This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TransAlta Corporation Q1 2010 Earnings Call Transcript

On this morning’s call, Steve will provide an overview of operating results for the quarter. Brian will provide details on our cash flow, depreciation, capital allocation and balance sheet items. And before going to questions-and-answers, Steve will provide commentary and what investors can expect for the balance of 2010 and the recent Memorandum of Understating that were signed between TransAlta and the State of Washington.

With that, let me turn the call over to Steve.

Steve Snyder

Good morning. Our first quarter results reflect the strong operational improvements we have made across our fleet. Our first quarter 2010 comparable earning per share were up $0.31, it’s a significant improvement over the $0.18 achieved a year ago. We also achieved a net earnings of $0.31 per share, compared to $0.21 per share in quarter one of the 2009, again a significant improvement. These gains have been driven primarily by our base operations. There were fewer planned outages in the quarter and substantially fewer unplanned outages.

As a result, for the quarter, we achieved fleet availability of 91.4% compared to 86.4% a year ago. Solid fleet availability was realized with each of our plans individually achieving at or above the targets we presented at Investor Day, last November. On the market side, continued poor market conditions and poor wind resources in January and February did not provide opportunities for us to translate our operating performance into even better earnings.

While some pricing impacts were mitigated through our disciplined contracting strategy, electricity prices remained extremely soft in the quarter. In Alberta, spot prices during the quarter averaged only $41 per megawatt hour, compared to $63 a year ago. This was driven mainly by low natural gas prices, as well as higher availability from our own coal fleet over last year. Pacific Northwest prices also remained soft, although slightly above last year. Average spot prices in the region settled around US$42 per megawatt compared to US$35 last year.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TAC $5.48 0.00%
AAPL $111.60 0.00%
FB $94.26 0.00%
GOOG $646.67 0.00%
TSLA $215.58 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs