) struck a deal with Brookfield Renewable Energy Partners to sell
its Tapoco Hydroelectric Project. Alcoa expects to receive $600
million from the sale, which is expected to close by the end of
The 351-megawatt Tapoco Hydroelectric project is located on the
Little Tennessee and Cheoah Rivers in eastern Tennessee and western
North Carolina. It is operated by the wholly owned subsidiary of
Alcoa, known as Alcoa Power Generating Inc. The deal includes four
generating stations and dams along the Little Tennessee and Cheoah
rivers, 86 miles of transmission line and 14,500 acres of land.
J.P. Morgan is the advisor for Alcoa in the transaction.
Brookfield Renewable Energy Partners operates renewable power
platforms globally. Its portfolio is primarily hydroelectric, with
about 5,000 megawatts of installed capacity.
Pennsylvania-based Alcoa Inc. is among the world's leading
producers of primary and fabricated aluminum and alumina. The
company is engaged in mining, refining, smelting, fabricating and
recycling of aluminum.
Few months back, Alcoa released its first-quarter 2012 results.
The company reported earnings of 9 cents per share in the quarter,
down drastically from earnings of 27 cents in the first quarter of
2011. Excluding restructuring charges and other items, Alcoa's
profit came in at 10 cents per share, beating the Zacks Consensus
Estimate of a loss of 4 cents, but missing the year-ago profit of
28 cents. The impressive results were attributable to higher
production and volumes, and improved market conditions.
Quarterly revenues inched up 0.3% sequentially to $6,006 million
and edged up 0.8% over the prior-year quarter. It surpassed the
Zacks Consensus Estimate of $5,735 million. The increase in
revenues was driven by strong results in the company's Global
Rolled Products and Engineered Products and Solutions
Alcoa competes with
Aluminum Corporation of China Limited
). Currently, the stock maintains a Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis
RIO TINTO-ADR (RIO): Free Stock Analysis Report
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