CALGARY, AB, Feb. 24, 2022 /CNW/ -
Fourth Quarter 2021 Financial Highlights
- Adjusted EBITDA(1),(2) of $270 million, an increase of 15% over the same
period in 2020
- Free Cash Flow ("FCF")(1) of $106 million, or $0.39 per share, an increase of 105% on a
per-share basis from the same period in 2020
- Loss before income taxes of $32
million, an improvement of $136
million from the same period in 2020
- Cash flow from operating activities of $54 million, a decrease of 51% from the same
period in 2020
Full Year 2021 Financial Highlights
- Adjusted EBITDA(1),(2) of $1.263 billion, an increase of 36% from the same
period in 2020
- FCF(1) of $562
million, or $2.07 per share,
an increase of 59% on a per-share basis from the same period in
2020
- Loss before income taxes of $380
million, an increase of $77
million from the same period in 2020
- Cash flow from operating activities of $1.0 billion, an increase of 43% from the same
period in 2020
Other Business and ESG Highlights
- Announced 600 MW of renewables growth projects, securing 30% of
our 5-year 2 GW growth target
- Achieved full phase-out of coal in Canada, with completed coal-to-gas conversions
at Sundance Unit 6 and Keephills Units 2 and 3, and ceased mining
activities at the Highvale mine
- Reduced annual carbon emissions by 3.9 million tonnes, a 24%
reduction compared to 2020
- Acquired a fully contracted 122 MW portfolio of solar assets in
North Carolina
- Achieved commercial operations at the 206 MW Windrise wind
facility
- Joined the Powering Past Coal Alliance, a global organization
of governmental and private sector organizations working to take
action on reducing greenhouse gas emissions from coal-fired
electricity generation and accelerating the energy transition
- Enhanced and accelerated our near term GHG emissions target to
a 75% reduction over 2015 levels
- Reduced our operational waste by 55% compared to 2020
levels
- Reduced our SO2 and NOx emissions by 42%
and 29%, respectively, compared to 2020 levels
- Increased our common share dividend by 11% to an annualized
dividend of 20 cents per share
TransAlta Corporation ("TransAlta" or the "Company") (TSX: TA)
(NYSE: TAC) today reported its financial results for the fourth
quarter and full year ended Dec. 31,
2021.
"2021 was a record year for TransAlta. We achieved outstanding
financial results, with exceptional performance from our Alberta
Hydro and Gas fleets, as well as our Energy Marketing business. On
the growth front, we secured 600 MW of renewables growth projects,
a great first year for our Clean Electricity Growth Plan, with
growth in each of our core geographies. We also reached an
important milestone with the completion of the final coal-to-gas
conversion, and are now fully off coal in Canada, " said John
Kousinioris, President and Chief Executive Officer.
Set out below are additional highlights from the quarter on
TransAlta's business activities, including the Company's progress
on advancing its Clean Electricity Growth Plan as well as details
regarding the Company's financial performance and liquidity.
Key Business Developments
Announced 300 MW White Rock Wind Project and Fully Executed
Corporate PPAs
On Dec. 22,
2021, TransAlta executed two long-term Power Purchase
Agreements ("PPAs") with a new customer at its 300 MW White
Rock East and White Rock West Wind Power Projects located in
Caddo County, Oklahoma. The PPA is
with a new customer with an AA credit rating from S&P Global
Ratings. The White Rock Wind Projects will consist of 51 Vestas
turbines. Construction is expected to begin in late 2022 with
a target commercial operation date in the second half of 2023.
TransAlta will construct, operate and own the facility. Total
construction capital is estimated at approximately US$460 million to US$470
million and is expected to be financed with a combination of
existing liquidity and tax equity financing. Over 90 per cent of
the project costs are captured under executed fixed price turbine
supply agreements and fixed price engineering, procurement, and
construction agreements. The project is expected to generate
average annual EBITDA(1) of approximately US$42 million to US$46
million including production tax credits.
Acquired 122MW North Carolina Solar Portfolio
On
Nov. 5, 2021, the Company closed its
previously announced acquisition of a 122 MW portfolio of 20 solar
photovoltaic sites located in North
Carolina (collectively, "North Carolina Solar") for
approximately US$99 million
(including working capital adjustments) and the assumption of
existing tax equity obligations. The acquisition was funded using
existing liquidity.
At the closing of the acquisition, TransAlta Renewables Inc.
acquired a 100 per cent economic interest in North Carolina Solar
from a wholly owned subsidiary of TransAlta through a tracking
share structure for aggregate consideration of approximately
US$102
million.
The sites are all operational and were commissioned between
November 2019 and May 2021. The facilities are secured by long-term
PPAs with Duke Energy, which have an average remaining term of 12
years. Under the PPAs, Duke Energy receives the renewable
electricity, capacity, and environmental attributes from each
facility. North Carolina Solar is
expected to generate an average annual EBITDA(1) of
approximately US$9 million.
Construction Commenced on Northern Goldfields Solar and
Battery Storage Project
On July 29,
2021, TransAlta Renewables announced that Southern Cross
Energy ("SCE"), a subsidiary of the Company and an entity in which
TransAlta Renewables owns an indirect economic interest, had
reached an agreement to provide BHP Nickel West Pty Ltd. ("BHP")
with renewable electricity to its Goldfields-based operations
through the construction of the Northern Goldfields Solar Project.
The project consists of the 27 MW Mount Keith Solar Farm, 11 MW
Leinster Solar Farm, 10 MW/5MWh Leinster Battery Energy Storage
System and interconnecting transmission infrastructure, all of
which will be integrated into our existing 169 MW Southern Cross
Energy North remote network in Western
Australia. Construction activities began in the first
quarter of 2022, with target completion of the projects expected in
the second half of 2022. Total construction capital for the project
is estimated at approximately AU$69 million to AU$73 million. The
project is expected to generate average annual EBITDA(1)
of approximately AU$9 million to AU$10 million.
Executed Long-term PPA with Pembina and Commenced
Construction on Garden Plain Wind
On May 3, 2021, the Company announced that it
entered into a long-term PPA with Pembina Pipeline Corporation
("Pembina") pursuant to which Pembina has contracted for the
renewable electricity and environmental attributes for 100 MW of
the 130 MW Garden Plain project. Garden Plain will be located
approximately 30 km north of Hanna,
Alberta. Construction activities started in the fall of 2021
with target completion of the project expected in the second half
of 2022. Total construction capital for the project is estimated at
approximately $190 million to
$200 million. The project is
expected to contribute between $14
million and $18 million of
average annual EBITDA(1).
Alberta Electricity Portfolio
On Dec. 31, 2020, the Alberta Power Purchase
Arrangements ("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 the
Alberta electricity portfolio
optimization activities.
The Alberta electricity
portfolio generated gross margin of $864
million, an increase of $405
million compared to the same period in 2020. This
performance was driven by strengthened power prices in the
province, optimization of production during periods of favourable
pricing, partially offset by higher natural gas and carbon pricing
and higher transmission costs. Optimization of facilities is driven
by the diversity in fuel types, which enables portfolio management
and allows for maximization of operating margins. A portion of the
baseload generation in the portfolio is hedged to provide cash flow
certainty.
Alberta's annual demand for
electricity expanded by approximately 3% from 2020 to 2021.
Electricity demand was supported by the economic recovery following
the impacts of the COVID-19 pandemic and due to stronger market
conditions for energy commodities. The average pool price increased
from $47/MWh in 2020 to $102/MWh in 2021. Pool prices were higher in each
quarter compared to 2020, generally as a result of competition
among generators, higher demand in the province, tighter
supply conditions due to higher planned outages, and higher natural
gas and carbon prices. In addition, in 2021, Alberta experienced very strong weather-driven
demand in February, June, July and December.
For the year ended Dec. 31, 2021,
the Alberta Electricity Portfolio achieved a realized power price
of $109 per MWh, compared to the
Alberta spot pool price which
averaged $102 per MWh. The Company
was able to benefit during higher-priced periods by optimizing
dispatch of each of the Alberta Hydro, Gas and Energy Transition
fleet, ensuring high availability during peak demand, while hedged
positions at Alberta Gas and Energy Transition minimized
unfavourable market pricing during lower-priced hours in the
quarter.
Hedged production for the fiscal year 2022 is 6,278 GWh at an
average price of $75 per MWh.
Kent Hills Wind Facility Outage and Rehabilitation of
Foundations
On Sept. 27, 2021,
the Company's subsidiary, Kent Hills Wind LP, experienced a single
tower failure at its 167 MW Kent Hills wind facility in Kent Hills,
New Brunswick. Following extensive
independent engineering assessments, the root cause failure
analysis indicated that deficiencies in the original design of the
foundations at Kent Hills 1 and 2 had led to crack propagation
within the foundations and that all 50 turbine foundations must be
replaced. Foundation replacements will require expenditures of
approximately $75 million to
$100 million. The remediation plan is
expected to commence mid-year and be implemented though 2022 and
2023. The plan is to return turbines to service as each
foundation is completed.
TransAlta and New Brunswick Power Corporation continue
discussions to enable the safe return to service of the
facilities.
The Company has also provided notice to BNY Trust Company of
Canada (the "Trustee") that events
of default may have occurred under the trust indenture governing
the terms of the non-recourse project bonds (the "Bonds"). The
Company is in discussions with the Trustee and holders of the Bonds
to negotiate required waivers and amendments while the Company
works to remedy the matters described in the notice. Although the
Company expects that it will reach agreement with the Trustee and
holders of the Bonds with respect to terms of an acceptable waiver
and amendment, there can be no assurance that the Company will
receive such waivers and amendments.
Achieved Phase-Out of Coal in Canada
During the year, the Company
completed the full conversion of Keephills Unit 2, Keephills Unit 3
and Sundance Unit 6 from thermal coal to natural gas. Keephills
Unit 2, Keephills Unit 3 and Sundance Unit 6 retained the same
generator nameplate capacity of 395 MW, 463 MW and 401 MW,
respectively. Conversion to gas reduces our CO2
emissions intensity by more than half, contributing to the 3.9
million tonnes of annual emissions reductions achieved in 2021 and
advancing us toward our target of 75 per cent emissions reduction
over 2015 levels by 2026. This also resulted in the end of mining
activities at the Highvale mine and, effective Dec. 31, 2021, the mine entered its reclamation
phase. As of Dec. 31, 2021, the
Company has fully transitioned to natural gas in Canada.
Fortescue Metals Group Ltd. Dispute at South Hedland Power
Station
The Company has been engaged in a dispute with
Fortescue Metals Group Ltd. ("FMG") as a result of FMG's purported
termination of the South Hedland PPA. On May
2, 2021, the Company entered into a conditional settlement
with FMG. The settlement was concluded and the actions were
formally dismissed in the Supreme Court of Western Australia on Dec. 7, 2021. The settlement amount has been
recorded as revenue in the fourth quarter of 2021, while all other
balances previously provided for have been reversed. The settlement
has resulted in FMG continuing as a customer of the South Hedland
facility.
Liquidity and Financial Position
The Company continues
to maintain a strong financial position in part due to long-term
contracts and hedged positions. At the end of the fourth quarter,
TransAlta had access to $2.2 billion
in liquidity, including $947 million
in cash and cash equivalents.
Fourth Quarter and Year Ended 2021 Highlights
|
3 Months
Ended
|
Year
Ended
|
$
millions, unless otherwise stated
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Adjusted availability
(%)
|
83.8%
|
87.1%
|
86.6%
|
90.7%
|
Production
(GWh)
|
5,823
|
7,704
|
22,105
|
24,980
|
Revenues
|
610
|
544
|
2,721
|
2,101
|
Adjusted
EBITDA(1),(2)
|
270
|
234
|
1,263
|
927
|
Loss before income
taxes
|
(32)
|
(168)
|
(380)
|
(303)
|
Net loss attributable
to common shareholders
|
(78)
|
(167)
|
(576)
|
(336)
|
Cash flow from
operating activities
|
54
|
110
|
1,001
|
702
|
FFO(1)
|
213
|
161
|
971
|
685
|
FCF(1)
|
106
|
52
|
562
|
358
|
Net loss per share
attributable to common
shareholders, basic and diluted
|
$
|
(0.29)
|
$
|
(0.61)
|
$
|
(2.13)
|
$
|
(1.22)
|
FFO per
share(1),(5)
|
$
|
0.79
|
$
|
0.59
|
$
|
3.58
|
$
|
2.49
|
FCF per
share(1),(5)
|
$
|
0.39
|
$
|
0.19
|
$
|
2.07
|
$
|
1.30
|
Dividends declared
per common share(3)
|
$
|
0.10
|
$
|
0.09
|
$
|
0.19
|
$
|
0.22
|
Dividends declared
per preferred share(4)
|
$
|
0.25
|
$
|
0.50
|
$
|
1.02
|
$
|
1.27
|
Fourth Quarter Financial Results Summary
Adjusted
EBITDA(1),(2) for the three months ended Dec. 31, 2021, was $270
million, an increase of $36
million, or 15 per cent compared to the same period in 2020,
largely due to higher adjusted EBITDA in our Hydro and Gas
segments, which was driven by higher realized prices in the
Alberta market, partially offset
by lower production at Centralia Unit 2 within our Energy
Transition segment due to a transformer failure that has now been
resolved and an unplanned outage at the Kent Hills 1 and 2 wind
facilities.
Net loss attributable to common shareholders for the three
months ended Dec. 31, 2021, was
$78 million compared to a net loss of
$167 million in the same period of
2020, an improvement of $89 million.
The net loss in 2021 was favourably impacted by lower depreciation
and amortization expense related to asset retirements and
impairments in our Gas and Energy Transition segments and higher
adjusted EBITDA.
Cash flow from operating activities for the three months ended
Dec. 31, 2021, was $54 million, a decrease of $56 million compared with 2020, primarily due to
changes in non-cash working capital.
FCF(1) for the three months ended Dec. 31, 2021, was $106
million compared to $52
million for 2020, as a result of higher adjusted EBITDA due
to higher realized prices in Alberta, settlement of provisions and lower
sustaining capital expenditures, partially offset by higher
distributions paid to subsidiaries' non-controlling interests.
Full Year 2021 Financial Results Summary
Adjusted
EBITDA(1),(2) for the full year ended Dec. 31, 2021, was $1.263
billion, an increase of $336
million compared to 2020. Adjusted EBITDA increased largely
due to higher gross margin, driven by higher realized prices and
dispatch optimization in the Alberta market from our merchant facilities
residing in the Alberta Electricity Portfolio across the Hydro,
Wind and Solar, Gas, and Energy Transition segments. In addition,
the Energy Marketing segment also increased adjusted EBITDA due to
favourable short-term trading of both physical and financial power
and natural gas products across North American markets. This
increase was partially offset by the retirement of Centralia
Unit 1, unplanned outages at Centralia Unit 2 in the Energy
Transition segment and the extended site outage at the Kent Hills 1
and 2 wind facilities.
Loss before income taxes for the full year ended Dec. 31, 2021, was $380
million, compared to $303
million for 2020, an increase of $77
million. Net loss attributable to common shareholders for
2021 was $576 million compared to a
loss of $336 million in 2020. The
higher loss before income taxes and the higher net loss
attributable to common shareholders in 2021 was largely driven by
higher asset impairments related to decisions to shut down the
Highvale mine, suspend the Sundance 5 repowering project and planned
retirements of Sundance Unit 4 and Keephills Unit 1. These higher
asset impairments were partially offset by higher adjusted EBITDA
largely resulting from the strong performance of the Alberta
Electricity Portfolio across all of our fuel segments, higher gains
on sale of assets due to the sale of equipment in the Energy
Transition segment, the sale of the Pioneer Pipeline in the
Gas segment, and lower depreciation. The higher net loss
attributable to common shareholders was also impacted by higher
income tax expense in 2021 due to the higher earnings from the
Energy Marketing segment and the Alberta Electricity Portfolio.
Cash flow from operating activities for the full year ended
Dec. 31, 2021, was $1,001 million, compared to $702 million for 2020, an increase of
$299 million, primarily due to higher
revenues being realized in Alberta
on the merchant assets and changes in non-cash working capital,
partially offset by higher fuel and purchased power and OM&A
costs as the Company transitioned off coal.
FCF(1) for the full year ended Dec. 31, 2021, was $562
million, an increase of $204
million compared to $358
million for 2020, driven primarily by higher adjusted
EBITDA, partially offset by an increase in sustaining capital
spending related to higher planned maintenance and facility
turnarounds, settlement of provisions and higher distributions paid
to subsidiaries' non-controlling interests.
Segmented
Results
For the year ended
Dec. 31
($
millions)
|
|
Adjusted
EBITDA(1),(2)
|
|
2021
|
|
2020
|
Hydro
|
$
|
322
|
$
|
105
|
Wind and
Solar
|
$
|
262
|
$
|
248
|
Gas
|
$
|
494
|
$
|
367
|
Energy
Transition
|
$
|
133
|
$
|
175
|
Energy
Marketing
|
$
|
137
|
$
|
113
|
Corporate
|
$
|
(85)
|
$
|
(81)
|
Total
|
$
|
1,263
|
$
|
927
|
Hydro:
- Adjusted EBITDA(1),(2) for the year ended
Dec. 31, 2021, increased by
$217 million compared to 2020.
Effective Jan. 1, 2021, with the
expiration of the Alberta PPA for our Alberta Hydro Assets, these
facilities began operating on a merchant basis in the Alberta power market. This eliminated the net
payment obligations under the Alberta PPA. With strong availability
during periods of market volatility, the Company captured higher
energy and ancillary service revenue, partially offset by increased
costs related to portfolio management services, dam safety
staffing, dredging and station services.
Wind and Solar:
- Adjusted EBITDA(1),(2) for the year ended
Dec. 31, 2021, increased by
$14 million compared to 2020,
primarily due to higher merchant pricing in Alberta, a full year of operations from the
Skookumchuck wind facility and the
WindCharger battery storage facility as well as incremental value
from the newly commissioned or acquired assets in 2021: consisting
of the Windrise wind facility and the North Carolina Solar
facility. Also, fuel and purchased power costs were lower in 2021
due to the AESO transmission line loss recorded in 2020. Adjusted
EBITDA was negatively impacted by lower wind resources in
Eastern Canada and the US, the
unplanned outage at the Kent Hills 1 and 2 wind facilities and the
weakening US dollar relative to the Canadian dollar
Gas:
- Adjusted EBITDA(1),(2) for the year ended
Dec. 31, 2021, increased by
$127 million compared to 2020,
primarily due to higher merchant pricing in the Alberta market, the South Hedland PPA contract
settlement and incremental production from a full year of
operations at our Ada cogeneration facility, partially offset by an
increase in fuel, unplanned short-term steam supply outages at our
Sarnia cogeneration facility,
higher OM&A costs related to the BHP pass-through projects and
legal fees related to the South Hedland PPA contract
settlement.
Energy Transition:
- Adjusted EBITDA(1),(2) for the year ended
Dec. 31, 2021, decreased by
$42 million compared to 2020,
primarily due the planned retirement of Centralia Unit 1, higher
fuel and purchased power due to unplanned outages at Centralia Unit
2, higher carbon compliance costs for the Alberta assets primarily due to an increase in
carbon prices and the weakening of the US dollar relative to the
Canadian dollar throughout the year, partially offset by dispatch
optimization of the Alberta assets
and lower OM&A as a result the planned retirement of Centralia
Unit 1.
Energy Marketing:
- Adjusted EBITDA(1),(2) for the year ended
Dec. 31, 2021, increased by
$24 million compared to 2020 results.
Results were better primarily due to favourable short-term trading
of both physical and financial power and natural gas products
across all North American markets. This was partially offset by
OM&A increases due to higher incentives related to stronger
performance. The Energy Marketing team was able to capitalize on
short-term market volatility in the markets in which we trade
without materially changing the risk profile of the business
unit.
Corporate:
- Our Corporate overhead costs for the year ended Dec. 31, 2021, increased by $4 million compared to 2020, primarily due to
higher incentive payments, higher employee costs, higher insurance
costs, and higher legal fees for settlement of outstanding legal
issues, partially offset by the receipt of CEWS funding and
realized gains from the total return swap. A portion of the
settlement costs of our employee share-based payment plans is
hedged by entering into total return swaps, which are cash settled
every quarter. Excluding the impact of the total return swap,
staffing costs increased due to additional headcount to support
growth initiatives. As previously committed, the CEWS funding is
being used to support incremental employment within the
Company.
Conference call
TransAlta will hold a conference call
and webcast at 9:00 a.m. MST
(11:00 a.m. EST) today, February 24, 2022, to discuss our fourth quarter
and full year 2021 results. The call will begin with a short
address by John Kousinioris,
President and Chief Executive Officer and Todd Stack, EVP Finance and Chief Financial
Officer, followed by a question and answer period for
investment analysts and investors. A question and answer period for
the media will immediately follow.
Dial-in numbers - Fourth Quarter and Full Year 2021
Results:
Toll-free North American participants call:
1-888-664-6392
A link to the live webcast will be available on the Investor
Centre section of TransAlta's website at
http://www.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 983771
followed by the # sign. A transcript of the broadcast will be
posted on TransAlta's website once it becomes available.
Notes
|
|
(1)
|
These items are not
defined and have no standardized meaning under IFRS. Presenting
these items from period to period provides management and investors
with the ability to evaluate earnings trends more readily in
comparison with prior periods' results.
|
(2)
|
In the fourth quarter
of 2021, Comparable EBITDA was relabelled as adjusted EBITDA to
align with industry standard terminology.
|
(3)
|
No dividends were
declared in first quarter of 2021 as the quarterly dividend related
to the period covering the first quarter of 2021 was declared in
December 2020.
|
(4)
|
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.
|
(5)
|
Funds from operations
per share and free cash flow per share are calculated using the
weighted average number of common shares outstanding during the
period. The weighted average number of common shares outstanding at
Dec. 31, 2021 was 271 million shares (2020 - 275 million
shares).
|
Non-IFRS financial measures and other specified financial
measures
We use a number of financial measures to evaluate
our performance and the performance of our business segments,
including measures and ratios that are presented on a non-IFRS
basis, as described below. Unless otherwise indicated, all
amounts are in Canadian dollars and have been derived from our
audited annual consolidated financial statements prepared in
accordance with IFRS. We believe that these non-IFRS amounts,
measures and ratios, read together with our IFRS amounts, provide
readers with a better understanding of how management assesses
results.
Non-IFRS amounts, measures and ratios do not have standardized
meanings under IFRS. They are unlikely to be comparable to
similar measures presented by other companies and should not be
viewed in isolation from, or as an alternative for, or more
meaningful than our IFRS results.
Adjusted EBITDA
In the fourth quarter of 2021, comparable EBITDA was relabelled as
adjusted EBITDA to align with industry standard terminology. Each
business segment assumes responsibility for its operating results
measured to adjusted EBITDA. Adjusted EBITDA is an important metric
for management that represents our core business profitability.
Interest, taxes, depreciation and amortization are not included, as
differences in accounting treatments may distort our core business
results. In addition, certain reclassifications and adjustments are
made to better assess results excluding those items that may not be
reflective of ongoing business performance. This presentation
may facilitate the readers analysis of trends. Adjusted
EBITDA is a non-IFRS measure.
Average Annual EBITDA
Average annual EBITDA is a
non-IFRS financial measure that is forward-looking, used to show
the average annual EBITDA that the project currently under
construction is expected to generate upon completion.
Funds From Operations ("FFO")
FFO is an important
metric as it provides a proxy for cash generated from operating
activities before changes in working capital and provides the
ability to evaluate cash flow trends in comparison with results
from prior periods. FFO is a non-IFRS measure.
Free Cash Flow ("FCF")
FCF is an important metric as
it represents the amount of cash that is available to invest in
growth initiatives, make scheduled principal repayments on debt,
repay maturing debt, pay common share dividends or repurchase
common shares. Changes in working capital are excluded so FFO and
FCF are not distorted by changes that we consider temporary in
nature, reflecting, among other things, the impact of seasonal
factors and timing of receipts and payments. FCF is a
non-IFRS measure.
Non-IFRS Ratios
FFO per share, FCF per share, FFO
before interest to adjusted interest coverage and adjusted net debt
to adjusted EBITDA are non-IFRS ratios that are presented in the
MD&A. See the Reconciliation of Cash Flow from Operations to
FFO and FCF and Key Non-IFRS Financial Ratios sections of the
MD&A for additional information.
FFO per share and FCF per share
FFO per share and FCF
per share are calculated using the weighted average number of
common shares outstanding during the period. FFO per share
and FCF per share is a non-IFRS ratio.
Reconciliation of these non-IFRS financial measures to the most
comparable IFRS measure are provided below.
Reconciliation of Non-IFRS Measures on a Consolidated
Basis
The following table reflects adjusted EBITDA
and provides reconciliation to earnings (loss) before income taxes
for the year ended Dec. 31, 2021 and
Dec. 31, 2020:
Year ended Dec.
31, 2021
|
Attributable to
common shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas
|
Energy
Transition
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
383
|
323
|
1,109
|
709
|
211
|
4
|
2,739
|
(18)
|
—
|
2,721
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
25
|
(40)
|
19
|
(38)
|
—
|
(34)
|
—
|
34
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
41
|
—
|
—
|
—
|
41
|
—
|
(41)
|
—
|
Finance lease
income
|
—
|
—
|
25
|
—
|
—
|
—
|
25
|
—
|
(25)
|
—
|
Unrealized foreign
exchange gain on
commodity
|
—
|
—
|
(3)
|
—
|
—
|
—
|
(3)
|
—
|
3
|
—
|
Adjusted
Revenues
|
383
|
348
|
1,132
|
728
|
173
|
4
|
2,768
|
(18)
|
(29)
|
2,721
|
Fuel and purchased
power
|
16
|
17
|
457
|
560
|
—
|
4
|
1,054
|
—
|
—
|
1,054
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(4)
|
—
|
—
|
—
|
(4)
|
—
|
4
|
—
|
Mine
depreciation
|
—
|
—
|
(79)
|
(111)
|
—
|
—
|
(190)
|
—
|
190
|
—
|
Coal inventory
write-down
|
—
|
—
|
—
|
(17)
|
—
|
—
|
(17)
|
—
|
17
|
—
|
Adjusted fuel and
purchased power
|
16
|
17
|
374
|
432
|
—
|
4
|
843
|
—
|
211
|
1,054
|
Carbon
compliance
|
—
|
—
|
118
|
60
|
—
|
—
|
178
|
—
|
—
|
178
|
Gross
margin
|
367
|
331
|
640
|
236
|
173
|
—
|
1,747
|
(18)
|
(240)
|
1,489
|
OM&A
|
42
|
59
|
175
|
117
|
36
|
84
|
513
|
(2)
|
—
|
511
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Parts and materials
write-down
|
—
|
—
|
(2)
|
(26)
|
—
|
—
|
(28)
|
—
|
28
|
—
|
Curtailment
gain
|
—
|
—
|
—
|
6
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Adjusted
OM&A
|
42
|
59
|
173
|
97
|
36
|
84
|
491
|
(2)
|
22
|
511
|
Taxes, other
than income taxes
|
3
|
10
|
13
|
6
|
—
|
1
|
33
|
(1)
|
—
|
32
|
Net other
operating expense (income)
|
—
|
—
|
(40)
|
48
|
—
|
—
|
8
|
—
|
—
|
8
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Royalty onerous
contract and contract t
ermination penalties
|
—
|
—
|
—
|
(48)
|
—
|
—
|
(48)
|
—
|
48
|
—
|
Adjusted net other
operating income
|
—
|
—
|
(40)
|
—
|
—
|
—
|
(40)
|
—
|
48
|
8
|
Adjusted
EBITDA
|
322
|
262
|
494
|
133
|
137
|
(85)
|
1,263
|
|
|
|
Equity income from
associate
|
|
|
|
|
|
|
|
|
|
9
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
25
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(529)
|
Asset
impairment
|
|
|
|
|
|
|
|
|
|
(648)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(245)
|
Foreign
exchange loss
|
|
|
|
|
|
|
|
|
|
16
|
Gain on sale of
assets and other
|
|
|
|
|
|
|
|
|
|
54
|
Loss before
income taxes
|
|
|
|
|
|
|
|
|
|
(380)
|
(1)
|
Skookumchuck has been
included on a proportionate basis in the Wind and Solar
segment.
|
Year ended Dec.31,
2020
|
Attributable to
common shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas
|
Energy
Transition
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
152
|
332
|
787
|
704
|
122
|
7
|
2104
|
(3)
|
—
|
2,101
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
2
|
33
|
(14)
|
21
|
—
|
42
|
—
|
(42)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
17
|
—
|
—
|
—
|
17
|
—
|
(17)
|
—
|
Finance lease
income
|
—
|
—
|
7
|
—
|
—
|
—
|
7
|
—
|
(7)
|
—
|
Unrealized foreign
exchange loss on
commodity
|
—
|
—
|
4
|
—
|
—
|
—
|
4
|
—
|
(4)
|
—
|
Adjusted
Revenues
|
152
|
334
|
848
|
690
|
143
|
7
|
2,174
|
(3)
|
(70)
|
2,101
|
Fuel and purchased
power
|
8
|
25
|
325
|
435
|
—
|
12
|
805
|
—
|
—
|
805
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Mine
Depreciation
|
—
|
—
|
(100)
|
(46)
|
—
|
—
|
(146)
|
—
|
146
|
—
|
Coal Inventory
write-down
|
—
|
—
|
—
|
(37)
|
—
|
—
|
(37)
|
—
|
37
|
—
|
Australian interest
income
|
—
|
—
|
(4)
|
—
|
—
|
—
|
(4)
|
—
|
4
|
—
|
Adjusted fuel and
purchased power
|
8
|
25
|
221
|
352
|
—
|
12
|
618
|
—
|
187
|
805
|
Carbon
compliance
|
—
|
—
|
120
|
48
|
—
|
(5)
|
163
|
—
|
—
|
163
|
Gross
margin
|
144
|
309
|
507
|
290
|
143
|
—
|
1,393
|
(3)
|
(257)
|
1,133
|
OM&A
|
37
|
53
|
166
|
106
|
30
|
80
|
472
|
—
|
—
|
472
|
Taxes, other
than income taxes
|
2
|
8
|
13
|
9
|
—
|
1
|
33
|
—
|
—
|
33
|
Net other
operating expense (income)
|
—
|
—
|
(11)
|
—
|
—
|
—
|
(11)
|
—
|
—
|
(11)
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Impact of Sheerness
going off-coal
|
—
|
—
|
(28)
|
—
|
—
|
—
|
(28)
|
—
|
28
|
—
|
Adjusted net other
operating income
|
|
|
(39)
|
—
|
—
|
—
|
(39)
|
—
|
28
|
(11)
|
Adjusted
EBITDA
|
105
|
248
|
367
|
175
|
113
|
(81)
|
927
|
|
|
|
Equity income from
associate
|
|
|
|
|
|
|
|
|
|
1
|
Finance lease
income
|
|
|
|
|
|
|
|
|
|
7
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(654)
|
Asset
impairment
|
|
|
|
|
|
|
|
|
|
(84)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(238)
|
Foreign
exchange loss
|
|
|
|
|
|
|
|
|
|
17
|
Gain on sale of
assets and other
|
|
|
|
|
|
|
|
|
|
9
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
(303)
|
(1)
|
Skookumchuck has been
included on a proportionate basis in the Wind and Solar
segment.
|
The following table reflects adjusted EBITDA by segment and
provides reconciliation to earnings (loss) before income taxes for
the three months ended Dec. 31,
2021:
|
Attributable to
common shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas
|
Energy
Transition
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted investments(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
84
|
98
|
172
|
238
|
26
|
(2)
|
616
|
(6)
|
—
|
610
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Unrealized
mark-to-market (gain) loss
|
—
|
3
|
82
|
(8)
|
(12)
|
—
|
65
|
—
|
(65)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
11
|
—
|
—
|
—
|
11
|
—
|
(11)
|
—
|
Finance lease
income
|
—
|
—
|
6
|
—
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Unrealized foreign
exchange (gain) loss
on commodity
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Adjusted
Revenues
|
84
|
101
|
271
|
230
|
14
|
(2)
|
698
|
(6)
|
(82)
|
610
|
Fuel and purchased
power
|
9
|
6
|
110
|
149
|
—
|
(2)
|
272
|
—
|
—
|
272
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Australian interest
income
|
—
|
—
|
(1)
|
—
|
—
|
—
|
(1)
|
—
|
1
|
—
|
Mine
Depreciation
|
—
|
—
|
—
|
(11)
|
—
|
—
|
(11)
|
—
|
11
|
—
|
Coal Inventory
write-down
|
—
|
—
|
—
|
(1)
|
—
|
—
|
(1)
|
—
|
1
|
—
|
Adjusted fuel and
purchased power
|
9
|
6
|
109
|
137
|
—
|
(2)
|
259
|
—
|
13
|
272
|
Carbon
compliance
|
—
|
—
|
14
|
25
|
—
|
—
|
39
|
—
|
—
|
39
|
Gross
margin
|
75
|
95
|
148
|
68
|
14
|
—
|
400
|
(6)
|
(95)
|
299
|
OM&A
|
7
|
17
|
46
|
20
|
5
|
29
|
124
|
—
|
—
|
124
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Parts and materials
write-down
|
—
|
—
|
—
|
3
|
—
|
—
|
3
|
—
|
(3)
|
—
|
Curtailment
gain
|
—
|
—
|
—
|
6
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Adjusted
OM&A
|
7
|
17
|
46
|
29
|
5
|
29
|
133
|
—
|
(9)
|
124
|
Taxes, other
than income taxes
|
1
|
2
|
2
|
1
|
—
|
—
|
6
|
—
|
—
|
6
|
Net other operating
income
|
—
|
—
|
(10)
|
(8)
|
—
|
—
|
(18)
|
—
|
—
|
(18)
|
Reclassifications
and adjustments:
|
|
|
|
|
|
|
|
|
|
|
Royalty onerous
contract and contract
termination penalties
|
—
|
—
|
—
|
9
|
—
|
—
|
9
|
—
|
(9)
|
—
|
Adjusted net other
operating income
|
—
|
—
|
(10)
|
1
|
—
|
—
|
(9)
|
—
|
(9)
|
(18)
|
Adjusted
EBITDA
|
67
|
76
|
110
|
37
|
9
|
(29)
|
270
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
4
|
Finance income from
subsidiaries
|
|
|
|
|
|
|
|
|
|
6
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(134)
|
Asset
impairment
|
|
|
|
|
|
|
|
|
|
(28)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(59)
|
Foreign
exchange loss
|
|
|
|
|
|
|
|
|
|
(6)
|
Gain on sale of
assets and other
|
|
|
|
|
|
|
|
|
|
(2)
|
Loss before income
taxes
|
|
|
|
|
|
|
|
|
|
(32)
|
(1)
|
Skookumchuck has been
included on a proportionate basis in the Wind and Solar segment.
Includes reclassification adjustments.
|
The following table reflects adjusted EBITDA by segment and
provides reconciliation to earnings (loss) before income taxes for
the three months ended Dec. 31,
2020:
|
Attributable to
common shareholders
|
|
|
|
$
millions
|
Hydro
|
Wind &
Solar(1)
|
Gas
|
Energy
Transition
|
Energy
Marketing
|
Corporate
|
Total
|
Equity
accounted
investments
and other(1)
|
Reclass
Adjustments
|
IFRS
Financials
|
Revenues
|
31
|
92
|
167
|
230
|
19
|
8
|
547
|
(3)
|
—
|
544
|
Reclassifications
and adjustments:
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Unrealized
mark-to-market (gain) loss
|
—
|
10
|
34
|
(10)
|
10
|
—
|
44
|
—
|
(44)
|
—
|
Decrease in finance
lease receivable
|
—
|
—
|
6
|
—
|
—
|
—
|
6
|
—
|
(6)
|
—
|
Finance lease
income
|
—
|
—
|
3
|
—
|
—
|
—
|
3
|
—
|
(3)
|
—
|
Australian interest
income
|
—
|
—
|
4
|
—
|
—
|
—
|
4
|
—
|
(4)
|
—
|
Adjusted
Revenues
|
31
|
102
|
214
|
220
|
29
|
8
|
604
|
(3)
|
(57)
|
544
|
Fuel and purchased
power
|
(1)
|
11
|
98
|
166
|
—
|
8
|
282
|
—
|
—
|
282
|
Reclassifications
and adjustments:
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Mine
Depreciation
|
—
|
—
|
(40)
|
(18)
|
—
|
—
|
(58)
|
—
|
58
|
—
|
Coal Inventory
write-down
|
—
|
—
|
—
|
(15)
|
—
|
—
|
(15)
|
—
|
15
|
—
|
Adjusted fuel and
purchased power
|
(1)
|
11
|
57
|
133
|
—
|
8
|
208
|
—
|
74
|
282
|
Carbon
compliance
|
—
|
—
|
30
|
15
|
—
|
—
|
45
|
—
|
—
|
45
|
Gross
margin
|
32
|
91
|
127
|
72
|
29
|
—
|
351
|
(3)
|
(131)
|
217
|
OM&A
|
9
|
13
|
|
|
6
|
21
|
118
|
—
|
—
|
118
|
Taxes, other
than income taxes
|
1
|
1
|
|
|
—
|
1
|
8
|
—
|
—
|
8
|
Net other
operating expense (income)
|
—
|
—
|
|
|
—
|
—
|
19
|
—
|
—
|
19
|
Adjusted
EBITDA
|
22
|
77
|
92
|
42
|
23
|
(22)
|
234
|
|
|
|
Equity
income
|
|
|
|
|
|
|
|
|
|
1
|
Finance income from
subsidiaries
|
|
|
|
|
|
|
|
|
|
4
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(173)
|
Asset
impairment
|
|
|
|
|
|
|
|
|
|
(17)
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
(64)
|
Foreign
exchange loss
|
|
|
|
|
|
|
|
|
|
2
|
Gain on sale of
assets and other
|
|
|
|
|
|
|
|
|
|
7
|
Loss before
income taxes
|
|
|
|
|
|
|
|
|
|
(168)
|
(1)
|
Skookumchuck has been
included on a proportionate basis in the Wind and Solar segment.
Includes reclassification adjustments.
|
Reconciliation of Cash flow from operations to FFO and
FCF
The table below reconciles our cash flow
from operating activities to our FFO and FCF:
|
3 Months
Ended
|
Year
Ended
|
$ millions
unless otherwise stated
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Cash flow from
operating activities(1)
|
54
|
110
|
1,001
|
702
|
Change in non-cash
operating working capital balances
|
148
|
25
|
(174)
|
(89)
|
Cash flow from
operations before changes in working capital
|
202
|
135
|
827
|
613
|
Adjustments
|
|
|
|
|
Share of adjusted FFO
from joint venture(1)
|
6
|
3
|
13
|
3
|
Decrease in finance
lease receivable
|
11
|
6
|
41
|
17
|
Clean energy
transition provisions and adjustments(2)
|
(6)
|
15
|
79
|
37
|
Other(3)
|
—
|
2
|
11
|
15
|
FFO(4)
|
213
|
161
|
971
|
685
|
Deduct:
|
|
|
|
|
Sustaining
capital(1)
|
(55)
|
(58)
|
(199)
|
(157)
|
Productivity
capital
|
(2)
|
(3)
|
(4)
|
(4)
|
Dividends paid on
preferred shares
|
(10)
|
(9)
|
(39)
|
(39)
|
Distributions paid to
subsidiaries' non-controlling interests
|
(38)
|
(29)
|
(159)
|
(102)
|
Principal payments on
lease liabilities(1)
|
(2)
|
(10)
|
(8)
|
(25)
|
FCF(4)
|
106
|
52
|
562
|
358
|
Weighted average
number of common shares outstanding in the
year
|
271
|
273
|
271
|
275
|
FFO per
share(4)
|
0.79
|
0.59
|
3.58
|
2.49
|
FCF per
share(4)
|
0.39
|
0.19
|
2.07
|
1.30
|
(1)
|
Includes our share
of amounts for Skookumchuck, an equity accounted joint
venture.
|
(2)
|
Includes
write-down on parts and material inventory for our coal operations,
write-down on coal inventory to net realizable value and amounts
due to
contractors for not proceeding with the Sundance Unit 5 repowering
project and impairment of a previously recognized deferred asset,
as it is no longer likely
that we will incur sufficient capital or operating expenditures to
utilize the remaining credit.
|
(3)
|
Other consists of
production tax credits which is a reduction to tax equity
debt.
|
(4)
|
These items are
not defined and have no standardized meaning under IFRS. Please
refer to the Non-IFRS financial measures and other specified
financial
measures section of this earnings release.
|
The table below bridges our adjusted EBITDA to our FFO and FCF
for the three months and year ended Dec. 31,
2021 and 2020:
|
3 Months
Ended
|
Year
ended
|
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Dec. 31,
2021
|
Dec. 31,
2020
|
Adjusted
EBITDA(1)
|
270
|
234
|
1,263
|
927
|
Provisions and
other
|
(18)
|
(10)
|
(43)
|
7
|
Interest
expense(2)
|
(51)
|
(56)
|
(200)
|
(192)
|
Current income tax
expense(2)
|
3
|
5
|
(55)
|
(35)
|
Realized foreign
exchange gain (loss)
|
(4)
|
(1)
|
(2)
|
8
|
Decommissioning and
restoration costs settled(2)
|
(5)
|
(5)
|
(18)
|
(18)
|
Other non-cash
items(4)
|
18
|
(6)
|
26
|
(12)
|
FFO(3)
|
213
|
161
|
971
|
685
|
Deduct:
|
|
|
|
|
Sustaining
capital(2)
|
(55)
|
(58)
|
(199)
|
(157)
|
Productivity
capital
|
(2)
|
(3)
|
(4)
|
(4)
|
Dividends paid on
preferred shares
|
(10)
|
(9)
|
(39)
|
(39)
|
Distributions paid to
subsidiaries' non-controlling interests
|
(38)
|
(29)
|
(159)
|
(102)
|
Principal payments on
lease liabilities(2)
|
(2)
|
(10)
|
(8)
|
(25)
|
FCF(3)
|
106
|
52
|
562
|
358
|
(1)
|
Adjusted EBITDA is
defined in the Non-IFRS financial measures and other specified
financial measures section of this earnings release and
reconciled
to earnings (loss) before income taxes above.
|
(2)
|
Includes our share of
amounts for Skookumchuck, an equity accounted joint
venture.
|
(3)
|
FFO and FCF are
defined in the Non-IFRS financial measures and other specified
financial measures section of this earnings release and reconciled
to cash
flow from operating activities above.
|
(4)
|
Other consists of
production tax credits which is a reduction to tax equity
debt.
|
TransAlta is in the process of filing its Annual Information
Form, Audited Consolidated Financial Statements and accompanying
notes, as well as the associated Management's Discussion &
Analysis ("MD&A"). These documents will be available today on
the Investors section of TransAlta's website at www.transalta.com
or through SEDAR at www.sedar.com.
TransAlta will also be filing its Form 40-F with the U.S.
Securities and Exchange Commission. The form will be available
through their website at www.sec.gov. Paper copies of all documents
are available to shareholders free of charge upon request.
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.
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 construction of
the 300 MW White Rock East and White Rock West Wind Power Projects,
including timing, amount of construction capital, securing tax
equity financing, and expected range of average annual EBITDA; the
average annual adjusted EBITDA expected for the North Carolina solar portfolio; the
Northern Goldfields solar and battery project, including timing for
commercial operation, amount of construction capital and average
annual EBITDA; the Garden Plain wind project, including the timing
for commercial operation, total construction capital and average
annual EBITDA; the Kent Hills facility outage, including the timing
and cost of remediation, and ability to reach agreement with the
Trustee and holders of Bonds in respect of any related waivers and
amendments; the utilization of CEWS funding; and our ability to
achieve our sustainability targets.
The forward-looking statements contained in this news release
are based on many assumptions including, but not limited to, the
following material assumptions: impacts arising from COVID-19 not
becoming significantly more onerous on the Company, which includes
the Company being permitted to continue as an essential service;
merchant power prices in Alberta
and the Pacific Northwest; our proportionate ownership of
TransAlta Renewables not changing materially; no material decline
in the dividends expected to be received from TransAlta Renewables;
the expected life extension of the coal fleet and anticipated
financial results generated on conversion; assumptions regarding
the ability of the converted units to successfully compete in the
Alberta energy-only market; and
assumptions regarding our current strategy and priorities,
including as it pertains to our ability to realize the full
economic benefit from the capacity, energy and ancillary services
from our Alberta hydro assets.
Forward-looking statements are subject to a number of significant
risks, uncertainties and assumptions 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 forward-looking statements contained in this news
release include, but are not limited to: the impact of COVID-19,
including more restrictive directives of government and public
health authorities; increased force majeure claims; reduced labour
availability and ability to continue to staff our operations and
facilities; disruptions to our supply chains, including our ability
to secure necessary equipment and to obtain regulatory approvals on
the expected timelines or at all in respect of our growth projects;
restricted access to capital and increased borrowing costs; changes
in short-term and/or long-term electricity supply and demand;
fluctuations in market prices, including lower merchant pricing in
Alberta, Ontario or Mid-Columbia; reductions in
production; increased costs; a higher rate of losses on our
accounts receivables due to credit defaults; impairments and/or
write-downs of assets; adverse impacts on our information
technology systems and our internal control systems, including
increased cyber security threats; commodity risk management and
energy trading risks, including the effectiveness of the Company's
risk management tools associated with hedging and trading
procedures to protect against significant losses; changes in demand
for electricity and capacity and our risk relating to our ability
to contract our generation for prices that will provide expected
returns and replace contracts as they expire; changes to the
legislative, regulatory and political environments in the
jurisdictions in which we operate; environmental requirements and
changes in, or liabilities under, these requirements; operational
risks involving our facilities, including unplanned outages;
disruptions in the transmission and distribution of electricity;
the effects of weather, including man made or natural disasters and
other climate-change related risks; unexpected increases in cost
structure; reductions to our generating units' relative efficiency
or capacity factors; disruptions in the source of fuels, including
natural gas, as well as the extent of water, solar or wind
resources required to operate our facilities; general
economic risks, including deterioration of equity markets,
increasing interest rates or rising inflation; failure to meet
financial expectations; general domestic and international economic
and political developments, including armed hostilities, the threat
of terrorism, cyberattacks, diplomatic developments or other
similar events; equipment failure and our ability to carry out or
have completed the repairs in a cost-effective manner or timely
manner, or at all, including if the remediation at the Kent Hills
wind facilities is more costly than expected; the holders of the
Kent Hills Bonds declaring the principal and interest on the bonds
and all other amounts, together with any make-whole amount due
thereunder, to be immediately due and payable; industry risk and
competition; fluctuations in the value of foreign currencies;
structural subordination of securities; counterparty credit risk;
changes to our relationship with, or ownership of, TransAlta
Renewables; changes in the payment or receipt of future dividends,
including from TransAlta Renewables; risks associated with
development projects and acquisitions, including capital costs,
permitting, labour and engineering risks, and delays in the
construction or commissioning of projects; inadequacy or
unavailability of insurance coverage; our provision for income
taxes; legal, regulatory and contractual disputes and proceedings
involving the Company; reliance on key personnel; labour relations
matters and other risks and uncertainties discussed in the
Company's materials filed with the securities regulatory
authorities from time to time and as also set forth in the
Company's MD&A and Annual Information Form for the year ended
December 31, 2021. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect TransAlta's expectations only as of the
date of this news release. TransAlta disclaims any intention or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Note: All financial
figures are in Canadian dollars unless otherwise
indicated.
|
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content:https://www.prnewswire.com/news-releases/transalta-reports-fourth-quarter-and-full-year-2021-results-301489640.html
SOURCE TransAlta Corporation