Media Advisory: TransAlta and TransAlta Renewables Second Quarter 2021 Results and Conference Call
TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its second quarter 2021 results before markets open on Tuesday, August 10, 2021. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain Time (11:00 a.m. ET). The media will be invited to ask questions following analysts.
TransAlta Renewables Inc. (TransAlta Renewables) (TSX:RNW) will release its second quarter 2021 results before markets on Tuesday, August 10, 2021. Any questions regarding TransAlta Renewables may be asked on the TransAlta conference call.
Please contact the conference operator five minutes prior to the call, noting TransAlta Corporation as the company.
Second Quarter 2021 Conference Call:
Toll-free North American participants call: 1-888-664-6392
Related materials will be available on the Investor Centre section of TransAlta’s website at http://transalta.com/investors/events-and-presentations. 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 902288 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
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 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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit its web site at transalta.com.
TransAlta Announces the Successful Closing of Pioneer Pipeline Sale to ATCO
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today, together with its partner Tidewater Midstream & Infrastructure Ltd. (Tidewater), the closing of the previously announced sale of the Pioneer Pipeline to ATCO Gas and Pipelines Ltd. (ATCO) for the aggregate sale price of $255 million. The net cash proceeds to TransAlta from the sale are approximately $127.5 million, subject to certain adjustments.
We thank Tidewater for their partnership in the Pioneer Pipeline project which was a key milestone toward achieving our off-coal transition strategy. We look forward to working together with ATCO and NOVA Gas Transmission to ensure reliable gas supply to our generating units to enable the delivery of firm, reliable electricity with greatly reduced carbon emissions,- said John Kousinioris, President and Chief Executive Officer of TransAlta.
Following closing of the transaction, the Pioneer Pipeline will be integrated into NOVA Gas Transmission Ltd. (NGTL) and ATCO’s Alberta natural gas transmission systems to provide reliable natural gas supply to the Company’s power generation stations at Sundance and Keephills. As part of the transaction, TransAlta has entered into additional long-term gas transportation agreements with NGTL for new and existing transportation service of 400 TJ per day by the end of 2023.
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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score.
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 benefits of the transaction being realized; the reliability of gas supply; the reduction in carbon emissions; the integration of Pioneer into NGTL’s and ATCO’s Alberta natural gas transmission systems. The forward-looking statements contained in this news release are based on current expectations, estimates, projections, and assumptions, having regard to the Company’s experience and its perception of historical trends and 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: changes to government regulations, including as it pertains to environmental policy; the effects of weather, catastrophes and public health crises; disruptions to the Company’s supply chains; 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, 2020. 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. 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.
TransAlta Announces TSX Acceptance of Normal Course Issuer Bid
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today announced that the Toronto Stock Exchange (TSX) has accepted the notice filed by the Company to implement a normal course issuer bid (NCIB) for a portion of its common shares (Common Shares).
Pursuant to the NCIB, TransAlta may repurchase up to a maximum of 14,000,000 Common Shares, representing approximately 7.16% of its public float of Common Shares as at May 18, 2021. 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.
Transactions under the NCIB will depend on future market conditions. TransAlta will initially retain discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements. The period during which TransAlta is authorized to make purchases under the NCIB commences on May 31, 2021 and ends on May 30, 2022 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.
Under TSX rules, not more than 169,737 Common Shares (being 25% of the average daily trading volume on the TSX of 678,948 Common Shares for the six months ended April 30, 2021) can be purchased on the TSX on any single trading day under the NCIB, with the exception that one block purchase in excess of the daily maximum is permitted per calendar week. As at May 18, 2021, there were 269,883,087 Common Shares issued and outstanding.
TransAlta has repurchased and cancelled 6,055,600 Common Shares on the open market through the facilities of the TSX and/or alternative Canadian trading platforms at an average price of $8.664 per share under its prior NCIB approved by the TSX on May 26, 2020 for the twelve-month period commencing May 29, 2020.
The NCIB provides the Company with a capital allocation alternative with a view to 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.
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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score.
For more information about TransAlta, visit our web site at transalta.com.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “may”, “will”, and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information relating to TransAlta’s intentions with respect to the NCIB, the effects of repurchases of Common Shares and purchases thereunder, including any enhancement to shareholder value. These statements are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were 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: the entering into of an automatic securities purchase plan; legislative or regulatory developments; any significant changes to Common Share price or trading volume; continued availability of capital and financing; changes to general economic, market or business conditions; business opportunities that become available to, or are pursued by TransAlta; and other risk factors contained in the Company’s annual information form and management’s discussion and analysis. Readers are cautioned not to place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta’s expectations only 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.
TransAlta Reports Strong First Quarter 2021 Results led by Exceptional Performance at Alberta Hydro
First Quarter 2021 Highlights
Comparable EBITDA(1) of $310 million, an increase of $90 million or 41 per cent compared to the same period in 2020
Free cash flow (FCF)(1) of $129 million or $0.48 per share compared to $109 million or $0.39 per share, a 23 per cent increase on a per share basis, for the same period in 2020
Hydro segment delivered $77 million of comparable EBITDA, an increase of $51 million or 96 per cent compared to the same period in 2020
Adjusted availability was 88.6 per cent compared to 92.8 per cent for the same period in 2020
Other Highlights
On Dec. 31, 2020, all power purchase arrangements (Alberta PPAs) with the Alberta Balancing Pool for TransAlta’s Alberta Hydro facilities, Keephills Units 1 and 2 and Sheerness Units 1 and 2, expired and these facilities began fully merchant operations in the Alberta electricity market
Completion of Sundance Unit 6 and Sheerness Unit 1 conversions to gas-fired generation
Commenced gas conversion of Keephills Unit 2 with planned completion during the second quarter of 2021
Windrise wind project construction was 84 per cent complete as of March 31, 2021
Extended $1.25 billion Syndicated Credit facility to June 2025 and converted the facility into a Sustainability Linked Loan aligning the cost of borrowing to TransAlta’s greenhouse gas emissions reductions and gender diversity targets
Subsequent Events & Updates
Launched 130 MW Garden Plain wind project with an 18-year power purchase agreement with Pembina Pipeline Corporation for 100 MW of renewable electricity and associated environmental attributes
Completed 10-year contract extension at Sarnia cogeneration facility with large industrial off-taker
Settled the litigation with Mangrove Partner’s Master Fund Ltd.
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the quarter ended March 31, 2021.
“TransAlta delivered excellent results during the first quarter, ahead of our financial expectations. Our strong performance was led by our Alberta Hydro fleet as we experienced the first few months of fully merchant operations in the Alberta electricity market. Our strategically diversified fleet of hydro, wind, energy storage and thermal assets demonstrated its competitiveness and continued value in the new market structure”,- said John Kousinioris, President and Chief Executive Officer. “Our Energy Marketing segment also had an exceptional start to the year with favourable trading results across North America. Given these exceptional results, we expect performance to track to the upper end of the range of our 2021 guidance.”
Set out below are additional highlights from the quarter as well as more details regarding the Company’s financial results and liquidity and financial position.
Financial Results
The Company reported an exceptional first quarter 2021 result with comparable EBITDA(1) of $310 million compared to $220 million in the same period of 2020. Funds from operations (FFO)(1) were $211 million for the quarter compared to $172 million in the same period of 2020.
Comparable EBITDA for the three months ended March 31, 2021 increased by $90 million compared with the same period in 2020, largely due to higher comparable EBITDA at the Hydro and Energy Marketing segments and lower expenses in the Corporate segment. The Hydro segment’s strong performance was due to higher average merchant prices in the Alberta power market coupled with the expiry of the Alberta PPAs, which resulted in the elimination of the net obligation payments provided to the Alberta Balancing Pool in the prior period. The Energy Marketing segment also had exceptional performance resulting from favourable short-term trading of both physical and financial power and gas products across all North American markets. The Corporate segment reported lower expenses driven by receipt of the Canada Emergency Wage Subsidy (CEWS) funding and realized gains from a total equity swap that hedged the employee share-based incentive plans. This was partially offset by lower performance at the Centralia segment due to an unplanned outage occurring during a period of higher merchant pricing in the first quarter of 2021.
FCF(1), one of the Company’s key financial metrics, totaled $129 million for the three months ended March 31, 2021, an increase of $20 million compared to the same period in 2020, driven primarily by the higher comparable EBITDA noted above. FCF reflects the after-tax performance as well as the impact of the settlement of provisions and higher distributions paid to subsidiaries non-controlling interests.
Operations, maintenance and administration (OM&A) expenses for the three months ended March 31, 2021 decreased by $23 million compared to the same period in 2020 as variability caused by the total return swap resulted in a favourable period-over-period change of $18 million and the receipt of CEWS funding of $8 million provided a further benefit. Excluding the impact of the total return swap and CEWS funding, OM&A expenses increased slightly due to increased staff costs, legal expenses and higher insurance premiums.
Liquidity and Financial Position
The Company continues to maintain a strong financial position in part due to our long-term contracts and hedged positions. At the end of the first quarter, TransAlta had access to $2.1 billion in liquidity including $648 million of cash and cash equivalents.
Alberta Electricity Portfolio
On Dec. 31, 2020, the Alberta PPAs expired and, effective Jan. 1, 2021, the applicable facilities began operating on a fully merchant basis in the Alberta market, forming a core part of our Alberta electricity portfolio optimization activities. The variability in production by facility is driven by the diversity in our fuel types, which enables portfolio management, and allows for maximization of operating margins. The Alberta portfolio includes hydro, wind, energy storage and thermal units. A portion of the baseload generation in the portfolio can be hedged to provide cash flow certainty.
In the three months ended March 31, 2021, the Hydro and Alberta Thermal segments achieved realized power prices of $122/MWh and $87/MWh respectively compared to the Alberta spot price, which averaged $95/MWh. The Company was able to benefit during higher-priced periods by optimizing dispatch in the Hydro segment while our hedging positions at Alberta Thermal minimized unfavourable market pricing during lower priced hours in the quarter.
Other Activities
Conversion to Gas
On Feb. 1, 2021, we announced the completion of TransAlta’s first conversion to gas-fired generation at Sundance Unit 6. The Sheerness Unit 1 conversion to gas was also completed in the quarter and was returned to service on March 31, 2021. The Keephills Unit 2 gas conversion is currently in progress with planned completion in the second quarter.
During the quarter, we advanced detailed engineering for the Sundance 5 repowering project. As a result of the detailed design review, the Company’s cost estimate for the project has increased and is now in the estimated range of $900 to $950 million. Project costs have increased to account for changes in final design. In addition, a decision was made to upgrade the high-pressure turbine as part of the repowering scope to allow for maximum operating flexibility in the unit going forward. The Company expects to issue full notice to proceed later this year and the target completion date for Sundance 5 is now estimated for H1 2024.
Windrise Wind
Construction activities on the Windrise wind project continues to advance with procedures in place to protect the construction team during the COVID-19 pandemic. The construction schedule has been modified to reflect a COVID-19-related delay in the delivery of the wind turbine components. The project began receiving wind turbine generators on site in mid-Oct. 2020. The bulk of the major equipment has been delivered to site and turbine erection activities have commenced. The project has advanced significantly and, as at the end of March 2021, was approximately 84% complete. In addition, the main transmission line is progressing well and remains on track for energization during the second quarter. The project is tracking to be completed during the second half of 2021.
Sarnia Recontracting
On May 12, 2021, the Company executed an Amended and Restated Energy Supply Agreement with one of its large industrial customers at the Sarnia cogeneration facility which provides for the supply of electricity and steam. This agreement will extend the term of the original agreement from Dec. 31, 2022 to Dec. 31, 2032. However, if the Company is unable to enter into a new contract with the Ontario Independent Electricity System Operator (IESO) or enter into agreements with its other industrial customers at the Sarnia cogeneration facility that extend past Dec. 31, 2025, then this agreement will automatically terminate on Dec. 31, 2025. The current contract with the IESO in respect of the Sarnia cogeneration facility expires on Dec. 31, 2025. The Company is in active discussions with the three other existing industrial off-takers regarding extensions to their supply of electricity and steam from the Sarnia cogeneration facility on comparable terms.
Kaybob Cogeneration
The Company will not be proceeding with the Kaybob cogeneration facility as a result of Energy Transfer Canada ULC’s (ET Canada), formerly known as SemCAMS Midstream ULC, purported termination of the agreements to develop, construct and operate the 40 MW cogeneration facility at the Kaybob South No. 3 sour gas processing plant. As a result, the Company has recorded an impairment of $27 million in the first quarter of 2021. TransAlta has commenced an arbitration seeking full compensation for ET Canada’s wrongful termination of the agreements. A hearing for this matter has not yet been scheduled.
COVID-19 Response Update
The World Health Organization declared a Public Health Emergency of International Concern relating to COVID-19 on Jan. 30, 2020, which they subsequently declared, on March 11, 2020, as a global pandemic.
The Company continues to operate under its business continuity plan, which focused on ensuring that: (i) employees who can work remotely do so; and (ii) employees who operate and maintain our facilities, and who are not able to work remotely, are able to work safely and in a manner that ensures they remain healthy. During the second and third quarters of 2020, the Company successfully brought employees who were working remotely back to the office without compromising health and safety standards. In December 2020, as a result of rising COVID-19 case counts in the Province of Alberta and in light of office attendance restrictions eventually imposed by the Government of Alberta, staff at TransAlta’s head office returned to remote work protocols. All of TransAlta’s offices and sites follow strict health screening and social distancing protocols with personal protective equipment readily available and in use. Further, TransAlta maintains travel bans aligned to local jurisdictional guidance, enhanced cleaning procedures, revised work schedules, contingent work teams and the reorganization of processes and procedures to limit contact with other employees and contractors on-site.
All of our facilities continue to remain fully operational and are capable of meeting our customers needs. The Company continues to work and serve all of our customers and counterparties under the terms of their contracts. We have not experienced interruptions to service requirements. Electricity and steam supply continue to remain a critical service requirement to all of our customers and have been deemed an essential service in our jurisdictions.
The Company continues to maintain a strong financial position due in part to its long-term contracts and hedged positions and its ample financial liquidity.
Segment Results
First Quarter 2021 Segmented Results Comparable EBITDA (C$ millions)
3 Months Ended March 31, 2021
3 Months Ended March 31, 2020
Hydro
77
26
Wind and Solar
76
74
North American Gas
35
29
Australian Gas
32
30
Alberta Thermal
43
44
Centralia
12
33
Energy Marketing
43
13
Corporate
(8)
(29)
Total Comparable EBITDA(1)
310
220
Hydro: Comparable EBITDA for the three months ended March 31, 2021, increased by $51 million compared with the same period in 2020. On Dec. 31, 2020, the Alberta PPAs expired and, effective Jan. 1, 2021, all of TransAlta’s Alberta Hydro facilities began operating on a merchant basis in the Alberta power market. The Company was able to optimize revenues on the merchant facilities through increased water flow during periods of higher realized prices in the Alberta market and benefited from the elimination of payment obligations to the Alberta Balancing Pool. This was partially offset by lower ancillary service volumes.
Wind and Solar: Comparable EBITDA for the three months ended March 31, 2021, increased by $2 million compared with the same period in 2020 primarily due to the added Skookumchuck facility and higher pricing in Alberta, which was partially offset by lower production due to weaker wind resources from the balance of the fleet.
North American Gas: Comparable EBITDA for the three months ended March 31, 2021, increased by $6 million compared to the same period in 2020 primarily due to the acquisition of the Ada facility and higher realized pricing in Alberta.
Australian Gas: Comparable EBITDA for the three months ended March 31, 2021, increased by $2 million compared with the same period in 2020. The increase was mainly due to the timing of legal fees and the strengthening of the Australian dollar relative to the Canadian dollar.
Alberta Thermal: Comparable EBITDA for the three months ended March 31, 2021, decreased by $1 million compared to the same period in 2020. Higher Alberta pricing was offset by lower production and higher fuel and carbon compliance costs.
Centralia: Comparable EBITDA for the three months ended March 31, 2021, decreased by $21 million compared to the same period in 2020 primarily due to an outage occurring during a period of higher merchant pricing in the first quarter of 2021.
Energy Marketing: Comparable EBITDA for three months ended March 31, 2021, increased by $30 million compared to the same period in 2020 resulting from favourable short-term trading of both physical and financial power and gas products across all North American markets.
Corporate: Corporate costs for the three months ended March 31, 2021, decreased by $21 million compared to the same period in 2020. These changes were primarily due to the receipt of CEWS funding and realized gains from the total return swap. A portion of the settlement cost of our employee share-based payment plans is hedged by entering into total return swaps, which are cash settled every quarter.
Consolidated Financial Highlights
Net loss attributable to common shareholders, for the three months ended March 31, 2021, was $30 million compared to net earnings of $27 million in the same period in 2020. The decrease was largely due to higher fuel and purchased power costs, asset impairments, an increase in tax expense and higher earnings related to non-controlling interests. This decrease was partially offset by higher revenues, favourable changes in foreign exchange rates and lower OM&A.
Total sustaining capital expenditure of $34 million was $5 million higher compared to 2020 primarily due to higher planned major maintenance at our Alberta Thermal segment.
First Quarter 2021 Highlights
In C$ millions, unless otherwise stated
3 Months Ended March 31, 2021
3 Months Ended March 31, 2020
Comparable EBITDA(1)
$310
$220
Free cash flow(1)
$129
$109
Adjusted availability (%)(2)
88.6
92.8
Production (GWh)
5,541
6,486
Revenues
$642
$606
Fuel and purchased power(2)
$243
$193
Carbon compliance(2)
$50
$45
Operations, maintenance and administration
$105
$128
Net loss attributable to common shareholders
$(30)
$27
Cash flow from operating activities
$257
$214
Funds from operations(1)
$211
$172
Net loss per share attributable to common shareholders, basic and diluted
$(0.11)
$0.10
Funds from operations per share(1)
$0.78
$0.62
Free cash flow per share(1)
$0.48
$0.39
Dividends declared per common share
–
$0.0425
Dividends declared per preferred share(3)
–
$0.2562
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 May 13, 2021 on the Investor Centre of TransAlta’s website at transalta.com or through SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml.
Notes
(1) These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods results. Refer to the Comparable EBITDA, Funds from Operations and Free Cash Flow and Earnings and Discussion of Consolidated Financial Results sections of the MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
(2) In the first quarter of 2021, carbon compliance costs have been reclassified from fuel and purchase power costs and disclosed separately. Prior periods have been adjusted for comparative purposes.
(3) Weighted average of the Series A, B, C, E, and G preferred share dividends declared. Dividends declared vary year over year due to timing of dividend declarations.
Conference call
TransAlta will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) today, May 13, 2021, to discuss our first quarter 2021 results. The call will begin with a short address by John Kousinioris, President and Chief Executive Officer, and Todd Stack, Executive Vice President, 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.
First Quarter 2021 Conference Call:
Toll-free North American participants call: 1-888-231-8191
Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with TransAlta passcode 9990399 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score.
For more information about TransAlta, visit our web site at transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements, including statements regarding the business and anticipated financial performance of the Company that are based on the Company’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as “plans”, “will”, “develop”, “continue”, and similar expressions suggesting future events or future performance. In particular, this news release contains forward-looking statements, pertaining to, without limitation, the following: the conversion of Keephills Unit 2 and the timing thereof; the potential impact of COVID-19 on the Company and the actions to be undertaken by the Company in response to the COVID-19 pandemic; the Windrise wind project and the timing for commercial operation; the Sundance 5 repowering, including the total costs thereof and the expected timing for completion; the Garden Plain wind project; and the dispute with ET Canada and the ability of the Company to recover full compensation from ET Canada. The forward-looking statements contained in this news release are based on many assumptions and are subject to a number of significant risks and uncertainties that could cause actual plans, performance, results or outcomes to differ materially from current expectations. Factors that may adversely impact what is expressed or implied by the forward-looking statements contained in this news release include risks relating to the impact of COVID-19, the impact of which will largely depend on the overall severity and duration of COVID-19, which cannot currently be predicted, and which present risks including, but not limited to: more restrictive directives of government and public health authorities; reduced labour availability impacting our ability to continue to staff the Company’s operations and facilities; impacts on the Company’s ability to realize its growth goals; decreases in short-term and/or long-term electricity demand and lower power pricing; increased costs resulting from the Company’s efforts to mitigate the impact of COVID-19; deterioration of worldwide credit and financial markets; a higher rate of losses on accounts receivables due to credit defaults; further disruptions to the Company’s supply chain; impairments and/or write-downs of assets; and adverse impacts on the Company’s information technology systems and the Company’s internal control systems, including increased cybersecurity threats. Other factors that may adversely impact the Company’s forward-looking statements include, but are not limited to: operational risks involving the Company’s facilities, including unplanned outages at such facilities; disruptions in the transmission and distribution of electricity; the effects of weather and other climate-related risks; disruptions in the source of water, wind, solar or gas resources required to operate our facilities; ability to secure regulatory approvals for projects under development and construction; natural disasters; equipment failure and our ability to carry out repairs in a cost-effective or timely manner; and industry risks and competition. The foregoing risk factors, among others, are described in further detail in the Company’s Management’s Discussion and Analysis and Annual Information Form for the year ended Dec. 31, 2020, which are available on SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s expectations only as of the date of this news release. The Company 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.
TransAlta Corporation Announces Results of the Annual and Special Meeting of Shareholders and Election of all Directors
TransAlta Corporation (TSX: TA) (NYSE: TAC) (TransAlta or the Company) held its virtual Annual and Special Meeting of Shareholders on May 4, 2021. A total of 185,645,958 common shares, representing 68.79 per cent of the shares outstanding, were represented at the meeting.
The following resolutions were considered by Shareholders:
1. Election of Directors
The twelve director nominees proposed by management were elected. The votes by ballot were received as follows:
Nominee
Votes For
Per cent
Withheld
Per cent
Rona H. Ambrose
182,167,298
99.15%
1,559,128
0.85%
John P. Dielwart
183,271,407
99.77%
422,019
0.23%
Alan J. Fohrer
183,128,587
99.67%
597,839
0.33%
Laura W. Folse
183,225,650
99.73%
500,777
0.27%
Harry A. Goldgut
183,192,620
99.71%
533,807
0.29%
John H. Kousinioris
183,255,261
99.74%
471,166
0.26%
Thomas M. O’Flynn
183,241,641
99.74%
484,786
0.26%
Beverlee F. Park
182,286,776
99.22%
1,439,650
0.78%
Bryan D. Pinney
179,721,863
97.82%
4,004,563
2.18%
James Reid
183,204,466
99.72%
521,960
0.28%
Sandra R. Sharman
182,045,392
99.09%
1,681,035
0.91%
Sarah A. Slusser
183,152,906
99.69%
573,521
0.31%
Appointment of Auditors
The appointment of Ernst & Young LLP to serve as the auditors for 2021 was approved. The votes by ballot were received as follows:
Votes For
Per cent
Withheld
Per cent
184,460,228
99.36%
1,185,729
0.64%
3. Advisory Vote on Executive Compensation (also known as say-on-pay)
The advisory vote on the Company’s approach to executive compensation or say-on-pay was approved. The votes by ballot were received as follows:
Votes For
Per cent
Votes Against
Per cent
178,672,096
97.25%
5,054,328
2.75%
Approval of 2021 Share Unit Plan
The resolution approving the Company’s 2021 Share Unit Plan was approved. The votes by ballot were received as follows:
Votes For
Per cent
Votes Against
Per cent
176,026,586
95.81%
7,699,626
4.19%
Amendment to Stock Option Plan
The resolution authorizing the Company to amend its Stock Option Plan was approved. The votes by ballot were received as follows:
Votes For
Per cent
Votes Against
Per cent
177,010,043
96.34%
6,715,382
3.66%
About TransAlta:
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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score.
For more information about TransAlta, visit its web site at transalta.com.
TransAlta and Pembina Pipeline Announce 100 MW Renewable Power Purchase Agreement and Launch of the Garden Plain Wind Project
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has entered into a long-term Power Purchase Agreement (PPA) with Pembina Pipeline Corporation (Pembina) for the offtake of 100 MW from its proposed 130 MW Garden Plain Wind Power Project (Garden Plain or facility), to be located approximately 30 km north of Hanna, Alberta. Under this agreement, Pembina will receive both renewable electricity and environmental attributes for an 18-year term. This long-term contract with Pembina enables TransAlta to add the 130 MW Garden Plain Wind Project to its growing wind generation fleet.
Pembina views power purchase agreements as an effective tool to support development of renewable energy infrastructure, lower emissions and support the transition to a lower carbon energy system. With over 100 years of power generation experience, including extensive and growing renewable energy capacity, we are pleased to be working with TransAlta at Garden Plain and believe we have found the right partner to help Pembina accomplish its long-term goals,- said Mick Dilger, Pembina’s President and Chief Executive Officer.
TransAlta is excited to partner with a great Alberta-based company like Pembina to make the Garden Plain project a reality. The delivery of low cost, reliable and clean energy solutions in support of our customer’s sustainability goals and commitments is a cornerstone of our strategy. Pembina is a leader in this space and the perfect customer and partner for our next Alberta wind facility,- said John Kousinioris, President and Chief Executive Officer of TransAlta.
Pembina and TransAlta have entered into an 18-year PPA for 100 MW, commencing on the Commercial Operation Date (COD) of Garden Plain. The PPA with Pembina provides the foundation that supports the investment in the 130 MW Garden Plain project. TransAlta is currently marketing the remaining 30 MW of the facility to commercial and industrial electricity customers that are looking to reduce the carbon intensity of their operations. To the extent contracts for the remaining 30 MW are not secured, the excess energy will be offered into the merchant wholesale power market in Alberta.
The project will consist of 26 Siemens-Gamesa SGRE SG-145 turbines with construction expected to begin in the fall of 2021, and with a target COD in the second half of 2022. TransAlta will construct, own and operate the facility. Total construction capital of the project is estimated at approximately $195 million.
About Pembina Pipeline Corporation:
Pembina is a leading transportation and midstream service provider that has been serving North America’s energy industry for more than 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; and is growing an export terminals business. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world.
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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score.
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 ability of the Company to contract the 30 MW uncontracted generation, or offer such 30 MW generation into the Alberta merchant market; the timing of construction and commercial operation of the Garden Plain project; and the expected project costs. The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Corporation’s experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to COVID-19 not becoming significantly more onerous. 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: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company’s supply chains; failure to obtain necessary regulatory approvals in a timely fashion, or at all; 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, 2020. 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.
The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.0450 per common share payable on July 1, 2021 to shareholders of record at the close of business on June 1, 2021.
The Board of Directors also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including March 31, 2021 up to but excluding June 30, 2021:
Preferred Shares
TSX Stock Symbol
Dividend Rate
Dividend Per Share
Record Date
Payment Date
Series A
TA.PR.D
2.877%
$0.17981
June 1, 2021
June 30, 2021
Series B*
TA.PR.E
2.103%
$0.13108
June 1, 2021
June 30, 2021
Series C
TA.PR.F
4.027%
$0.25169
June 1, 2021
June 30, 2021
Series E
TA.PR.H
5.194%
$0.32463
June 1, 2021
June 30, 2021
Series G
TA.PR.J
4.988%
$0.31175
June 1, 2021
June 30, 2021
*Please note the quarterly floating rate on the Series B Preferred Shares will be reset every quarter.
All currency is expressed in Canadian dollars except where noted. When the dividend payment date falls on a weekend or holiday, the payment is made the following business day.
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 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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit our website at transalta.com.
TransAlta Certified by Diversio for its Equity, Diversity and Inclusion Program
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) has received certification from Diversio, a technology company setting the global standard for diversity and inclusion, for its continued commitment to and meaningful performance on equity, diversity, and inclusion (E,D&I) in the workplace. TransAlta is the first publicly traded energy company to be certified. Diversio’s award-winning artificial intelligence technology has helped hundreds of organizations and investors to collect data, gain insights, and implement solutions to make meaningful progress on E,D&I. Each certified organization must uphold standards of E,D&I, action that not only makes their companies more attractive to new talent but also makes them more successful.
“We are proud to have received recognition from Diversio’s globally-recognized certification platform for our E,D&I activities. The certification validates our company’s efforts to measure, track and continuously improve our equity, diversity, and inclusion goals and practices. It also reflects our commitment to prioritize and accelerate the social goals outlined within our E2SG strategy”,- said John Kousinioris, President and CEO. “We are very much committed to our E2SG journey. We have incorporated Diversio’s metrics into TransAlta’s 2021 short-term incentive plans for our employees. This will ensure we continue to walk the talk on all things E,D&I.”
To obtain certification, the following requirements must be met:
The organization regularly collects data on employee demographics and experience to identify bias and barriers faced by minority groups;
The organization has measured and set targets to increase diversity and inclusion at all levels, including leadership roles; and
The organization has implemented programs and policies designed to unlock specific challenges and is committed to tracking results.
The certification is endorsed by several leading organizations and signals to investors, employees, customers, and other stakeholders that the organization is setting an example of the importance of shifting from words to actions in order to move the dial on E,D&I.
About Diversio:
Diversio is a diversity & inclusion data and consulting company headquartered in Toronto, Canada. With offices in London and New York, Diversio has clients in over 30 countries and is the provider of choice for governments and leading corporations around the world. Diversio’s digital platform uses artificial intelligence to uncover diversity gaps and systemic biases in the workplace and its Recommendation Engine generates unique action plans based on a database of 1,000+ solutions. Diversio tracks improvement over time to help companies stay accountable to their employees, boards, investors, customers and the public. For more information, visit their website.
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 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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit our website at transalta.com.
TransAlta and Mangrove Partners Resolve Litigation
TransAlta Corporation (TSX: TA) (NYSE: TAC) (TransAlta or the Company) and The Mangrove Partners Master Fund, Ltd. (Mangrove) announced today that the parties have agreed to resolve this matter on a mutually acceptable basis. With the passage of time, Mangrove will no longer dispute the fairness of the Brookfield transaction. The terms of the settlement are confidential.
As the terms of the settlement are confidential, neither party will be providing any further comments and will not respond to media inquiries related to this News Release.
About TransAlta: 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 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit its website at transalta.com
Media Advisory: TransAlta and TransAlta Renewables First Quarter 2021 Results and Conference Call
TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its first quarter 2021 results before markets open on Thursday, May 13, 2021. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain Time (11:00 a.m. ET). The media will be invited to ask questions following analysts.
TransAlta Renewables Inc. (TransAlta Renewables) (TSX:RNW) will release its first quarter 2021 results before markets on Wednesday, May 12, 2021. Any questions regarding TransAlta Renewables may be asked on the TransAlta conference call.
Please contact the conference operator five minutes prior to the call, noting TransAlta Corporation as the company.
Fourth Quarter and Full Year 2020 Conference Call:
Toll-free North American participants call: 1-888-231-8191
Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with TransAlta pass code 9990399 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
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 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit its web site at transalta.com.
