TransAlta's EBITDA and CAFD fall in 9-mo 2021

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

November 10 (Renewables Now) - TransAlta Renewables Inc (TSE:RNW) reported lower nine-month earnings before interest, tax, depreciation and amortisation (EBITDA) due to weaker wind resource and unplanned outages.

The independent power producer (IPP) with 2.9 GW of renewable and natural gas plants in Canada and the US, said on Tuesday the drop in EBITDA, in combination with higher interest expense and sustaining capital within Australia, led to a significant drop in its adjusted funds from operations (AFFO) and cash available for distribution (CAFD). The table contains details.

Results in CAD million, unless specified 9-mo 2021 9-mo 2020
Revenues 332 208
Comparable EBITDA 322 329
Net profit to common shareholders 97 39
AFFO 214 261
CAFD 184 232

Net profit rose mainly due to higher finance income from investments in subsidiaries of TransAlta and the absence of fair value losses, in part offset by liquidated damages recognised in connection to unplanned outages, unfavourable steam reconciliation adjustment in Canadian Gas, lower wind production in Canada, lower foreign exchange gains and an increase in asset impairments.

On November 5, TransAlta Renewables bought 122 MW of solar parks North Carolina that have 12 years, on average, left under their long-term power purchase agreements (PPAs) with units of Duke Energy. The portfolio is expected to add USD 9 million to annual EBITDA.

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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