TransAlta Reports Fourth Quarter and Full Year 2015 Results
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CALGARY, ALBERTA -- (Marketwired) -- 02/18/16 -- TransAlta Corporation ("TransAlta" or the "Company") (TSX: TA)(NYSE: TAC) today reported its fourth quarter and full year 2015 financial results. Comparable EBITDA(1)for the fourth quarter 2015 was $268 million compared to $301 million during the same period last year. Excluding a non-cash adjustment to provisions relating mostly to prior year events, comparable EBITDA would have been $327 million in the fourth quarter. Comparable FFO(1) for the quarter was $243 million, or $0.86 per share, compared to $225 million, or $0.82 per share, during the same period last year. Comparable EBITDA for the full year ending December 31, 2015 totaled $945 million, a decrease of $91 million compared to 2014. Excluding the provision adjustment relating mostly to prior years, comparable EBITDA would have been $1,004 million and within the expected comparable EBITDA range(2) of $980 to $1,010 million for the year. Comparable FFO for the full year ending December 31, 2015 was $740 million compared to $762 million in 2014 and in-line with our target range(2) for the year of $725 to $755 million.
Continued operational improvements at Canadian Coal, reduced mining costs and the addition of wind, solar and gas pipeline assets during 2015 were offset by Energy Marketing losses during the second quarter of 2015, lower availability in Canadian Coal during the first half of the year, and lower prices in Alberta and the Pacific Northwest. Prices in Alberta averaged $33 per megawatt hour ("MWh") in 2015 compared to $49 per MWh in 2014. Our high level of contracts and hedges mostly mitigated the impact of low prices with the exception of our wind and hydro businesses in Alberta.
"2015 was a busy year with the completion of many initiatives that have positioned TransAlta for 2016 and beyond," said Dawn Farrell, President and Chief Executive Officer. "Our solid financial results this year reflect the positive impact of our continued focus on costs, efficiencies and hedging. Despite low power prices and challenging market conditions in Alberta in 2015, we generated comparable FFO in-line with our expectations for the year, delivered record safety performance, grew our portfolio of renewable assets, and extended the life of our contracted cash flows. Looking forward, we are focused on building our financial capacity and flexibility as we transition to clean power and utilizing our expertise, scale, and diversified fuel mix to capitalize on opportunities in our core markets."
As at December 31, 2015, recourse and non-recourse long-term debt totaled $4.4 billion compared to $4.0 billion at December 31, 2014. During the year, strengthening of the US dollar increased our debt balances by approximately $0.4 billion. Almost all of our US-dollar-denominated debt is hedged either through financial contracts or net investments in our U.S. operations. Since the end of 2013, excluding the impact of the US dollar appreciation and pro-forma the closing of our transaction with TransAlta Renewables in January, senior unsecured debt has been reduced by over $1.0 billion, including a reduction of over $700 million on our credit facility and a $300 million reduction in Canadian and US bonds. Over the next three years we plan to continue on this path by repaying $1.2 billion of maturing recourse debt with proceeds from non-recourse debt and cash flow from the business.
Comparable net loss attributable to common shareholders for the full year ending December 31, 2015 was $48 million ($0.17 net loss per share) compared to comparable net earnings of $68 million ($0.25 net earnings per share) in 2014. The decrease was primarily due to lower comparable EBITDA and higher earnings attributable to non-controlling interests. Reported net loss attributable to common shareholders for the full year ending December 31, 2015 was $24 million, or $0.09 net loss per share. Comparable net earnings and reported net earnings for the three months ending December 31, 2015 were $3 million and ($7) million, respectively as compared to $46 million and $148 million in same period in 2014.
(1) These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Refer to the Comparable Funds from Operations and Comparable Free Cash Flow and Earnings and Other Measures on a Comparable Basis sections of the Company's MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
(2) Expected guidance ranges for 2015 comparable EBITDA, comparable FFO, comparable FCF and sustaining capital were revised with the release of the Company's third quarter 2015 financial results in October 2015.
2016 Outlook
As previously indicated in our third quarter 2015 report, TransAlta expects its comparable EBITDA for 2016 to be in the range of $990 million and $1.1 billion based on the current outlook for power prices in Alberta and the Pacific Northwest. Comparable FFO is anticipated to be in the range of $755 to $835 million. Comparable free cash flow is expected to be in the range of $250 million and $300 million, net of sustaining capital of approximately $330 million to $350 million. Sustaining capital in 2016 includes three major maintenance turnarounds for TransAlta operated units in the Canadian Coal fleet. Availability of the Company's coal fleet in Canada is expected to be in the range of 87 to 89 per cent in 2016.
2016 Key Priorities
-- Continue to focus on delivering operational excellence at our Canadian
Coal operations
-- Secure a coal transition agreement in the Province of Alberta
-- Reposition our capital structure by pursuing project-level debt,
targeting $400 to $600 million of project-level financing in 2016
-- Continue construction of South Hedland with commissioning expected in
mid-2017
2015 Strategic Accomplishments
-- Raised over $1.0 billion of capital in 2015, including the recent
transaction that closed on January 6, 2016, through two drop-down
transactions with TransAlta Renewables raising approximately $390
million in equity; the sale of 20.5 million common shares of TransAlta
Renewables to the Alberta Investment Management Corporation ("AIMCo")
for net proceeds of $193 million; and $442 million of long-term non-
recourse debt secured by three wind projects.
-- Extended the contractual profile of Poplar Creek, Windsor, and the
Parkeston gas-fired generating plant. Over the last three years,
including these extensions, the weighted average remaining contractual
life of the gas fleet has increased from 6 years to 12 years.
-- Acquired two wind facilities, representing 65 megawatts ("MW") of
capacity in Ontario and Alberta as part of the arrangement to
restructure the Poplar Creek contract.
-- Acquired 71 MW of fully contracted renewable generation assets for cash
consideration of $106 million together with the assumption of $105
million of project financing obligations. The assets include our first
solar facilities, representing 21 MW of capacity in Massachusetts, and a
50 MW wind farm in Minnesota. The acquisition of the solar facilities
closed on September 1, 2015 and the acquisition of the wind farm closed
on October 1, 2015.
-- Company-wide overhead reductions and efficiency and productivity
initiatives in Canadian Coal which is expected to contribute cost
savings of approximately $45 to $50 million annually.
-- Reached an agreement with the Alberta Market Surveillance Administrator
(the "MSA") to settle all outstanding proceedings before the Alberta
Utilities Commission (the "AUC") for a total amount of $56 million. Of
this amount, $31 million was paid in the fourth quarter and $25 million
will be paid in the fourth quarter of 2016.
-- Received approval from the AUC to construct Sundance 7, an 865 MW high
efficiency natural gas-fired power plant in Alberta. Construction of
Sundance 7 will not commence until we have contracted a significant
portion of the plant capacity.
-- Completed construction of the natural gas pipeline to our Solomon power
station in March. Since then, the pipeline has contributed $10 million
to our EBITDA and FFO.
-- Advanced construction of the South Hedland power project. Bulk
earthworks and civil work were largely completed during the year, and
major equipment has been arriving on schedule. The power station, which
is expected to generate approximately $80 million of EBITDA on an
annualized basis, is fully contracted and is expected to be completed on
schedule and on budget and be commissioned for operation in mid-2017.
-- As at December 31, 2015, our liquidity was approximately $1.3 billion,
compared to $0.9 billion as at September 30, 2015. We are in compliance
with the terms of our credit facility and all undrawn amounts are fully
available. On January 6, 2016, we completed a transaction with TransAlta
Renewables to sell economic interests of certain assets located in
Canada and received $173 million in cash proceeds. The cash proceeds
were used to reduce amounts borrowed under our credit facilities,
further improving our liquidity to approximately $1.4 billion. We have
no material debt maturities until 2017 and anticipate renewing our
credit facilities, based on reasonable commercial terms, prior to their
maturities.
Fourth Quarter and Full Year Segmented Review
----------------------------------------------------------------------------
Comparable EBITDA(1) 3 Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(in CAD$ millions) 2015 2014 2015 2014
----------------------------------------------------------------------------
Canadian Coal 67 119 334 389
----------------------------------------------------------------------------
U.S. Coal 23 19 67 65
----------------------------------------------------------------------------
Gas 90 80 330 312
----------------------------------------------------------------------------
Wind and Solar 65 56 176 179
----------------------------------------------------------------------------
Hydro 19 20 73 87
----------------------------------------------------------------------------
Energy Marketing 26 26 37 75
----------------------------------------------------------------------------
Corporate (22) (19) (72) (71)
----------------------------------------------------------------------------
Total Comparable EBITDA 268 301 945 1,036
----------------------------------------------------------------------------
------------------------
(1) 2014 results restated to reflect the reassignment to the Corporate
Segment of $12 million and to the Energy Marketing Segment of $1 million of
costs associated with certain functions that were determined to benefit the
broader organization, or the Energy Marketing segment, respectively.
-- Canadian Coal: Comparable EBITDA decreased by $55 million to $334
million in 2015, compared to $389 million in 2014, primarily as 2015
comparable EBITDA includes a $59 million adjustment to provisions
relating mostly to force majeure events arising between 2013 and 2015.
Excluding this adjustment, 2015 comparable EBITDA would have been $393
million, in line with 2014. Reductions in operating expenses at our coal
facilities and Highvale mine, as well as productivity gains at our mine,
offset the negative impact of lower availability on our comparable
EBITDA. Our high level of contracts and hedges in Canadian Coal
continues to mostly offset the impact of lower prices in Alberta.
-- U.S. Coal: Comparable EBITDA was $67 million in 2015, in-line with the
same period last year, as the stronger US dollar offset the impacts of
lower pricing in the Pacific Northwest. Results for 2015 also include a
provision for liquidated damages relating to low volume of coal
transported by rail in 2015.
-- Gas: Comparable EBITDA increased by $18 million to $330 million in 2015
compared to $312 million in 2014. The increase is largely due to
additional revenues from the Australian natural gas pipeline,
commissioned in March 2015, and the positive impact of the strengthening
US dollar on a US-denominated contract in Western Australia.
-- Wind and Solar: Comparable EBITDA was $176 million compared to $179
million last year. The reduction in EBITDA is attributable to lower
power prices in Alberta and lower wind volumes at our Wyoming wind
facility, partially offset by the acquisition of additional assets in
the fourth quarter and the strengthening of the US dollar.
-- Hydro: Comparable EBITDA decreased by $14 million to $73 million in 2015
compared to $87 million in 2014, primarily as a result of lower prices
and a decrease in price volatility which limited our ability to take
advantage of our flexibility to produce electricity in higher priced
hours.
-- Energy Marketing: Energy Marketing generated comparable EBITDA of $37
million in 2015, down $38 million from 2014. The decrease is
attributable to extraordinary market conditions in the first quarter of
2014 and volatile market conditions in the Alberta and Pacific Northwest
regions in the second quarter of 2015. Energy Marketing generated $49
million of gross margin in 2015, which falls within the expected range
of $40 to $60 million as performance over the last six months was in
line with our expectations.
-- Corporate: Corporate costs were $72 million in 2015, in-line with 2014.
Consolidated Financial Review
Comparable EBITDA decreased by $91 million to $945 million compared to 2014 including a non-cash adjustment of $59 million to provisions. Excluding this non-cash adjustment relating mostly to a prior year, EBITDA would have been $1,004 million. A significant part of the year over year reduction in EBITDA is due to Energy Marketing results during the second quarter of 2015, lower availability in Canadian Coal during the first half of the year, and lower prices in Alberta and the Pacific Northwest. Our high level of contracts and hedges mostly mitigated the impact of low prices, but our wind and hydro businesses in Alberta were adversely impacted. Reduction of our overhead in Canadian Coal and continued improvement in our mining operations to reduce fuel costs further reduced the impacts on Canadian Coal.
Comparable FFO decreased by $22 million to $740 million. As mentioned above, comparable EBITDA includes adjustments to certain provisions that are non-cash. Lower interest expense and lower cash taxes partly mitigated the shortfall in EBITDA in 2015.
Comparable net loss attributable to common shareholders was $48 million ($0.17 net loss per share), down from comparable net earnings of $68 million ($0.25 net earnings per share) in 2014. The decrease was primarily due to lower comparable EBITDA and higher earnings attributable to non-controlling interest associated with the sale of additional non-controlling interests in TransAlta Renewables.
Reported net loss attributable to common shareholders was $24 million ($0.09 net loss per share) compared to net earnings of $141 million ($0.52 net earnings per share) in 2014. Reported net earnings in 2015 includes the gain on the Poplar Creek contract restructuring ($192 million, net of tax), and the cost of the settlement with the MSA ($55 million, net of tax). Changes in the fair value of de-designated and economic hedges at U.S. Coal also had a negative impact our net earnings ($38 million (1), net of tax) (2014 - $35 million (1) positive, net of tax). Deferred income tax expense was also impacted by the increase in the Alberta corporate tax rate in June 2015 and by the sale of an economic interest in our Australian business to TransAlta Renewables, offsetting a reversal of a write-down of deferred tax assets associated with movements in financial instrument values.
(1) Hedge accounting could not be applied to certain contracts, and accordingly, the mark-to-market on these contracts impacted reporting earnings. The impacts of these mark-to-market fluctuations have been removed from revenues to arrive at comparable results, which reflect the economic nature of these contracts.
Operating Review
Availability for 2015, after adjusting for economic dispatching at U.S. Coal, was 89.0 per cent compared to 90.5 per cent in 2014 and in-line with our 2015 target of 89 to 91 per cent. Lower availability for the year ended December 31, 2015 was due to higher unplanned outages and derates at Canadian Coal.
Total sustaining capital expenditures (including flood recovery capital) were $280 million, below the guidance range for 2015 of $305 million to $320 million and lower than $352 million in 2014. We continuously drive for cost effective operation of our facilities. In 2015, we announced the elimination of positions to reduce our costs. This company-wide initiative and others at Canadian Coal are expected to result in annual cost savings of $45 to $50 million annually. In addition to the impact of the reduction in the number of positions, we have driven reductions in coal costs through improved mine design sequence, reduced equipment requirements, and optimized contractor usage that have resulted in a 15 per cent reduction in coal costs from approximately $27 to $23 per tonne since 2013.
Recent Events
Alberta Climate Leadership Plan
On November 22, 2015, the Government of Alberta announced the Alberta Climate Leadership Plan (the "Plan"). In respect of the power generation sector, the Plan targets the retirement of coal generation in the Province of Alberta by 2030, replacement of two-thirds of the retiring coal-fired generation with renewable generation (to achieve a 30 per cent share of generation by 2030) and one-third gas generation, and establishment of a new system of greenhouse gas ("GHG") obligations and allowances benchmarked against highly efficient gas-fired generation beginning in 2018, at the increased price of $30 per tonne. The Government of Alberta has further stated intentions of providing compensation to coal-fired generators as part of its commitment to treat them fairly and not unnecessarily strand capital.
Key Actions to Support Transition to Clean Power
On January 14, 2016, we announced key actions to support our transition from coal to gas-fired and renewable generation in the Province of Alberta and maximize our financial flexibility:
-- We have revised our dividend to $0.16 per common share on an annualized
basis from $0.72 previously. The reduction will reduce cash required for
the dividend to approximately $45 million from approximately $205
million annually. The revised dividend represents a 15 to 18 per cent
payout of our estimated 2016 comparable FCF.
-- We have suspended our dividend reinvestment plan in order to stop
shareholder dilution. We do not currently expect to raise additional
equity in 2016 as the incremental cash from the dividend reduction will
be used to strengthen our balance sheet.
-- We will focus on raising non-recourse debt to fund upcoming corporate
debt maturities. We expect to raise $400 to $600 million of project-
level debt in 2016 to fund the next material debt maturity of US$400
million in 2017, and plan to execute a similar strategy for the 2018
maturities of $177 million and US$520 million.
-- We will negotiate with the Government of Alberta, using a principles-
based approach, to ensure the Company has the certainty and capacity
needed to invest in clean power.
-- Over the next 15 years, we will focus on replacing coal generating
assets with gas-fired and renewable generation assets.
These actions, combined with initiatives completed in 2015, will allow us to build the financial capacity and flexibility required to ensure that we are well positioned for the next 15 years to efficiently address upcoming debt maturities and capitalize on opportunities in gas-fired and renewable generation that will arise as Alberta transitions from coal to clean power.
Transactions involving TransAlta Renewables
In November 2015, we sold 20.5 million common shares of TransAlta Renewables in a private placement to AIMCo for net cash consideration of $193 million. During 2015, we initiated two transactions with TransAlta Renewables with concurrent public equity offerings by TransAlta Renewables:
-- On May 7, 2015, we completed the sale of an economic interest based on
the cash flows of our Australian assets to TransAlta Renewables. The
Australian assets consist of six operating assets with an installed
capacity of 425 MW, the 150 MW South Hedland project currently under
construction, as well as the recently commissioned 270 kilometre gas
pipeline. At the closing of this transaction, TransAlta Renewables paid
the Company $217 million in cash and approximately $1,067 million
through a combination of common shares and Class B shares in TransAlta
Renewables. TransAlta Renewables has also committed to funding the costs
to construct the South Hedland project incurred after January 1, 2015,
representing an estimated $491 million. TransAlta Renewables funded the
cash proceeds through the public issuance of 17,858,423 common shares at
a price of $12.65 per share.
-- On January 6, 2016, we completed the sale of an economic interest based
on the cash flows of the 506 MW Sarnia cogeneration facility and of two
renewable energy facilities with total capacity of 105 MW for $540
million. Consideration received from TransAlta Renewables consisted of
gross proceeds of approximately $173 million, 15.6 million common shares
of TransAlta Renewables with a value of $152 million and a $215 million
unsecured subordinated debenture convertible into common shares of
TransAlta Renewables at a price of $13.16 per common share upon maturity
on December 31, 2020. TransAlta Renewables issued 17,692,750 common
shares at $9.75 per share as part of this transaction. After completing
this transaction, we own approximately 64 per cent of TransAlta
Renewables.
We remain committed to maintaining our position as the majority shareholder and sponsor of TransAlta Renewables with a stated goal of maintaining our interest between 60 to 80 per cent.
TransAlta Renewables Project Financing
On October 1, 2015, TransAlta Renewables closed a $442 million non-recourse bond offering for its indirect wholly-owned subsidiary, Melancthon Wolfe Wind LP. The bonds are amortizing and bear interest at a rate of 3.834 per cent, payable semi-annually, and mature on December 31, 2028. Net proceeds of the financing were used to reduce our balance on the credit facility.
Poplar Creek Restructuring and Acquisition of Two Wind Farms
On September 1, 2015, we completed the restructuring of our contractual arrangement for power generation services with Suncor Energy ("Suncor") at Suncor's oil sands base site near Fort McMurray and the acquisition of Suncor's interest in two wind projects located in Alberta and Ontario, representing 65 MW of net capacity. The contract restructuring increased the duration of the contract by seven years to 2030, reduced our exposure to Alberta's merchant power market, added high quality renewables assets and supplemented the pipeline of assets that we could drop-down to TransAlta Renewables in the future.
As a result of the transaction, we recognized a finance lease of $372 million, increased our long-term assets to reflect the acquisition of two wind farms for $138 million, and recognized a gain of $262 million. The carrying amount of net assets we transferred to Suncor was $250 million.
U.S. Wind and Solar Acquisition
We successfully completed the acquisition of 71 MW of fully contracted renewable generation assets for cash consideration of US$76 million together with the assumption of certain tax equity obligations and US$42 million of non-recourse debt. The assets include TransAlta's first solar facilities, representing 21 MW of solar facilities in Massachusetts, and a 50 MW Lakeswind wind facility in Minnesota, and increase the pipeline of assets which may be dropped-down into TransAlta Renewables. The purchase of the solar projects in Massachusetts closed on September 1, 2015 and the purchase of the Lakeswind wind project in Minnesota was completed on October 1, 2015.
Efficiency and Productivity Initiatives
We continuously drive for cost effective operation of our facilities. In 2015, we announced the elimination of positions to reduce our costs. This company-wide initiative and others in Canadian Coal are expected to result in annual cost savings in excess of $47 million annually.
In addition to the impact of the reduction in the number of positions, we have driven reductions in coal costs through improved mine design sequence, reduced equipment requirements, and optimized contractor usage. Since insourcing the activity in 2013, coal costs per tonne have decreased by 15 per cent, from approximately $27 to $23 per tonne.
South Hedland Power Station
We continued construction of the AUD$570 million, 150 MW combined cycle gas power station in South Hedland, Australia, which we will own and operate. As of December 31, 2015, major equipment was received on site in-line with the project schedule including all three gas turbines and generators, the new step-up transformer and the air-cooled condenser. Electrical installation and mechanical erection work continues to proceed as planned. The power station is fully contracted and is expected to be commissioned in mid- 2017.
The remaining project costs associated with South Hedland were estimated at approximately $316 million (AUD$326 million) as of December 31, 2015 and will be funded by TransAlta Renewables through a combination of cash flow from operations and borrowings under a credit facility.
Sundance 7
During 2015, we received approval from the AUC to construct and operate an 856 MW combined-cycle natural gas-fired power plant in Alberta. The Sundance 7 project has received all regulatory approvals after receiving the Environmental Protection and Enhancement Act approval from Alberta Environment and Parks on Oct. 1, 2015.
Construction of Sundance 7 will not commence until we have contracted a significant portion of the plant capacity. Following changes to market conditions in Alberta during the past year, we do not anticipate that this condition will be met by 2020. In December 2015, we repurchased our partner's 50 per cent share in TAMA Power, the jointly controlled entity developing this project, for consideration of $10 million payable in five years, along with an option to buy back in to this project or into other projects of TAMA Power during this period.
Fourth Quarter and Year Ended 2015 Highlights
----------------------------------------------------------------------------
3 Months Ended Year Ended
In $CAD millions, unless otherwise Dec. 31, Dec. 31, Dec. 31, Dec. 31,
stated 2015 2014 2015 2014
----------------------------------------------------------------------------
Adjusted availability (%) (1),(2) 88.4% 93.2% 89.0% 90.5%
----------------------------------------------------------------------------
Production (GWh) (1),(3) 11,107 12,207 40,673 45,002
----------------------------------------------------------------------------
Revenue $ 595 $ 718 $ 2,267 $ 2,623
----------------------------------------------------------------------------
Comparable EBITDA(4) $ 268 $ 301 $ 945 $ 1,036
----------------------------------------------------------------------------
Reported Net Earnings (loss)
attributable to common
shareholders $ (7) $ 148 $ (24) $ 141
----------------------------------------------------------------------------
Comparable Net Earnings (loss)
attributable to common
shareholders $ 3 $ 46 $ (48) $ 68
----------------------------------------------------------------------------
Comparable Funds from Operations $ 243 $ 225 $ 740 $ 762
----------------------------------------------------------------------------
Cash Flow from Operating Activities $ 118 $ 250 $ 432 $ 796
----------------------------------------------------------------------------
Comparable Free Cash Flow (4) $ 174 $ 97 $ 315 $ 280
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Earnings (loss) per common
share $ (0.02) $ 0.54 $ (0.09) $ 0.52
----------------------------------------------------------------------------
Comparable Net Earnings (loss) per
share $ 0.01 $ 0.17 $ (0.17) $ 0.25
----------------------------------------------------------------------------
Comparable Funds from Operations
per share $ 0.86 $ 0.82 $ 2.64 $ 2.79
----------------------------------------------------------------------------
Comparable Free Cash Flow per
share(4) $ 0.61 $ 0.35 $ 1.13 $ 1.03
----------------------------------------------------------------------------
Dividends declared per common share $ 0.18 $ 0.18 $ 0.72 $ 0.72
----------------------------------------------------------------------------
-----------------------------------
(1) Availability and production includes all generating assets (generation
operations and finance leases that we operate). 2014 availability also
includes equity investments, which were sold in May 2014.
(2) Adjusted for economic dispatching at U.S. Coal.
(3) 2014 production includes 314 GWh from CE Generation LLC and Wailuku
Holding Company, LLC, both of which were sold in May 2014.
(4) 2014 restated to deduct hydro life extension capital expenditures from
comparable FCF.
TransAlta is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the associated Management Discussion &Analysis. 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 is also in the process of filing its 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.
Conference call
We will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) today to discuss our fourth quarter and 2015 results. The call will begin with a short address by Dawn Farrell, President and CEO, and Donald Tremblay, 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. Please contact the conference operator five minutes prior to the call, noting "TransAlta Corporation" as the company and "Jaeson Jaman" as moderator.
Dial-in numbers:
Toll-free North American participants call: 1-800-319-4610
Outside of Canada & USA call: 1-604-638-5340
A link to the live webcast will be available on the Investor Centre section of TransAlta's website at http://www.transalta.com/powering-investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-669-9658 (Canada and USA toll free) or 1-604-674-8052 (Outside of Canada) with TransAlta pass code 00227 followed by the # sign. A transcript of the broadcast will be posted on TransAlta's website once it becomes available.
About TransAlta
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta's focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Sustainalytics as one of Canada's Top 50 Socially Responsible Companies since 2009; and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.
For more information about TransAlta, visit our web site at www.transalta.com or follow us on Twitter @TransAlta.
Cautionary Statement Regarding Forward Looking Information
This news release contains forward looking statements including, without limitation, statements pertaining to TransAlta's business and anticipated future financial performance; our expected strategies and opportunities; expected comparable EBITDA, comparable FFO and comparable free cash flow ranges for 2016; expected sustaining capital expenditures for 2016; expected availability for 2016; the development and construction of Sundance Unit 7 and the timing thereof; the commissioning of South Hedland and the costs; the expected EBITDA to be generated from South Hedland; expected cost savings from overhead reductions and efficiency and productivity initiatives; expected governmental regulatory regimes and legislation (including the Plan) and the expected impact of such regimes and regulations; our expectations of securing a coal transition agreement with the Province of Alberta; use of the incremental cash from the dividend reduction; maintaining our position as the majority shareholder or sponsor of TransAlta Renewables; the cost of complying with resulting regulations and laws; as well as the repositioning of our capital structure through project-level debt in 2016 and 2017 and the potential drop-down of additional assets to TransAlta Renewables. These statements are based on TransAlta's belief and assumptions based on information available at the time the assumptions were made, including assumptions regarding Alberta power prices, and the regulatory regimes and economic conditions relevant to the markets in which we operate. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: operational risks involving our facilities; changes in market prices where we operate; unplanned outages at generating facilities and the capital investments required; equipment failure and our ability to carry out repairs in a cost effective and timely manner; the effects of weather; disruptions in the source of fuels, water or wind required to operate our facilities; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion; legislative or regulatory developments and their impacts; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost); changes in prevailing interest rates; currency exchange rates; inflation levels and commodity prices; general economic conditions in the geographic areas where TransAlta operates; impediments to the construction of South Hedland or Sundance Unit 7; disputes or claims involving TransAlta, including the Keephills 1 force majeure arbitration; and inability to secure non-recourse financing on terms favourable to the Company or at all. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta's expectations only as of the date of this news release. The financial outlook that is contained in this news release was approved February 17, 2016 and is being provided for the purpose of giving the reader information about management's current expectations and plans. 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.
Contacts: TransAlta Corporation - Investor Inquiries: Jaeson Jaman Manager, Investor Relations 1-800-387-3598 in Canada and U.S. [email protected] TransAlta Corporation - Media Inquiries: Stacey Hatcher Manager, Communications Toll-free media number: 1-855-255-9184 [email protected] www.transalta.com
Source: TransAlta Corporation
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