TransAlta reports fourth quarter and full year 2021 results

Fourth Quarter 2021 Financial Highlights

Adjusted EBITDA(1),(2) of $270 million, an increase of 15 per cent over the same period in 2020

Free Cash Flow (“FCF”)(1) of $106 million, or $0.39 per share, an increase of 105 per cent on a per-share basis from the same period in 2020

Loss before income taxes of $32 million, an improvement of $136 million from the same period in 2020

Cash flow from operating activities of $54 million, a decrease of 51 per cent from the same period in 2020

Full Year 2021 Financial Highlights

Adjusted EBITDA(1),(2) of $1.263 billion, an increase of 36 per cent from the same period in 2020

FCF(1) of $562 million, or $2.07 per share, an increase of 59 per cent on a per-share basis from the same period in 2020

Loss before income taxes of $380 million, an increase of $77 million from the same period in 2020

Cash flow from operating activities of $1.0 billion, an increase of 43 per cent from the same period in 2020

Other Business and ESG Highlights

Announced 600 MW of renewables growth projects, securing 30 per cent of our 5-year 2 GW growth target

Achieved full phase-out of coal in Canada, with completed coal-to-gas conversions at Sundance Unit 6 and Keephills Units 2 and 3, and ceased mining activities at the Highvale mine

Reduced annual carbon emissions by 3.9 million tonnes, a 24 per cent reduction compared to 2020

Acquired a fully contracted 122 MW portfolio of solar assets in North Carolina

Achieved commercial operations at the 206 MW Windrise wind facility

Joined the Powering Past Coal Alliance, a global organization of governmental and private sector organizations working to take action on reducing greenhouse gas emissions from coal-fired electricity generation and accelerating the energy transition

Enhanced and accelerated our near term GHG emissions target to a 75 per cent reduction over 2015 levels

Reduced our operational waste by 55 per cent compared to 2020 levels

Reduced our SO2 and NOx emissions by 42 per cent and 29 per cent, respectively, compared to 2020 levels

Increased our common share dividend by 11 per cent to an annualized dividend of 20 cents per share

TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) today reported its financial results for the fourth quarter and full year ended Dec. 31, 2021.

“2021 was a record year for TransAlta. We achieved outstanding financial results, with exceptional performance from our Alberta Hydro and Gas fleets, as well as our Energy Marketing business. On the growth front, we secured 600 MW of renewables growth projects, a great first year for our Clean Electricity Growth Plan, with growth in each of our core geographies. We also reached an important milestone with the completion of the final coal-to-gas conversion, and are now fully off coal in Canada, “said John Kousinioris, President and Chief Executive Officer.