TransAlta Corporation (NYSE:TAC) Q1 2020 Results Earnings Conference Call May 12, 2020, 11:00 am ET Company Participants Chiara Valentini - … Stronger earnings from our U.S. Coal and Wind and Solar segments, foreign exchange gains and a reduction in the Centralia mine decommissioning provision due to changes in discount rates resulting in an asset impairment reversal were partially offset by higher depreciation, higher interest expense and lower income tax recoveries.Total sustaining capital expenditures (2) of $55 million were $31 million lower compared to 2019 primarily due to higher planned major maintenance in our coal segments in 2019.Net loss per share attributable to common shareholders, basic and dilutedTransAlta is in the process of filing its unaudited interim Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (“MD&A”). The decrease is largely due to lower revenues, higher depreciation, asset impairment and lower income tax recoveries partially offset by lower OM&A and foreign exchange gains. Variability caused by the total return swap resulted in a decrease of $7 million and an increase of $17 million for the three month and six months ended June 30, 2020, respectively. generation from our diversified fleet. said "We also expanded our cogeneration fleet with the acquisition of Electricity and steam supply continue to remain a critical service requirement to all of the Company’s customers and have been deemed an essential service in all of the jurisdictions in which TransAlta operates.The Company continues to maintain a strong financial position in part due to its long-term contracts and hedged positions. We are excited to mark our first cogeneration facility in the United States and we look forward to building on this U.S. toehold as we further progress our on-site generation strategy into the region.”“I’d like to thank all of our front-line employees, contractors and their families whose exceptional efforts keep up the strong operational performance of the Company in the face of these challenging times,” added Mrs. Farrell.Comparable EBITDA for the three and six months ended June 30, 2020, were consistent with the same periods in 2019.
compared to the same periods in 2019. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.For more information about TransAlta, visit our web site at Cautionary Statement Regarding Forward Looking InformationThis news release contains forward looking statements, including statements regarding the business and anticipated financial performance of the Company that are based on the Company’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. Company continues to work and serve all of its customers and Excluding the impact of the total return swap, OM&A decreased by $11 million in both periods, due to tighter cost controls, lower labour costs across multiple segments and lower legal fees.FCF totaled $91 million and $200 million for the three and six months ended June 30, 2020, respectively. Developer: TransAlta. has not experienced interruptions to service requirements. EBITDA for the six months ended June, 30, 2020, was $437 million, in line with the same period last year. Windrise Project Proposed Capacity: 207MW Nearest SAAEP Community: Fort MacLeod, MD of Willow Creek. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power.
The Company currently has access to $1.6 billion in liquidity including $257 million in cash and has sufficient liquidity to meet the upcoming debt maturity due November 2020 and growth construction requirements. The Canadian Coal comparable EBITDA in the quarter and year-to-date also declined due to recognition of a $7 million provision adjustment for out-of-period line losses relating to the Alberta Electric System Operator (“AESO”) Line Loss Rule proceeding.Operations, maintenance and administration (“OM&A”) expense for the three and six months ended June 30, 2020, decreased by $18 million and increased by $6 million, respectively, compared to the same periods in 2019. In particular, this news release contains forward-looking statements, pertaining to, without limitation, the following: the potential impact of COVID-19 on the Company and the actions to be undertaken by the Company in response to the COVID-19 pandemic; the sale of the Pioneer Pipeline, including the terms and timing thereof; the commercial operation date for the WindCharger Battery Project; the potential repowering of Sundance Unit 5 and Keephills Unit 1 into combined cycle units; the conversion of Sundance Unit 6 by the second half of 2020; the conversion of Keephills Unit 2 and Unit 3, and the timing thereof; the closing of the $400 million investment from Brookfield; the asset impairment to be recorded for Sundance Unit 3; losses relating to the AESO Line Loss Rule proceeding; and sufficient liquidity to meet the upcoming debt maturity due November 2020 and growth construction requirements. which are currently expected in the second half of 2021.While the Company's results have been impacted by price and