TransAlta Reports Fourth Quarter and Full Year 2020 Results, Provides 2021 Outlook and Announces Carbon Neutrality by 2050
www.bloomberg.com/press-releases/...utrality-by-2050-kltfxr2f
Fourth Quarter 2020 Financial Highlights
o Comparable EBITDA^(1) of $234 million compared to $243 million for the
same period in 2019
o Free Cash Flow ("FCF")^(1) of $52 million or $0.19 per share in the
quarter compared to $121 million or $0.43 per share for the same period in
2019
Full Year 2020 Financial Operating Highlights
o Comparable EBITDA^(1,3) of $927 million compared to $928 million for the
year ending 2019 adjusted for PPA Termination Payments (as defined below)
o FCF^(1,3) of $358 million or $1.30 per share compared to $379 million or
$1.34 per share adjusted for one-time PPA Termination Payments received in
2019
o Strong availability of 90.3 per cent compared to 90.0 per cent for 2019
o Reduced our carbon emissions by 4.2 million tonnes representing a 20 per
cent reduction compared to 2019
o Returned $61 million of capital to shareholders with the repurchase and
cancellation of 7,352,600 common shares at an average price of $8.33 per
share through our normal course issuer bid (" NCIB") program
o Reached our target balance of $1.2 billion of senior corporate debt
o Increased the common share dividend by 6% to an annualized dividend of 18
cents per share
Other Highlights & Updates
o Announced goal of carbon neutrality by 2050
o Added net 67 MW of wind generation through our acquisition of a 49 per
cent equity investment in the Skookumchuck wind facility
o Completed first boiler conversion to gas for Sundance 6
o Achieved commercial operation of WindCharger, 10 MW battery storage
facility and Alberta's first utility-scale energy storage facility
o Mining operations at Highvale mine to be discontinued by Dec. 31, 2021 and
will cease firing with coal in Canada effective Jan. 1, 2022
o Replaced existing power purchase agreement with BHP Billiton Nickel West
Pty. Ltd. ("BHP"), extending the term from Dec. 31, 2023 to Dec. 31, 2038
o Closed AU$800 million of secured financing from the South Hedland Power
Station ("TEC Offering")
o Received final tranche of investment by an affiliate of Brookfield Asset
Management of $400 million in preferred shares of the Company pursuant to
the Investment Agreement entered into on Mar. 22, 2019
o Together with our partner, Tidewater Midstream & Infrastructure Ltd.,
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 ($127.5 million net to TransAlta). 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")
o The Company's 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 LGBTQ2S+ community, persons
with disabilities, and women
o Retired Centralia Unit 1 maintaining the Company's commitment under
Washington state's Energy Transition Bill
o Announced the retirement of Dawn Farrell, President and Chief Executive
Officer by Mar. 31, 2021 after leading the Company for almost a decade.
John Kousinioris was appointed President and Chief Executive Office to be
effective Apr. 1, 2021
2021 Outlook
o Comparable EBITDA range of $960 million to $1,080 million, up 10 per cent
from 2020 at the mid-point
o FCF range of $340 million to $440 million, up 9 per cent from 2020 at the
mid-point
o Sustaining capital range of $175 to $210 million
