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.

More stories to explore