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.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.