TransAlta sees 2023 adjusted EBITDA $1.20B-$1.32B

TransAlta announced its financial outlook for 2023. Sees 2023 Free Cash Flow of $560M-$660M or FCF per share of $2.07-$2.44, sustaining capital $140M-$170M, expects continued delivery of Clean Electricity Growth Plan by reaching final investment decision on 500 MW of additional clean energy projects across Alberta, the U.S. and Australia to deliver $75M-$100M of incremental adjusted EBITDA. To date, the company has announced 800 MW of projects for a total cost of $1.5B toward its 2 GW Clean Electricity Growth Plan. These projects are expected to deliver $147M of annualized adjusted EBITDA. With the current inflationary environment, expects costs on future projects to be higher based on increases to expected pricing of equipment and construction labor. Sees continuing demand for renewable energy and expects PPA prices to respond to absorb these higher costs across the industry. As a result, forecasts that expected returns on projects will remain intact. Accordingly, resets capital investment target to $3.6B with an increased incremental EBITDA target of $315M.