Transalta Corp. (NYSE: TAC) reported Q3 EPS of $0.18, $0.18 better than the analyst estimate of $0.00. Revenue for the quarter came in at $593 million versus the consensus estimate of $506.52 million.

Financial and Operating Highlights

• $305 million of comparable EBITDA for the quarter. Excluding PPA Settlements (one-time additional amount of $56 million), comparable EBITDA was $249 million and in line with 2018;
• $741 million of comparable EBITDA for the nine months ended Sept. 30, 2019. Excluding PPA Settlements, comparable EBITDA was $685 million, 7% lower than 2018;
• $170 million of free cash flow ("FCF") for the quarter. FCF from ongoing operations was $114 million, a 21% increase to 2018 FCF;
• $314 million of FCF for the nine months ended Sept. 30, 2019. Excluding the PPA Settlements, FCF was $258 million, 4% lower than 2018;
• $114 million of operations, maintenance, and administration ("OM&A") expense for the quarter, a $6 million decrease, or 5% compared to the same period in 2018;
• $348 million of OM&A expense for the nine months ended Sept. 30, 2019, a $28 million decrease, or 7% compared to the same period in 2018;
• Purchased and cancelled 735,000 common shares under the normal course issuer bid ("NCIB") at an average price of $8.58 per common share, for a total cost of $6 million. For the nine months ended Sept. 30, 2019, we purchased and cancelled 3,133,200 common shares for a total cost of $27 million; and
• Increased full year 2019 FCF outlook range to $300 - $340 million, from the previous range of $270 - $330 million.

"Results for the quarter were stronger than expected and demonstrated progress in our business transition," said Dawn Farrell, President and Chief Executive Officer. "We continue to be pleased with the Alberta thermal business which showed stronger margins and availability performance. With the Pioneer Pipeline contract now in place, we see further improvements in that business segment. Our Clean Energy Investment Plan is tracking with two wind farms to come on-line at the end of 2019 and the acceleration of our gas repowering strategy due to the purchase of the Kineticor assets," commented Mrs. Farrell.

For earnings history and earnings-related data on Transalta Corp. (TAC) click here.