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Be the first with the news that moves the market- TransAlta Renewables (TSX:RNW) has reported a C$2 million bump in its first quarter EBITDA, compared to 2019’s same quarter
- This was mainly due to a strong performance from its US wind and solar energy assets
- Despite the strong performance in certain sectors, overall net profits decreased by $73 million when compared to 2019’s same quarter
- The loss was caused by a weak Australian dollar, certain underperforming wind assets and costs associated with dividends and shares
- TransAlta Renewables (RNW) is up 1.98 per cent, with shares trading for $15.42 and a market cap of $4.1 billion
TransAlta Renewables (TSX:RNW) has seen an increase in its first quarter earnings but has also reported a decrease in net profits.
The company posted a C$2 million bump in its first quarter EBITDA compared to 2019’s same quarter. This was mainly due to a strong performance from its US wind and solar energy assets.
The strong performance was also due to the company’s new Big Level and Antrim wind farms, which commenced energy production late last year.
However, gains in US wind power were partially offset by a weaker performance from the company’s Canada-based wind farms. This was due to low winds in the region and lower government incentives.
Despite the strong performance in certain sectors, overall net profits decreased by $73 million. The drop in profits was mainly caused by three factors.
Firstly, a weakened Australian dollar resulted in a $13 million exchange loss.
Secondly, a $10 million revenue hit from the previously mentioned underperforming wind assets.
Finally, an $18 million reduction in financing, due to a reduction in dividends and higher returns of capital on certain preferred shares.
John Kousinioris, President of TransAlta Renewables, is happy with the performance of the new wind assets and hopes to grow the company further through its parent company, TransAlta Corporation.
“Results for the quarter were strong and we are proud to now be generating renewable power for our customers at Big Level and Antrim.
“With respect to growth, we continue to advance conversations with TransAlta Corporation regarding the drop-down of renewable and gas assets into the company,” he said.
TransAlta Renewables (RNW) is up 1.98 per cent, with shares trading for $15.42 at 12:18pm EDT.
