TransAlta Renewables Inc (TSE:RNW) today posted a nearly 70% decline in attributable net profit for the first half of 2020 because of lower earnings from its Canadian wind and gas operations and other factors.
The Canada-based independent power producer (IPP) booked a net profit attributable to shareholders of CAD 33 million (USD 24.6m/EUR 20.8m) for the six months to June, with lower finance income, higher unrealised losses due to a change in the fair value of financial assets and higher income tax expense also pushing earnings down.
Adjusted funds from operations (FOO) rose by CAD 10 million to CAD 184 million, while cash available from distribution (CAFD) climbed 5% to CAD 158 million thanks to an increase in comparable earnings before interest, tax, depreciation and amortisation (EBITDA) and a decline in sustaining capital expenditures.
Comparable EBITDA gained CAD 6 million in the period, with the 90-MW Big Level wind farm and the 28.8-MW Antrim wind park, which became operational at the end of 2019, and the company's solar plant in the US contributing to the result. Meanwhile, weaker comparable EBITDA from the company's Canadian wind and gas operations weighted on the overall earnings.
Results in CAD million, unless specified
Net earnings to common shareholders
Renewable energy production (GWh)
TransAlta Renewables has interests in 23 wind farms, 13 hydropower plants (HPPs), seven natural gas generation facilities, one solar farm and one natural gas pipeline. Its total ownership interest amounts to 2,527 MW.