CALGARY, Dec. 17, 2019 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC)
announced today that it has increased Free Cash Flow ("FCF")
guidance to $350 million to $380
million from the prior range of $300
million to $340
million. This expected increase to FCF is
primarily attributable to the continued strong performance of the
Energy Marketing segment into the fourth quarter. The gross
margin for our Energy Marketing segment is now forecasted to be at
the top end of the range of $100
million to $120 million that
had been disclosed by the Company in its third quarter Management's
Discussion & Analysis, and is significantly above the trailing
3-year comparable gross margin average of approximately
$71 million. This revision to
FCF guidance is also supported by continued solid operational and
financial performance of the generation business segments.
The Company continues to track within the $875 million to $975
million guidance range of Comparable EBITDA for the
year-ended December 31,
2019.
The factors and assumptions which contribute to TransAlta's
assessment of the free cash flow and Comparable EBITDA ranges are
consistent with existing Company disclosures, and such guidance
ranges are subject to the risks and uncertainties inherent in the
Company's business. Readers are directed to the Forward Looking
Statements and Non-GAAP Measures disclaimer below and the "Risk
Factors" section in the Management's Discussion & Analysis and
the Annual Information Form for the year ended December 31, 2018 for a description of such
factors, assumptions, risks and uncertainties.
About TransAlta:
TransAlta owns, operates
and develops a diverse fleet of electrical power generation assets
in Canada, the United States and Australia with a focus on long-term
shareholder value. TransAlta provides municipalities, medium and
large industries, businesses and utility customers with clean,
affordable, energy efficient and reliable power. Today, TransAlta
is one of Canada's largest
producers of wind power and Alberta's largest producer of hydroelectric
power. For over 100 years, TransAlta has been a responsible
operator and a proud community-member where its employees work and
live. TransAlta aligns its corporate goals with the UN Sustainable
Development Goals and has been recognized by CDP (formerly Climate
Disclosure Project) as an industry leader on Climate Change
Management. TransAlta is proud to have achieved the Silver level
PAR (Progressive Aboriginal Relations) designation by the Canadian
Council for Aboriginal Business.
For more information about TransAlta, visit its web site
at transalta.com.
Forward Looking Statements and Non-GAAP
measures:
This news release contains forward looking
statements within the meaning of applicable securities
laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "propose", "plans", "intends" and similar expressions are
intended to identify forward looking information or statements.
More particularly, and without limitation, this news release
contains forward looking statements and information relating
to expected year-end free cash flow, Comparable EBITDA,
gross margin expected from the Energy Marketing segment and the
annual expected run-rate of Energy Marketing. These forward
looking statements are based on a number of assumptions considered
by the Company to be reasonable as of the date of this news
release, including, but not limited to, the following: the
Alberta and Mid-C spot pricing and
operational performance and availability remaining consistent
through the remainder of 2019. The forward looking
statements are subject to a number of risks and uncertainties that
may cause actual performance, events or results to differ
materially from those contemplated by the forward looking
statements, which include: unplanned outages; lower than
expected energy spot pricing in Alberta and Mid-C; economic and
competitive conditions, including unusual levels of trading
volatility; changes in law, exchange rates or interest rates; and
other risk factors contained in the Company's Management
Proxy Circular dated March 26, 2019
and its Annual Information Form and Management's Discussion and
Analysis for the year ended December 31,
2018, filed under the Company's profile with the Canadian
securities regulators on www.sedar.com and the U.S. Securities and
Exchange Commission on www.sec.gov. 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 undertakes no obligation to update or revise
any forward looking information except as required by law. For
additional information on the assumptions made, and the risks and
uncertainties which could cause actual results to differ from those
in the forward looking information, refer to the Company's Annual
Report and Management's Discussion and Analysis filed under the
Company's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov.
The Company evaluates its performance and the performance of
its business segments using a variety of measures. Certain of the
financial measures discussed in this press release, include gross
margin, Comparable EBITDA and free cash flow, which are not
defined under International Financial Reporting Standards (IFRS)
and, therefore, should not be considered in isolation or as an
alternative to IFRS measures when assessing the financial
performance or liquidity of the Company. These non-IFRS measures
have no standardized meaning under IFRS, may not be comparable to
similar measures presented by other issuers and should not be
considered in isolation or as a substitute for measures prepared in
accordance with IFRS. Non-IFRS measures are presented to provide
management and investors with a proxy for the amount of cash
generated from operating and trading activities. Please refer to
the Company's MD&A, which is available on the Company's website
or under the Company's profile on www.sedar.com for further
discussion of these items, including, where applicable,
reconciliations to measures calculated in accordance with
IFRS.
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SOURCE TransAlta Corporation