TransAlta Reports Significant Q4 Loss Amid Strong Renewable Growth
Ottawa, Friday, 21 February 2025.
TransAlta faced a net loss of CAD 65 million in Q4 2024 but reported robust revenue growth due to investments in renewable energy sectors, underscoring future potential.
Financial Performance Overview
TransAlta Corporation (TSX: TA) (NYSE: TAC) reported a Q4 2024 net loss of CAD 65 million, showing an improvement from the CAD 84 million loss in Q4 2023 [1][2]. Despite challenges, the company’s quarterly revenue increased to CAD 678 million, up from CAD 624 million in the same period last year [1]. The basic loss per share from continuing operations was CAD 0.22, compared to CAD 0.27 in Q4 2023 [1].
Operational Highlights and Growth
The company demonstrated strong operational performance with improved availability at 87.8% in Q4 2024, up from 86.9% in Q4 2023 [2]. A significant milestone was reached with the acquisition of Heartland Generation on December 4, 2024, which added 1.7 GW to TransAlta’s gross installed capacity [2]. Total production increased to 6,199 GWh in Q4 2024, representing a 7% improvement from the previous year [2].
Strategic Initiatives and Future Outlook
Looking ahead to 2025, TransAlta has set ambitious targets with projected adjusted EBITDA between CAD 1.15 billion and CAD 1.25 billion [2][3]. The company has announced an 8% increase in dividends, marking its sixth consecutive annual increase, with the next payment scheduled for July 1, 2025 [2]. Management’s confidence is further demonstrated through their free cash flow guidance of CAD 450 million to CAD 550 million for 2025 [2].
Market Conditions and Challenges
The company faced headwinds in 2024, with Alberta spot power prices averaging CAD 63 per MWh, significantly down from CAD 134 per MWh in 2023 [2]. Higher carbon compliance costs also impacted operations, with carbon prices increasing from CAD 65 per tonne in 2023 to CAD 80 per tonne in 2024 [2]. Despite these challenges, TransAlta’s President and CEO John Kousinioris emphasized that the business delivered solid results within the upper range of guidance [2].