TransAlta leads Canadian power stocks in Q2 gains

Canadian power stocks demonstrated mixed performance in the second quarter of 2022.

Gains

TransAlta Corp. registered the biggest quarter-over-quarter increase among S&P Global Market Intelligence-covered Canadian power companies, posting 13.5% growth in its share price.

Capital Power Corp. also closed the three-month period in the green, increasing its share price to 10.6% with a market capitalization of C$5.24 billion.

Capital Power said in late June that it is moving forward with plans to add a carbon capture and sequestration project at its Genesee power plant in Alberta. The project, estimated to cost C$1.6 billion, would capture 3 million tonnes of carbon dioxide annually.

Boralex Inc. also outpaced the majority of its peers, with a 5.8% share price increase to C$42.88 as of June 30.

During the quarter, Boralex wrapped the sale of a 30% minority stake in its French renewable assets to Swiss investment manager Energy Infrastructure Partners AG. The company received cash proceeds of €532 million from the deal.

Losses

Just Energy Group Inc.'s stock price plunged 67.3% to 37 Canadian cents during the second quarter.

The energy retailer and its affiliates sought bankruptcy protection in March 2021 after a rare arctic blast in Texas left Just Energy owing more than US$250 million for power purchases. In May, Just Energy entered into support agreements that could help it emerge from bankruptcy.

Shares in Innergex Renewable Energy Inc., whose CFO Jean-François Neault stepped down in April, dropped 13% in the quarter.

Algonquin Power & Utilities Corp. logged a quarter-over-quarter decrease of 10.8% to C$17.30 per share, with a market capitalization of C$11.69 billion.

Algonquin executives said in May that they plan to pursue strategic growth opportunities on the renewables side of the business, and its US$2.85 billion deal for American Electric Power Co. Inc.'s Kentucky assets is expected to close by Aug. 31. Earlier this year, the company completed the US$608 million acquisition of New York American Water Co. from American Water Works Co. Inc.

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