TransAlta Corp. (NYSE:TAC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 11:00 am ET


TransAlta Corp. (NYSE:TAC) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to TransAlta Corporation Third Quarter 2019 Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Chiara Valentini, Manager, Investor Relations. Thank you. Please go ahead.

Chiara Valentini

Thank you, Chantal. Good morning, everyone, and welcome to TransAlta's third quarter 2019 conference call. With me today are Dawn Farrell, President and Chief Executive Officer; Todd Stack, Chief Financial Officer; John Kousinioris, Chief Operating Officer; and Brett Gellner, Chief Development Officer.

Today's call is webcast, and I invite those listening on the phone lines to view the supporting slides that are currently available on our website. A replay of the call will be available later today and the transcript will be posted to our website shortly thereafter.

As usual, all of the information provided during this conference call is subject to the forward-looking statements qualification set out here on Slide two. Detailed in our MD&A and also incorporated in full for the purposes of today's call. All amounts referenced during the call are in Canadian currency unless otherwise noted. Non-IFRS terminology used, including comparable EBITDA, funds from operations and free cash flow are also reconciled in the MD&A for your reference.

On today's call, John and Todd will review the quarterly and year-to-date results and expectations for the remainder of the year. In addition, we'll provide commentary on our recent announcements and how these advance our clean energy investment plan and growth strategy that we outlined at our Investor Day back in September. After these prepared remarks, we will open the call for questions.

And with that, let me turn the call over to Dawn.

Dawn Farrell

Okay. Thanks, Chiara and welcome everyone to the call today. We're pretty excited to be here announcing our third quarter results. We did have a strong third quarter and we're pleased with the results across results across all of our businesses. And, of course, strengthen in the third quarter has given us strong performance year-to-date and it's increased our expectations for annual performance. Now, overall, our operational and financial performance is tracking to deliver a strong year, our clean energy investment plan and growth strategy is on track and through the quarter, we had key milestones, which I think has been very impressive in terms of what the team has done.

And finally, we successfully concluded the final leg of our Sundance PPA arbitration and collected an additional one-time payment of CAD56 million from the balancing pool, which is great news, because that has added to our cash flow for the year.

So I'm going to just start with a couple of overall comments on our financial performance and, of course, Todd will get into more of the detail. We earned a total of CAD305 million of comparable EBITDA in the quarter due to strong performance at our Canadian and US coal businesses, our energy-marketing segment -- from the efforts and the work that's been done across the Company to reduce