Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield Renewable
Partners”, “
BEP”) today reported
financial results for the three and six months ended June 30,
2024.
“We had another strong quarter, building on our
momentum to start to the year with operating results and growth
initiatives that position us to deliver our target 10%+ FFO per
unit growth target for 2024. We were successful deploying
significant capital into opportunities that further enhance the
market-leading reach and scale of our business. Our investments
focused on adding leading platforms in attractive markets with
scale operating businesses and development pipelines that
complement our current operations and further diversify our cash
flows,” said Connor Teskey, CEO of Brookfield Renewable.
“Renewables are not simply a decarbonization solution, they are a
growth enabler. They are the lowest cost source of bulk power, and
as more renewables come online, it makes more low-cost electricity
available to businesses, which facilitates even greater demand –
all while decarbonizing global electricity grids. With this
backdrop, we remain focused on leveraging our access to scale
capital and global team to continue growing our capabilities and
delivering differentiated solutions to our partners.”
|
|
For the three months endedJune
30 |
For
the six months
endedJune 30 |
US$ millions (except per unit amounts), unaudited |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income (loss) attributable to Unitholders |
$ |
(154 |
) |
$ |
(39 |
) |
$ |
(274 |
) |
$ |
(71 |
) |
– per LP unit(1) |
|
(0.28 |
) |
|
(0.10 |
) |
|
(0.51 |
) |
|
(0.20 |
) |
Funds From Operations (FFO)(2) |
|
339 |
|
|
312 |
|
|
635 |
|
|
587 |
|
– per Unit(2)(3) |
|
0.51 |
|
|
0.48 |
|
|
0.96 |
|
|
0.91 |
|
Brookfield Renewable reported FFO of $339
million in the quarter, representing a 9% increase compared to the
prior year, or $0.51 per unit. Our strong results reflect growth
from M&A and organic development, as well as the benefits of
our increasingly diverse operating fleet. After deducting non-cash
depreciation and other expenses including marking-to-market on
certain hedging instruments, our Net loss attributable to
Unitholders for the three months ended June 30, 2024 was
$154 million.
Key highlights:
- Deployed,
or committed to deploy $8.6 billion of capital ($970 million net to
Brookfield Renewable) across multiple investments globally.
- Advanced
commercial priorities securing contracts to deliver an incremental
2,700-gigawatt hours per year of generation, of which ~90% of
development was contracted with corporate customers, building on
the success of our recently announced partnership with Microsoft to
deliver over 10,500 megawatts of renewable capacity between 2026
and 2030.
-
Commissioned ~1,400 megawatts of new renewable energy capacity in
the quarter and continue to expect to bring on ~7,000 megawatts
this year.
- Executed
asset sales generating over $400 million in proceeds (~$250 million
net to Brookfield Renewable) or two times our invested capital, and
advanced initiatives that are expected to generate approximately $3
billion of total proceeds ($1.3 billion net to Brookfield
Renewable) this year.
- Strong
balance sheet with $4.4 billion of available liquidity providing
significant flexibility to continue investing in growth and
development.
Growing Where the Demand is
During the quarter, we successfully invested in
businesses with established operating portfolios and development
pipelines in attractive markets, where demand for clean power is
growing. Further, our growth activities this quarter enabled us to
expand into some new high value renewables markets, where broader
Brookfield has been a prominent and successful investor for
years.
Along with our institutional partners we signed
an agreement to acquire ~53% of the outstanding shares of
publicly-listed Neoen. Neoen is a leading global renewable platform
with best-in class management and market leading positions in each
of France, Australia and the Nordics. The company has 8,000
megawatts of highly contracted operating or under construction
assets, and a 20,000-megawatt advanced stage pipeline with
completed technical studies, and land and interconnection already
secured.
Neoen’s three core markets represent some of the
fastest growing markets for renewables, with strong corporate
demand and high barriers to entry. The addition of Neoen to our
portfolio immediately makes us a top player in each of these very
attractive markets, where we can supplement Neoen’s local
capabilities with our commercial, procurement and operating
expertise. With our combined capabilities and access to capital, we
intend to support the company, with a view to increasing Neoen’s
development activities, to meet increasing demand for renewable
energy.
In addition, the transaction will enable us to
enhance on our ability to serve the needs of the largest corporate
customers globally. In particular the mega-cap technology players
have increasingly large requirements given their growing investment
in data center development to support cloud and AI technologies. We
are continuing to differentiate ourselves with our large operating
fleet and expansive development pipeline, which now stands at over
230,000 megawatts, of which approximately 65,000 megawatts has
advanced stage land, interconnection and permitting status in core
renewable markets. This large, advanced pipeline and our
credibility in delivering projects continues to enhance our
position as the partner of choice for the largest buyers of clean
power.
After regulatory approvals, which are expected
in the fourth quarter of this year, we will launch a tender offer
for the remaining shares of Neoen. Our offer to acquire 100% of the
outstanding shares of the company is for $6.7 billion ($540 million
net to Brookfield Renewable).
Along with our institutional partners, we
acquired Leap Green, a leading wind focused commercial and
industrial renewable business in India with ~500 megawatts of
operating capacity and an almost 3,000-megawatt development
pipeline for ~$200 million (~$40 million net by Brookfield
Renewable). We began investing in the Indian market in 2017 and now
operate one of the largest renewable energy businesses in the
country, with over 3,000 megawatts of operating assets and a
~20,000-megawatt development pipeline.
We made our first investment in South Korea, a
very attractive market for renewables with strong policy objectives
and corporate demand for clean power that is outpacing supply. With
our institutional partners we acquired the operating and
development platform of Hanmaeum Energy, a full-service platform
with 340 megawatts of operating and near construction distributed
generation capacity and over 4,000 megawatts of development
projects and identified acquisition opportunities for up to ~$500
million of upfront and follow-on growth capital (~$100 million net
to Brookfield Renewable).
South Korea is home to many high-quality
power-intensive corporates with decarbonization objectives and has
government mandated renewable portfolio requirements for energy
companies, creating a strong market for renewable energy credits
and capital recycling. And while this market is new for our
renewables business, the broader Brookfield has been a long-time
successful investor in the country.
Delivering Competitive Energy Solutions
Over the past two decades, solar and wind have
gone from a negligible source of global electricity production to
over thirteen percent of total supply and have also become the most
cost competitive sources of power globally. New build solar and
wind now cost less than running existing fossil fuel plants in most
markets.
We are seeing a similar scenario play out with
batteries, where costs have declined 85% in the past decade and 60%
in the past six years. Batteries are benefiting from economies of
scale with the growth of the electric vehicle market, from
incremental demand for capacity and grid stabilizing services, and
by enabling increased penetration of low-cost renewables by
providing a power solution for customers when the sun is not
shining, or the wind is not blowing. As a result, the cost curve
for batteries is now declining at a steeper pace than traditional
renewables.
With lower capital costs, higher potential
revenues and increasing demand for this type of solution from
customers, we are focused on deploying capital into battery energy
storage solutions in select markets. This quarter, we were awarded
twenty-year capacity contracts for 400 megawatts of battery storage
from the grid operator in Ontario through a joint venture with our
First Nations partner. The projects have attractive risk-adjusted
return profiles given the long-dated fixed revenue stream and
high-quality offtaker. It should also be noted that Neoen (soon to
be us) participated in the same Ontario auction, winning an equal
amount of these attractive contracts.
We also began construction on 220 megawatts of
battery storage capacity in Texas, targeting commissioning in the
second half of 2025 and strong returns. With these development
projects and the closing of our Neoen acquisition, we will be one
of the largest battery developers globally with 2,300 megawatts of
operating and under construction capacity.
Including our pumped storage assets, which are
benefitting from the same demand drivers as batteries, we will have
5,000 megawatts of operating and under construction storage
capacity. Alongside our hydro assets which have significant
reservoir capacity, these assets are increasingly critical to
enabling the deployment of low-cost 24-7 renewable power solutions
that meet customers’ needs and represent a significant competitive
advantage for our business.
Operating Results
We generated FFO of $339 million million this
quarter, up 9% from the prior year, or $0.51 per unit, benefiting
from asset development, recent acquisitions, and strong all-in
pricing. We continue to diversify our business and enhance the
durability of our cash flows and expect to achieve our 10%+ FFO per
unit growth target for the year.
Our hydroelectric segment delivered FFO of $136
million, benefiting from strong all-in pricing, particularly in
North America, and solid generation in Brazil.
Our wind and solar segments generated a combined
$194 million of FFO, driven by recent additions in North America,
Europe and India. The segment benefited from organic growth and
M&A with an additional 7,200 megawatts of net operating
capacity compared to the prior year.
Our distributed energy, storage, and sustainable
solutions segments generated a combined $86 million of FFO in the
quarter as we continue to grow this segment through M&A and
organic development. Westinghouse, our nuclear services business,
continues to perform well, and the outlook is getting stronger. We
are seeing long-term upside in the business expectations from when
we acquired the business driven primarily by an improved outlook
for the nuclear fuel business and new plant deployment as the only
baseload carbon-free power at scale that exists with current proven
technologies. As new nuclear generation is increasingly viewed as
part of the solution to growing electricity demands, both for
corporate customers, including technology players, and centralized
utilities, we are exceedingly well-positioned to benefit, given
Westinghouse’s global leadership position and leading technology
offering.
We continued to grow and advance our development
pipeline which now stands at 200,000 megawatts with 65,000
megawatts at the advanced stage. We expect to commission
approximately 7,000 megawatts of new capacity this year, which when
completed will add approximately $90 million of annual incremental
FFO. We are scaling up our development activities and expect to
grow our annual commissioning capacity to approximately 10,000
megawatts per annum over the next several years.
Balance Sheet & Liquidity
Our balance sheet is very strong and we have
$4.4 billion of available liquidity providing us the flexibility to
deploy scale capital in the current environment where we are seeing
a significant volume of opportunities to invest at attractive risk
adjusted returns.
During the quarter we took advantage of
tightening spreads by executing $1.7 billion of project level
financings. We continue to execute on opportunities to refinance
project level debt extending maturities in what is a constructive
market for investment grade financings.
In July, we opportunistically issued C$300
million of 10-year notes and C$100 million of 30-year notes at
interest rates of approximately 4.9% and 5.4%, respectively. The
issuances extended our average corporate debt maturity profile
beyond 12 years at an attractive cost of capital.
We continue to see opportunities to monetize
de-risked operating assets at attractive returns. In the quarter,
we executed on asset sales generating over $400 million in proceeds
(~$250 million net to Brookfield Renewable) and two times our
invested capital.
We are well positioned to continue to rotate
capital in this market, with both a large pipeline of development
projects that we are de-risking and bringing into operation, as
well as an expansive global portfolio of operating assets which we
have acquired, de-risked, or developed over the years.
We have been advancing several additional sales
processes at very attractive returns and expect to generate
approximately $3 billion ($1.3 billion net to Brookfield Renewable)
in proceeds this year from recycling, our highest year ever.
Distribution Declaration
The next quarterly distribution in the amount of
$0.355 per LP unit, is payable on September 27, 2024 to
unitholders of record as at the close of business on
August 30, 2024. In conjunction with the Partnership’s
distribution declaration, the Board of Directors of BEPC has
declared an equivalent quarterly dividend of $0.3550 per share,
also payable on September 27, 2024 to shareholders of record
as at the close of business on August 30, 2024. Brookfield
Renewable targets a sustainable distribution with increases
targeted on average at 5% to 9% annually.
The quarterly dividends on BEP's preferred
shares and preferred LP units have also been declared.
Distribution Currency
Option
The quarterly distributions payable on the BEP
units and BEPC shares are declared in U.S. dollars. Unitholders who
are residents in the United States will receive payment in U.S.
dollars and unitholders who are residents in Canada will receive
the Canadian dollar equivalent unless they request otherwise. The
Canadian dollar equivalent of the quarterly distribution will be
based on the Bank of Canada daily average exchange rate on the
record date or, if the record date falls on a weekend or holiday,
on the Bank of Canada daily average exchange rate of the preceding
business day.
Registered unitholders who are residents in
Canada who wish to receive a U.S. dollar distribution and
registered unitholders who are residents in the United States
wishing to receive the Canadian dollar distribution equivalent
should contact Brookfield Renewable’s transfer agent, Computershare
Trust Company of Canada, in writing at 100 University Avenue, 8th
Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253.
Beneficial unitholders (i.e., those holding their units in street
name with their brokerage) should contact the broker with whom
their units are held.
Distribution Reinvestment
Plan
Brookfield Renewable Partners maintains a
Distribution Reinvestment Plan (“DRIP”) which allows holders of BEP
units who are residents in Canada to acquire additional LP units by
reinvesting all or a portion of their cash distributions without
paying commissions. Information on the DRIP, including details on
how to enroll, is available on our website at
www.bep.brookfield.com/stock-and-distribution/distributions/drip.
Additional information on Brookfield Renewable’s
distributions and preferred share dividends can be found on our
website at www.bep.brookfield.com.
Brookfield Renewable
Brookfield Renewable operates one of the world’s
largest publicly traded platforms for renewable power and
sustainable solutions. Our renewable power portfolio consists of
hydroelectric, wind, utility-scale solar and storage facilities in
North America, South America, Europe and Asia. Our operating
capacity totals over 34,000 megawatts and our development pipeline
stands at approximately 200,000 megawatts. Our portfolio of
sustainable solutions assets includes our investments in
Westinghouse (a leading global nuclear services business) and a
utility and independent power producer with operations in the
Caribbean and Latin America, as well as both operating assets and a
development pipeline of carbon capture and storage capacity,
agricultural renewable natural gas and materials recycling.
Investors can access the portfolio either
through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX:
BEP.UN), a Bermuda-based limited partnership, or Brookfield
Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation.
Further information is available at https://bep.brookfield.com.
Important information may be disseminated exclusively via the
website; investors should consult the site to access this
information.
Brookfield Renewable is the flagship listed
renewable power and transition company of Brookfield Asset
Management, a leading global alternative asset manager with over
$925 billion of assets under management.
Please note that Brookfield Renewable’s previous
audited annual and unaudited quarterly reports filed with the U.S.
Securities and Exchange Commission (“SEC”) and securities
regulators in Canada, are available on our website at
https://bep.brookfield.com, on SEC’s website at www.sec.gov and on
SEDAR+’s website at www.sedarplus.ca. Hard copies of the annual and
quarterly reports can be obtained free of charge upon request.
Contact information: |
|
Media: |
Investors: |
Simon Maine |
Alex Jackson |
Managing Director – Communications |
Vice President – Investor Relations |
+44 (0)7398 909 278 |
(416)-649-8196 |
simon.maine@brookfield.com |
alexander.jackson@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s Second Quarter 2024 Results as
well as the Letter to Unitholders and Supplemental Information on
Brookfield Renewable’s website at https://bep.brookfield.com.
The conference call can be accessed via webcast
on August 2, 2024 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/7my4iqqw/
Brookfield Renewable Partners L.P. |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
June 30 |
December 31 |
2024 |
2023 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,236 |
|
$ |
1,141 |
Trade receivables and other financial assets(5) |
|
|
4,610 |
|
|
5,237 |
Equity-accounted investments |
|
|
2,530 |
|
|
2,546 |
Property, plant and equipment, at fair value and Goodwill |
|
|
63,714 |
|
|
65,949 |
Deferred income tax and other assets(6) |
|
|
1,709 |
|
|
1,255 |
Total Assets |
|
$ |
73,799 |
|
$ |
76,128 |
|
|
|
|
|
Liabilities |
|
|
|
|
Corporate borrowings(7) |
|
$ |
3,896 |
|
$ |
2,833 |
Borrowings which have recourse only to assets they finance(8) |
|
|
25,857 |
|
|
26,869 |
Accounts payable and other liabilities(9) |
|
|
9,207 |
|
|
9,273 |
Deferred income tax liabilities |
|
|
6,858 |
|
|
7,174 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
18,099 |
|
$ |
18,863 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
|
48 |
|
|
55 |
|
Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
|
2,330 |
|
|
2,684 |
|
BEPC exchangeable shares |
|
2,152 |
|
|
2,479 |
|
Preferred equity |
|
565 |
|
|
583 |
|
Perpetual subordinated notes |
|
738 |
|
|
592 |
|
Preferred limited partners' equity |
|
634 |
|
|
760 |
|
Limited partners' equity |
|
3,415 |
|
27,981 |
|
3,963 |
|
29,979 |
Total Liabilities and Equity |
|
$ |
73,799 |
|
$ |
76,128 |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Operating Results |
UNAUDITED(MILLIONS, EXCEPT AS NOTED) |
For the three months endedJune
30 |
|
For
the six months
endedJune 30 |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Revenues |
$ |
1,482 |
|
$ |
1,205 |
|
|
$ |
2,974 |
|
$ |
2,536 |
|
Other income |
|
62 |
|
|
61 |
|
|
|
96 |
|
|
87 |
|
Direct operating costs(10) |
|
(618 |
) |
|
(425 |
) |
|
|
(1,252 |
) |
|
(826 |
) |
Management service costs |
|
(53 |
) |
|
(55 |
) |
|
|
(98 |
) |
|
(112 |
) |
Interest expense |
|
(489 |
) |
|
(402 |
) |
|
|
(965 |
) |
|
(796 |
) |
Share of earnings (loss) from equity-accounted investments |
|
(25 |
) |
|
13 |
|
|
|
(58 |
) |
|
46 |
|
Foreign exchange and financial instrument gain |
|
116 |
|
|
172 |
|
|
|
236 |
|
|
318 |
|
Depreciation |
|
(517 |
) |
|
(458 |
) |
|
|
(1,019 |
) |
|
(887 |
) |
Other |
|
(27 |
) |
|
59 |
|
|
|
(39 |
) |
|
5 |
|
Income tax recovery (expense) |
|
|
|
|
|
Current |
|
(16 |
) |
|
(37 |
) |
|
|
(44 |
) |
|
(80 |
) |
Deferred |
|
(3 |
) |
|
18 |
|
|
|
11 |
|
|
37 |
|
Net income (loss) |
$ |
(88 |
) |
$ |
151 |
|
|
$ |
(158 |
) |
$ |
328 |
|
Net income attributable to preferred equity, preferred limited
partners' equity, perpetual subordinated notes and non-controlling
interests in operating subsidiaries |
$ |
(66 |
) |
$ |
(190 |
) |
|
$ |
(116 |
) |
$ |
(399 |
) |
Net loss attributable to Unitholders |
|
(154 |
) |
|
(39 |
) |
|
|
(274 |
) |
|
(71 |
) |
Basic and diluted loss per LP unit |
$ |
(0.28 |
) |
$ |
(0.10 |
) |
|
$ |
(0.51 |
) |
$ |
(0.20 |
) |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
UNAUDITED(MILLIONS) |
For the three months endedJune
30 |
|
For
the six months
endedJune 30 |
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Operating activities |
|
|
|
|
|
Net income (loss) |
$ |
(88 |
) |
$ |
151 |
|
|
$ |
(158 |
) |
$ |
328 |
|
Adjustments for the following non-cash items: |
|
|
|
|
|
Depreciation |
|
517 |
|
|
458 |
|
|
|
1,019 |
|
|
887 |
|
Unrealized foreign exchange and financial instrument gain |
|
(122 |
) |
|
(144 |
) |
|
|
(239 |
) |
|
(274 |
) |
Share of (earnings) loss from equity-accounted investments |
|
25 |
|
|
(13 |
) |
|
|
58 |
|
|
(46 |
) |
Deferred income tax expense (recovery) |
|
3 |
|
|
(18 |
) |
|
|
(11 |
) |
|
(37 |
) |
Other non-cash items |
|
37 |
|
|
(15 |
) |
|
|
93 |
|
|
22 |
|
|
|
372 |
|
|
419 |
|
|
|
762 |
|
|
880 |
|
Net change in working capital and other(11) |
|
(141 |
) |
|
(37 |
) |
|
|
(207 |
) |
|
165 |
|
|
|
231 |
|
|
382 |
|
|
|
555 |
|
|
1,045 |
|
Financing activities |
|
|
|
|
|
Net corporate borrowings |
|
— |
|
|
— |
|
|
|
297 |
|
|
293 |
|
Corporate credit facilities, net |
|
300 |
|
|
— |
|
|
|
300 |
|
|
— |
|
Non-recourse borrowings, commercial paper, and related party
borrowings, net |
|
765 |
|
|
(794 |
) |
|
|
1,412 |
|
|
(1,056 |
) |
Capital contributions from participating non-controlling interests
– in operating subsidiaries, net |
|
138 |
|
|
587 |
|
|
|
289 |
|
|
1,581 |
|
Issuance of equity instruments, net and related costs |
|
(155 |
) |
|
630 |
|
|
|
(37 |
) |
|
630 |
|
Distributions paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
|
(269 |
) |
|
(307 |
) |
|
|
(401 |
) |
|
(449 |
) |
To unitholders of Brookfield Renewable or BRELP |
|
(271 |
) |
|
(246 |
) |
|
|
(531 |
) |
|
(489 |
) |
|
|
508 |
|
|
(130 |
) |
|
|
1,329 |
|
|
510 |
|
Investing activities |
|
|
|
|
|
Acquisitions net of cash and cash equivalents in acquired
entity |
|
— |
|
|
(6 |
) |
|
|
(11 |
) |
|
(87 |
) |
Investment in property, plant and equipment |
|
(820 |
) |
|
(484 |
) |
|
|
(1,660 |
) |
|
(1,056 |
) |
Disposal (purchase) of associates and other assets |
|
(50 |
) |
|
321 |
|
|
|
(48 |
) |
|
(218 |
) |
Restricted cash and other |
|
(24 |
) |
|
(31 |
) |
|
|
(10 |
) |
|
(15 |
) |
|
|
(894 |
) |
|
(200 |
) |
|
|
(1,729 |
) |
|
(1,376 |
) |
Foreign exchange gain (loss) on cash |
|
(27 |
) |
|
16 |
|
|
|
(44 |
) |
|
30 |
|
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
|
(182 |
) |
|
68 |
|
|
|
111 |
|
|
209 |
|
Net change in cash classified within assets held for sale |
|
(5 |
) |
|
(6 |
) |
|
|
(16 |
) |
|
(5 |
) |
Balance, beginning of period |
|
1,423 |
|
|
1,140 |
|
|
|
1,141 |
|
|
998 |
|
Balance, end of period |
$ |
1,236 |
|
$ |
1,202 |
|
|
$ |
1,236 |
|
$ |
1,202 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED JUNE 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended June 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
2024 |
2023 |
|
|
2024 |
2023 |
|
|
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,987 |
3,028 |
|
|
3,562 |
3,569 |
|
|
$ |
256 |
$ |
274 |
|
|
$ |
165 |
$ |
181 |
|
|
$ |
97 |
|
$ |
114 |
|
Brazil |
1,029 |
1,062 |
|
|
1,020 |
1,020 |
|
|
|
53 |
|
58 |
|
|
|
35 |
|
42 |
|
|
|
30 |
|
|
36 |
|
Colombia |
670 |
904 |
|
|
908 |
907 |
|
|
|
72 |
|
66 |
|
|
|
31 |
|
47 |
|
|
|
9 |
|
|
21 |
|
|
4,686 |
4,994 |
|
|
5,490 |
5,496 |
|
|
|
381 |
|
398 |
|
|
|
231 |
|
270 |
|
|
|
136 |
|
|
171 |
|
Wind |
2,108 |
1,435 |
|
|
2,444 |
1,767 |
|
|
|
154 |
|
129 |
|
|
|
136 |
|
132 |
|
|
|
103 |
|
|
106 |
|
Utility-scale solar |
1,109 |
659 |
|
|
1,262 |
842 |
|
|
|
120 |
|
110 |
|
|
|
117 |
|
107 |
|
|
|
91 |
|
|
77 |
|
Distributed energy & storage |
395 |
375 |
|
|
326 |
291 |
|
|
|
61 |
|
68 |
|
|
|
54 |
|
53 |
|
|
|
44 |
|
|
45 |
|
Sustainable solutions |
— |
— |
|
|
— |
— |
|
|
|
114 |
|
14 |
|
|
|
51 |
|
11 |
|
|
|
42 |
|
|
10 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
40 |
|
13 |
|
|
|
(77 |
) |
|
(97 |
) |
Total |
8,298 |
7,463 |
|
|
9,522 |
8,396 |
|
|
$ |
830 |
$ |
719 |
|
|
$ |
629 |
$ |
586 |
|
|
$ |
339 |
|
$ |
312 |
|
PROPORTIONATE RESULTS FOR THE
SIX MONTHS ENDED JUNE 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the six months ended June 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
2024 |
2023 |
|
|
2024 |
2023 |
|
|
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
6,608 |
6,604 |
|
|
6,796 |
6,806 |
|
|
$ |
559 |
$ |
609 |
|
|
$ |
371 |
$ |
411 |
|
|
$ |
234 |
|
$ |
272 |
|
Brazil |
2,043 |
2,269 |
|
|
2,028 |
2,028 |
|
|
|
112 |
|
119 |
|
|
|
77 |
|
87 |
|
|
|
66 |
|
|
74 |
|
Colombia |
1,364 |
1,914 |
|
|
1,751 |
1,760 |
|
|
|
151 |
|
132 |
|
|
|
76 |
|
95 |
|
|
|
29 |
|
|
44 |
|
|
10,015 |
10,787 |
|
|
10,575 |
10,594 |
|
|
|
822 |
|
860 |
|
|
|
524 |
|
593 |
|
|
|
329 |
|
|
390 |
|
Wind |
4,236 |
3,112 |
|
|
4,944 |
3,765 |
|
|
|
324 |
|
271 |
|
|
|
257 |
|
239 |
|
|
|
190 |
|
|
184 |
|
Utility-scale solar |
1,829 |
1,143 |
|
|
2,106 |
1,410 |
|
|
|
213 |
|
198 |
|
|
|
207 |
|
176 |
|
|
|
152 |
|
|
117 |
|
Distributed energy & storage |
679 |
608 |
|
|
551 |
484 |
|
|
|
113 |
|
129 |
|
|
|
97 |
|
98 |
|
|
|
78 |
|
|
78 |
|
Sustainable solutions |
— |
— |
|
|
— |
— |
|
|
|
233 |
|
33 |
|
|
|
86 |
|
23 |
|
|
|
75 |
|
|
21 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
33 |
|
16 |
|
|
|
(189 |
) |
|
(203 |
) |
Total |
16,759 |
15,650 |
|
|
18,176 |
16,253 |
|
|
$ |
1,705 |
$ |
1,491 |
|
|
$ |
1,204 |
$ |
1,145 |
|
|
$ |
635 |
|
$ |
587 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation from Net income (loss) to Adjusted EBITDA
for the three months ended June 30, 2024:
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate |
Total |
Net income (loss) |
$ |
6 |
|
$ |
8 |
|
$ |
(18 |
) |
$ |
17 |
|
$ |
9 |
|
$ |
(110 |
) |
$ |
(88 |
) |
Add back or deduct the following: |
|
|
|
|
|
|
|
Depreciation |
|
159 |
|
|
196 |
|
|
128 |
|
|
34 |
|
|
— |
|
|
— |
|
|
517 |
|
Deferred income tax expense (recovery) |
|
6 |
|
|
(1 |
) |
|
3 |
|
|
3 |
|
|
(1 |
) |
|
(7 |
) |
|
3 |
|
Foreign exchange and financial instrument loss (gain) |
|
(7 |
) |
|
(72 |
) |
|
(2 |
) |
|
(15 |
) |
|
(17 |
) |
|
(3 |
) |
|
(116 |
) |
Other(12) |
|
50 |
|
|
43 |
|
|
37 |
|
|
12 |
|
|
(18 |
) |
|
61 |
|
|
185 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
53 |
|
|
53 |
|
Interest expense |
|
199 |
|
|
118 |
|
|
79 |
|
|
40 |
|
|
6 |
|
|
47 |
|
|
489 |
|
Current income tax expense |
|
4 |
|
|
10 |
|
|
2 |
|
|
1 |
|
|
— |
|
|
(1 |
) |
|
16 |
|
Amount attributable to equity accounted investments and
non-controlling interests(13) |
|
(186 |
) |
|
(166 |
) |
|
(112 |
) |
|
(38 |
) |
|
72 |
|
|
— |
|
|
(430 |
) |
Adjusted EBITDA attributable to Unitholders |
$ |
231 |
|
$ |
136 |
|
$ |
117 |
|
$ |
54 |
|
$ |
51 |
|
$ |
40 |
|
$ |
629 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation from Net income (loss) to Adjusted EBITDA
for the three months ended June 30, 2023:
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate |
Total |
Net income (loss) |
$ |
93 |
|
$ |
59 |
|
$ |
39 |
|
$ |
(3 |
) |
$ |
48 |
|
$ |
(85 |
) |
$ |
151 |
|
Add back or deduct the following: |
|
|
|
|
|
|
|
Depreciation |
|
163 |
|
|
175 |
|
|
84 |
|
|
28 |
|
|
7 |
|
|
1 |
|
|
458 |
|
Deferred income tax expense (recovery) |
|
(26 |
) |
|
9 |
|
|
6 |
|
|
(8 |
) |
|
— |
|
|
1 |
|
|
(18 |
) |
Foreign exchange and financial instrument loss (gain) |
|
(6 |
) |
|
(75 |
) |
|
(28 |
) |
|
12 |
|
|
(53 |
) |
|
(22 |
) |
|
(172 |
) |
Other(12) |
|
(7 |
) |
|
14 |
|
|
(11 |
) |
|
21 |
|
|
— |
|
|
19 |
|
|
36 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
55 |
|
|
55 |
|
Interest expense |
|
193 |
|
|
81 |
|
|
67 |
|
|
27 |
|
|
9 |
|
|
25 |
|
|
402 |
|
Current income tax expense |
|
25 |
|
|
6 |
|
|
6 |
|
|
— |
|
|
— |
|
|
— |
|
|
37 |
|
Amount attributable to equity accounted investments and
non-controlling interests(13) |
|
(165 |
) |
|
(137 |
) |
|
(56 |
) |
|
(24 |
) |
|
— |
|
|
19 |
|
|
(363 |
) |
Adjusted EBITDA attributable to Unitholders |
$ |
270 |
|
$ |
132 |
|
$ |
107 |
|
$ |
53 |
|
$ |
11 |
|
$ |
13 |
|
$ |
586 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the six months ended June 30, 2024:
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate |
Total |
Net income (loss) |
$ |
128 |
|
$ |
17 |
|
$ |
(79 |
) |
$ |
(11 |
) |
$ |
3 |
|
$ |
(216 |
) |
$ |
(158 |
) |
Add back or deduct the following: |
|
|
|
|
|
|
|
Depreciation |
|
320 |
|
|
406 |
|
|
224 |
|
|
65 |
|
|
4 |
|
|
— |
|
|
1,019 |
|
Deferred income tax expense (recovery) |
|
8 |
|
|
(7 |
) |
|
2 |
|
|
— |
|
|
(1 |
) |
|
(13 |
) |
|
(11 |
) |
Foreign exchange and financial instrument loss (gain) |
|
(41 |
) |
|
(147 |
) |
|
5 |
|
|
(7 |
) |
|
(40 |
) |
|
(6 |
) |
|
(236 |
) |
Other(12) |
|
3 |
|
|
14 |
|
|
16 |
|
|
(12 |
) |
|
(8 |
) |
|
77 |
|
|
90 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
98 |
|
|
98 |
|
Interest expense |
|
397 |
|
|
229 |
|
|
164 |
|
|
72 |
|
|
9 |
|
|
94 |
|
|
965 |
|
Current income tax expense |
|
22 |
|
|
19 |
|
|
2 |
|
|
2 |
|
|
— |
|
|
(1 |
) |
|
44 |
|
Amount attributable to equity accounted investments and
non-controlling interests(13) |
|
(313 |
) |
|
(274 |
) |
|
(127 |
) |
|
(12 |
) |
|
119 |
|
|
— |
|
|
(607 |
) |
Adjusted EBITDA attributable to Unitholders |
$ |
524 |
|
$ |
257 |
|
$ |
207 |
|
$ |
97 |
|
$ |
86 |
|
$ |
33 |
|
$ |
1,204 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the six months ended June 30, 2023:
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate |
Total |
Net income (loss) |
$ |
331 |
|
$ |
88 |
|
$ |
(9 |
) |
$ |
23 |
|
$ |
75 |
|
$ |
(180 |
) |
$ |
328 |
|
Add back or deduct the following: |
|
|
|
|
|
|
|
Depreciation |
|
317 |
|
|
325 |
|
|
166 |
|
|
57 |
|
|
21 |
|
|
1 |
|
|
887 |
|
Deferred income tax expense (recovery) |
|
(1 |
) |
|
9 |
|
|
5 |
|
|
(22 |
) |
|
1 |
|
|
(29 |
) |
|
(37 |
) |
Foreign exchange and financial instrument loss (gain) |
|
(100 |
) |
|
(115 |
) |
|
(26 |
) |
|
2 |
|
|
(52 |
) |
|
(27 |
) |
|
(318 |
) |
Other(12) |
|
18 |
|
|
19 |
|
|
1 |
|
|
37 |
|
|
(13 |
) |
|
48 |
|
|
110 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
112 |
|
|
112 |
|
Interest expense |
|
376 |
|
|
143 |
|
|
132 |
|
|
50 |
|
|
20 |
|
|
75 |
|
|
796 |
|
Current income tax expense |
|
59 |
|
|
10 |
|
|
11 |
|
|
— |
|
|
— |
|
|
— |
|
|
80 |
|
Amount attributable to equity accounted investments and
non-controlling interests(13) |
|
(407 |
) |
|
(240 |
) |
|
(104 |
) |
|
(49 |
) |
|
(29 |
) |
|
16 |
|
|
(813 |
) |
Adjusted EBITDA attributable to Unitholders |
$ |
593 |
|
$ |
239 |
|
$ |
176 |
|
$ |
98 |
|
$ |
23 |
|
$ |
16 |
|
$ |
1,145 |
|
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income is reconciled to Funds From Operations:
UNAUDITED(MILLIONS) |
For the three months endedJune
30 |
For the six months endedJune
30 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income |
$ |
(88 |
) |
$ |
151 |
|
$ |
(158 |
) |
$ |
328 |
|
Add back or deduct the following: |
|
|
|
|
Depreciation |
|
517 |
|
|
458 |
|
|
1,019 |
|
|
887 |
|
Deferred income tax expense (recovery) |
|
3 |
|
|
(18 |
) |
|
(11 |
) |
|
(37 |
) |
Foreign exchange and financial instruments gain |
|
(116 |
) |
|
(172 |
) |
|
(236 |
) |
|
(318 |
) |
Other(14) |
|
185 |
|
|
36 |
|
|
90 |
|
|
110 |
|
Amount attributable to equity accounted investment and
non-controlling interest(15) |
|
(162 |
) |
|
(143 |
) |
|
(69 |
) |
|
(383 |
) |
Funds From Operations |
$ |
339 |
|
$ |
312 |
|
$ |
635 |
|
$ |
587 |
|
The following table reconciles the per Unit
non-IFRS financial metrics to the most directly comparable IFRS
measures. Net income per LP unit is reconciled to Funds From
Operations:
|
For the three months endedJune
30 |
For the six months endedJune
30 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income (loss) per LP
unit(1) |
$ |
(0.28 |
) |
$ |
(0.10 |
) |
$ |
(0.51 |
) |
$ |
(0.20 |
) |
Adjust for the proportionate share of |
|
|
|
|
Depreciation |
|
0.39 |
|
|
0.38 |
|
|
0.77 |
|
|
0.75 |
|
Deferred income tax recovery and other |
|
0.45 |
|
|
0.28 |
|
|
0.81 |
|
|
0.50 |
|
Foreign exchange and financial instruments (gain) |
|
(0.05 |
) |
|
(0.08 |
) |
|
(0.11 |
) |
|
(0.14 |
) |
Funds From Operations per
Unit(3) |
$ |
0.51 |
|
$ |
0.48 |
|
$ |
0.96 |
|
$ |
0.91 |
|
BROOKFIELD RENEWABLE
CORPORATION
REPORTS SECOND QUARTER
RESULTS
All amounts in U.S. dollars unless otherwise
indicated
The Board of Directors of Brookfield Renewable
Corporation (“BEPC” or our “company”) (NYSE, TSX: BEPC) today has
declared a quarterly dividend of $0.355 per class A exchangeable
subordinate voting share of BEPC (a “Share”), payable on
September 27, 2024 to shareholders of record as at the close
of business on August 30, 2024. This dividend is identical in
amount per share and has identical record and payment dates to the
quarterly distribution announced today by BEP on BEP's LP
units.
The BEPC exchangeable shares are structured with
the intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Renewable Partners L.P.
(“BEP” or the “Partnership”) (NYSE: BEP; TSX: BEP.UN). We believe
economic equivalence is achieved through identical dividends and
distributions on the BEPC exchangeable shares and BEP's LP units
and each BEPC exchangeable share being exchangeable at the option
of the holder for one BEP LP unit at any time. Given the economic
equivalence, we expect that the market price of the Shares will be
significantly impacted by the market price of BEP's LP units and
the combined business performance of our company and BEP as a
whole. In addition to carefully considering the disclosures made in
this news release in its entirety, shareholders are strongly
encouraged to carefully review BEP's continuous disclosure filings
available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR+ at www.sedarplus.ca.
|
For the three months endedJune
30 |
For
the six months
endedJune 30 |
US$ millions (except per unit amounts), unaudited |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Select Financial Information |
|
|
|
|
Net income (loss) attributable to the partnership |
$ |
(342 |
) |
$ |
291 |
|
$ |
149 |
|
$ |
(774 |
) |
Funds From Operations (FFO)(2) |
|
219 |
|
|
195 |
|
|
438 |
|
|
397 |
|
BEPC reported FFO of $219 million for the three
months ended June 30, 2024 compared to $195 million in the
prior year. After deducting non-cash depreciation, remeasurement of
the BEPC exchangeable and class B shares, and other non-cash items
our Net loss attributable to the partnership for the three months
ended June 30, 2024 was $342 million.
Brookfield Renewable Corporation |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
June 30 |
December 31 |
|
2024 |
|
2023 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
614 |
|
$ |
627 |
Trade receivables and other financial assets(5) |
|
|
2,423 |
|
|
2,972 |
Equity-accounted investments |
|
|
637 |
|
|
644 |
Property, plant and equipment, at fair value and Goodwill |
|
|
38,554 |
|
|
44,892 |
Deferred income tax and other assets(6) |
|
|
385 |
|
|
286 |
Total Assets |
|
$ |
42,613 |
|
$ |
49,421 |
|
|
|
|
|
Liabilities |
|
|
|
|
Borrowings which have recourse only to assets they finance(8) |
|
$ |
14,174 |
|
$ |
16,072 |
Accounts payable and other liabilities(9) |
|
|
3,603 |
|
|
5,680 |
Deferred income tax liabilities |
|
|
5,547 |
|
|
5,819 |
|
|
|
|
|
BEPC exchangeable and class B shares |
|
|
4,450 |
|
|
4,721 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
9,079 |
|
$ |
11,070 |
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
232 |
|
|
272 |
|
The partnership |
|
5,528 |
|
14,839 |
|
5,787 |
|
17,129 |
Total Liabilities and Equity |
|
$ |
42,613 |
|
$ |
49,421 |
Brookfield Renewable Corporation |
Consolidated Statements of Income (Loss) |
|
|
|
UNAUDITED(MILLIONS) |
For the three months endedJune
30 |
For the six months endedJune
30 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
Revenues |
$ |
989 |
|
$ |
901 |
|
$ |
2,114 |
|
$ |
1,967 |
|
Other income |
|
43 |
|
|
39 |
|
|
67 |
|
|
52 |
|
Direct operating costs(10) |
|
(419 |
) |
|
(308 |
) |
|
(903 |
) |
|
(612 |
) |
Management service costs |
|
(22 |
) |
|
(32 |
) |
|
(43 |
) |
|
(68 |
) |
Interest expense |
|
(341 |
) |
|
(315 |
) |
|
(704 |
) |
|
(621 |
) |
Share of loss from equity-accounted investments |
|
(7 |
) |
|
(3 |
) |
|
(22 |
) |
|
— |
|
Foreign exchange and financial instrument gain (loss) |
|
37 |
|
|
(7 |
) |
|
66 |
|
|
108 |
|
Depreciation |
|
(312 |
) |
|
(327 |
) |
|
(657 |
) |
|
(633 |
) |
Other |
|
(24 |
) |
|
50 |
|
|
2 |
|
|
11 |
|
Remeasurement of BEPC exchangeable and class B shares |
|
(277 |
) |
|
380 |
|
|
271 |
|
|
(683 |
) |
Income tax (expense) recovery |
|
|
|
|
Current |
|
(9 |
) |
|
(34 |
) |
|
(29 |
) |
|
(72 |
) |
Deferred |
|
3 |
|
|
16 |
|
|
(10 |
) |
|
(9 |
) |
Net income (loss) |
$ |
(339 |
) |
$ |
360 |
|
$ |
152 |
|
$ |
(560 |
) |
Net income (loss) attributable to: |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
1 |
|
$ |
68 |
|
$ |
2 |
|
$ |
211 |
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
2 |
|
|
1 |
|
|
1 |
|
|
3 |
|
The partnership |
|
(342 |
) |
|
291 |
|
|
149 |
|
|
(774 |
) |
|
$ |
(339 |
) |
$ |
360 |
|
$ |
152 |
|
$ |
(560 |
) |
Brookfield Renewable Corporation |
Consolidated Statements of Cash Flows |
|
|
|
|
|
UNAUDITED(MILLIONS) |
For the three months endedJune
30 |
For the six months endedJune
30 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Operating activities |
|
|
|
|
Net income (loss) |
$ |
(339 |
) |
$ |
360 |
|
$ |
152 |
|
$ |
(560 |
) |
Adjustments for the following non-cash items: |
|
|
|
|
Depreciation |
|
312 |
|
|
327 |
|
|
657 |
|
|
633 |
|
Unrealized foreign exchange and financial instruments (gain)
loss |
|
(38 |
) |
|
16 |
|
|
(66 |
) |
|
(92 |
) |
Share of loss from equity-accounted investments |
|
7 |
|
|
3 |
|
|
22 |
|
|
— |
|
Deferred income tax expense |
|
(3 |
) |
|
(16 |
) |
|
10 |
|
|
9 |
|
Other non-cash items |
|
30 |
|
|
5 |
|
|
46 |
|
|
29 |
|
Remeasurement of exchangeable and class B shares |
|
277 |
|
|
(380 |
) |
|
(271 |
) |
|
683 |
|
|
|
246 |
|
|
315 |
|
|
550 |
|
|
702 |
|
Net change in working capital and other(11) |
|
(106 |
) |
|
(62 |
) |
|
(153 |
) |
|
142 |
|
|
|
140 |
|
|
253 |
|
|
397 |
|
|
844 |
|
Financing activities |
|
|
|
|
Non-recourse borrowings and related party borrowings, net |
|
99 |
|
|
(345 |
) |
|
230 |
|
|
(626 |
) |
Capital contributions from participating non-controlling
interests |
|
43 |
|
|
51 |
|
|
125 |
|
|
103 |
|
Return of capital to participating non-controlling interests |
|
(36 |
) |
|
— |
|
|
(36 |
) |
|
— |
|
Issuance of exchangeable shares, net |
|
— |
|
|
251 |
|
|
— |
|
|
251 |
|
Distributions paid and return of capital: |
|
|
|
|
To participating non-controlling interests |
|
(188 |
) |
|
(188 |
) |
|
(264 |
) |
|
(321 |
) |
|
|
(82 |
) |
|
(231 |
) |
|
55 |
|
|
(593 |
) |
Investing activities |
|
|
|
|
Acquisitions net of cash and cash equivalents in acquired
entity |
|
— |
|
|
— |
|
|
— |
|
|
(81 |
) |
Investment in equity-accounted investments |
|
— |
|
|
(3 |
) |
|
— |
|
|
(3 |
) |
Investment in property, plant and equipment |
|
(199 |
) |
|
(158 |
) |
|
(476 |
) |
|
(320 |
) |
Disposal of subsidiaries, associates and other securities, net |
|
191 |
|
|
103 |
|
|
78 |
|
|
106 |
|
Restricted cash and other |
|
(43 |
) |
|
(37 |
) |
|
(24 |
) |
|
(24 |
) |
|
|
(51 |
) |
|
(95 |
) |
|
(422 |
) |
|
(322 |
) |
Foreign exchange gain (loss) on cash |
|
(30 |
) |
|
14 |
|
|
(39 |
) |
|
27 |
|
Cash and cash equivalents |
|
|
|
|
Decrease |
|
(23 |
) |
|
(59 |
) |
|
(9 |
) |
|
(44 |
) |
Net change in cash classified within assets held for sale |
|
(2 |
) |
|
(3 |
) |
|
(4 |
) |
|
(3 |
) |
Balance, beginning of period |
|
639 |
|
|
657 |
|
|
627 |
|
|
642 |
|
Balance, end of period |
|
614 |
|
|
595 |
|
$ |
614 |
|
$ |
595 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reconciles Net income (loss)
to Funds From Operations:
UNAUDITED(MILLIONS) |
For the three months endedJune
30 |
For the six months endedJune
30 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
Net income (loss) |
$ |
(339 |
) |
$ |
360 |
|
$ |
152 |
|
$ |
(560 |
) |
Add back or deduct the following: |
|
|
|
|
Depreciation |
|
312 |
|
|
327 |
|
|
657 |
|
|
633 |
|
Foreign exchange and financial instruments loss (gain) |
|
(37 |
) |
|
7 |
|
|
(66 |
) |
|
(108 |
) |
Deferred income tax expense |
|
(3 |
) |
|
(16 |
) |
|
10 |
|
|
9 |
|
Other(16) |
|
59 |
|
|
34 |
|
|
(145 |
) |
|
85 |
|
Dividends on BEPC exchangeable shares(17) |
|
64 |
|
|
61 |
|
|
129 |
|
|
119 |
|
Remeasurement of BEPC exchangeable and BEPC class B shares |
|
277 |
|
|
(380 |
) |
|
(271 |
) |
|
683 |
|
Amount attributable to equity accounted investments and
non-controlling interests(18) |
|
(114 |
) |
|
(198 |
) |
|
(28 |
) |
|
(464 |
) |
Funds From Operations |
$ |
219 |
|
$ |
195 |
|
$ |
438 |
|
$ |
397 |
|
Cautionary Statement Regarding
Forward-looking Statements
This news release contains forward-looking
statements and information within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “intend”,
“should”, “could”, “target”, “growth”, “expect”, “believe”, “plan”,
derivatives thereof and other expressions which are predictions of
or indicate future events, trends or prospects and which do not
relate to historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this
letter to unitholders include statements regarding the quality of
Brookfield Renewable’s and its subsidiaries’ businesses and our
expectations regarding future cash flows and distribution growth.
They include statements regarding Brookfield Renewable’s
anticipated financial performance, future commissioning of assets,
contracted nature of our portfolio (including our ability to
recontract certain asset), technology diversification, acquisition
opportunities, expected completion of acquisitions and
dispositions, financing and refinancing opportunities, future
energy prices and demand for electricity, global decarbonization
targets, economic recovery, achieving long-term average generation,
project development and capital expenditure costs, energy policies,
economic growth, growth potential of the renewable asset class, the
future growth prospects and distribution profile of Brookfield
Renewable and Brookfield Renewable’s access to capital. Although
Brookfield Renewable believes that these forward-looking statements
and information are based upon reasonable assumptions and
expectations, you should not place undue reliance on them, or any
other forward-looking statements or information in this letter to
unitholders. The future performance and prospects of Brookfield
Renewable are subject to a number of known and unknown risks and
uncertainties. Factors that could cause actual results of
Brookfield Renewable to differ materially from those contemplated
or implied by the statements in this letter to unitholders include
(without limitation) our inability to identify sufficient
investment opportunities and complete transactions; the growth of
our portfolio and our inability to realize the expected benefits of
our transactions or acquisitions; weather conditions and other
factors which may impact generation levels at facilities; adverse
outcomes with respect to outstanding, pending or future litigation;
economic conditions in the jurisdictions in which Brookfield
Renewable operates; ability to sell products and services under
contract or into merchant energy markets; changes to government
regulations, including incentives for renewable energy; ability to
complete development and capital projects on time and on budget;
inability to finance operations or fund future acquisitions due to
the status of the capital markets; health, safety, security or
environmental incidents; regulatory risks relating to the power
markets in which Brookfield Renewable operates, including relating
to the regulation of our assets, licensing and litigation; risks
relating to internal control environment; contract counterparties
not fulfilling their obligations; changes in operating expenses,
including employee wages, benefits and training, governmental and
public policy changes, and other risks associated with the
construction, development and operation of power generating
facilities. For further information on these known and unknown
risks, please see “Risk Factors” included in the Form 20-F of BEP
and in the Form 20-F of BEPC and other risks and factors that are
described therein.
The foregoing list of important factors that may
affect future results is not exhaustive. The forward-looking
statements represent our views as of the date of this letter to
unitholders and should not be relied upon as representing our views
as of any subsequent date. While we anticipate that subsequent
events and developments may cause our views to change, we disclaim
any obligation to update the forward-looking statements, other than
as required by applicable law.
No securities regulatory authority has either
approved or disapproved of the contents of this letter to
unitholders. This letter to unitholders is for information purposes
only and shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction.
Cautionary Statement Regarding Use of
Non-IFRS Measures
This news release contains references to FFO and
FFO per Unit, which are not generally accepted accounting measures
under IFRS and therefore may differ from definitions of Adjusted
EBITDA, FFO and FFO per Unit used by other entities. We believe
that FFO and FFO per Unit are useful supplemental measures that may
assist investors in assessing the financial performance and the
cash anticipated to be generated by our operating portfolio. None
of FFO and FFO per Unit should be considered as the sole measure of
our performance and should not be considered in isolation from, or
as a substitute for, analysis of our financial statements prepared
in accordance with IFRS. For a reconciliation of FFO and FFO per
Unit to the most directly comparable IFRS measure, please see
“Reconciliation of Non-IFRS Measures – Three Months Ended June 30”
included elsewhere herein and “Financial Performance Review on
Proportionate Information - Reconciliation of Non-IFRS Measures”
included in our unaudited Q2 2024 interim report. For a
reconciliation of FFO and FFO per Unit to the most directly
comparable IFRS measure, please see “Reconciliation of Non-IFRS
Measures - Quarter Ended June 30" included elsewhere herein and
“Financial Performance Review on Proportionate Information -
Reconciliation of Non-IFRS Measures” included in our unaudited Q2
2024 interim report.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
Endnotes
(1) For the three and six months ended
June 30, 2024, average LP units totaled 285.2 million and
286.0 million, respectively (2023: 277.6 million and 276.5
million, respectively).
(2) Non-IFRS measures. Refer
to “Cautionary Statement Regarding Use of Non-IFRS
Measures”.
(3) Average Units outstanding for the three
and six months ended June 30, 2024 were 663.3 million and
664.1 million, respectively (2023: 649.6 million and
647.8 million, respectively), being inclusive of our LP units,
Redeemable/Exchangeable partnership units, BEPC exchangeable shares
and general partner interest. The actual Units outstanding as at
June 30, 2024 were 663.2 million (2023: 667.0 million).
(4) Normalized FFO assumes long-term
average generation in all segments and uses 2023 foreign currency
rates. For the three and six months ended June 30, 2024, the change
related to long-term average generation totaled $66 million and
$78 million, respectively (2023: $50 million and $49 million,
respectively) and the change related to foreign currency totaled
$3 million and $1 million, respectively.
(5) Balance includes restricted cash,
trades receivables and other current assets, financial instrument
assets, and due from related parties.
(6) Balance includes goodwill, deferred
income tax assets, assets held for sale, intangible assets, and
other long-term assets.
(7) Balance includes current and
non-current portion of corporate borrowings.
(8) Balance includes current and
non-current portion of non-recourse borrowings on the consolidated
statement of financial position.
(9) Balance includes accounts payable and
accrued liabilities, financial instrument liabilities, due to
related parties, provisions, liabilities directly associated with
assets held for sale and other long-term liabilities.
(10) Direct operating costs exclude
depreciation expense disclosed below.
(11) Balance includes change in working
capital, dividends received from equity accounted investments and
changes due to or from related parties.
(12) Other corresponds to amounts that are
not related to the revenue earning activities and are not normal,
recurring cash operating expenses necessary for business
operations. Other also includes derivative and other revaluations
and settlements, gains or losses on debt
extinguishment/modification, transaction costs, legal, provisions,
amortization of concession assets and Brookfield Renewable’s
economic share of foreign currency hedges and realized disposition
gains and losses on assets that we developed and/or did not intend
to hold over the long-term that are included within Adjusted
EBITDA
(13) Amount attributable to equity
accounted investments corresponds to the Adjusted EBITDA to
Brookfield Renewable that are generated by its investments in
associates and joint ventures accounted for using the equity
method. Amounts attributable to non-controlling interest are
calculated based on the economic ownership interest held by
non-controlling interests in consolidated subsidiaries. By
adjusting Adjusted EBITDA attributable to non-controlling interest,
our partnership is able to remove the portion of Adjusted EBITDA
earned at non-wholly owned subsidiaries that are not attributable
to our partnership.
(14) Other corresponds to amounts that are
not related to the revenue earning activities and are not normal,
recurring cash operating expenses necessary for business
operations. Other also includes derivative and other revaluations
and settlements, gains or losses on debt
extinguishment/modification, transaction costs, legal, provisions,
amortization of concession assets and the company’s economic share
of foreign currency hedges and realized disposition gains and
losses on assets that we developed and/or did not intend to hold
over the long-term that are included in Funds From Operations.
(15) Amount attributable to equity
accounted investments corresponds to the Funds From Operations that
are generated by its investments in associates and joint ventures
accounted for using the equity method. Amounts attributable to
non-controlling interest are calculated based on the economic
ownership interest held by non-controlling interests in
consolidated subsidiaries. By adjusting Funds From Operations
attributable to non-controlling interest, our partnership is able
to remove the portion of Funds From Operations earned at non-wholly
owned subsidiaries that are not attributable to our
partnership.
(16) Other corresponds to amounts that are
not related to the revenue earning activities and are not normal,
recurring cash operating expenses necessary for business
operations. Other balance also includes derivative and other
revaluations and settlements, gains or losses on debt
extinguishment/modification, transaction costs, legal, provisions,
amortization of concession assets and the company’s economic share
of foreign currency hedges and realized disposition gains and
losses on assets that we developed and/or did not intend to hold
over the long-term that are included in Funds From Operations.
(17) Balance is included within interest
expense on the consolidated statements of income (loss).
(18) Amount attributable to equity
accounted investments corresponds to the Funds From Operations that
are generated by its investments in associates and joint ventures
accounted for using the equity method. Amounts attributable to
non-controlling interest are calculated based on the economic
ownership interest held by non-controlling interests in
consolidated subsidiaries. By adjusting Funds From Operations
attributable to non-controlling interest, our company is able to
remove the portion of Funds From Operations earned at non-wholly
owned subsidiaries that are not attributable to our company.
(19) Any references to capital refer to
Brookfield's cash deployed, excluding any debt financing.
(20) Available liquidity of over
$4.4 billion refers to “Part 5 - Liquidity and Capital
Resources” in the Management Discussion and Analysis in the Q2 2024
Interim Report.
(21) 12-15% target returns are calculated
as annualized cash return on investment.
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