TransAlta Renewables Inc (TSE:RNW) on Tuesday lowered its 2021 guidance after weaker-than-expected results so far in the year.
The Canadian independent power producer’s (IPP) performance in the second quarter and first half of the year was impacted by lower wind resources and outages in its Canadian Gas segment, in particular the Sarnia cogeneration gas facility.
The company currently has stakes in 24 wind, 13 hydroelectric and eight natural gas generation facilities, one solar farm, one natural gas pipeline and one battery storage project, located in Canada, the US and Australia.
In the second quarter of 2021, TransAlta Renewables’ comparable earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by CAD 18 million (USD 14.4m/EUR 12.3m) from a year earlier, down to CAD 97 million. Cash available for distribution (CAFD) declined by CAD 27 million to CAD 40 million.
More details of the company’s results are in the table.
| Figures in CAD million, unless otherwise noted |
Q2 2021 |
Q2 2020 |
H1 2021 |
H1 2020 |
| Revenues |
92 |
103 |
218 |
213 |
| Comparable EBITDA |
97 |
115 |
220 |
233 |
| Net earnings attributable to common shareholders |
25 |
30 |
77 |
33 |
| Adjusted funds from operations |
64 |
90 |
157 |
184 |
| CAFD |
40 |
67 |
130 |
158 |
| Renewable energy production (GWh) |
1,051 |
1,098 |
2,160 |
2,271 |
The increase in half-year net earnings reflects higher finance income from investments in subsidiaries of TransAlta and no fair value losses recognised on financial assets due to the prior-year redemption of the preferred shares tracking the amortising term loan.
In addition to the year-to-date showing, the reduced guidance provided in the table below also takes into account the acceleration of the acquisition of a spare turbine for the South Hedland gas power station.
| in CAD millions |
Revised outlook ranges |
Previous outlook ranges |
| Comparable EBITDA |
470-500 |
480-520 |
| Adjusted funds from operations |
310-340 |
335-365 |
| CAFD |
260-290 |
285-315 |
President Todd Stack said the company has made progress in the quarter with its strategy to diversify and enhance the contracted cash flow profile of its fleet with the recent acquisitions of the 29-MW Ada cogeneration facility and a 49% interest in the 137-MW Skookumchuck wind facility, as well as the advancement of its growth and construction pipelines.
(CAD 1 = USD 0.798/EUR 0.681)
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Wind turbines. Source: TransAlta Corp (www.transalta.com).
