TransAlta Renewables Inc.
TSX : RNW

TransAlta Renewables Inc.

February 12, 2015 18:25 ET

TransAlta Renewables Reports Fourth Quarter and Full Year 2014 Results

CALGARY, ALBERTA--(Marketwired - Feb. 12, 2015) - TransAlta Renewables Inc. (the "Company") (TSX:RNW) today reported fourth quarter Comparable EBITDA(2) of $57.2 million and full year Comparable EBITDA of $176.3 million. Comparable Net Earnings for the fourth quarter were $21.9 million, or $0.19 per share, and $48.9 million, or $0.43 per share for the full year. Today, the Company also declared monthly dividends of $0.06416 per share for holders of record on March 2, 2015, April 1, 2015 and May 1, 2015 payable on each of March 31, 2015, April 30, 2015 and May 29, 2015, respectively.

"TransAlta Renewables delivered strong performance in the fourth quarter to round out a successful first full year of operations," said Brett Gellner, President of the Company. "Having a diversified set of assets allowed us to offset below-average wind and hydro resources in Western Canada with above-average wind resources in Eastern Canada and the U.S. On the growth front, our sponsor, TransAlta Corporation has communicated its strategy to pursue asset sales to the Company, which will facilitate continued growth at TransAlta Renewables. We also continue to evaluate potential opportunities from third parties as part of our growth strategy."

Comparable EBITDA and FFO decreased in 2014 compared to 2013, primarily due to the $21.2 million impact of lower prices under the TransAlta PPAs compared to previous merchant prices in Western Canada, in line with the terms of the contracts established as part of the IPO in August 2013. Excluding the effects of the contracts established under the IPO, comparable EBITDA and FFO increased $13.4 million and $8.4 million, respectively. This increase is primarily due to our economic interest in the Wyoming Wind Farm and a full year of production at New Richmond.

Historically, financial statements have not been prepared by TransAlta for the assets of the Company, as they had not been operated as a separate business by TransAlta. Accordingly, the financial statements for periods prior to the initial public offering ("IPO") on August 9, 2013, reflect the financial statements for the assets in a manner consistent with how TransAlta managed the assets and as though the assets had been a separate Corporation. Therefore, historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the Company and TransAlta Corporation that took effect upon closing of the Company's IPO, including the entering into of firm priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the Company's assets were held directly or indirectly by TransAlta. More details in regards to the basis of preparation can be found in Note 1 of our 2014 audited consolidated financial statements.

  1. Includes production from our economic interest in the Wyoming Wind Farm.
  1. Comparable EBITDA refers to Earnings before interest, taxes, depreciation and amortization and adjusted for certain other items. Cash available for distribution represents the amount the cash generated from operations by our business, before changes in working capital and after sustaining and productivity capital, distributions to non-controlling interest and scheduled principal repayments of debts. Comparable EBITDA, funds from operations, cash available for distribution, comparable earnings, comparable earnings per share, funds from operations per share and cash available for distribution per share are not defined under IFRS. Presenting these measures from period to period provides supplemental information to help management and shareholders evaluate earnings' and cash flow trends in comparison with prior periods' results. Refer to the Non-IFRS Measures section of the Management's Discussion and Analysis ("MD&A") for further discussion of these items.

Summary Results

Q4 2014 compared to Q4 2013

  • Comparable EBITDA of $57.2 million up from $53.4 million for the same period last year
  • Funds from operations of $48.3 million up from $45.1 million for the same period last year
  • Production(1) of 1,015 GWh, up from 866 GWh for the same period last year

Full year 2014 compared to full year 2013

  • Comparable EBITDA of $176.3 million down from $184.1 million last year
  • Funds from operations of $141.2 million down from $154.0 million last year
  • Production(1) of 3,351 GWh, up from 2,909 GWh last year

The following table depicts key financial results and statistical operating data:

Fourth Quarter and Year Ended Dec. 31 2014 Highlights

In $CAD thousands, unless otherwise stated 3 months
Ended
December 31,
2014
3 months
Ended
December 31,
2013
Year
Ended
December 31,
2014
Year
Ended
December 31,
2013
Production (GWh)(1) 1,015 866 3,351 2,909
Revenue 72,870 69,949 233,444 245,341
Net earnings attributable to common shareholders 21,665 15,535 48,658 50,258
Comparable EBITDA(2) 57,200 53,425 176,300 184,094
Funds from operations(2) 48,320 45,067 141,180 153,957
Cash flow from operating activities 45,073 37,698 143,383 161,836
Cash available for distribution(2) 43,832 40,979 89,734 142,495
Comparable earnings(2) 21,917 17,129 48,910 54,599
Net earnings per share attributable to common shareholders, basic and diluted 0.19 0.13 0.42 0.44
Comparable earnings per share(2) 0.19 0.15 0.43 0.48
Funds from operations per share(2) 0.42 0.39 1.23 1.34
Cash available for distribution per share(2) 0.38 0.36 0.78 1.24
Dividends paid per common share 0.19 0.18 0.77 0.23

TransAlta Renewables is in the process of filing its Annual Information Form, Audited Consolidated Financial Statements and accompanying notes, as well as the MD&A. These documents will be available today through TransAlta Renewables' website at www.transaltarenewables.com or through SEDAR at www.sedar.com.

About TransAlta Renewables Inc.

TransAlta Renewables owns 29 wind and hydroelectric power generation facilities, including our economic interest in Wyoming Wind, having an aggregate installed generating capacity of 1,376 MW, in which it holds a net ownership interest of approximately 1,255 MW. TransAlta Renewables' power generating capacity is among the largest of any publicly-traded renewable independent power producer ("IPP") in Canada, with more wind power generating capacity than any other Canadian publicly-traded IPP. TransAlta Renewables objectives are to (i) create stable, consistent returns for investors through the ownership of contracted renewable and, potentially, natural gas power generation and other infrastructure assets that provide stable cash flow through long-term contracts with creditworthy counterparties, including TransAlta; (ii) pursue and capitalize on strategic growth opportunities in the renewable and, potentially, natural gas power generation and other infrastructure sectors; and (iii) pay out a portion of cash available for distribution to the shareholders of TransAlta Renewables on a monthly basis.

Cautionary Statement Regarding Forward Looking Information

This news release may contain forward looking statements, including statements regarding the business and anticipated financial performance of the Company. These forward-looking statements are not historical facts but reflect the Company's current expectations concerning future plans, actions and results. These 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, the ability to successfully obtain regulatory approvals; changes in tax, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruptions; changes in economic and market conditions; 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 2015 Annual Information Form for the year ended Dec. 31, 2014. 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 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.

Contact Information

  • Investor inquiries:
    Brent Ward
    Director, Corporate Finance and Investor Relations
    1-800-387-3598 in Canada and U.S.
    investor_relations@transalta.com

    Media inquiries:
    Leanne Yohemas
    Senior Advisor, External Communications
    Cell: 587-437-3660
    Toll-free media number: 1-855-255-9184
    Alternate local number: 403-267-2540

    Jacqueline O'Driscoll
    Manager, Investor Relations
    1-800-387-3598 in Canada and U.S.
    investor_relations@transalta.com