TransAlta and TransAlta Renewables Announce President and Chief Executive Officer Succession
CALGARY, ALBERTA (February 4, 2021) TransAlta Corporation (TSX:TA) (NYSE:TAC) (TransAlta or the Company) today announced that Dawn Farrell, President and Chief Executive Officer (CEO), will retire from the Company and the Board on March 31, 2021, after leading the company for almost a decade. John Kousinioris, currently Chief Operating Officer (COO) and President of TransAlta Renewables Inc. (TSX: RNW) (TransAlta Renewables), will succeed Mrs. Farrell as President and Chief Executive Officer and will join the Board of TransAlta on April 1, 2021.
Over the past decade, we’ve seen the electricity sector fundamentally shift due to regulatory changes, increased competition and technological advancement. I’m proud that TransAlta has faced into these challenges and has been able to accomplish a momentous multi-year transformation: from a primarily Alberta-based, coal-fired electricity company into a leading clean and renewables-focused electricity company spanning three countries, delivering growing cash flows, and competitively positioned to take on the vast opportunities ahead of the net zero economy,- said Mrs. Farrell.
Dawn has navigated TransAlta through the final stages of electricity de-regulation in Alberta while also aggressively adjusting the company’s strategy to respond to major shifts in the regulation of carbon. Through her strategic leadership, she has succeeded in transforming TransAlta into a sustainable and renewables-focused leader in the power industry, remarked John Dielwart, Chair of the Board of Directors. On behalf of all Board members, we thank her for her service and leadership and wish her all the best in retirement.
Executive development and succession planning are critical responsibilities of the Board of Directors and today’s announcement is the outcome of a formal, comprehensive and thoughtful CEO succession process that highlights the depth of TransAlta’s leadership, commented John Dielwart. John Kousinioris has demonstrated outstanding vision and leadership. His prior leadership roles have provided him with responsibility for almost every aspect of our business and demonstrated his commitment to the Company’s long-term success. His strategic thinking, commercial acumen, growth mindset, and people leadership skills will serve TransAlta well in the years ahead. The Board is confident in our unanimous choice of John as Dawn’s successor and we look forward to TransAlta’s future under his leadership.
I fully supported the choice of John as the next President and CEO of TransAlta.- said Mrs. Farrell. John is the right leader to deliver strong financial returns from our existing businesses and to realize continued growth and success in what will be a very exciting time in our industry as we look ahead.
It has been a pleasure to work with Dawn. I ve admired and learned from her leadership, integrity and commitment to, and vision for, TransAlta. We’ve worked closely together for over eight years and, thanks to her active support of my leadership, I am confident that we’ll realize a seamless transition,- said John Kousinioris. I’m excited to lead TransAlta and to continue working with the entire TransAlta team to meet the clean energy needs and objectives of our customers through a focus on operational excellence and environmental stewardship. Customers everywhere want low-cost, reliable clean power and I’m looking forward to expanding our customer base by meeting these needs while creating long-term sustainable value for our shareholders.
As part of the transition, John Kousinioris will be stepping down as President and as a member of the Board of Directors of TransAlta Renewables effective February 5, 2021. Todd Stack will continue as the Company’s Chief Financial Officer and will assume the role of President of TransAlta Renewables. He will also join the Board of TransAlta Renewables effective February 6, 2021.
Dawn Farrell has over 35 years of experience in the electricity industry, with roles at TransAlta and BC Hydro. Before serving as CEO, Dawn held various leadership positions at TransAlta and between 2003 2007 worked at BC Hydro leading the company’s generation business. She was instrumental in the development of TransAlta’s Wind and Renewables business through the acquisition of Vision Quest Windelectric and subsequently Canadian Hydro Developers Inc., which solidified TransAlta as the leading independent renewables power company in Canada. Dawn sits on the board of directors of The Chemours Company, a NYSE-listed chemical company and the Business Council of Alberta. She is also a member of the Trilateral Commission and the Business Council of Canada. In July 2020, Dawn was named the first Chancellor of Mount Royal University. Dawn holds a Bachelor of Commerce with a major in Finance and a Master’s Degree in Economics from the University of Calgary. She has also attended the Advanced Management Program at Harvard University.
John Kousinioris has held various leadership positions at TransAlta including Chief Operating Officer, Chief Growth Officer and Chief Legal and Compliance Officer and has served as President and a director of TransAlta Renewables since 2017. Prior to joining TransAlta, he was a partner and co-head of the corporate commercial department at Bennett Jones LLP. He has extensive experience in operations, business development and commercial matters as well as securities law, mergers and acquisitions and corporate governance. He is Vice Chair of the Board of Governors of Bow Valley College. John has a Bachelor of Arts degree in Honours Business Administration from the University of Western Ontario, a Master of Business Administration degree from York University and a Bachelor of Laws degree from Osgoode Hall Law School at York University. John has also attended the Advanced Management Program at Harvard University.
Todd Stack joined the Company in 1990 and has extensive experience in capital markets, finance, valuation, economics and the power industry. Todd currently serves as the Chief Financial Officer at TransAlta and previously served as the CFO for TransAlta Renewables. He is an accomplished executive and has played a prominent role in the IPO and growth of TransAlta Renewables over the past eight years. Todd has a Bachelor of Science in Electrical Engineering from the University of Alberta and a Master of Business Administration from the University of Calgary. He is a registered professional engineer in Alberta and a Chartered Financial Analyst (CFA).
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 110 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.
This news release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words continue, may, will, propose, 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 the Company’s strategy and realizing future growth. These forward-looking statements are based on a number of assumptions considered by the Company and TransAlta Renewables to be reasonable as of the date of this news release, and are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: changes in electricity market conditions; construction or development risks; and other risk factors contained in the Company’s and TransAlta Renewables respective Annual Information Forms and Management’s Discussion and Analyses for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov.
TransAlta Completes First Off-Coal Conversion and Achieves Major Milestone in Phase Out of Coal
CALGARY, Alberta (January 31, 2021) TransAlta Corporation (TSX: TA; NYSE: TAC) (TransAlta or the Company) announced today that it has completed the first of three planned coal-to-gas (CTG) boiler conversions at its Sundance and Keephills power generation facilities near Wabamun, Alberta.
The full conversion of Sundance Unit 6 from thermal coal to natural gas is a significant landmark for TransAlta on its journey to transition off coal towards 100 per cent clean electricity,- says Dawn Farrell, President and CEO of TransAlta. Converting to natural gas from coal reduces our CO2 emissions by half from approximately 1.05 tonnes CO2e per MWh to approximately 0.52 tonnes CO2e per MWh in 2021, and highlights TransAlta’s commitment to meet our own, and our customers , E2SG needs.
With $35 million invested in the Sundance Unit 6 (Sun-6) boiler conversion and another $50 million for upgrades to the unit’s Distributed Control System and scheduled major maintenance, the $85 million total investment in the project is also a significant boost to the economy, locally and across Canada. At its peak, nearly 700 additional jobs were created to complete the Sun-6 conversion, system upgrades and maintenance projects.
In 2021, TransAlta will complete its second and third CTG conversions with Keephills Unit 2 by mid- June, followed by Keephills Unit 3 by mid-December. In addition, TransAlta will have significantly advanced the repowering of its Sundance 5 unit into a highly efficient combined-cycle facility. By January 1, 2022, TransAlta’s Alberta thermal fleet will be fueled completely by natural gas and entirely off coal. Once converted to gas, the units are anticipated to be able to run through to 2031 to 2039 a significant lengthening of their asset lives.
TransAlta is on track to reduce its emissions by more than 70 per cent from 2005 levels by the end of 2022. This achievement, coupled with TransAlta’s diversified generating portfolio, including extensive hydro and wind assets, positions the Company to be a highly competitive provider of low carbon electricity for the market and its customers.
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.
Forward-Looking Statements:
This news release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words continue, may, will, propose, 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: the reduction of our CO2 emissions at Sun-6 by half from approximately 1.05 tonnes CO2e per MWh to approximately 0.52 tonnes CO2e per MWh in 2021; total cost for the CTG being equal to approximately $85 million; completing the Keephills Unit 2 and Keephills Unit 3 CTGs and the timing thereof; significantly advancing the repowering of its Sundance 5 unit into a highly efficient combined-cycle facility; by January 1, 2022, TransAlta’s Alberta thermal fleet will be fueled completely by natural gas; the converted units asset lives being extended as a result of the conversion; the Company reducing its emissions by more than 70 per cent from 2005 levels by the end of 2022; and the Company being positioned to be a highly competitive provider of low carbon electricity for the market and its customers. These forward looking statements are based on a number of assumptions considered by the Company to be reasonable as of the date of this news release, including, but not limited to, the following: the terms of the new climate policies and the impact of COVID-19 on the Company’s CTG projects. . The forward looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward looking statements, which include: changes to climate policy; the competitive environment; changes to the labour market; delays or cost overruns associated with the conversions to be undertaken at Keephills Unit 2 or Keephills Unit 3; changes in the law or political developments; and other risk factors contained in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release. The Company undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
For more information:
Investor Inquiries: Media Inquiries:
Phone: 1-800-387-3598 in Canada and U.S. Phone: Toll-free media number: 1-855-255-9184
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TSX: TA; NYSE: TAC;) (TransAlta or the Company) is pleased to announce that its Board of Directors approved a 6 per cent increase on its common share (Common Share) dividend for the quarter ending March 31, 2021. The quarterly dividend of $0.045 per Common Share represents an annualized dividend of $0.18 per Common Share, an increase of $0.01 per Common Share.
The Company also announced that it had entered into definitive agreements for the acquisition by TransAlta Renewables Inc. (TransAlta Renewables) (TSX: RNW) of:
a 100 per cent direct interest in the 207 MW Windrise wind project located in the Municipal District of Willow Creek, Alberta;
a 49 per cent economic interest in the 137 MW Skookumchuck wind facility located across Thurston and Lewis Counties in Washington State; and
a 100 per cent economic interest in the 29 MW Ada cogeneration facility located in Ada, Michigan.
The portfolio has an average weighted contract life of approximately 19 years.
TransAlta’s overall business continues to perform firmly against our strategy. We are pleased to announce the transfer of our latest renewables and cogeneration investments to TransAlta Renewables to deliver our Clean Energy Investment Plan and our overall commitment to an E2SG framework. TransAlta shareholders are in a position to benefit by our ongoing growth of TransAlta Renewables and the ability to increase TransAlta’s common share dividend for a second year in a row, commented Dawn Farrell, President and Chief Executive Officer of TransAlta.
As we look towards 2021, this dividend increase for common shareholders demonstrates our confidence in our strategy along with our strengthened cash flows resulting from our ownership in TransAlta Renewables, our increasing cash flows from our post-PPA hydro fleet and the anticipated benefits from our conversion investments that are underway. This furthers our commitment of returning 10 to 15 per cent of deconsolidated funds from operations to common shareholders, added Dawn Farrell, President and Chief Executive Officer of TransAlta.
The total acquisition value for the portfolio of assets is expected to be $439 million, which includes the remaining construction costs for the Windrise wind project. TransAlta Renewables will fund the acquisition and remaining construction costs with the proceeds from the South Hedland financing completed earlier this year. Closing of the transaction is subject to satisfaction of closing conditions and is expected to be completed early in 2021.
Dividend Declaration
The Board declared a quarterly dividend of $0.045 per Common Share payable on April 1, 2021 to shareholders of record at the close of business on March 1, 2021, which represents a 6 per cent increase to the current dividend of $0.0425 per Common Share.
The Board also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including December 31, 2020 up to but excluding March 31, 2021:
Preferred Shares
TSX Stock Symbol
Dividend Rate
Dividend Per Share
Record Date
Payment Date
Series A
TA.PR.D
2.709%
$0.16931
March 1, 2021
March 31, 2021
Series B*
TA.PR.E
2.139%
$0.13186
March 1, 2021
March 31, 2021
Series C
TA.PR.F
4.027%
$0.25169
March 1, 2021
March 31, 2021
Series E
TA.PR.H
5.194%
$0.32463
March 1, 2021
March 31, 2021
Series G
TA.PR.J
4.988%
$0.31175
March 1, 2021
March 31, 2021
*Please note the quarterly floating rate on the Series B Preferred Shares will be reset every quarter.
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.
Forward-Looking Statements:
This news release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words continue, may, will, propose, 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: the sale to TransAlta Renewables of the Windrise wind project and economic interests in the Skookumchuck wind project and the Ada cogeneration facility, including the total acquisition cost and remaining construction cost for Windrise; the closing of the transaction with TransAlta Renewables and timing thereof; TransAlta’s strengthened cash flows resulting from its ownership in TransAlta Renewables; the increasing cash flows from post-PPA hydro fleet; and the anticipated benefits from our coal-to-gas conversions. These forward-looking statements are based on a number of assumptions considered by the Company to be reasonable as of the date of this news release, and are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: construction risks at Windrise, including cost overruns or project delays, including those that may be caused by force majeure; the market price risk, particularly as it pertains to the Alberta hydro assets; the regulatory environment and the impact of climate change legislation on TransAlta’s generating fleet; and other risk factors contained in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release. The Company undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward-looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TSX: TA; NYSE: TAC) (TransAlta or the Company) announced today that CDP (the global disclosure system for environmental impacts known formerly as Climate Disclosure Project) recently recognized TransAlta with an A- score, ranking the Company among industry leaders on climate change management.
TransAlta has been a leader in sustainability for decades, whether that’s through our one hundred-plus years of hydro power generation in Alberta, our significant wind power holdings across North America, or our more recent entry into battery storage technology. Sustainability is part of our DNA and we are proud to be recognized as a leader by CDP, shared Dawn Farrell, President and CEO of TransAlta.
On December 11, 2020, the Government of Canada released its new climate plan titled A Healthy Environment and a Healthy Economy. Among other measures, the plan proposes an increase in Canada’s national carbon price benchmark to $170 per tonne of CO2e by 2030. Like all major energy and industrial companies in Canada, TransAlta will review these proposed measures and will continue to actively engage with federal and provincial governments as they implement new climate policies over the coming years.
The Company continues to execute TransAlta’s Clean Energy Investment Plan (the Plan). As a part of the Plan, TransAlta affirms its commitment to proceed with its Sundance 5 repowering project, which will convert an existing thermal unit into a highly efficient combined-cycle natural gas generating facility. The highly efficient performance of the unit means that an increased carbon price will have limited impact on the facility economics under Alberta’s current Technology Innovation and Emissions Reduction (TIER) Regulation. TIER has been confirmed by the federal government as compliant with the 2020 federal benchmark for carbon pricing systems. Further, the federal government announced that the proposed Clean Fuel Standard will not apply to gaseous fuels, providing greater regulatory certainty for the Sundance 5 project and the boiler conversions.
In addition, the federal government’s new climate plan will provide a supportive regulatory environment for TransAlta’s expansion of its already diversified renewable portfolio, including the on-going construction of the 207 MW Windrise wind project in Alberta, and the recent commissioning of the first utility-scale battery storage project in Alberta. TransAlta continues to expand its asset base in the United States as well, including the recent acquisition of its 49 per cent interest in the Skookumchuck wind facility in Washington State. The Plan calls for further investments in clean energy projects as new opportunities emerge.
TransAlta’s diversified generating portfolio, including extensive hydro and wind assets, and energy transition investment plans, position it to be responsive and remain highly competitive as new climate policies come into place. The Company is on track to reduce its emissions by more than 70 per cent from 2005 levels by the end of 2022 and will continue to engage with governments to encourage policies delivering consumer affordability, system reliability, emissions reduction, and investor certainty.
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.
Forward-Looking Statements:
This news release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words continue, may, will, propose, 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: the increase in Canada’s carbon price benchmark to $170 per tonne of CO2e by 2030; the Company’s Sundance 5 repowering project, including the timing and characteristics of such project; increased carbon price will have limited impact on the facility economics; the proposed Clean Fuel Standard will not apply to gaseous fuels; and TransAlta’s remaining highly competitive as a result of new climate policies. These forward-looking statements are based on a number of assumptions considered by the Company to be reasonable as of the date of this news release, including, but not limited to, the following: the terms of the new climate policies, including that Alberta’s TIER system will remain in place at the current performance factor; and natural gas having role in Canada’s generation mix through 2030 and beyond. The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: changes to Alberta’s TIER system; changes to the performance factor under applicable climate legislation; the competitive environment; changes in the law or political developments; and other risk factors contained in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release. The Company undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward-looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has acquired a 30 per cent equity interest position in EMG International LLC (EMG). TransAlta and EMG have joined forces to leverage their complementary customer bases to grow both businesses and further enhance product offerings to assist customers towards their sustainability goals.
This investment is an exciting platform to diversify our sustainability offerings to customers while directly supporting our clean energy transition and E2SG goals,- said Dawn Farrell, President and Chief Executive Officer of TransAlta. The wastewater treatment market has tremendous growth potential and reinforces our position as a trusted provider of ESG services to our customers.
We view TransAlta as an exceptional strategic partner and believe this collaboration will provide significant opportunities to both companies,- said Manaf Farhan, President and Chief Executive Officer of EMG International. EMG has strong growth potential and this partnership will enable us to reach a broader client base and advance our environmentally sustainable solutions.
EMG is an established company with over 25 years of experience in process wastewater treatment and specializes in the design and construction of high-rate anaerobic digester systems. They have developed an innovative proprietary wastewater treatment system (PurEffluent) that provides breakthrough technological improvement in biological wastewater treatment.
TransAlta’s investment in EMG provides a low-risk entry point into the wastewater treatment industry and creates strong synergies with the Company’s existing customer service offerings. EMG’s services are critical to a customer’s on-site production and to the achievement of their ESG objectives. TransAlta’s investment is expected to result in US$2 to $3 million of EBITDA annually with projects delivering double digit returns. The Company expects to see strong growth in EMG’s business over the next few years, resulting in annual EBITDA in the range of US$8 to $10 million.
EMG’s wastewater treatment process converts organic waste into a valuable source of renewable energy. Their proprietary technology produces a biogas stream that can be used as fuel to generate electricity, displacing energy consumed from higher emitting resources. The investment provides a unique opportunity for TransAlta to leverage its vast expertise in on-site generation to support further advancements by EMG in the waste-to-energy space.
Investment Highlights:
Diversifies TransAlta’s ESG service offering into the wastewater treatment space
Investing in an established business with opportunity to unlock growth potential
Access to new and diverse set of customers with strong ESG objectives
Leverages TransAlta’s power generation brand and experience to capitalize on on-site generation opportunities
Option to potentially expand EMG’s business into Canada and Australia
Directly supports our clean energy transition and is aligned with United Nations Sustainable Development Goals
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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its website at transalta.com.
Forward Looking Statements:
This news release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words expect, anticipate, continue, estimate, may, will, project, should, propose, plans, intends 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 or EMG’s ability to grow the business and further enhance product offerings; realize synergies with the Company’s existing customer service offerings; TransAlta’s investment generating US$2 to $3 million of EBITDA annually, with projects delivering double digit returns; the Company’s growth expectations over the next few years; annual EBITDA expected to be in the range of US$8 to $10 million; ability to leverage TransAlta’s power generation brand and experience to capitalize on on-site generation opportunities; and expansion of EMG’s business into Canada and Australia.These forward looking statements are based on a number of assumptions considered by the Company to be reasonable as of the date of this news release, including, but not limited to, the following: unanticipated impacts relating to novel coronavirus; no significant changes to applicable laws and regulations, including any tax and regulatory changes; no material adverse impacts to the investment and credit markets; and assumptions regarding our current strategy and priorities. The forward looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward looking statements, which include: changes to the competitive environment for wastewater treatment increasing significantly; inability to fully realize the synergies related to the Company’s business; changes in the law or political developments; and other risk factors contained in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are cautioned not to place undue reliance on this forward looking information, which is given as of the date it is expressed in this news release. The Company undertakes no obligation to update or revise any forward looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has closed its 49 per cent equity investment in the Skookumchuck Wind Project (Skookumchuck) with Southern Power Company, a subsidiary of Southern Company. Skookumchuck is a 136.8 MW wind project located in Lewis and Thurston Counties, Washington consisting of 38 Vestas V136 wind turbines.
Skookumchuck began commercial operation on November 7, 2020 and has a 20-year power purchase agreement (PPA) with Puget Sound Energy, Inc.
Our investment in Skookumchuck furthers our ambitious objectives as outlined in our Clean Energy Investment Plan and is another step towards meeting our, and our customers , E2SG needs,- said Dawn Farrell, President and Chief Executive Officer of TransAlta. We are pleased to participate in a project that continues our relationship with Puget and serves customers in the Pacific Northwest market.
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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its website at transalta.com.
Forward Looking Statements:
This news release contains forward looking statements within the meaning of applicable securities laws.The use of any of the words expect, anticipate, continue, estimate, may, will, project, should, propose, plans, intends 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:our Clean Energy Investment Plan, and our ability to meet our customers E2SG needs. The forward looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward looking statements, which include impact of the novel coronavirus; changes in the law or political developments and other risk factors contained in the Company’s Annual Information Form and Management’s Discussion and Analysis for the year end dated December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are cautioned not to place undue reliance on this forward looking information, which is given as of the date it is expressed in this news release. The Company undertakes no obligation to update or revise any forward looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
Third Quarter 2020 Highlights
Comparable EBITDA(1)(2) of $256 million increased by three per cent from $249 million for the same period in 2019
Free cash flow (FCF)(1)(2) of $106 million or $0.39 per share compared to $114 million or $0.40 per share for the same period in 2019
Adjusted availability was 90.7 per cent compared to 95.2 per cent for the same period in 2019
Year-to-date 2020 Financial Highlights
FCF(1)(2) of $306 million or $1.11 per share compared to $258 million or $0.91 per share, an increase of 22 per cent on a per share basis
Returned $21 million of capital to shareholders in the first nine months through the purchase and cancellation of 2,849,400 common shares at an average price of $7.51 per share through our normal course issuer bid (NCIB) program
Operating Highlights
Adjusted the useful life of the Highvale Mine to align with the gas conversion plans of the Company (as defined below) and decision to end mining by Dec. 31, 2021
Commenced conversion to gas at Sundance Unit 6 and on-track to complete the project by mid-Nov. 2020
Windrise Wind construction is 45 per cent complete, as of Sept. 30, 2020, and began receiving wind turbine generators on site in mid-Oct. 2020
Subsequent Events & Updates
The Company announced that it will discontinue all mining operations at the Highvale Mine by Dec. 31, 2021. Effective Jan. 1, 2022, the Company will discontinue firing with coal in Canada
Sundance Unit 5 repowering received approval of the Company’s Board of Directors (Board) and is on-track to reach commercial operation by fourth quarter 2023
Announced that the Company’s subsidiary, Southern Cross Energy, replaced and extended its existing power purchase agreement with BHP Billiton Nickel West Pty. Ltd. The replacement of this agreement extends the term from Dec. 31, 2023 to Dec. 31, 2038
Achieved commercial operation of WindCharger, Alberta’s first utility-scale battery storage project
Announced the closing of AU$800 million of secured financing from the South Hedland Power Station
Announced the closing of the $400 million investment by an affiliate of Brookfield Asset Management (Brookfield) in preferred shares of the Company pursuant to the investment agreement entered into between the Company and Brookfield on Mar. 22, 2019
Together with our partner, Tidewater Midstream & Infrastructure Ltd. (Tidewater), entered into a purchase and sale agreement with ATCO Gas and Pipelines Ltd. (ATCO) to sell the Pioneer Pipeline for a purchase price of $255 million (Pioneer Transaction). This agreement replaces the Company’s previous agreement from second quarter 2020 to sell its interest in the Pioneer Pipeline to NOVA Gas Transmission Ltd. (NGTL)
The Board adopted a Diversity and Inclusion Pledge that commits the Company to advance diversity and inclusion in the workplace. By undertaking this pledge, the Company will seek to remove systemic barriers that may prevent diverse employees from thriving, including visible minorities, Indigenous people, members of the LGBTQ+ community, persons with disabilities, and women
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the quarter ended Sept. 30, 2020.
TransAlta’s third quarter delivered excellent results from strategic, operational and financial perspectives. We continued to advance our climate leadership strategy and added Alberta’s first utility-scale battery storage project, WindCharger, to our sizable hydro and wind fleet,- said Dawn Farrell, President and Chief Executive Officer. TransAlta has been a leader in emissions reductions in Alberta since 2005 and we will continue to use this expertise to serve customers with low-cost, reliable, green electricity.
In another major milestone, our Board approved closing the Highvale Mine by Dec. 31, 2021, four years ahead of our original off-coal schedule for this mine. This decision demonstrates how we continue to lead our industry in achieving ESG milestones on an accelerated basis. I would like to express my sincere gratitude to the front-line employees of SunHills Mining who have worked tirelessly to provide exceptional service since the 1950s.
Below are additional highlights from the quarter regarding how TransAlta is advancing its Clean Energy Investment Plan, how it is working toward greater diversity and inclusion, how the Company is managing COVID-19, as well as more details regarding the Company’s liquidity and financial position.
Clean Energy Investment Plan
Conversion to Gas
The Company will discontinue all mining operations at Highvale Mine by Dec. 31, 2021. Effective Jan. 1, 2022, the Company will cease coal-fired generation in Canada. TransAlta’s Keephills Unit 1 and Sundance Unit 4 will discontinue firing with coal and will only operate on gas, resulting in the maximum capability of these units being reduced to 70 MW and 113 MW, respectively, effective Jan. 1, 2022. The Company continues to evaluate these units as candidates for boiler conversion or full repowering based on market fundamentals.
TransAlta’s conversion programs are underway. The Company commenced the conversion outage of Sundance Unit 6 during the quarter and is on-track to complete the project by mid-Nov. 2020. The Company continues to advance the conversions of its Keephills Unit 2 and Unit 3 planned for 2021 and has issued Full Notice to Proceed for both units. During the third quarter of 2020, the Sundance Unit 5 repowering project received Board approval and is on-track to reach commercial operation in the fourth quarter of 2023.
In furtherance of the Company’s natural gas fuel supply needs for the converted units, TransAlta has long-term natural gas delivery transportation agreements with NGTL, bringing the cumulative total of new and existing pipeline transportation service to the Company’s generating facilities up to 400 terajoules (TJ) per day by 2023. TransAlta’s current commitments, including its 139 TJ/day supply arrangement with Tidewater, will remain in place until the closing of the Pioneer Transaction. The Pioneer Transaction is subject to customary regulatory approvals, which are currently expected to be obtained in the second quarter of 2021.
WindCharger Battery Storage
TransAlta announced that its 10 MW/20 MWh WindCharger Battery Storage project began commercial operation on Oct. 15, 2020. This project has a total capital cost of approximately $14 million, with approximately 50 per cent being funded through the support of Emissions Reduction Alberta. TransAlta will pay TransAlta Renewables Inc. a fixed monthly capacity charge for the right to operate and dispatch the battery in the Alberta market.
Windrise Wind
Construction activities on the Windrise Wind project continues to advance with all appropriate procedures in place to protect the construction team during the COVID-19 pandemic. This project is approximately 45 per cent complete (as at Sept. 30, 2020) and the construction schedule has been modified to reflect a COVID-19-related delay in the delivery of the wind turbine components. The Company plans to complete construction and commissioning in the second half of 2021. This project began receiving wind turbine generators on site in mid-Oct. 2020.
Kaybob Cogeneration
The Company has advanced the Kaybob Cogeneration project, including the purchase of the reciprocating engine generator, generator step-up transformers, electrical building, and switchgear.
Diversity and Inclusion
The Board has adopted a Diversity and Inclusion Pledge that commits the Company to advancing diversity and inclusion in the workplace. By committing to this pledge, the Company will seek to remove systemic barriers that may prevent diverse employees from thriving, including visible minorities, Indigenous people, members of the LGBTQ+ community, persons with disabilities, and women. The persistent inequities around the world underscore the urgent need to address and alleviate racial, ethnic, and other tensions, to remove barriers that perpetuate these inequalities and to promote an inclusive working environment for all employees. TransAlta firmly believes that true diversity is good for the economy, it improves corporate performance, drives growth, and enhances employee engagement. The Diversity and Inclusion Pledge acknowledges these challenges and seeks to: (i) encourage conversations about diversity and inclusion within the workplace; (ii) expand education regarding diversity, equality and inclusion; (iii) create best practices that result in the establishment of programs and initiatives relating to diversity and inclusion within the workplace; and (iv) drive accountability by regularly reporting and evaluating the success of the Company’s programs and initiatives.
COVID-19 Response Update
The Company continued to implement its business continuity plan which ensured that: (i) employees who could work remotely did so; and (ii) employees who operate and maintain our facilities, and who were not able to work remotely, were able to work safely and in a manner that ensured they remained healthy. During the third quarter of 2020, the Company successfully brought employees who were working remotely back to the office without sacrificing health and safety standards. The Company’s facilities also remain fully operational and capable of meeting its customers needs. All of the Company’s offices and sites follow strict health screening and physical distancing protocols with personal protective equipment readily available. TransAlta maintains travel restrictions aligned to local jurisdictional guidance, enhanced cleaning procedures, revised work schedules, and other measures to protect staff and contractors. The Company continues to work and serve all of its customers and counterparties under the terms of the relevant contracts. TransAlta has not experienced interruptions to service requirements. Electricity and steam supply continue to remain a critical service requirement to all of the Company’s customers and have been deemed an essential service in all of the jurisdictions in which TransAlta operates.
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 third quarter 2020, TransAlta had access to $1.6 billion in liquidity, including $270 million of cash and cash equivalents. Subsequent to the quarter, the Company raised approximately $1.1 billion in additional liquidity to support its gas conversions and renewables construction. The Company is currently positioned with approximately $2.7 billion in liquidity.
In October, TransAlta completed an AU$800 million senior secured note offering, which is secured among other things, a first ranking charge over all assets of its South Hedland Power Station. The Company also received $400 million from the second tranche of financing from the Brookfield investment. In addition, TransAlta has access to additional capital through potential project financing of existing assets that are currently unencumbered. The Company expects to utilize existing cash and credit facilities for the debt maturing in 2020 and expects to refinance the debt maturing in 2022.
The Company also has approximately 90 per cent of its Alberta thermal baseload merchant generation hedged at approximately $53 per MWh for the remainder of 2020.
Financial Results
The Company reported its third quarter 2020 financial results with comparable EBITDA(2) of $256 million compared to $249 million in the same period of 2019. Comparable EBITDA for the nine months ended Sept. 30, 2020 was $693 million, an increase of one per cent compared to 2019. Funds from operations (FFO)(2,3) for the three and nine months ended Sept. 30, 2020 were $193 million for the quarter compared to $188 million in 2019 and $524 million year-to-date as compared to $512 million in 2019. All 2019 figures quoted exclude the impact of the one-time payment of $56 million received in the third quarter of 2019 for the early termination of the Sundance B and C power purchase arrangements (the PPA Termination Payments).
FCF(2), one of the Company’s key financial metrics, totaled $106 million and $306 million for the three and nine months ended Sept. 30, 2020, respectively. FCF for the three and nine months ended Sept. 30, 2020 decreased by $8 million and increased by $48 million for the same periods, respectively, after adjusting for the PPA Termination Payments.
Comparable EBITDA, excluding the PPA Termination Payments, for the three and nine months ended Sept. 30, 2020 increased by $7 and $8 million, respectively, compared with the same periods in 2019 largely due to strong performance by TransAlta’s Energy Marketing, Centralia, and Wind and Solar segments, partially offset by lower performance at the Alberta Thermal and Hydro segments as well as higher corporate costs due to the impact of a total return swap that hedges share-based compensation.
The Company’s operations, maintenance and administration (OM&A) expenses for the three months ended Sept. 30, 2020 were consistent with the same period in 2019. OM&A for the nine months ended Sept. 30, 2020 increased by $6 million compared to the same period in 2019 as variability caused by the total return swap resulted in an increase of expense of $16 million for the period. In addition, OM&A costs increased by $6 million due to the addition of Ada cogeneration facility, Big Level and Antrim Wind projects and the renegotiation of the Fort Saskatchewan maintenance agreement. Excluding the impact of the total return swap and additional facilities, OM&A decreased by $16 million due to tighter cost controls, units remaining on reserve shutdown during the second quarter of 2020 at Centralia, lower labour costs across multiple segments and lower legal fees.
FCF for the nine months ended Sept. 30, 2020, excluding PPA Termination Payments that were received in third quarter of 2019, was driven primarily by higher segmented cash flows, lower sustaining and productivity capital expenditures and lower distributions paid to subsidiaries non-controlling interests. Segmented cash flows(1) for the three months ended Sept. 30, 2020 were $4 million lower compared to the same period in 2019 due to lower performance in the Alberta Thermal segment, mostly offset by higher performance in the Company’s Centralia, Australian Gas, Wind and Solar and Energy Marketing segments. Segmented cash flows for the nine months ended Sept. 30, 2020, were $43 million higher compared to the same period in 2019. This increase was primarily due to higher performance in the Company’s Centralia, North American Gas, Wind and Solar, and Energy Marketing segments, which was partially offset by lower performance in the Company’s Alberta Thermal and Hydro segments and impacts of the total return swap in the Corporate segment.
Third Quarter 2020 Segmented Review Comparable EBITDA (in CAD$ millions)
3 Months Ended
9 Months Ended
Sept. 30, 2020
Sept. 30, 2019
Sept. 30, 2020
Sept. 30, 2019
Alberta Thermal
47
135
121
264
Centralia
49
35
109
44
North American Gas
29
30
85
91
Australian Gas
34
29
93
90
Wind and Solar
36
35
171
151
Hydro
28
28
83
92
Energy Marketing
49
31
90
63
Corporate
(16)
(18)
(59)
(54)
Total Comparable EBITDA(2)
256
305
693
741
Comparable EBITDA (1) (2) excluding the PPA Termination Payments
256
249
693
685
Alberta Thermal: Comparable EBITDA, excluding the PPA Termination Payments, for the three and nine months ended Sept. 30, 2020, decreased $32 million and $87 million, respectively, compared to the same periods in 2019. This largely reflects the weaker power demand conditions driving lower Alberta wholesale power prices resulting in lower merchant production and lower margins.
Centralia: Comparable EBITDA returned to normalized levels for the nine months ended Sept. 30, 2020. For the three months ended Sept. 30, 2020, increased by $14 million compared to the same period in 2019, primarily due to purchased power at a lower cost. For the nine months ended Sept. 30, 2020, comparable EBITDA increased by $65 million compared to the same period in 2019, primarily due to the impacts of an isolated and extreme pricing event in Mar. 2019 during which Centralia was unable to commit one of its units to physical production for day-ahead supply due to an unplanned forced outage repair. In addition, comparable EBITDA in 2020 benefited from dispatch optimization and the strengthening of the US dollar relative to the Canadian dollar.
North American Gas: Comparable EBITDA for the three months ended Sept. 30, 2020 remained consistent compared to the same period in 2019 and for the nine months ended Sept. 30, 2020 decreased by $6 million compared with the same periods in 2019, primarily due to higher OM&A resulting from a change in passthrough provisions of a customer contract.
Australian Gas: Comparable EBITDA for the three and nine months ended Sept. 30, 2020 increased by $5 million and $3 million, respectively, compared with the same periods in 2019 mainly due to timing of legal fees and the strengthening of the Australian dollar against the Canadian dollar.
Wind and Solar: Comparable EBITDA for the three months ended Sept. 30, 2020 was consistent with the same period in 2019. Comparable EBITDA for the nine months ended Sept. 30, 2020 increased by $20 million compared with the same period in 2019 primarily due to the addition of the Big Level and Antrim wind facilities and higher production, partially offset by insurance proceeds received in 2019, lower Alberta pricing and the planned expiry of certain Wind power production incentives in 2019.
Hydro: Comparable EBITDA for the three months ended Sept. 30, 2020 was consistent with the same period in 2019. Comparable EBITDA for the nine months ended Sept. 30, 2020 decreased by $9 million, compared with the same period in 2019, as lower energy and ancillary services revenues resulted from lower Alberta pricing and prior year’s true-up to Alberta Electric System Operator (AESO) transmission line losses, which were partially offset by higher production.
Energy Marketing: Comparable EBITDA for the three and nine months ended Sept. 30, 2020 increased by $18 million and $27 million, respectively, compared to the same periods in 2019. Results were primarily attained from market volatility arising from extreme weather events in California during the quarter as well as continued strong performance from short-term strategies across various geographic regions in both the power and natural gas markets.
Corporate: Corporate overhead costs for the three months ended Sept. 30, 2020 were consistent with the same period in 2019. Corporate overhead costs for the nine months ended Sept. 30, 2020 increased by $5 million compared to the same period in 2019. These changes were primarily due to realized gains and losses from the total return swap. A portion of the settlement cost of our employee share-based payment plans is fixed 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 Sept. 30, 2020 was $136 million compared to earnings of $51 million in the same period in 2019. The decrease is largely due to lower revenues, coal inventory write-down, higher depreciation, increase in asset impairments and the PPA Termination Payments, which were partially offset by foreign exchange gains and income tax recoveries. Net loss attributable to common shareholders for the nine months ended Sept. 30, 2020 was $169 million compared to $14 million in the same period in 2019. The decrease is largely due to lower revenues, coal inventory write-down, higher depreciation, increase in asset impairments and the final PPA termination payment, which were partially offset by lower fuel, carbon compliance, purchased power costs, and foreign exchange gains.
Total sustaining capital expenditures(3) of $99 million were $12 million lower compared to 2019 primarily due to higher planned major maintenance in our Alberta Thermal segment in 2019.
Third Quarter 2020 Highlights
In $CAD millions, unless otherwise stated
3 Months Ended
9 Months Ended
Sept. 30, 2020
Sept. 30, 2019
Sept. 30, 2020
Sept. 30, 2019
Adjusted availability (%)(4)
90.7%
95.2%
91.4%
89.5%
Production (GWh)(4)
6,184
7,558
17,276
20,918
Revenues
$514
$593
$1,557
$1,738
Fuel, carbon compliance and purchased power
$252
$257
$641
$800
Operations, maintenance and administration
$114
$114
$354
$348
Net loss attributable to common shareholders
$(136)
$51
$(169)
$(14)
Cash flow from operating activities
$257
$328
$592
$668
Comparable EBITDA(2)
$256
$305
$693
$741
Funds from operations(2)
$193
$244
$524
$568
Free cash flow(2)
$106
$170
$306
$314
Net loss per share attributable to common shareholders, basic and diluted
$(0.50)
$0.18
$(0.61)
$(0.05)
Funds from operations per share(2)
$0.70
$0.87
$1.90
$2.00
Free cash flow per share(2)
$0.39
$0.60
$1.11
$1.11
Dividends declared per common share
$0.0425
$0.0400
$0.1275
$0.0800
Dividends declared per preferred share(5)
$0.26
$0.26
$0.76
$0.52
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 Nov. 4, 2020 on the Investor Centre section of TransAlta’s website at transalta.com or through SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml.
Notes
(1) Excluding PPA Termination Payments received in third quarter 2019 of $56 million.
(2) 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.
(3) Excludes payments associated with finance leases.
(4) Availability and production includes all generating assets under generation operations that the Company operates and finance leases and excludes hydro assets and equity investments. Production includes all generating assets, irrespective of investment vehicle and fuel type.
(5) 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 8:00 a.m. MT (10:00 a.m. ET) today, Nov. 4, 2020, to discuss our third quarter 2020 results. The call will begin with a short address by Dawn Farrell, President and Chief Executive Officer, and Todd Stack, 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.
Third Quarter 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 5779326 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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
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, expects, proposed, will, anticipates, 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 Sundance Unit 6 in Nov. 2020; the ceasing of active mining at the Highvale Mine in Alberta by the end of 2021; Keephills Unit 1 and Sundance Unit 4 discontinuing to fire with coal and only operating on gas effective Jan. 1, 2022; the Pioneer Transaction, including the terms and timing thereof; the repowering of Sundance Unit 5 into a combined cycle unit, with commercial operation by the fourth quarter of 2023; the receipt of funds from Emissions Reduction Alberta to support the WindCharger project; the completion of the construction and commissioning of the Windrise project in the second half of 2021; the conversion of Keephills Unit 2 and Unit 3, 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; and utilizing existing cash and credit facilities for the debt maturing in 2020 and refinancing the debt maturing in 2022.
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 and the associated general economic downturn, the impact of which will largely depend on the overall severity and duration of COVID-19 and the general economic downturn, 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; decreased 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, risks relating 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, including the receipt of the regulatory approvals from the Kaybob Cogeneration project; 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 MD&A and the Company’s Annual Information Form for the year ended Dec. 31, 2019, 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 Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) today declared a quarterly dividend of $0.0425 per common share payable on January 1, 2021 to shareholders of record at the close of business on December 1, 2020.
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 September 30, 2020 up to but excluding December 31, 2020:
Preferred Shares
TSX Stock Symbol
Dividend Rate
Dividend Per Share
Record Date
Payment Date
Series A
TA.PR.D
2.709%
$0.16931
December 1, 2020
December 31, 2020
Series B*
TA.PR.E
2.179%
$0.13693
December 1, 2020
December 31, 2020
Series C
TA.PR.F
4.027%
$0.25169
December 1, 2020
December 31, 2020
Series E
TA.PR.H
5.194%
$0.32463
December 1, 2020
December 31, 2020
Series G
TA.PR.J
4.988%
$0.31175
December 1, 2020
December 31, 2020
*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 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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today announced the closing of the $400 million second tranche of its previously announced strategic investment by an affiliate of Brookfield Asset Management (Brookfield). As previously disclosed, Brookfield committed to invest $750 million in TransAlta through the purchase of exchangeable securities, which are exchangeable in the future into an equity ownership interest in TransAlta’s Alberta hydro assets at a value based on a multiple of the hydro assets future adjusted EBITDA. In connection with today’s second closing, Brookfield has invested a total of $750 million in exchangeable securities of TransAlta; consisting of $350 million in unsecured, subordinated debentures issued on May 1, 2019 and a further $400 million in exchange for a new series of redeemable, retractable first preferred shares. The Company intends to use the proceeds from the second tranche of the financing to advance the Company’s coal-to-gas conversion program, to fund other growth initiatives, to return capital to its shareholders and for general corporate purposes.
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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its website at transalta.com.
Forward-Looking Statements:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively referred to as forwarding-looking statements). All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management’s experience and perception of historical trends, current conditions, results and expected future developments, as well as other factors deemed appropriate in the circumstances. Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as may, will, can, could, would, should, shall, believe, expect, estimate, anticipate, intend, plan, propose, project, forecast, foresee, potential, enable, continue and similar expressions. These statements are not guarantees of our future performance, events or results and are subject to a number of significant risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in the forward-looking statements. More particularly, and without limitation, this news release contains forward-looking statements relating to the use of proceeds. The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: the outcomes of existing or potential legal actions not being as anticipated, including those pertaining to the Brookfield investment; changes in our relationships with Brookfield and its affiliated entities or our other shareholders; our Alberta hydro assets not achieving their anticipated value, cash flows or adjusted EBITDA; the Brookfield investment not resulting in the expected benefits for the Company and its shareholders; the ability to identify and execute on growth initiatives; and other risks and uncertainties contained in the Company’s Management Proxy Circular and its Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2019, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission (SEC) on www.sec.gov.Readers are urged to consider these factors carefully in evaluating the forward-looking statements and 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. In light of these risks, uncertainties and assumptions, the forward-looking statements might occur to a different extent or at a different time than we have described, or might not occur at all. 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.
TransAlta Announces 6% Common Share Dividend Increase and Sale of Assets to TransAlta Renewables
TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its third quarter 2020 results before markets open on Wednesday, November 4, 2020. 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 8:00 a.m. Mountain Time (10:00 a.m. ET). The media will be invited to ask questions following analysts.
TransAlta Renewables Inc. (TransAlta Renewables) (TSX:RNW) will release its third quarter 2020 results before markets on Friday, October 30, 2020. 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.
Third Quarter 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 5779326 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. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
