CALGARY, April 7, 2020 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) wishes to
inform all its stakeholders of the measures that have been
implemented to ensure the safety of its employees and to ensure
that its facilities remain fully operational to meet the essential
power demands of our customers.
"The health and safety of our employees, contractors and
communities is paramount during this challenging time prompted by
the COVID-19 pandemic," said Dawn
Farrell, President and Chief Executive Officer of the
Company. "Our focus remains on generating essential electricity
across Canada, the United States and Australia to support our customers' needs,
including the needs of other essential service providers.
Financially, we are in a solid position and have strong visibility
to cash flow throughout 2020 due to our contracts and hedges. I
want to thank all our employees and their families for adapting
quickly during this unprecedented time and ensuring our services
continue without interruption."
Safety, health and wellness of employees are a top
priority
- As early as March 6, employees
who could work remotely from home have been doing so. TransAlta
formally implemented its business continuity plan on March 9 which focused on ensuring employees
operating and maintaining our facilities, who are not able to work
remotely, continue to remain healthy. This plan includes health
screening, enhanced cleaning arrangements, travel bans, revised
schedules, contingent work teams and the reorganization of
processes and procedures to limit contact with other employees and
contractors on-site.
- The Company continuously monitors government-recommended health
measures to safeguard the health and well-being of its employees
and adjusts its continuity plan as needed for the continued
delivery of essential services to customers and communities.
Focus on Continued Operations
- Currently, all of our facilities remain fully operational and
capable of meeting our customers' needs. We are monitoring
recommendations by the public health authorities related to
COVID-19 in all our operating regions and are adjusting operational
requirements as required. Considering the importance of social
distancing and other recommended health practices, we have modified
our operating procedures and implemented restrictions to
non-essential access to our facilities to support continued
operations through the pandemic.
Strong Financial Position and Liquidity Levels
- TransAlta continues to be in a strong financial position with
no near-term liquidity issues. At the end of the first quarter, the
Company had $1.7 billion of
liquidity, including approximately $330
million in cash. The Company is also scheduled to receive
the $400 million second tranche of
the Brookfield investment in the
fourth quarter. We continue to have access to additional capital
through potential project financing of existing assets that are
currently unlevered.
- The Company has sufficient existing liquidity available to meet
the upcoming debt maturity which is due November 2020. The next major debt repayment is
scheduled for November 2022.
- The Company has approximately 50 per cent of its baseload
merchant generation in Alberta
hedged in the $52/MWh range for the
remainder of 2020.
- TransAlta remains confident in its ability to fund both the
preferred and common dividends with internally generated cash. The
Company was active under its share buyback program during the first
quarter prior to entering our blackout period which began on
April 1. We will continue to monitor
the financial markets and assess the timing of further repurchases,
subject to blackout periods.
- The Company continues to work with and serve all our customers
and counterparties under the terms of their contracts. We have not
experienced interruptions to service requirements. Electricity and
steam supply continue to remain a critical service requirement to
all our customers and has been deemed an essential service in our
jurisdictions.
- Our highly diversified asset portfolio, by both fuel type and
operating region, provide stability in our cash flows and highlight
the strength of our long-term contracted asset base.
Strategic Execution on Track
- The impacts from the COVID-19 pandemic and resulting slowdown
in the Alberta economy have not
altered the Company's strategy. We remain focused on our natural
gas conversion strategy in the province and continue to progress on
our growth initiatives.
- At this time, the Company continues to progress each of its
construction projects currently underway and further updates in
respect to the construction timelines will be provided as more
information becomes available.
We continue to assess the financial impacts resulting from the
COVID-19 pandemic and the current and future outlook on global oil
prices. There continues to be significant uncertainty due to
the COVID-19 pandemic and we will continue to closely monitor
developments and will provide updates if material changes to the
Company's business, operations or capital are reasonably likely to
arise.
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.
Cautionary Statement Regarding Forward Looking
Information
This News Release includes "forward-looking information",
within the meaning of applicable Canadian securities laws, and
"forward-looking statements", within the meaning of applicable
United States securities laws,
including the United States Private Securities Litigation Reform
Act of 1995 (collectively referred to herein as "forward-looking
statements"). All forward-looking statements are based on our
beliefs as well as assumptions based on information available at
the time the assumption was made and on management's experience and
perception of historical trends, current conditions, results and
expected future developments, as well as other factors deemed
appropriate in the circumstances. Forward-looking statements are
not facts, but only predictions and generally can be identified by
the use of statements that include phrases such as "will",
"expect", "intend", "plan", "potential", "enable", "continue" or
other comparable terminology. These statements are not guarantees
of our future performance, events or results and are subject to a
number of significant risks, uncertainties and other important
factors that could cause our actual performance, events or results
to be materially different from that set out in the forward-looking
statements. In particular, this News Release contains
forward-looking statements including, but not limited
to, statements relating to: our facilities remaining fully
operational; our operating procedures; the continued delivery of
essential services to customers and communities; the Company's
future financial position and near-term liquidity; the closing of
the $400 million second tranche of
the Brookfield investment in the
fourth quarter; sufficient existing liquidity to meet the debt
maturity due November 2020; ability
to fund dividends with internally generated cash; stability in cash
flows and strength of our long-term contracted asset base; the
impacts from the COVID-19 pandemic and resulting slowdown in the
Alberta economy not altering the
Company's strategy; the natural gas conversion strategy and our
growth initiatives; and no material delays in our construction
projects currently underway. The material factors and
assumptions used in the preparation of the forward-looking
statements contained herein, which may prove to be incorrect,
include, but are not limited to, the scope of the COVID-19 pandemic
and duration thereof; the market conditions and the other
assumptions set forth herein and in our Annual Information Form and
Management's Discussion and Analysis for the year end dated
December 31, 2019, 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. By their nature, forward-looking statements are not
guarantees of future performance, events, results or actions and
are subject to a number of significant risks, uncertainties,
assumptions and factors that could cause our actual plans,
performance, results or outcomes to differ materially from the
forward-looking statement. Factors that may adversely impact what
is expressed or implied by forward-looking statements contained in
this News Release include, but are not limited to, risks relating
to: a significant expansion in COVID-19 restricting or prohibiting
the operation of the Company's facilities or significantly
impacting the Company's supply chain; the duration and extent of
the relatively low global oil prices, and its impact on the
Province of Alberta; the forecasted electricity load in the
Province of Alberta being lower
than expected resulting in potentially lower power prices
within the Province; the global market and economic conditions and
fluctuations in commodity prices; risk relating to general market
conditions and the ability to raise capital on economic terms;
risks relating to attracting and retaining highly skilled
employees; ability to retain key personnel; the potential for and
effects of labour disputes or other unanticipated difficulties with
or shortages of labour or interruptions in production; the inherent
uncertainty of construction projects, including potential for
unexpected costs or delays; risk relating to litigation and
regulatory developments; and other risk factors contained in
the Company's Annual Information Form and Management's
Discussion and Analysis for the year end dated December 31, 2019. Readers are urged to
consider these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on them,
which reflect the Company's expectations only as of the date
hereof. Forward-looking statements do not take into account
the effect that transactions or non-recurring or other special
items announced or occurring after the statements are made may have
on the Company's business. For example, they do not include the
effect of business dispositions, acquisitions, other business
transactions, asset write-downs, asset impairment losses, or other
charges announced or occurring after forward-looking statements are
made. The forward-looking statements included in this News Release
are made only as of the date hereof and we do not undertake to
publicly update these forward-looking statements to reflect new
information, future events or otherwise, except as required by
applicable laws. In light of these risks, uncertainties and
assumptions, the forward-looking statements might occur to a
different extent or at a different time than we have described or
might not occur at all.
View original
content:http://www.prnewswire.com/news-releases/transalta-provides-update-on-covid-19-implemented-measures-301036410.html
SOURCE TransAlta Corporation