TransAlta posts 4.6% rise in adj FFO in 2018

Wind turbines. Source: TransAlta Corp (www.transalta.com).

March 7 (Renewables Now) - Canada's TransAlta Renewables Inc (TSE:RNW) on Wednesday reported adjusted funds from operations (FFO) of CAD 343 million (USD 255.1m/EUR 225.7m) for 2018, an increase of 4.6% in annual terms.

The improvement, coupled with growing earnings before interest, tax, depreciation and amortisation (EBITDA) and lower interest expense, led to a 3.9% year-on-year rise in cash available for distribution (CAFD), to CAD 295 million.

Comparable EBITDA in 2018 came at CAD 430 million, representing an improvement from CAD 424 million a year back. Contributions from the 150-MW gas-fired South Hedland Power Station and from wind and solar acquisitions were offset by the sale of the 125-MW Solomon Power Station, TransAlta Renewables said.

The Calgary-based firm ended 2018 with a net profit attributable to common shareholders of CAD 236 million. The result jumped from CAD 9 million a year earlier mainly thanks to higher finance income and impairments on investments in Australia in 2017. More details about its performance are available in the table below:

Figures in CAD million, unless otherwise noted Q4 2018 Q4 2017 2018 2017
Revenue 140 134 462 459
Comparable EBITDA 133 118 430 424
Net profit (loss) attributable to common shareholders 93 33 236 9
Adjusted funds from operations (FFO) 108 111 343 328
Renewables generation (in GWh) 1,107 1,123 3,652 3,623

"Financial and operational performance for the year was strong and, as expected, allowed us to focus on growing our asset base" said president John Kousinioris, President.

Looking ahead, TransAlta Renewables guided for adjusted FFO of CAD 320 million - 350 million for 2019 and CAFD of CAD 270 million - 300 million. Comparable EBITDA is seen to range between CAD 425 million and CAD 455 million. Renewable power production from the company’s wind and hydropower plants, including those owned through economic interests, is expected to be at 3,700 GWh-4,200 GWh, as compared to 3,652 GWh in 2018. 

(CAD 1.0 = USD 0.744/EUR 0.658)

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