Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TRANSALTA CORP. We currently have 5 research reports from 1 professional analysts.
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Reports 2Q16 Results
10 Aug 16
The Company reported a solid quarter with comparable EBITDA of $248 mm, beating both FCC’s estimate of $235 mm and the Street at $233 mm. TransAlta’s funding situation was also improved over the quarter with a $159 mm bond issue and credit facility extensions. The construction of the South Hedland (Australia) power project continues to advance, with the bulk of all major equipment having arrived at site. We have increased our 12-MTP to $5.75/share and maintain a Market Perform ranking.
REPORTS 2Q16 RESULTS
09 Aug 16
The Company reported a solid quarter with comparable EBITDA of $248 mm, beating both FCC's estimate of $235 mm and the Street at $233 mm. Every segment's comparable EBITDA outperformed y/y, and total EBITDA is up 36%. Power generation on the quarter was 7,899 GWh, below our estimate of 10,773 GWh. Funds from operations were $175 mm, in line with our estimate of $176 mm and up $15 mm from 2Q15. Despite the Company realizing lower prices from its coal facilities, performance was augmented by contracting and price hedges in place. To counter low power prices in Alberta, TransAlta has focused on cost reduction initiatives and benefited from contributions from renewable assets acquired last year.
Reports 1Q16 Results
04 May 16
The Company reported a stronger quarter with comparable EBITDA of $279 mm, beating both FCC’s estimate of $271 mm and the Street at $268 mm. Quarterly earnings benefited from TransAlta’s cost reducing initiatives and EBITDA increased due to renewable assets acquired in 2015. The 150 MW South Hedland project in Western Australia continues to advance, with most of the major equipment having arrived on site. Management commented that it remains confident it will achieve its guidance for FY2016 of FFO from $755-$835 mm (FCC $783 mm) and FCF of $250-$300 mm (FCC $299 mm). The quarter’s results had a minimal impact on our valuation; our DCF-NAV is near unchanged at $5.18/share. We have retained our Market Perform ranking and our 12-month target price of $5.25/share.
1Q16 CONFERENCE CALL UPDATE
04 May 16
Our biggest concern about any company is whether it understands its situation; how it deals with that situation will largely be determined by its previous decisions, and by input from its shareholders and other capital providers. In our view, in difficult situations, companies should respond by providing more clarity and detail to the market. TransAlta appears to understand the situation it is in, and is removing what difficulties it can (such as cutting the dividend), and is detailing the steps it intends to make in the future, so we view this as a positive update.
SIGNS AGREEMENT TO MANAGE WATER AT GHOST RESERVOIR, AB
27 Apr 16
Management believes that the agreement is structured so that TransAlta will break-even, despite times of low water flow and decreased power generation. The TransAlta facility at Ghost reservoir is a 54 MW hydro plant that has been in service since 1929. We expect that the Company can reasonably predict lost revenues from managing water levels at this location from its historic operating experience and knowledge gained during the 2014 and 2015 pilot programs. With that being said, there is always risk when betting on nature, TransAlta will benefit from normal and predictable water flows with limited power generation interruption.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
06 Dec 16
Acal’s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M) continues to grow as a proportion of total revenues and profits and management has raised its targets for this part of the business. The company continues to consider further acquisitions, recently increasing its debt facility to support its growth strategy. The outlook for FY17 is unchanged – based on H117 order inflow, H217 is expected to be stronger and we leave our earnings forecasts substantially unchanged.