User:Amgine/Reboot/TransAlta Renewables shares climb

12 Jan 2022

TransAlta Renewables, after losing nearly 10% of its share value after informing investors of repairs it plans to make at its idled Kent Hills, New Brunswick, wind turbine farm, has seen a sharp recovery in early Wednesday trading.

Tuesday's shareholder information release explained that deficiencies in the foundation design resulted in cracks developing in the turbines requiring extensive repairs including replacing all 50 foundations. While the farm is idled the company loses up to $USD 3.6 million daily, on top of the costs involved in the refurbishment.

The news triggered a sell-off of the stock, but early trading indicates market re-evaluation of the company considers it at a bargain price, and trading volume appears brisk.

In October, 2021, a turbine collapse investigation discovered cracks and determined the cause. Despite healthy dividends announced in July, TransAlta lowered its financial expectations for the year that same month.

TransAlta is among the largest independent power producers in Canada, with facilities in Canada, the United States, and Australia with ownership interest in 2,633 megawatts generating capacity.