Wed, May 4, 12:40 PM
- TransAlta (TAC -3.5%) is downgraded by two analysts despite reporting better than expected Q1 results.
- RBC Capital analyst Robert Kwan cut his rating to Underperform from Sector Perform, noting that while TAC shares have climbed 33% YTD, the 30-day running average for Alberta power prices has dipped below $14/MWh from $21/MWh at the end of 2015.
- Kwan also is concerned that Alberta’s new political climate will see the NDP government procure new gas and renewable energy capacity, which could depress spot prices further.
- TD Securities also downgrades TAC, to Hold from Buy, citing recent share price appreciation despite some deterioration in Alberta and Pacific Northwest power fundamentals and continued uncertainty in government discussions around compensation and power market design.
Tue, May 3, 8:31 AM
Fri, Apr. 22, 5:56 AM
Thu, Feb. 18, 5:45 PM
- TransAlta (NYSE:TAC) says future investment in Alberta is “on hold,” as CEO Dawn Farrell expressed frustration during today's earnings conference call that the provincial government has not chosen a negotiator for the phase-out of coal-fired power.
- Among Alberta Premier Notley’s climate change policies, coal-fired power plants would be forced to shut down or be emissions-free by 2030, and coal power companies are seeking compensation for the early closure of their facilities.
- TAC is evaluating the construction of new hydroelectric, wind, solar and natural gas co-generation facilities in Alberta, but the CEO says it will not sanction any projects until the details of the climate change plan are clarified and it has worked out a deal on its coal assets with the province.
- Ernst & Young analyst Gerard McInnis says working out the climate policy details and a deal with affected utility companies is urgent because “uncertainty and capital markets don’t go well together.”
- Earlier: TransAlta misses by $0.12, misses on revenue
Thu, Feb. 18, 7:56 AM
Wed, Feb. 17, 6:33 AM
- TransAlta (NYSE:TAC) declares quarterly dividend of C$0.04/share, resulting in an annual yield of 3.22%
- The dividend is payable on Apr. 1 to shareholders on the record of Mar. 1.
- Prior: TransAlta slashes dividend to save money for shift away from coal
Fri, Jan. 15, 10:17 AM
- TransAlta (TAC -10.9%) cuts its quarterly dividend to $0.04/share from $0.18 to save money as it transitions toward gas and renewable power generation and away from coal.
- TAC says the move represents a 15%-20% payout of comparable free cash flow based on 2016 guidance and will save $150M on an annualized basis.
- TAC says it does not expect to raise equity this year, as the reduced dividend will "strengthen its balance sheet," and it plans to raise debt to fund $400M of obligations maturing in 2017.
- TAC, which owns more than 70 power plants in Canada, the U.S. and Australia, says it will negotiate with Alberta's government to ensure it has the certainty and capacity to invest in clean power.
- BMO Capital downgrades shares to Market Perform from Outperform.
Tue, Jan. 5, 5:41 PM
Dec. 8, 2015, 5:37 PM
Nov. 24, 2015, 11:30 AM
- Analysts are betting that renewable energy developers such as Enbridge (ENB +1.2%) and TransCanada (TRP +1.9%) will be among the best placed to make the shift to Alberta's new carbon policies, Bloomberg reports.
- As the government boosts the province’s share of renewable electricity to 30% from 9% by 2030, "renewable power contracts are going to go to the bidder that needs the least amount of government support, developers with most financial flexibility and overall lowest cost of capital” such as ENB and TRP, says National Bank Financial's Patrick Kenny.
- The two companies already are among Canada’s largest renewable power operators: ENB owns 2,065 MW of wind power across Canada, enough to power 650K homes, while TRP operates wind, hydro and nuclear plants as part of its 11.8K MW of power generation.
- TransAlta (TAC -2%) surged 9.5% yesterday as investors felt Alberta's new policy avoided the worst-case fastest potential phase-out of coal plants.
- Earlier: TransAlta +12% on Alberta climate change plan (Nov. 23)
Nov. 24, 2015, 8:42 AM
- Alberta’s provincially owned investment management company said late yesterday it bought $200M worth of shares in TransAlta Renewables from parent company TransAlta (NYSE:TAC).
- TAC will continue to be the largest investor in the renewables company, and plans to use the proceeds from the sale to pay down its debt; AIMCo becomes the second-largest investor in TransAlta Renewables, with 8% of its shares.
Nov. 23, 2015, 11:57 AM
- TransAlta (TAC +12.2%) soars following the Alberta government's announced plan to phase out of coal generation and accelerate wind and solar power construction, which would give the renewable energy producer an edge over competitors.
- TAC already was planning to phase out most of its coal generation by 2030, while competitor Capital Power’s (OTC:CPXWF) coal fleet was expected to operate beyond then.
- The accelerated phase out that will affect six coal-power plants in Alberta will result in C$12B of foregone revenue to plant owners, including V$1B for TAC and C$2B for Capital Power, but producers are expected to be compensated for the phase out, "an important counterbalance," according to one analyst.
- TAC is upgraded to Sector Perform from Underperform with a $7 price target, up from $6, at RBC, which remains concerned about the decommissioning of coal plants, lower long-term power prices, and a dividend cut.
Oct. 30, 2015, 9:18 AM
- TransAlta (NYSE:TAC): Q3 EPS of -$0.12 misses by $0.16.
- Revenue of $641M (+0.3% Y/Y) misses by $14.25M.
Oct. 29, 2015, 6:08 PM
- TransAlta (NYSE:TAC) declares C$0.18/share quarterly dividend, in line with previous.
- Forward yield 11.68%
- Payable Jan. 1; for shareholders of record Dec. 1; ex-div Nov. 27.
Oct. 21, 2015, 3:55 PM
- TransAlta (TAC +0.4%) has held talks with more than one potential suitor in the past several months and was near a sale to a group of buyers last week before the deal fell through, Bloomberg reports.
- TAC, which owns more than 70 power plants in Canada, the U.S. and Australia, has seen its stock plunge 44% since the end of April amid price-fixing charges, rising carbon costs and C$4.2B of debt.
Oct. 1, 2015, 12:49 PM
- TransAlta (TAC +3.6%) agrees to pay a $56M settlement for inflating electricity bills in Alberta.
- Alberta's utilities regulator found in July that TAC had manipulated prices by shutting down six coal-fired generators during periods of peak electricity demand in 2010, and again in 2011.
- The province's Market Surveillance Administrator said TAC's profit during the shutdowns was $16M and that consumers paid 10%-60% more for their power.
TransAlta Corp. is a wholesale power generator and marketer. It focuses on generating electricity in Canada, the United States and Australia through diversified portfolio of facilities fuelled by coal, natural gas, hydroelectric, wind and geothermal resources. The company operates through three... More
Industry: Electric Utilities
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