Comparable earnings were C$49 million, or C$0.25 per share, for the second quarter of 2008, versus C$42 million, or C$0.20 per share, for the same period in 2007. Improved comparable quarterly results were driven by higher electricity pricing in Alberta and the Pacific Northwest as well as by an increase in energy trading gross margins, the company said.
These gains were partially offset by lower generation gross margins due to the planned outage at the Centralia thermal power plant and by higher unplanned outages at the Alberta thermal power plant. Year-over-year, net earnings were lower primarily due to the lowering of Canadian corporate tax rates and gains from Centralia assets sale in the second quarter of 2007.
For the six months ended June 30, 2008, comparable earnings increased 51% to C$148 million, or C$0.74 per share, versus C$98 million, or C$0.48 per share, in the first half of 2007. Net earnings were C$80 million, or C$0.41 per share, versus C$113 million, or C$0.56 per share, in the first half of 2007. Year-to-date net earnings are lower due to the after-tax equity loss of C$65 million related to the write-down of TransAlta’s Mexico business.
Steve Snyder, president and CEO, said: TransAlta’s second quarter results put us on track to meet our annual objectives and deliver low double digit comparable earnings per share growth for the year. Excellent performance from our energy trading group and higher pricing in our core markets helped to offset the higher than normal outages at our Alberta thermal units. With the completion of the boiler modification at our Centralia thermal Unit-2, our outlook for the remainder of the year remains strong.
