TransAlta Renewables posts higher comp EBITDA in Q3 2020

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

TransAlta Renewables Inc (TSE:RNW), the independent power producer (IPP), reported a higher comparable EBITDA in the third quarter of 2020 thanks to capacity additions and higher wind resources in the US, and higher output and carbon offset revenues in Canada.

The Australian Gas division also helped boost the result.

Quarterly comparable earnings before interest, tax, depreciation and amortisation (EBITDA) rose by CAD 10 million (USD 7.5m/EUR 6.5m) to CAD 96 million, even as Comparable EBITDA in the Canadian Hydro division fell.

The company has 23 wind, 13 hydro, seven natural gas and one solar plants, one natural gas pipeline and one battery storage project in the US, Canada and Australia. Its ownership interest in these amounts to 2.54 GW. The net profit for the third quarter, attributable to common shareholders, fell to CAD 6 million from CAD 24 million a year earlier, because of unrealised losses due to the change in the fair value of financial assets. The higher EBITDA and positive foreign exchange effects could not fully offset such losses.

The table contains details.

Results in CAD million	Q3 2020	Q3 2019	9-mo 2020	9-mo 2019
Revenue	95	89	308	327
Comparable EBITDA	96	86	329	313
Adjusted funds from operations (FFO)	76	69	261	243
Net profit to common shareholders	6	24	39	131
Renewable energy production in GWh	864	706	3,135	2,574

TransAlta said it currently has access to CAD 507 million in liquidity, including CAD 24 million in cash. “Our cash flows have been relatively unaffected in the quarter due to the high contractedness of our asset portfolio and financial strength of our customers.”

(CAD 1 = USD 0.76/EUR 0.65)

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