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CALGARY - On Friday, TransAlta (TSX:TA) Corporation (NYSE:TAC) reported second quarter adjusted earnings of C$0.18 per share, doubling analyst expectations of C$0.09, despite revenue falling short at C$433 million compared to the C$666.97 million consensus estimate.
The Canadian power generation company delivered strong operational performance with 91.6% availability in the quarter, up from 90.8% in the same period last year. Adjusted EBITDA rose to C$349 million, a 10.4% increase from C$316 million in the second quarter of 2024, while free cash flow remained steady at C$177 million (C$0.60 per share).
"Our strong second quarter results illustrate the value of our diversified fleet and exceptional operational performance," said John Kousinioris, President and Chief Executive Officer. "Our Alberta portfolio’s hedging strategy and active asset optimization continued to generate realized prices well above spot prices while environmental credits generated by our hydro and wind assets significantly offset our gas fleet’s carbon price compliance obligation."
The company reported a net loss attributable to common shareholders of C$112 million (C$0.38 per share), compared to net earnings of C$56 million (C$0.18 per share) in the same quarter last year.
TransAlta continues to advance its strategic priorities, including progress on its Alberta data centre strategy. The company expects Demand Transmission Service contracts to be executed in mid-September, securing access to system capacity. Additionally, negotiations are progressing toward converting the Centralia facility, with plans to execute a definitive agreement later this year for the full capacity of Centralia Unit 2.
During the quarter, TransAlta successfully recontracted its Melancthon 1, Melancthon 2, and Wolfe Island wind facilities through the Ontario Independent (LON:IOG) Electricity System Operator, extending contracts until April 2031 for Melancthon 1 and April 2034 for the other facilities.
The company reaffirmed its 2025 outlook despite what it described as "a challenging Alberta price environment."
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