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Be the first with the news that moves the market- TransAlta (TSX:TA) has released their latest COVID-19 operations update
- The company has implemented a host of measures, including work from home protocols
- Currently all TransAlta facilities are operational
- TransAlta is confident it can pay a dividend from internally generated cash
- TransAlta (TA) is trading up 0.8 per cent at C$7.54 per share and has a market cap of $2 billion
TransAlta Corporation (TSX:TA) has announced it is still operating as usual despite the global shutdowns brought on by COVID-19.
TransAlta has declared that all its facilities remain fully operational and capable of meeting demand.
Site restrictions have been made mandatory to all non-essential personnel and the company is implementing social distancing protocols at all production sites.
TransAlta is also implementing health screenings at sites, enhancing cleaning schedules and reorganising procedures to limit the number of interactions employees have with each other.
The company has also announced it is confident in it’s ability to pay both preferred and common dividends with internally generated cash
The company has been busy with its share buy-back scheme during the first quarter of this year.
President and CEO, Dawn Farrell, said the company was operating in a “challenging time.”
“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,” she said.
Dawn will look to the strong balance sheet and large cash liquidity as the crutch to lean on during the crisis, with the company having some C$1.7 billion in liquidity to draw on.
They will need it, as TransAlta’s share price has taken a hammering over the past 40 days.
The company crested the wave of early quarter optimism at the end of February with a share price pushing $12 per share.
Halfway through March it was half that, trading closer to $5 per share.
Energy stocks in particular have been hit hard by COVID-19 and oil market volatility in general.
TransAlta Corporation (TA) is up 0.8 per cent to $7.54 per share at 9:47 am EST.
