratios sections of the MD&A for
additional information.
FFO per share and FCF per share
FFO per share and FCF per share are calculated using the
weighted average number of common shares outstanding during the
period. FFO per share and FCF per share is a non-IFRS ratio.
Reconciliation of these non-IFRS financial measures to the most
comparable IFRS measure are provided below.
Reconciliation of Non-IFRS
Measures on a Consolidated Basis
The following tables reflects adjusted EBITDA and provides
reconciliation to earnings (loss) before income taxes for the three
and six months ended June 30, 2022
and June 30, 2021
3 months ended June
30, 2022
|
Hydro
|
Wind &
Solar(1)
|
Gas(2)
|
Energy
Transition(3)
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted
investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
105
|
96
|
127
|
96
|
36
|
1
|
461
|
(3)
|
—
|
458
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
15
|
128
|
—
|
(56)
|
—
|
87
|
—
|
(87)
|
—
|
Realized gain (loss) on
closed exchange positions
|
—
|
—
|
(10)
|
—
|
75
|
—
|
65
|
—
|
(65)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
11
|
—
|
—
|
—
|
11
|
—
|
(11)
|
—
|
Finance lease
income
|
—
|
—
|
6
|
—
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Unrealized foreign
exchange (gain) loss on
commodity
|
—
|
—
|
—
|
—
|
2
|
—
|
2
|
—
|
(2)
|
—
|
Adjusted
revenues
|
105
|
111
|
262
|
96
|
57
|
1
|
632
|
(3)
|
(171)
|
458
|
Fuel and purchased
power
|
6
|
6
|
147
|
71
|
—
|
1
|
231
|
—
|
—
|
231
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(1)
|
—
|
—
|
—
|
(1)
|
—
|
1
|
—
|
Adjusted fuel and
purchased power
|
6
|
6
|
146
|
71
|
—
|
1
|
230
|
—
|
1
|
231
|
Carbon
compliance
|
—
|
1
|
12
|
(4)
|
—
|
—
|
9
|
—
|
—
|
9
|
Gross margin
|
99
|
104
|
104
|
29
|
57
|
—
|
393
|
(3)
|
(172)
|
218
|
OM&A
|
10
|
15
|
45
|
17
|
7
|
23
|
117
|
—
|
—
|
117
|
Taxes, other than
income taxes
|
1
|
4
|
4
|
1
|
—
|
—
|
10
|
(1)
|
—
|
9
|
Net other operating
income
|
—
|
(10)
|
(10)
|
—
|
—
|
—
|
(20)
|
—
|
—
|
(20)
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Insurance
recovery
|
—
|
7
|
—
|
—
|
—
|
—
|
7
|
—
|
(7)
|
—
|
Adjusted net other
operating income
|
—
|
(3)
|
(10)
|
—
|
—
|
—
|
(13)
|
—
|
(7)
|
(20)
|
Adjusted
EBITDA(4)
|
88
|
88
|
65
|
11
|
50
|
(23)
|
279
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
2
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
6
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(115)
|
Asset impairment
reversal
|
|
|
|
|
|
|
|
|
|
24
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(62)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
9
|
Gain on sale of assets
and other
|
|
|
|
|
|
|
|
|
|
2
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
(22)
|
(1)
|
The Skookumchuck
wind facility has been included on a proportionate basis in the
Wind and Solar segment.
|
(2)
|
Includes the
segments previously known as Australian Gas and North American Gas
and the gas generation assets from the segment
previously known as Alberta Thermal.
|
(3)
|
Includes the segment
previously known as Centralia and the coal generation assets from
the segment previously known as Alberta Thermal.
|
(4)
|
Adjusted EBITDA is
not defined and has no standardized meaning under
IFRS.
|
|
Attributable to common
shareholders
|
|
|
|
3 months ended June 30,
2021
|
Hydro
|
Wind &
Solar(1)
|
Gas(2)
|
Energy
Transition(3)
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted
investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
114
|
79
|
287
|
101
|
38
|
4
|
623
|
(4)
|
—
|
619
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
(4)
|
(28)
|
23
|
(4)
|
—
|
(13)
|
—
|
13
|
—
|
Realized gain (loss) on
closed exchange positions
|
—
|
—
|
1
|
—
|
16
|
—
|
17
|
—
|
(17)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
10
|
—
|
—
|
—
|
10
|
—
|
(10)
|
—
|
Finance lease
income
|
—
|
—
|
6
|
—
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Adjusted
revenues
|
114
|
75
|
276
|
124
|
50
|
4
|
643
|
(4)
|
(20)
|
619
|
Fuel and purchased
power(4)
|
6
|
3
|
110
|
92
|
—
|
4
|
215
|
—
|
—
|
215
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(1)
|
—
|
—
|
—
|
(1)
|
—
|
1
|
—
|
Mine
depreciation
|
—
|
—
|
(26)
|
(24)
|
—
|
—
|
(50)
|
—
|
50
|
—
|
Coal inventory
write-down
|
—
|
—
|
—
|
(3)
|
—
|
—
|
(3)
|
—
|
3
|
—
|
Adjusted fuel and
purchased power
|
6
|
3
|
83
|
65
|
—
|
4
|
161
|
—
|
54
|
215
|
Carbon
compliance
|
—
|
—
|
32
|
10
|
—
|
—
|
42
|
—
|
—
|
42
|
Gross margin
|
108
|
72
|
161
|
49
|
50
|
—
|
440
|
(4)
|
(74)
|
362
|
OM&A(4)
|
11
|
15
|
45
|
46
|
7
|
24
|
148
|
—
|
—
|
148
|
Reclassifications and
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Parts and materials
write-down
|
—
|
—
|
(2)
|
(23)
|
—
|
—
|
(25)
|
—
|
25
|
—
|
Adjusted
OM&A
|
11
|
15
|
43
|
23
|
7
|
24
|
123
|
—
|
25
|
148
|
Taxes, other than
income taxes
|
1
|
2
|
4
|
2
|
—
|
—
|
9
|
(1)
|
—
|
8
|
Net other operating
income
|
—
|
—
|
(10)
|
(1)
|
—
|
—
|
(11)
|
—
|
—
|
(11)
|
Adjusted
EBITDA(5)
|
96
|
55
|
124
|
25
|
43
|
(24)
|
319
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
2
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
6
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(123)
|
Asset impairment
charge
|
|
|
|
|
|
|
|
|
|
(16)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(60)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
14
|
Gain on sale of assets
and other
|
|
|
|
|
|
|
|
|
|
32
|
Earnings before income
taxes
|
|
|
|
|
|
|
|
|
|
72
|
(1)
|
The Skookumchuck
wind facility has been included on a proportionate basis in the
Wind and Solar segment.
|
(2)
|
Includes the
segments previously known as Australian Gas and North American Gas
and the gas generation assets from the segment
previously known as Alberta Thermal.
|
(3)
|
Includes the segment
previously known as Centralia and the coal generation assets from
the segment previously known as Alberta Thermal.
|
(4)
|
During the three
months ended June 30, 2021, $3 million related to station service
costs for the Hydro segment were reclassified from
OM&A to fuel and purchased power for comparative purposes. This
did not impact previously reported net earnings.
|
5)
|
Adjusted EBITDA is
not defined and has no standardized meaning under
IFRS.
|
6 months ended June
30, 2022
|
Attributable to
common shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas(2)
|
Energy
Transition(3)
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted
investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
182
|
191
|
561
|
202
|
62
|
2
|
1,200
|
(7)
|
—
|
1,193
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
28
|
(34)
|
11
|
(46)
|
—
|
(41)
|
—
|
41
|
—
|
Realized gain (loss) on
closed exchange
positions
|
—
|
—
|
(7)
|
—
|
65
|
—
|
58
|
—
|
(58)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
22
|
—
|
—
|
—
|
22
|
—
|
(22)
|
—
|
Finance lease
income
|
—
|
—
|
11
|
—
|
—
|
—
|
11
|
|
(11)
|
—
|
Adjusted
revenues
|
182
|
219
|
553
|
213
|
81
|
2
|
1,250
|
(7)
|
(50)
|
1,193
|
Fuel and purchased
power
|
10
|
14
|
278
|
165
|
—
|
2
|
469
|
—
|
—
|
469
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(2)
|
—
|
—
|
—
|
(2)
|
—
|
2
|
—
|
Adjusted fuel and
purchased power
|
10
|
14
|
276
|
165
|
—
|
2
|
467
|
—
|
2
|
469
|
Carbon
compliance
|
—
|
1
|
30
|
(3)
|
—
|
—
|
28
|
—
|
—
|
28
|
Gross margin
|
172
|
204
|
247
|
51
|
81
|
—
|
755
|
(7)
|
(52)
|
696
|
OM&A
|
21
|
31
|
89
|
33
|
14
|
41
|
229
|
—
|
—
|
229
|
Taxes, other than
income taxes
|
2
|
6
|
8
|
2
|
—
|
—
|
18
|
(1)
|
—
|
17
|
Net other operating
income
|
—
|
(17)
|
(20)
|
—
|
—
|
—
|
(37)
|
—
|
—
|
(37)
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Insurance
recovery
|
—
|
7
|
—
|
—
|
—
|
—
|
7
|
—
|
(7)
|
—
|
Adjusted net other
operating income
|
—
|
(10)
|
(20)
|
—
|
—
|
—
|
(30)
|
—
|
(7)
|
|
Adjusted
EBITDA(4)
|
149
|
177
|
170
|
16
|
67
|
(41)
|
538
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
4
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
11
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(232)
|
Asset impairment
reversal
|
|
|
|
|
|
|
|
|
|
66
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(129)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
11
|
Gain on sale of assets
and other
|
|
|
|
|
|
|
|
|
|
2
|
Earnings before income
taxes
|
|
|
|
|
|
|
|
|
|
220
|
(1)
|
The Skookumchuck
wind facility has been included on a proportionate basis in the
Wind and Solar segment.
|
(2)
|
Includes the
segments previously known as Australian Gas and North American Gas
and the gas generation assets from the segment
previously known as Alberta Thermal.
|
(3)
|
Includes the segment
previously known as Centralia and the coal generation assets from
the segment previously known as Alberta Thermal.
|
(4)
|
Adjusted EBITDA is
not defined and has no standardized meaning under
IFRS.
|
6 months ended June 30,
2021
|
Attributable to common
shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas(2)
|
Energy
Transition(3)
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted
investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
203
|
170
|
553
|
240
|
99
|
5
|
1,270
|
(9)
|
—
|
1,261
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
1
|
(51)
|
29
|
(12)
|
—
|
(33)
|
—
|
33
|
—
|
Realized gain (loss) on
closed exchange
positions
|
—
|
—
|
1
|
—
|
28
|
—
|
29
|
—
|
(29)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
20
|
—
|
—
|
—
|
20
|
—
|
(20)
|
—
|
Finance lease
income
|
—
|
—
|
13
|
—
|
—
|
—
|
13
|
—
|
(13)
|
—
|
Adjusted
revenues
|
203
|
171
|
536
|
269
|
115
|
5
|
1,299
|
(9)
|
(29)
|
1,261
|
Fuel and purchased
power(4)
|
9
|
7
|
218
|
221
|
—
|
5
|
460
|
—
|
—
|
460
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(2)
|
—
|
—
|
—
|
(2)
|
—
|
2
|
—
|
Mine
depreciation
|
—
|
—
|
(53)
|
(52)
|
—
|
—
|
(105)
|
—
|
105
|
—
|
Coal inventory
write-down
|
—
|
—
|
—
|
(11)
|
—
|
—
|
(11)
|
—
|
11
|
—
|
Adjusted fuel and
purchased power
|
9
|
7
|
163
|
158
|
—
|
5
|
342
|
—
|
118
|
460
|
Carbon
compliance
|
|
|
71
|
21
|
—
|
—
|
92
|
—
|
—
|
92
|
Gross margin
|
194
|
164
|
302
|
90
|
115
|
—
|
865
|
(9)
|
(147)
|
709
|
OM&A(4)
|
19
|
28
|
87
|
69
|
17
|
32
|
252
|
(1)
|
—
|
251
|
Reclassifications and
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Parts and materials
write-down
|
—
|
—
|
(2)
|
(23)
|
—
|
—
|
(25)
|
—
|
25
|
—
|
Adjusted
OM&A
|
19
|
28
|
85
|
46
|
17
|
32
|
227
|
(1)
|
25
|
251
|
Taxes, other than
income taxes
|
2
|
5
|
7
|
4
|
—
|
—
|
18
|
(1)
|
—
|
17
|
Net other operating
income
|
—
|
—
|
(20)
|
(1)
|
—
|
—
|
(21)
|
—
|
—
|
(21)
|
Adjusted
EBITDA(5)
|
173
|
131
|
230
|
41
|
98
|
(32)
|
641
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
4
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
13
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(272)
|
Asset impairment
charge
|
|
|
|
|
|
|
|
|
|
(45)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(123)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
21
|
Gain on sale of assets
and other
|
|
|
|
|
|
|
|
|
|
33
|
Earnings before income
taxes
|
|
|
|
|
|
|
|
|
|
93
|
(1)
|
The Skookumchuck
wind facility has been included on a proportionate basis in the
Wind and Solar segment.
|
(2)
|
Includes the
segments previously known as Australian Gas and North American Gas
and the gas generation assets from the segment
previously known as Alberta Thermal.
|
(3)
|
Includes the segment
previously known as Centralia and the coal generation assets from
the segment previously known as Alberta Thermal.
|
(4)
|
During the six
months ended June 30, 2021, $5 million related to station service
costs for the Hydro segment was reclassified from OM&A
to fuel and purchased power for comparative purposes. This did not
impact previously reported net earnings.
|
(5)
|
Adjusted EBITDA is
not defined and have no standardized meaning under
IFRS.
|
Reconciliation of Cash flow from operations to FFO and FCF
The table below reconciles our cash flow from operating
activities to our FFO and FCF:
|
3 months
ended
|
6 months
ended
|
$ millions unless
otherwise stated
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Cash flow from
operating activities
|
(129)
|
80
|
322
|
337
|
Change in non-cash
operating working capital balances
|
260
|
128
|
(24)
|
56
|
Cash flow from
operations before changes in working capital
|
131
|
208
|
298
|
393
|
Adjustments
|
|
|
|
|
Share of adjusted FFO
from joint venture(1)
|
2
|
—
|
5
|
4
|
Decrease in finance
lease receivable
|
11
|
10
|
22
|
20
|
Clean energy
transition provisions and adjustments(2)
|
8
|
28
|
8
|
36
|
Realized gain (loss)
on closed exchange positions
|
65
|
17
|
58
|
29
|
Other(3)
|
3
|
4
|
8
|
8
|
FFO(4)
|
220
|
267
|
399
|
490
|
Deduct:
|
|
|
|
|
Sustaining
capital(1)
|
(31)
|
(66)
|
(48)
|
(100)
|
Productivity
capital
|
(1)
|
(1)
|
(2)
|
(1)
|
Dividends paid on
preferred shares
|
(10)
|
(10)
|
(20)
|
(20)
|
Distributions paid to
subsidiaries' non-controlling interests
|
(30)
|
(32)
|
(72)
|
(69)
|
Principal payments on
lease liabilities and other(1)
|
(3)
|
(3)
|
(4)
|
(4)
|
FCF(4)
|
145
|
155
|
253
|
296
|
Weighted average number
of common shares outstanding in the
period
|
271
|
270
|
271
|
271
|
FFO per
share(4)
|
0.81
|
0.99
|
1.47
|
1.81
|
FCF per
share(4)
|
0.54
|
0.57
|
0.93
|
1.09
|
(1)
|
Includes our share
of amounts for Skookumchuck wind facility, an equity accounted
joint venture.
|
(2)
|
Includes a
write-down on parts and material inventory for our coal operations
in 2021 to net realizable value.
|
(3)
|
Other consists of
production tax credits which is a reduction to tax equity
debt.
|
(4)
|
These items are not
defined and have no standardized meaning under IFRS. Refer to the
Non-IFRS financial measures section of this
earnings release
|
The table below bridges our adjusted EBITDA to our FFO and FCF
for the three and six months ended June 30,
2022 and June 30, 2021:
|
3 months
ended
|
6 Months
Ended
|
|
June 30,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
Adjusted
EBITDA(1)
|
279
|
319
|
538
|
641
|
Provisions
|
—
|
—
|
10
|
(5)
|
Interest
expense
|
(50)
|
(48)
|
(104)
|
(99)
|
Current income tax
expense
|
(13)
|
(12)
|
(25)
|
(35)
|
Realized foreign
exchange gain (loss)
|
13
|
(2)
|
15
|
(3)
|
Decommissioning and
restoration costs settled
|
(7)
|
(5)
|
(14)
|
(8)
|
Other non-cash
items
|
(2)
|
15
|
(21)
|
(1)
|
FFO(3)
|
220
|
267
|
399
|
490
|
Deduct:
|
|
|
|
|
Sustaining
capital(2)
|
(31)
|
(66)
|
(48)
|
(100)
|
Productivity
capital
|
(1)
|
(1)
|
(2)
|
(1)
|
Dividends paid on
preferred shares
|
(10)
|
(10)
|
(20)
|
(20)
|
Distributions paid to
subsidiaries' non-controlling interests
|
(30)
|
(32)
|
(72)
|
(69)
|
Principal payments on
lease liabilities and other(2)
|
(3)
|
(3)
|
(4)
|
(4)
|
FCF(3)
|
145
|
155
|
253
|
296
|
(1)
|
Adjusted EBITDA is
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to earnings (loss) before income
taxes above.
|
(2)
|
Includes our share
of amounts for Skookumchuck wind facility, an equity accounted
joint venture.
|
(3)
|
FFO and FCF are
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to cash flow from operating
activities above.
|
TransAlta is in the process of filing its unaudited interim
Consolidated Financial Statements and accompanying notes, as well
as the associated Management's Discussion & Analysis
("MD&A"). These documents will be available August 5, 2022 on the Investor Centre of
TransAlta's website at www.transalta.com or through SEDAR at
www.sedar.com and EDGAR at www.sec.gov/edgar.shtml.
About TransAlta
Corporation:
TransAlta owns, operates and develops a diverse fleet of
electrical power generation assets in Canada, the United
States and Australia with a
focus on long-term shareholder value. TransAlta provides
municipalities, medium and large industries, businesses and utility
customers with clean, affordable, energy efficient and reliable
power. Today, TransAlta is one of Canada's largest producers of wind power and
Alberta's largest producer of hydro-electric power. For over 111
years, TransAlta has been a responsible operator and a proud member
of the communities where we operate and where our employees work
and live. TransAlta aligns its corporate goals with the UN
Sustainable Development Goals and its climate change strategy with
CDP (formerly Climate Disclosure Project) and the Task Force on
Climate-related Financial Disclosures (TCFD) recommendations.
TransAlta has achieved a 61 per cent reduction in GHG emissions
since 2015.
For more information about TransAlta, visit our web site at
transalta.com.
Cautionary Statement Regarding
Forward-Looking Information
This news release contains "forward-looking information",
within the meaning of applicable Canadian securities laws, and
"forward-looking statements", within the meaning of applicable
United States securities laws,
including the United States Private Securities Litigation Reform
Act of 1995 (collectively referred to herein as "forward-looking
statements). In some cases, forward-looking statements can be
identified by terminology such as "plans", "expects", "proposed",
"will", "anticipates", "develop", "continue", and similar
expressions suggesting future events or future performance. In
particular, this news release contains, without limitation,
statements pertaining to: the Company's growth projects, including
the Horizon Hill wind project, the Garden Plain wind project and
the White Rock wind projects,
including expected commercial operation dates thereof; the benefits
of the EIP investment; securing contract extensions with the IESO
(defined above) and the satisfaction of conditions to the
Sarnia cogeneration facility
capacity supply commitments with the large industrial customers;
the Mount Keith 132 kV transmission expansion project, including
the estimated capital, EBITDA and planned completion date;
the Kent Hills wind facilities rehabilitation, the timeline to
return the turbines to service and the potential installation for a
battery storage system at Kent Hills wind facility; the targets
associated with the Clean Electricity Growth Plan. These
forward-looking statements are not historical facts but are based
on TransAlta's belief and assumptions based on information
available at the time the assumptions were made, including, but not
limited to, the current political and regulatory environment, the
price of power in Alberta and the
condition of the financial markets. 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: operational risks involving our facilities; inability to
satisfy conditions precedent to the capacity supply commitments
with the large industrial customers at Sarnia; inability to secure a successful bid
with IESO for a contract extension at the Sarnia cogeneration facility; changes in
market prices where we operate; unplanned outages at generating
facilities and the capital investments required; equipment failure
and our ability to carry out repairs in a cost effective and timely
manner; the effects of weather, catastrophes and public health
crises; global supply chain disruptions impacting major maintenance
and growth projects; disruptions in the source of thermal fuels,
water, solar or wind required to operate our facilities, including
the necessary natural gas supply; energy trading risks; failure to
obtain necessary regulatory approvals in a timely fashion, or at
all; inability to satisfy all conditions and requirements
associated with announced growth projects; negative impact to our
credit ratings; legislative or regulatory developments and their
impacts; increasingly stringent environmental requirements and
their impacts; increased competition; global capital markets
activity (including our ability to access financing at a reasonable
cost); changes in prevailing interest rates; currency exchange
rates; inflation levels and commodity prices; armed hostilities,
including an escalation of the war in Ukraine; general economic conditions in the
geographic areas where TransAlta operates; disputes or claims
involving TransAlta or TransAlta Renewables; and other risks and
uncertainties discussed in the Company's materials filed with the
securities regulatory authorities from time to time and as also set
forth in the Company's MD&A and Annual Information Form for the
year ended December 31, 2021. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which reflect TransAlta's expectations only as of the
date of this news release. The purpose of the financial outlooks
contained in this news release are to give the reader information
about management's current expectations and plans and readers are
cautioned that such information may not be appropriate for other
purposes and is given as of the date of this news release.
TransAlta disclaims any intention or obligation to update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Note: All financial figures are in Canadian dollars unless
otherwise indicated.
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content:https://www.prnewswire.com/news-releases/transalta-reports-second-quarter-2022-results-301600642.html
SOURCE TransAlta Corporation