TransAlta Corporation reported Thursday that its net earnings attributable to common shareholders for the year ended December 31, 2019, were $52 million, compared to a loss of $248 million in the prior year.
In a news release, it said Increased earnings were partially driven by the Keephills 3 and Genesee 3 swap with Capital Power Corporation that closed in the fourth quarter of 2019, where it recognized a gain on termination of the coal rights contract of $88 million and a gain on the sale of Genesee 3 of $77 million, in addition to the $56 million PPA Termination Payments received during the third quarter of 2019.
“Excluding the PPA Termination Payments and impairment charges in both years, as well as the gains related to Keephills 3 and Genesee 3 in 2019, we have a net loss of $20 million in 2019 compared to a net loss of $174 million in 2018,” said TransAlta. “Stronger earnings are attributable to stronger performance at Canadian Coal and Energy Marketing, strong Alberta pricing, the Alberta tax rate reduction, lower OM&A costs and lower interest expense, partially offset by other losses on sale of property, plant and equipment.”
It said total sustaining capital expenditures of $141 million were $9 million lower compared to 2018 primarily due to lower planned major maintenance in its coal segments. Total capital expenditures of $150 million, which includes productivity capital expenditures, was in line with its expectations for the year, it said.
“Our performance for the year was very strong from a financial, operational and strategic perspective,” said Dawn Farrell, President and Chief Executive Officer, in a statement. “We successfully navigated key milestones throughout the year and entered into a transformational transaction that benefited all shareholders as we were able to accelerate our strategy and return capital to shareholders. All of the hard work by the TransAlta employees throughout the year has allowed us to progress on our main goal which is to be 100 per cent clean electricity by 2025.”
