TransAlta Corporation (TAC) Bundle
A Brief History of TransAlta Corporation (TAC)
Founding and Early Years
Founding and Early Years
TransAlta Corporation was founded in 1909 as the "Calgary Power Company." Its initial focus was on generating electricity from hydroelectric power sources in Alberta. In 1956, the company transitioned to the name “TransAlta Utilities Corporation” and expanded its operations into thermal generation.
Major Developments in the 20th Century
Throughout the 1970s, TransAlta expanded significantly, acquiring several assets in Alberta and British Columbia. In 1992, TransAlta was publicly traded on the Toronto Stock Exchange under the ticker symbol TAC.
Financial Milestones
In 2000, TransAlta's revenue was approximately $2.5 billion, with a net income of $373 million. The company reported a total asset value of $8.6 billion that year.
| Year | Revenue (in billions) | Net Income (in millions) | Total Assets (in billions) |
|---|---|---|---|
| 2000 | 2.5 | 373 | 8.6 |
| 2010 | 2.0 | 150 | 10.1 |
| 2020 | 2.5 | 350 | 10.9 |
| 2022 | 3.0 | 400 | 11.5 |
Transition to Renewables
In 2010, TransAlta began diversifying its energy portfolio, investing significantly in renewable energy sources. By 2022, approximately 40% of its power generation capacity came from renewable sources, including wind, hydro, and solar energy.
Recent Financial Performance
For the fiscal year 2022, TransAlta reported a revenue of $3.0 billion, with a net income of $400 million. The total assets at the end of 2022 reached $11.5 billion.
Sustainability and Future Goals
TransAlta has committed to achieving net-zero greenhouse gas emissions by 2050. In 2021, it allocated $1.2 billion towards clean energy initiatives and technological advancements.
Current Operations
- Over 7,000 MW of generation capacity
- Presence in 5 Canadian provinces and 1 US state
- Investment in 15 renewable energy projects
Dividends and Stock Performance
As of Q4 2022, the dividend was $0.44 per share, with a dividend yield of approximately 3.6% based on its stock price at the time.
Conclusion of Recent Developments
TransAlta's focus on sustainable energy alongside its robust financial performance has positioned it well within the energy sector. The company's proactive approach to reducing emissions aligns with global energy trends.
A Who Owns TransAlta Corporation (TAC)
Ownership Structure
Ownership Structure
TransAlta Corporation (TAC) is a publicly traded company, with its shares primarily held by institutional investors and retail shareholders. As of the latest available data in October 2023, the ownership distribution is as follows:
| Ownership Type | Percentage Ownership |
|---|---|
| Institutional Investors | 75% |
| Retail Investors | 20% |
| Insider Ownership | 5% |
Major Institutional Shareholders
Below is a list of the top institutional shareholders of TransAlta Corporation as of October 2023:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| Vanguard Group | 10.5% | 11,000,000 |
| BlackRock | 9.9% | 10,500,000 |
| CPPIB (Canada Pension Plan Investment Board) | 8.1% | 8,500,000 |
| Ontario Teachers' Pension Plan | 7.4% | 7,800,000 |
| RBC Global Asset Management | 6.3% | 6,600,000 |
Key Insider Ownership
Insider ownership also plays a role in the governance of TransAlta Corporation. Notable insiders and their ownership status are listed below:
| Name | Position | Shares Owned |
|---|---|---|
| John S. Ketchum | President & CEO | 150,000 |
| Wendy J. Kinsella | Chair of the Board | 80,000 |
| David M. Kirschenbaum | Chief Financial Officer | 50,000 |
Recent Stock Performance
The stock performance of TransAlta Corporation is another important factor in understanding ownership dynamics. As of October 2023, the following financial metrics are relevant:
| Metric | Value |
|---|---|
| Current Share Price | $14.75 |
| Market Capitalization | $4.5 billion |
| 52-Week High | $16.20 |
| 52-Week Low | $12.45 |
| Dividend Yield | 4.2% |
Recent Shareholder Meetings
TransAlta Corporation holds annual general meetings that provide insights into shareholder participation and ownership discussions. The following are details from the most recent meeting:
| Year | Attendance Percentage | Votes Cast |
|---|---|---|
| 2023 | 78% | 22 million |
Future Ownership Trends
Ownership patterns can change over time. Analysts predict potential trends based on current market conditions and investor interests:
- Increase in institutional investment with an expected rise to 80% by 2025.
- Potential for retail ownership to decrease as institutional investors consolidate.
- Enhanced shareholder engagement strategies by management to boost insider ownership.
TransAlta Corporation (TAC) Mission Statement
Overview of the Mission Statement
The mission statement of TransAlta Corporation emphasizes the company’s commitment to providing reliable, affordable, and clean energy solutions. It focuses on sustainability, operational excellence, and the importance of community engagement.
Core Values
- Integrity: Upholding honesty and transparency in all operations.
- Respect: Valuing people and the environment.
- Innovation: Championing continuous improvement and technological advancement.
- Sustainability: Committing to environmentally responsible operations.
Financial Performance and Data
TransAlta has shown a steady financial performance over the years, with revenue figures reflecting its operational effectiveness.
| Financial Metric | 2022 | 2021 | 2020 |
|---|---|---|---|
| Revenue (in CAD million) | 2,773 | 2,516 | 2,228 |
| Net Income (in CAD million) | 579 | 515 | 389 |
| Adjusted EBITDA (in CAD million) | 1,184 | 1,076 | 960 |
| Total Assets (in CAD million) | 9,269 | 8,837 | 8,433 |
| Total Equity (in CAD million) | 4,762 | 4,568 | 4,457 |
Operational Highlights
TransAlta operates multiple energy facilities across North America and Australia, with a diverse portfolio including renewable energy sources.
| Operational Metric | 2022 | 2021 | 2020 |
|---|---|---|---|
| Installed Capacity (MW) | 7,800 | 7,400 | 7,200 |
| Renewable Energy Percentage | 63% | 59% | 55% |
| Coal Generation Percentage | 18% | 20% | 22% |
| Gas Generation Percentage | 19% | 21% | 23% |
Commitment to Sustainability
TransAlta’s mission statement reflects a focus on sustainability and governance across its operations.
- Carbon Emissions Reduction: Targeting a 30% reduction by 2025 from 2015 levels.
- Investment in Renewables: Committed CAD 400 million towards renewable projects from 2022 to 2024.
- Community Engagement: Engaging with over 50 local municipalities for feedback and collaboration on energy projects.
Strategic Goals
The company aims to achieve several strategic objectives aligned with its mission statement.
- Enhance Operational Efficiency: 10% improvement targeted in operational metrics by 2025.
- Expand Renewable Portfolio: Increase capacity by 1,500 MW in the next five years.
- Strengthen Financial Position: Aim for a debt-to-equity ratio under 1.5 by the end of 2023.
Stakeholder Engagement
TransAlta prioritizes effective communication and engagement with stakeholders, including investors, employees, and the communities it serves.
| Stakeholder Group | Engagement Method | Frequency |
|---|---|---|
| Investors | Quarterly Reports and Earnings Calls | Quarterly |
| Employees | Surveys and Feedback Sessions | Annually |
| Local Communities | Public Meetings and Workshops | Biannually |
How TransAlta Corporation (TAC) Works
Overview of TransAlta Corporation
Overview of TransAlta Corporation
TransAlta Corporation (TAC) is a publicly traded power generation and energy marketing company based in Canada, operating over 8,000 megawatts of capacity across various energy sources.
Business Segments
- Power Generation
- Energy Marketing
- Energy Storage
- Renewables
Power Generation
TransAlta generates electricity using a mix of resources, including coal, natural gas, hydro, wind, and solar. As of 2022, the company produced approximately 27.4 TWh of electricity.
Financial Performance
| Year | Revenue (CAD Millions) | Net Income (CAD Millions) | EBITDA (CAD Millions) | Total Assets (CAD Millions) |
|---|---|---|---|---|
| 2021 | 2,061 | 144 | 543 | 10,130 |
| 2022 | 2,168 | 175 | 585 | 10,463 |
| 2023 | 2,500 (Projected) | 200 (Projected) | 650 (Projected) | 10,800 (Projected) |
Operational Capacity
As of October 2023, TransAlta's operational capacity consists of:
| Type of Generation | Capacity (MW) | Percentage of Total |
|---|---|---|
| Coal | 2,494 | 31% |
| Natural Gas | 4,228 | 53% |
| Hydro | 689 | 9% |
| Wind | 911 | 11% |
| Solar | 10 | 0.1% |
Renewable Energy Initiatives
TransAlta is committed to expanding its renewable energy portfolio. As of 2023, the company has invested over CAD 1.7 billion in renewable projects since 2015.
Market Presence
TransAlta operates primarily in Canada and the United States, with a growing presence in Australia. The company serves over 1 million customers across various sectors.
Environmental Commitment
TransAlta has set a target to reduce its greenhouse gas emissions by 75% by 2025, relative to its 2015 baseline.
Stock Performance
As of October 2023, TransAlta Corporation's stock is trading at approximately CAD 13.50, with a market capitalization of CAD 4.2 billion.
Conclusion
TransAlta continues to focus on sustainable growth, diversifying its energy portfolio and investing in technological advancements to meet the evolving energy needs of its customers.
How TransAlta Corporation (TAC) Makes Money
Electricity Generation
TransAlta Corporation generates revenue primarily through the production and sale of electricity. As of 2022, the company's total electricity generation capacity was approximately 7,300 MW, with a diverse portfolio that includes coal, natural gas, hydro, and renewable energy sources.
Revenue by Segment
| Segment | Revenue in 2022 (CAD millions) |
|---|---|
| Gas | 1,025 |
| Coal | 640 |
| Renewables | 200 |
| Hydro | 350 |
| Total | 2,215 |
Power Purchase Agreements (PPAs)
TransAlta enters into long-term Power Purchase Agreements (PPAs) to stabilize its revenue streams. As of 2022, approximately 65% of its power generation was sold under PPAs, ensuring predictable cash flows.
Market Exposure and Pricing
The company sells electricity in both regulated and deregulated markets. In 2022, the average market price for electricity in the Alberta market was about $50.00 per MWh, which influences revenue significantly.
Environmental Attributes and Credits
TransAlta also generates revenue from environmental attributes, such as Renewable Energy Certificates (RECs) and carbon credits. In 2021, the company reported revenue from environmental attributes of approximately $30 million.
Financial Performance
| Metric | 2022 Amount (CAD millions) |
|---|---|
| Total Revenue | 2,215 |
| Net Income | 247 |
| Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) | 1,150 |
| Cash Flow from Operations | 650 |
Operational Efficiency
TransAlta focuses on improving operational efficiency to increase profitability. As of 2022, its operating efficiency rate stood at approximately 90%, demonstrating effective management of resources.
Expansion and Investment Strategies
The company continues to invest in renewable energy projects. In 2022, TransAlta invested approximately $300 million in renewable projects, including solar and wind energy, to diversify its revenue sources further.
Dividend Policy
TransAlta maintains a dividend payout policy, providing returns to its shareholders. In 2022, the annual dividend was $0.36 per share, signaling a commitment to shareholder value.
TransAlta Corporation (TAC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support