CALGARY,
AB, May 4, 2022 /CNW/ -
First Quarter 2022 Financial Highlights
- Adjusted EBITDA(1),(2) of $139 million, an increase of 13% to the same
period in 2021
- Free cash flow ("FCF")(1),(3) of $108 million, an increase of 9% to the same
period in 2021
- Cash available for distribution ("CAFD")(1) of
$90 million or $0.34 per share, consistent on a per-share basis
compared to 2021
- Earnings before income taxes of $49
million, a decrease of 20% from 2021
- Cash flow from operating activities of $103 million, consistent with the same period in
2021
Other Business Highlights &
Updates
- Recognized on the Clean200 global list of publicly traded
companies leading the way with solutions for the transition to a
clean energy future by Corporate Knights and As You Sow.
- Reached agreement with BHP Nickel West ("BHP") to expand the
Mount Keith transmission system to support the Northern
Goldfields-based operations of BHP. Total construction capital of
the project is estimated at AU$50 - $53
million and will generate annual EBITDA of AU$6 -
$7 million once completed in the
second half of 2023.
- The Company expects to finalize the rehabilitation plan for the
Kent Hills 1 and 2 wind facilities and conclude negotiations with
New Brunswick Power Corporation ("NB Power") and project lenders
during the second quarter of 2022. Current estimates of the capital
expenditures required for the rehabilitation of the 50 foundations,
and the replacement of the wind turbine destroyed with the tower
collapse in the fall of 2021, is now expected to be in the range of
$120 million, inclusive of
contingency.
TransAlta Renewables Inc. ("TransAlta Renewables" or the
"Company") (TSX: RNW) announced today financial results for the
three months ended March 31, 2022.
"Our first quarter's results reflect the growth in the portfolio
we delivered during 2021. Compared to the first quarter of
2021, we added 428 MW of contracted growth generation to our fleet
through a dropdown of assets from TransAlta including Windrise
wind, Skookumchuck wind, Ada cogen
and the acquisition of an economic interest in a solar facility in
North Carolina. These facilities have further increased our
diversification by adding contracted capacity in our core operating
regions and offsetting the impact of the ongoing outage at Kent
Hills," said Todd Stack, President.
"We are also pleased to announce another expansion project in
Western Australia through our
agreement with BHP to expand the Mount Keith transmission system.
This project will facilitate the connection of additional
generating capacity to our network and will support BHP's
operations increasing their competitiveness as a sustainable
supplier of low-carbon nickel," added Mr. Stack.
First Quarter 2022 Highlights
$ millions, unless
otherwise stated
|
3 Months
Ended
|
March 31,
2022
|
March 31,
2021
|
Renewable energy
production (GWh)(2)
|
1,310
|
1,109
|
Revenues
|
143
|
126
|
Adjusted
EBITDA(1)
|
139
|
123
|
Earnings before income
taxes
|
49
|
61
|
Net earnings
attributable to common shareholders
|
41
|
52
|
Cash flow from
operating activities
|
103
|
103
|
Free cash
flow(1)
|
108
|
99
|
Cash available for
distribution(1)
|
90
|
90
|
Net earnings per share
attributable to common shareholders, basic and diluted
|
0.15
|
0.19
|
Free cash flow per
share(1)(3)
|
0.40
|
0.37
|
Cash available for
distribution per share(1)(4)
|
0.34
|
0.34
|
Dividends declared and
paid per common share
|
0.23
|
0.23
|
First Quarter 2022 Results
Summary
The Company's renewable power production increased by 201 GWh
for the three months ended March 31,
2022 compared to the same period in 2021. This increase was
mainly due to the production from the recently commissioned
Windrise wind facility, the acquisition of the economic interests
in the Skookumchuck wind facility
and the North Carolina Solar facility, higher wind resources in
Canada and in the US, partially
offset by the extended facility outage at the Kent Hills 1 and 2
wind facilities.
Adjusted EBITDA increased by $16
million to $139 million for
the three months ended March 31, 2022
compared to 2021. The increase in adjusted EBITDA was a result of
higher wind resources and the incremental production from the new
facilities acquired and commissioned throughout 2021. This
was partially offset by the extended site outage at the Kent Hills
1 and 2 wind facilities.
Net earnings attributable to common shareholders decreased by
$11 million to $41 million, primarily due to the extended outage
at the Kent Hills 1 and 2 wind facilities in the Canadian Wind
segment and lower finance income related to subsidiaries of
TransAlta due to an increase in distributions being classified as a
return of capital. This decrease was partially offset by higher
earnings from the addition of the Windrise wind facility, including
the liquidated damages related to turbine performance at the
Windrise wind facility.
Cash flow from operating activities for the three months ended
March 31, 2022 was consistent with
the same period in 2021, primarily as the increase in production
from the new facilities offset the reduction in production from the
extended outage at the Kent Hills 1 and 2 wind facilities.
FCF or the three months ended March 31,
2022 increased by $9 million,
due to higher adjusted EBITDA and lower provisions, partially
offset by increased sustaining capital expenditures within our
Wind, Solar and Australian Gas segments.
CAFD for the three months ended March 31,
2022 has remained consistent period over period.
Significant Events and Other
Updates
Mount Keith 132kV Transmission Expansion
During the second quarter of 2022, the Company announced that
Southern Cross Energy, a subsidiary of TransAlta Corporation and an
entity in which the Company owns an indirect economic interest, had
agreed to expand the Mt. Keith 132kV transmission system in
Western Australia, to support the
Northern Goldfields-based operations of BHP Nickel West ("BHP").
Total construction capital of the project is estimated between
AU$50-$53 million. Southern Cross
Energy has entered into an engineering, procurement and
construction agreement with ASX-listed GenusPlus Group Ltd for the
expansion. The project is being developed under the existing
Power Purchase Agreement ("PPA") with BHP, which has a term of 15
years. It is expected to be completed in the second half of
2023 and will generate annual EBITDA in the range of
AU$6-$7 million. In addition, the
planned completion date should allow at least a portion of the
project to qualify for Australia's
"Temporary Full Expensing" COVID-19 tax benefit. The project will
facilitate the connection of additional generating capacity to our
network to support BHP's operations and increase their
competitiveness as a supplier of low-carbon nickel.
Kent Hills Wind Facilities Rehabilitation
Progress
During the first quarter of 2022, the extended outage at Kent
Hills 1 and 2 wind facilities continued and rehabilitation efforts
for the foundations is expected to commence during the second
quarter of 2022 with the aim of fully returning the wind facilities
to service in the second half of 2023.
The Kent Hills foundation rehabilitation capital expenditures
were originally estimated to range from $75
million to $100 million. The
current estimate of the capital expenditures is approximately
$120 million, inclusive of
contingency. The cost increase is a result of the adoption of
a more robust foundation design, inflationary cost pressures and an
accelerated timeline to return the turbines to service ahead of
December 2023. We are also currently
in advanced stages of discussions with NB Power and expect to enter
into definitive agreements in the second quarter of 2022. In
connection with the potential events of default that may have
occurred under the trust indenture governing the terms of the bonds
secured by among other things, the Kent Hills project, Kent Hills
Wind LP is also in active negotiations with the trustee and the
holders of the bonds to obtain a waiver and expects that it will
enter into a supplemental indenture during the second quarter of
2022.
Subject to satisfactory resolution of the various commercial
matters, the construction work for the rehabilitation of the Kent
Hills 1 and 2 wind facilities is expected to commence during the
second quarter of 2022. The Company is actively evaluating any
options that may be available to recover these costs from third
parties and insurance.
TransAlta Renewables Named to Clean200 List
During the first quarter, the Company was recognized by
Corporate Knights and As You Sow on the Clean200 global list of
publicly traded companies leading the way with solutions for the
transition to a clean energy future. The Clean200 are the largest
200 public companies ranked by green energy revenues.
Liquidity and Financial
Position
The Company remains highly diversified with facilities that are
highly contracted and located in core geographies. Cash flows from
the underlying asset portfolio are also supported by the financial
strength of customers. The Company continues to maintain a strong
financial position and currently has access to over $0.9 billion in liquidity including $278 million of cash.
Notes
|
|
(1)
|
These items are not
defined and have no standardized meaning under IFRS. Please refer
to Reconciliation of Non-IFRS Measures section of this earnings
release for further discussion of these items, including, where
applicable, reconciliations to measures calculated in accordance
with IFRS.
|
(2)
|
Includes production
from Canadian Wind, Canadian Hydro and US Wind and Solar and
excludes Canadian, US and Australian gas-fired generation.
Production is not a key revenue driver for gas-fired facilities as
most of their revenues are capacity-based.
|
(3)
|
Free cash flow ("FCF")
per share is calculated as free cash flow divided by the weighted
average number of common shares outstanding during the period of
267 million shares as at March 31, 2022 (March 31, 2021 - 267
million shares). In the fourth quarter of 2021, the adjusted funds
from operations was replaced with free cash flow to better reflect
the proxy for cash generated from operating activities and the
composition of the metric has been changed accordingly. Comparative
figures have been reclassified to conform to the current period's
presentation.
|
(4)
|
Cash available for
distribution ("CAFD") per share is calculated as CAFD divided by
the weighted average number of common shares outstanding during the
period of 267 million shares as at March 31, 2022 (March 31, 2021 -
267 million shares).
|
Non-IFRS Measures
We evaluate our performance using a variety of measures to
provide management and investors with an understanding of our
financial position and results. Certain of the measures discussed
in this earnings release and in the MD&A are not defined under
IFRS and, therefore, should not be considered in isolation, or as a
substitute for, or as an alternative to, or to be more meaningful
than measures as determined in accordance with IFRS when assessing
our financial performance or liquidity. These measures have no
standardized meaning under IFRS and may not be comparable to
similar measures presented by other issuers.
The Company's key non-IFRS measures are adjusted EBITDA, FCF and
CAFD. In the fourth quarter of 2021, comparable EBITDA was
relabelled as adjusted EBITDA to align with industry standard
terminology. The Adjusted Funds from Operations ("AFFO") was
replaced with FCF to better reflect the proxy for cash generated
from operating activities. The composition of the metric has been
changed accordingly. Notably, tax equity distributions have been
removed from the composition of AFFO in the determination of FCF
and it has been included in CAFD, as it reflects a settlement of a
financial liability. Comparative figures have been reclassified to
conform to the current period's presentation.
Adjusted EBITDA
Adjusted EBITDA is an important metric for management since it
represents our core business profitability. Interest, taxes,
depreciation and amortization are not included, as differences in
accounting treatments may distort our core business results.
We present adjusted EBITDA along with operational information of
the assets in which we own an economic interest so that readers can
better understand and evaluate the drivers of those assets in which
we have an economic interest. Since the economic interests are
designed to provide the Company with returns as if we owned the
assets themselves, presenting the operational information and
adjusted EBITDA provides a more complete picture for readers to
understand the underlying nature of the investments and the
resultant cash flows that would otherwise only be presented as
finance income from the investments.
Adjusted EBITDA is comprised of our reported EBITDA adjusted to
exclude the impact of unrealized mark-to-market gains and losses
and asset impairments, plus the adjusted EBITDA of the facilities
in which we hold an economic interest, which is the facilities'
reported EBITDA adjusted for: 1) finance lease income and the
change in the finance lease receivable amount; 2) contractually
fixed management costs; 3) interest earned on the prepayment of
certain transmission costs; and 4) the impact of unrealized
mark-to-market gains or losses.
Free Cash Flow
FCF represents the amount of cash that is available from operations
and investments in subsidiaries of TransAlta in which we have an
economic interest, to invest in growth initiatives, to make
scheduled principal repayments on debt, to repay maturing debt, to
pay common share dividends or to repurchase common shares.
Changes in working capital are excluded so that FCF is not
distorted by changes that we consider temporary in nature,
reflecting, among other things, the impact of seasonal factors and
the timing of receipts and payments.
FCF is calculated as the cash flow from operating activities
before changes in working capital, less sustaining capital
expenditures, distributions paid to subsidiaries' non-controlling
interest, finance income from economic interests and principal
repayments on lease obligations, plus FCF of the assets owned
through economic interests, which is calculated as adjusted EBITDA
from the economic interests less interest expense, sustaining
capital expenditures, current income tax expense, insurance
recovery and working capital and other timing. FCF per share
is calculated using the weighted average number of common shares
outstanding during the period.
Cash Available for Distribution
CAFD can be used as a proxy for the cash that will be available to
common shareholders of the Company. CAFD is calculated as FCF
less tax equity distributions and scheduled principal repayments of
amortizing debt.
One of the primary objectives of the Company is to provide
reliable and stable cash flows, and presenting FCF and CAFD assists
readers in assessing our cash flows in comparison to prior periods.
See the Reconciliation of Non-IFRS Measures section of this
earnings release for additional information.
Reconciliation of these non-IFRS financial measures to the most
comparable IFRS measure are provided below.
Reconciliation of Non-IFRS
Measures
Since the economic interests are designed to provide the Company
with returns as if we owned the assets ourselves, presenting the
operating information and adjusted EBITDA provides a more complete
picture to understand the underlying nature of the investments and
the resultant cash flows that would otherwise only be presented as
finance income from investments.
The following tables reflects adjusted EBITDA and provides
reconciliation to earnings before income taxes for the three
months ended March 31, 2022 and
March 31, 2021:
|
Owned
Assets
|
Economic
Interests
|
|
|
|
3 months
ended
March 31,
2022
$
millions
|
Canadian
Wind
|
Canadian
Hydro
|
Canadian
Gas
|
Corporate
|
US Wind
and Solar
|
US
Gas
|
Australian
Gas
|
Total
|
Investments
in
Economic Interests
and
Adjustments
|
IFRS
Financials
|
Revenues(1)
|
70
|
4
|
69
|
—
|
31
|
6
|
43
|
223
|
(80)
|
143
|
Fuel, royalties and
other costs(2)
|
4
|
1
|
40
|
—
|
1
|
3
|
2
|
51
|
(6)
|
45
|
Gross
margin
|
66
|
3
|
29
|
—
|
30
|
3
|
41
|
172
|
(74)
|
98
|
Operations,
maintenance, and administration(3)
|
9
|
2
|
8
|
6
|
4
|
1
|
7
|
37
|
(12)
|
25
|
Taxes, other than
income taxes
|
1
|
—
|
1
|
—
|
1
|
—
|
—
|
3
|
(1)
|
2
|
Net other operating
income
|
(7)
|
—
|
—
|
—
|
—
|
—
|
—
|
(7)
|
—
|
(7)
|
Adjusted
EBITDA(4)
|
63
|
1
|
20
|
(6)
|
25
|
2
|
34
|
139
|
(61)
|
78
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(37)
|
Finance income related
to subsidiaries of TransAlta
|
|
|
|
|
|
|
|
|
|
19
|
Interest
income
|
|
|
|
|
|
|
|
|
|
1
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
(13)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
1
|
Earnings before
income tax
|
|
|
|
|
|
|
|
|
|
49
|
(1)
|
Adjusted EBITDA
excludes the impact of unrealized mark-to market gains or losses.
Amounts related to economic interests include finance lease income
adjusted for change in finance lease receivable.
|
(2)
|
Amounts related to
economic interests include interest earned on the prepayment of
certain transmission costs.
|
(3)
|
Amounts related to
economic interests include the effect of contractually fixed
management costs.
|
(4)
|
Adjusted EBITDA is a
non-IFRS measure and has no standardized meaning under IFRS. Refer
to the Additional IFRS Measures and Non-IFRS Measures sections for
further details.
|
|
Owned Assets
|
Economic
Interests
|
|
|
|
3 months
ended
March 31,
2021
$
millions
|
Canadian
Wind
|
Canadian
Hydro
|
Canadian Gas
|
Corporate
|
US Wind and
Solar
|
US Gas
|
Australian
Gas
|
Total
|
Investments
in Economic
Interests
|
IFRS
Financials
|
Revenues(1)
|
70
|
3
|
54
|
—
|
22
|
—
|
43
|
192
|
(66)
|
126
|
Fuel, royalties and
other costs(2)
|
2
|
—
|
26
|
—
|
1
|
—
|
1
|
30
|
(2)
|
28
|
Gross margin
|
68
|
3
|
28
|
—
|
21
|
—
|
42
|
162
|
(64)
|
98
|
Operations,
maintenance, and administration(3)
|
9
|
2
|
7
|
6
|
2
|
—
|
10
|
36
|
(12)
|
24
|
Taxes, other than
income taxes
|
2
|
—
|
—
|
—
|
1
|
—
|
—
|
3
|
(1)
|
2
|
Adjusted
EBITDA(4)
|
57
|
1
|
21
|
(6)
|
18
|
—
|
32
|
123
|
(51)
|
72
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
(34)
|
Finance income related
to subsidiaries of TransAlta
|
|
|
|
|
|
|
|
|
|
29
|
Interest
income
|
|
|
|
|
|
|
|
|
|
2
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
(10)
|
Foreign exchange
gain
|
|
|
|
|
|
|
|
|
|
2
|
Earnings before income
tax
|
|
|
|
|
|
|
|
|
|
61
|
(1)
|
Adjusted EBITDA
excludes the impact of unrealized mark-to market gains or losses.
Amounts related to economic interests include finance lease income
adjusted for change in finance lease receivable.
|
(2)
|
Amounts related to
economic interests include interest earned on the prepayment of
certain transmission costs.
|
(3)
|
Amounts related to
economic interests include the effect of contractually fixed
management costs.
|
(4)
|
Adjusted EBITDA is a
non-IFRS measure and has no standardized meaning under IFRS. Refer
to the Additional IFRS Measures and Non-IFRS Measures sections for
further details.
|
Reconciliation of Reported Cash Flow from Operating
Activities to FCF and CAFD
3 months ended
March 31,
$
millions
|
2022
|
2021
|
Cash flow from
operating activities
|
103
|
103
|
Change in non-cash
operating working capital balances
|
(17)
|
(15)
|
Cash flow from
operations before changes in working capital
|
86
|
88
|
Adjustments:
|
|
|
Sustaining capital
expenditures – owned assets
|
(4)
|
(1)
|
Finance income –
economic interests(1)
|
(19)
|
(29)
|
FCF - economic
interest(1)
|
45
|
41
|
FCF(2,
3)
|
108
|
99
|
Deduct:
|
|
|
Tax equity
distributions
|
(10)
|
(6)
|
Principal repayments
of amortizing debt
|
(8)
|
(3)
|
CAFD(2)
|
90
|
90
|
Weighted average number
of common shares outstanding in
the period
(millions)
|
267
|
267
|
FCF per
share(2)
|
0.40
|
0.37
|
CAFD per
share(2)
|
0.34
|
0.34
|
(1)
|
Refer to the
Reconciliation of FCF to Finance Income Related to Subsidiaries of
TransAlta below in this earnings release.
|
(2)
|
These items are
non-IFRS measures and have no standardized meaning under IFRS.
Refer to the Additional IFRS Measures and Non-IFRS Measures
sections for further details.
|
(3)
|
In the fourth quarter
of 2021, the adjusted funds from operations was replaced with free
cash flow to better reflect the proxy for cash generated from
operating activities and the composition of the metric has been
changed accordingly. Comparative figures have been reclassified to
conform to the current period's presentation. Please refer to the
Non-IFRS Measures section of this earnings release for discussion
on the composition of free cash flow.
|
Reconciliation of FCF to Finance Income Related to
Subsidiaries of TransAlta
The following table is a
reconciliation of the finance income recognized on those assets we
hold an economic interest in.
3 months ended
March 31,
$
millions
|
2022
|
2021
|
Finance income
related to subsidiaries of TransAlta
|
19
|
29
|
Tax equity
distributions
|
10
|
6
|
Principal repayments of
amortizing debt
|
5
|
—
|
Return of capital and
redemptions
|
18
|
8
|
Effects of changes in
working capital and other timing
|
(7)
|
(2)
|
FCF(1)
|
45
|
41
|
(1)
|
This item is a
non-IFRS measure and has no standardized meaning under IFRS. Refer
to the Additional IFRS Measures and Non-IFRS Measures sections
for further details.
|
Reconciliation of adjusted EBITDA to FCF and
CAFD
|
Owned
Assets
|
Economic
Interests
|
|
3 months ended
March 31, 2022
|
Canadian
Wind
|
Canadian
Hydro
|
Canadian
Gas
|
Corporate
|
US Wind
and Solar
|
US
Gas
|
Australian
Gas
|
Total
|
Adjusted
EBITDA(1)
|
63
|
1
|
20
|
(6)
|
25
|
2
|
34
|
139
|
Provisions and contract
liabilities
|
(1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1)
|
Interest
expense
|
—
|
—
|
—
|
(11)
|
—
|
—
|
(6)
|
(17)
|
Current income tax
expense
|
—
|
—
|
—
|
—
|
(1)
|
—
|
(5)
|
(6)
|
Sustaining capital
expenditures
|
(3)
|
—
|
(1)
|
—
|
(1)
|
—
|
(3)
|
(8)
|
Interest
income
|
—
|
—
|
—
|
1
|
—
|
—
|
—
|
1
|
FCF(2)
|
59
|
1
|
19
|
(16)
|
23
|
2
|
20
|
108
|
Deduct:
|
|
|
|
|
|
|
|
|
Tax equity
distributions
|
—
|
—
|
—
|
—
|
(10)
|
—
|
—
|
(10)
|
Principal repayments
of
amortizing
debt
|
(3)
|
—
|
—
|
—
|
—
|
—
|
(5)
|
(8)
|
CAFD(2)
|
56
|
1
|
19
|
(16)
|
13
|
2
|
15
|
90
|
(1)
|
Adjusted EBITDA is
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to earnings before income taxes
above.
|
(2)
|
FCF and CAFD are
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to cash flow from operating activities
above.
|
|
Owned Assets
|
Economic
Interests
|
|
3 months ended March
31, 2021
|
Canadian
Wind
|
Canadian
Hydro
|
Canadian
Gas
|
Corporate
|
US Wind
and Solar
|
US Gas
|
Australian
Gas
|
Total
|
Adjusted
EBITDA(1)
|
57
|
1
|
21
|
(6)
|
18
|
—
|
32
|
123
|
Provisions
|
(6)
|
—
|
—
|
—
|
—
|
—
|
—
|
(6)
|
Interest
expense
|
—
|
—
|
—
|
(9)
|
—
|
—
|
(6)
|
(15)
|
Current income tax
expense
|
—
|
—
|
—
|
(1)
|
—
|
—
|
(4)
|
(5)
|
Sustaining capital
expenditures
|
(1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1)
|
Currency adjustment and
interest
income
|
|
—
|
—
|
2
|
—
|
—
|
1
|
3
|
FCF(2)
|
50
|
1
|
21
|
(14)
|
18
|
—
|
23
|
99
|
Deduct:
|
|
|
|
|
|
|
|
|
Tax equity
distributions
|
—
|
—
|
—
|
—
|
(6)
|
—
|
—
|
(6)
|
Principal repayments
of
amortizing
debt
|
(3)
|
—
|
—
|
—
|
—
|
—
|
—
|
(3)
|
CAFD(2)
|
47
|
1
|
21
|
(14)
|
12
|
—
|
23
|
90
|
(1)
|
Adjusted EBITDA is
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to earnings before income taxes
above.
|
(2)
|
FCF and CAFD are
defined in the Additional IFRS Measures and Non-IFRS Measures
section and reconciled to cash flow from operating activities
above.
|
A complete copy of TransAlta Renewables' first quarter MD&A
and unaudited financial statements are available through TransAlta
Renewables' website at www.transaltarenewables.com or at SEDAR at
www.sedar.com.
About TransAlta Renewables
Inc.
TransAlta Renewables is among the largest of any publicly
traded renewable independent power producers ("IPP") in
Canada. Our asset platform and
economic interests are diversified in terms of geography,
generation and counterparties and consist of interests in 26 wind
facilities, 13 hydroelectric facilities, eight natural gas
generation facilities, two solar facilities, one natural gas
pipeline, and one battery storage project, representing an
ownership interest of 2,968 megawatts of owned generating capacity,
located in the provinces of British
Columbia, Alberta,
Ontario, Québec, New Brunswick, the States of
Pennsylvania, New Hampshire,
Wyoming, Massachusetts, Michigan, Minnesota, Washington, North
Carolina, and the State of Western
Australia. Our objectives are to (i) provide stable,
consistent returns for investors through the ownership of, and
investment in, highly contracted renewable and natural gas power
generation and other infrastructure assets that provide stable cash
flow primarily through long-term contracts with strong
counterparties; (ii) pursue and capitalize on strategic growth
opportunities in the renewable and natural gas power generation and
other infrastructure sectors; (iii) maintain diversity in terms of
geography, generation and counterparties; and (iv) pay out 80 to 85
per cent of cash available for distribution to the shareholders of
the Company on an annual basis.
Cautionary Statement Regarding
Forward Looking Information
This news release contains forward looking statements,
including statements regarding the business and anticipated
financial performance of the Company that are based on the
Company's current expectations, estimates, projections and
assumptions in light of its experience and its perception of
historical trends. In some cases, forward-looking statements can be
identified by terminology such as "plans", "expects", "proposed",
"will", "anticipates", "develop", "continue", and similar
expressions suggesting future events or future performance. In
particular, this news release contains forward-looking statements,
pertaining to, without limitation, the following: our strategy and
growth plans; ability to provide stable, consistent returns for
investors through the ownership of, and investment in, highly
contracted renewable and natural gas power generation and other
infrastructure assets; the expansion of the Mount Keith
transmission system and the expectation this will facilitate
the connection of additional generating capacity to the network;
the total construction capital of the Mount Keith transmission
project, the timing of commercial operation and the expected annual
EBITDA to be generated from such project; and the remediation of
the Kent Hills wind facility, including the cost and timing of
rehabilitation and that the Company will be able to secure a
commercial agreement with New Brunswick Power Corporation or
holders of the bonds. The forward-looking statements
contained in this news release are based on current expectations,
estimates, projections and assumptions, having regard to the
Corporation's experience and its perception of historical trends,
and includes, but is not limited to, expectations, estimates,
projections and assumptions relating to: impacts of COVID-19 not
becoming significantly more onerous; foreign exchange rates; the
availability and cost of labour, services and infrastructure; and
the satisfaction by third parties of their obligations, including
under power purchase agreements. The forward looking statements are
subject to a number of risks and uncertainties that could cause
actual plans, actions and results to differ materially from current
expectations including, but not limited to: competitive factors in
the renewable power industry; operational breakdowns, failures, or
other disruptions; changes in economic and market conditions;
continued access to debt, tax equity, and capital markets; changes
in tax, environmental, and other laws and regulations; adverse
weather impacts; adverse commercial impacts at the Sarnia cogeneration facility; disruptions to
the Company's supply chain; inability to secure all required
approvals and consents for the Mount Keith expansion project; and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time
to time and as also set forth in the Company's MD&A and Annual
Information Form for the year ended December
31, 2021. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect the Company's
expectations only as of the date of this news release. The purpose
of the financial outlooks contained in this news release are to
give the reader information about management's current expectations
and plans and readers are cautioned that such information may not
be appropriate for other purposes and is given as of the date of
this news release. The Company disclaims any intention or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Note: All financial
figures are in Canadian dollars unless noted otherwise.
|
SOURCE TransAlta Renewables Inc