Q4 2024 TransAlta Corp Earnings Call Transcript
Key Points
- TransAlta Corp (TAC) delivered strong financial and operational performance in 2024, achieving adjusted EBITDA of $1.25 billion and free cash flow of $569 million, both at the upper range of guidance.
- The company successfully integrated the Heartland acquisition, adding 1.75 gigawatts of complementary assets to its Alberta portfolio, enhancing its competitive position.
- TransAlta Corp (TAC) completed several growth projects, including the Horizon Hill and White Rock wind facilities, contributing over $175 million in adjusted EBITDA annually.
- The company returned $214 million to shareholders through dividends and share repurchases, and announced an 8% increase in its common share dividend.
- TransAlta Corp (TAC) continues to reduce CO2 emissions, achieving a 70% reduction in Scope 1 and 2 greenhouse gas emissions since 2015, with plans to cease coal-fired generation by the end of 2025.
- The Alberta spot power prices declined significantly in 2024, impacting revenue from the hydro and gas segments.
- Corporate costs increased year over year due to higher spending on strategic and growth initiatives.
- The regulatory review process for the Heartland acquisition was lengthy, resulting in the divestment of certain facilities and a purchase price reduction.
- Free cash flow in the fourth quarter was lower due to higher sustaining capital expenditures and increased spending on growth opportunities.
- The company anticipates higher OM&A expenses in 2025 due to the full-year impact of the Heartland acquisition and ongoing growth initiatives.
Good morning. My name is Tawanda, and I will be your conference operator today. At this time, I would like to welcome everyone to TransAlta Corporation fourth-quarter and full-year 2024 results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there would be a question-and-answer session. (Operator Instructions) Thank you.
Ms. Paris, you may begin your conference.
Thank you, Towanda. Good morning, everyone. My name is Stephanie Paris, and I am the Vice President of Investor Relations and Corporate Strategy of TransAlta. Welcome to TransAlta's fourth-quarter and full-year 2024 conference call.
With me today are John Kousinioris, President and Chief Executive Officer; Joel Hunter, EVP-Finance and Chief Financial Officer; and Blain Van Melle, EVP-Commercial and Customer Relations.
Today's call is being webcast, and I invite those listening on the phone lines to view the supporting
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