Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

TransAlta cuts quarterly dividend to 18 cents per share, reports Q4 loss

CALGARY - Shares of TransAlta Corp. (TSX:TA) fell in heavy trading Thursday after the company cut its quarterly dividend and reported a loss in the fourth quarter.

The stock closed down $1.09 or about seven per cent at $13.73 on the Toronto Stock Exchange as more than 7.5 million shares swapped hands, making it the most actively traded company for the day.

The power producer said it would now pay a quarterly dividend of 18 cents per share, down from its earlier payment to shareholders of 29 cents per share.

TransAlta also announced the sale of its 50 per cent stake in CE Generation, Blackrock development and Wailuku to its partner MidAmerican Renewables for US$193.5 million.

TransAlta president and chief executive Dawn Farrell said the company's growth strategy is unchanged but its ability to execute the plan will be enhanced by the asset sale and dividend reduction.

"An attractive, sustainable dividend continues to be an important part of our approach to delivering value to shareholders. In addition, a strong investment grade balance sheet is critical for enhancing our ability to compete for growth opportunities," Farrell said.

TransAlta reported a fourth-quarter loss Thursday of C$66 million or 25 cents per share compared with a profit of $39 million or 15 cents per share in the last quarter of 2012.

Revenue for the three month period slipped to $587 million from $646 million in the year-earlier quarter.

The company said its comparable earnings before interest, taxes, depreciation and amortization including finance lease income and adjusted for certain other items fell to $242 million for the quarter compared with $312 million a year ago.

In its outlook for 2014, TransAlta said it expects comparable EBITDA to be in the range of $1.015 billion and $1.065 billion based on its outlook for power prices in Alberta and the Pacific Northwest.

Free cash flow is expected to be in the range of $293 million to $343 million, or $1.07 and $1.26 per share, based on sustaining capital expenditures of approximately $350 million.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates