Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield Renewable
Partners”, "
BEP", or together with
Brookfield Renewable Corporation, "
Brookfield
Renewable") today reported financial results for the three
and six months ended June 30, 2020.
“We had a strong quarter, as we executed on our
key strategic priorities, including delivering operational
performance, investing in growth, and bolstering our liquidity
position to $3.4 billion,” said Sachin Shah, CEO of Brookfield
Renewable. “We are pleased to have completed the creation of
Brookfield Renewable Corporation and closed the merger with
TerraForm Power. Looking forward, we believe our global
scale, operational depth and financial strength positions us well
to benefit from global decarbonization and continue to deliver on
our target of 12-15% long-term returns to equity holders."
Financial
Results |
|
|
|
|
|
|
|
|
|
|
|
For the period ended June 30 |
|
|
|
|
|
Millions
(except per unit or otherwise noted) |
Three months ended June 30 |
|
Six months ended June 30 |
Unaudited |
2020 |
|
2019 |
|
|
2019 |
|
2018 |
|
Total generation (GWh) |
|
|
|
|
|
– Long-term average generation |
15,527 |
|
14,252 |
|
|
29,678 |
|
27,745 |
|
– Actual generation |
13,264 |
|
14,881 |
|
|
27,528 |
|
29,006 |
|
Brookfield Renewable Partner's share |
|
|
|
|
|
– Long-term average generation |
7,309 |
|
7,109 |
|
|
14,026 |
|
13,807 |
|
– Actual generation |
6,552 |
|
7,602 |
|
|
13,716 |
|
14,848 |
|
Net
(loss) income Attributable to Unitholders |
$ |
(44 |
) |
$ |
17 |
|
|
$ |
(26 |
) |
$ |
60 |
|
Per Unit(1) |
(0.14 |
) |
0.05 |
|
|
(0.08 |
) |
0.19 |
|
Funds
From Operations (FFO)(2) |
232 |
|
230 |
|
|
449 |
|
457 |
|
Per Unit(1)(2) |
0.75 |
|
|
0.74 |
|
|
1.44 |
|
|
1.47 |
|
Normalized Funds From Operations (FFO)(2)(3) |
241 |
|
203 |
|
|
453 |
|
407 |
|
Per Unit(1) |
0.77 |
|
0.65 |
|
|
1.46 |
|
1.31 |
|
(1) For the three and six months ended
June 30, 2020, weighted average LP Units,
Redeemable/Exchangeable partnership units and GP interest totaled
311.3 million (2019: 311.2 million and 311.1 million,
respectively). The actual units outstanding at June 30, 2020
were 311.4 million (2019: 311.2 million).(2) Non-IFRS
measures. Refer to “Cautionary Statement Regarding Use of
Non-IFRS Measures”.(3) Normalized FFO assumes long-term average
generation in all segments except the Brazil and Colombia
hydroelectric segments and uses 2019 foreign currency rates. For
the three and six months ended June 30, 2020, the change related to
long-term average generation totaled $19 million and $2 million,
respectively (2019: $(27) million and $(50) million, respectively)
and the change related to foreign currency totaled $(10) million
and $2 million, respectively.
Brookfield Renewable reported FFO of $232
million for the three months ended June 30, 2020, up slightly
from prior year, and $241 million on a normalized basis ($0.77 per
unit), a 19% increase from the prior year. After deducting non-cash
depreciation, our net loss attributable to unitholders for the
three months ended June 30, 2020 was $44
million or $0.14 per unit.
Highlights
- Generated FFO of $232 million, up slightly from prior year, and
normalized FFO of $241 million, a 19% increase over the prior year,
as our sites continue to perform well with high levels of asset
availability, and we benefited from growth from new acquisitions
and development assets coming online;
- Subsequent to quarter-end, completed the creation of Brookfield
Renewable Corporation and merger with TerraForm Power;
- We agreed to invest over $580 million ($130 million net to BEP)
of equity, including the acquisition of a 1,200 megawatt solar
development project in Brazil;
- Our liquidity remains robust at $3.4 billion and our balance
sheet remains in excellent shape - with no material debt maturities
over the next five years; and
- So far this year, we generated close to $500 million of
proceeds ($85 million net to BEP) from asset recycling
initiatives.
Update on Growth
Initiatives
Subsequent to quarter-end, we completed the
merger of TerraForm Power into Brookfield Renewable on an all-stock
basis. The merger is accretive to Brookfield Renewable, simplifies
our corporate structure, strengthens our business in North America
and Europe and further enhances our position as one of the largest
publicly traded, pure-play renewable power businesses with over $50
billion in total power assets.
We, together with our institutional partners,
also agreed to acquire a 1,200 megawatt solar development project
in Brazil. This is one of the largest solar development
projects in the world and requires both development and energy
marketing capabilities to bring the project to completion.
The project is 75% contracted, and we expect to leverage our deep
energy marketing capabilities to contract the remaining
power. In addition, given our global scale, we intend to
drive down equipment procurement, installation and operating costs
to deliver additional value over time. The transaction is subject
to customary closing conditions and is expected to close in the
fourth quarter of 2020.
Brookfield Renewable Corporation
(BEPC)
We completed the special distribution of BEPC
shares providing investors with greater flexibility in how they
invest in our business. BEPC is listed on the same exchanges
as BEP, offering investors the optionality to invest in Brookfield
Renewable through either a partnership or Canadian corporation,
which we believe should lead to increased demand and enhanced
liquidity for our securities.
We completed the special distribution on July
30th by providing unitholders with one share of BEPC for every four
units of BEP. We have subsequently seen strong support for
BEPC shares in the market, with strong trading volumes over the
first week of trading and the share price trading slightly above
the BEP unit price. We are very pleased with the launch and
positive market reception thus far.
Results from Operations
During the second quarter, we generated FFO of
$232 million, or $0.75 per unit, as the business benefited from
recent acquisitions, strong operational performance, and execution
on margin enhancement initiatives. On a normalized basis, our
results are up 19% over last year.
With an increasingly diversified portfolio of
operating assets, limited off-taker concentration risk, and a
strong contract profile, our cash flows are highly resilient. While
generation for the quarter was below the long-term average, driven
largely by drier conditions in the New York and Colombia,
generation so far this year has been roughly in line with long-term
average. As we have reiterated, we expect this type of resource
cyclicality, and therefore do not manage the business based on
under-or over-performance of generation relative to the long-term
average in any given period. Our focus continues to be on
diversifying the business, which mitigates exposure to any single
resource, market or counterparty.
We continue to be focused on maintaining a
highly diversified, investment grade customer base with over 600
customers around the world under long-term power purchase
agreements. For example, our commercial and industrial
counterparties, which comprise less than 20% of our generation, are
well diversified across regions and sectors, with our largest
C&I customer representing only 2% of our total contracted
generation. Our contract profile remains strong, with 95% of total
generation contracted in 2020, and a weighted-average remaining
contract length of 15 years. Therefore, our cash flows are well
protected from exposure to short-term price volatility and are
expected to remain stable over the long-term.
During the quarter, our hydroelectric segment
delivered FFO of $193 million. In North America, we remain focused
on securing short-term contracts in this low power price
environment to retain upside optionality for when prices improve.
In our Brazilian and Colombian portfolios, we continue to focus on
extending the duration of our contract profile while maintaining a
certain portion of uncontracted generation to mitigate hydrology
risk. This quarter, we secured 17 new contracts in Latin America
for a total of 432 gigawatt-hours per year, including one contract
in Colombia with a seven-year term. The weighted-average remaining
contract duration is now nine years in Brazil and three years in
Colombia.
Our wind and solar segments generated a combined
$85 million of FFO, representing a 29% increase over the prior
year, as we continue to generate stable revenues from these assets
and benefit from the diversification of our fleet and highly
contracted cash flows with long duration power purchase agreements.
This quarter, we commissioned almost 100 MW of solar projects and
secured five long-term PPAs with investment grade counterparties to
support our 1,500 MW wind development pipeline in the U.S. and
Europe.
Balance Sheet and Liquidity
Our liquidity position remains strong, with
close to $3.4 billion of total available liquidity, which allows us
to support our current operations as well as to opportunistically
pursue new investments.
Our investment grade balance sheet has no
material maturities over the next five years, an average overall
debt duration of 10 years, and approximately 80% of our financings
are non-recourse to BEP. During the quarter, we executed over $1.1
billion of financings across the business.
We also continued to execute our capital
recycling strategy of selling mature, de-risked or non-core assets
to lower cost of capital buyers and redeploying the proceeds into
higher yielding opportunities. So far this year, we, together
with our institutional partners, generated close to $500 million of
proceeds ($85 million net to BEP) from these activities.
Distribution Declaration
The next quarterly distribution in the amount of
$0.4340 per LP unit, is payable on September 30, 2020 to
unitholders of record as at the close of business on August 31,
2020. In conjunction with the Partnership’s distribution
declaration, the Board of Directors of BEPC has declared an
equivalent quarterly dividend of $0.4340 per share, also payable on
September 30, 2020 to shareholders of record as at the close of
business on August 31, 2020. 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 BEP 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 operates
one of the world’s largest publicly traded, pure-play renewable
power platforms. Our portfolio consists of hydroelectric, wind,
solar and storage facilities in North America, South America,
Europe and Asia, and totals over 19,000 megawatts of installed
capacity and an 18,000 megawatt development pipeline. Investors can
access its 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
www.bep.brookfield.com and www.bep.brookfield.com/bepc.
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 company of Brookfield Asset Management, a leading
global alternative asset manager with over $525 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.sedar.com. Hard
copies of the annual and quarterly reports can be obtained free of
charge upon request.
Contact information: |
|
Media: |
Investors: |
Claire Holland |
Cara Silverman |
Senior Vice President - Communications |
Manager - Investor Relations |
(416) 369-8236 |
(416) 649-8172 |
claire.holland@brookfield.com |
cara.silverman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2020 Second Quarter Results as
well as the Letter to Unitholders and Supplemental Information on
Brookfield Renewable’s website at www.bep.brookfield.com.
The conference call can be accessed via webcast
on August 7, 2020, at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/6rysjwb2 or via
teleconference at 1-866-688-9430 toll free in North America. If
dialing from outside Canada or the U.S., please dial 1-409-216-0817
at approximately 8:50 a.m. Eastern Time. When prompted, enter the
conference ID, 3681697. A recording of the teleconference can be
accessed through August 14, 2020 at 1-855-859-2056, or from outside
Canada and the U.S. please call 1-404-537-3406. When prompted,
enter the conference ID, 3681697.
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
|
|
|
UNAUDITED(MILLIONS) |
|
|
June 30 |
|
|
|
|
|
December 31 |
|
|
|
2020 |
|
|
|
2019 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
229 |
|
|
$ |
115 |
|
Trade receivables and other financial assets |
|
1,300 |
|
|
1,172 |
|
Equity-accounted investments |
|
1,779 |
|
|
1,889 |
|
Property, plant and equipment, at fair value |
|
28,527 |
|
|
30,714 |
|
Goodwill |
|
716 |
|
|
821 |
|
Deferred income tax and other assets |
|
774 |
|
|
980 |
|
Total Assets |
|
$ |
33,325 |
|
|
$ |
35,691 |
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,124 |
|
|
$ |
2,100 |
|
Borrowings which have recourse only to assets they finance |
|
8,762 |
|
|
8,904 |
|
Accounts payable and other liabilities |
|
2,028 |
|
|
2,019 |
|
Deferred income tax liabilities |
|
4,237 |
|
|
4,537 |
|
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
7,813 |
|
|
$ |
8,742 |
|
|
General partnership interest held by Brookfield |
58 |
|
|
68 |
|
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
2,816 |
|
|
3,315 |
|
|
Preferred equity |
571 |
|
|
597 |
|
|
Preferred limited partners' equity |
1,028 |
|
|
833 |
|
|
Limited partners' equity |
3,888 |
|
16,174 |
|
4,576 |
|
18,131 |
|
Total Liabilities and Equity |
|
$ |
33,325 |
|
|
$ |
35,691 |
|
BROOKFIELD RENEWABLE PARTNERS L.P. |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
UNAUDITED |
|
|
|
FOR THE THREE
MONTHS ENDED MARCH 31 |
Three months ended June 30 |
|
|
Six months ended June 30 |
(MILLIONS, EXCEPT AS NOTED) |
|
2020 |
|
|
2019 |
|
|
|
2019 |
|
|
2018 |
|
Revenues |
$ |
651 |
|
$ |
787 |
|
|
$ |
1,443 |
|
$ |
1,612 |
|
Other income |
23 |
|
17 |
|
|
33 |
|
25 |
|
Direct operating
costs |
(248 |
) |
(252 |
) |
|
(509 |
) |
(506 |
) |
Management service
costs |
(36 |
) |
(23 |
) |
|
(67 |
) |
(44 |
) |
Interest expense –
borrowings |
(154 |
) |
(178 |
) |
|
(316 |
) |
(351 |
) |
Share of (loss)
earnings from equity-accounted investments |
(15 |
) |
— |
|
|
(31 |
) |
32 |
|
Foreign exchange
and unrealized financial instrument gain (loss) |
(14 |
) |
(12 |
) |
|
6 |
|
(30 |
) |
Depreciation |
(192 |
) |
(200 |
) |
|
(398 |
) |
(400 |
) |
Other |
(17 |
) |
(1 |
) |
|
(25 |
) |
(3 |
) |
Income tax
expense |
|
|
|
|
|
Current |
3 |
|
(15 |
) |
|
(16 |
) |
(39 |
) |
Deferred |
10 |
|
(14 |
) |
|
11 |
|
(34 |
) |
|
13 |
|
(29 |
) |
|
(5 |
) |
(73 |
) |
Net
income |
$ |
11 |
|
$ |
109 |
|
|
$ |
131 |
|
$ |
262 |
|
Net income
attributable to: |
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
35 |
|
$ |
74 |
|
|
$ |
118 |
|
$ |
168 |
|
General partnership interest held by Brookfield |
— |
|
1 |
|
|
— |
|
1 |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
(19 |
) |
7 |
|
|
(11 |
) |
25 |
|
Preferred equity |
6 |
|
7 |
|
|
13 |
|
13 |
|
Preferred limited partners' equity |
14 |
|
11 |
|
|
26 |
|
21 |
|
Limited partners' equity |
(25 |
) |
9 |
|
|
(15 |
) |
34 |
|
|
$ |
11 |
|
$ |
109 |
|
|
$ |
131 |
|
$ |
262 |
|
Basic and diluted (loss) earnings per LP Unit |
$ |
(0.14 |
) |
$ |
0.05 |
|
|
$ |
(0.08 |
) |
$ |
0.19 |
|
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
UNAUDITED |
Three months ended June 30 |
|
|
Six months ended June 30 |
|
SIX
MONTHS ENDED JUNE 30(MILLIONS) |
2020 |
|
2019 |
|
|
2019 |
|
2018 |
|
Operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11 |
|
$ |
109 |
|
|
$ |
131 |
|
$ |
262 |
|
Adjustments for
the following non-cash items: |
|
|
|
|
|
Depreciation |
192 |
|
200 |
|
|
398 |
|
400 |
|
Unrealized foreign exchange and financial instrument
loss |
14 |
|
11 |
|
|
(7 |
) |
31 |
|
Share of earnings from equity-accounted investments |
15 |
|
— |
|
|
31 |
|
(32 |
) |
Deferred income tax expense |
(10 |
) |
14 |
|
|
(11 |
) |
34 |
|
Other non-cash items |
4 |
|
33 |
|
|
26 |
|
50 |
|
Net
change in working capital |
35 |
|
1 |
|
|
48 |
|
(6 |
) |
|
261 |
|
368 |
|
|
616 |
|
739 |
|
Financing
activities |
|
|
|
|
|
Net corporate
borrowings |
250 |
|
— |
|
|
250 |
|
— |
|
Commercial paper
and corporate credit facilities, net |
(198 |
) |
(26 |
) |
|
(159 |
) |
(721 |
) |
Non-recourse
borrowings, net |
74 |
|
279 |
|
|
(21 |
) |
279 |
|
Capital
contributions from participating non-controlling interests – in
operating subsidiaries |
— |
|
10 |
|
|
7 |
|
257 |
|
Issuance of
preferred limited partnership units |
— |
|
— |
|
|
195 |
|
126 |
|
Repurchase of LP
Units |
— |
|
— |
|
|
— |
|
(1 |
) |
Distributions
paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
(174 |
) |
(262 |
) |
|
(251 |
) |
(396 |
) |
To preferred shareholders & limited partners' unitholders |
(18 |
) |
(18 |
) |
|
(36 |
) |
(33 |
) |
To unitholders of Brookfield Renewable or BRELP |
(183 |
) |
(171 |
) |
|
(365 |
) |
(342 |
) |
Borrowings from
related party, net |
— |
|
(33 |
) |
|
— |
|
322 |
|
|
(249 |
) |
(221 |
) |
|
(380 |
) |
(509 |
) |
Investing
activities |
|
|
|
|
|
Acquisitions net
of cash and cash equivalents in acquired entity |
— |
|
(26 |
) |
|
— |
|
(26 |
) |
Investment in
property, plant and equipment |
(57 |
) |
(34 |
) |
|
(110 |
) |
(63 |
) |
Disposal of
subsidiaries, associates and other securities, net |
(60 |
) |
(1 |
) |
|
24 |
|
4 |
|
Restricted cash and other |
45 |
|
66 |
|
|
(15 |
) |
11 |
|
|
(72 |
) |
5 |
|
|
(101 |
) |
(74 |
) |
Foreign
exchange gain (loss) on cash |
(1 |
) |
1 |
|
|
(13 |
) |
1 |
|
Cash and
cash equivalents |
|
|
|
|
|
|
|
|
|
Increase (decrease) |
(61 |
) |
153 |
|
|
122 |
|
157 |
|
Net change in cash classified within assets held for sale |
(4 |
) |
(8 |
) |
|
(8 |
) |
(8 |
) |
Balance, beginning of period |
294 |
|
177 |
|
|
115 |
|
173 |
|
Balance, end of period |
$ |
229 |
|
$ |
322 |
|
|
$ |
229 |
|
$ |
322 |
|
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 |
|
|
Net Income (Loss) |
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
2019 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
3,476 |
|
4,134 |
|
|
|
3,580 |
|
3,583 |
|
|
|
$ |
217 |
|
$ |
275 |
|
|
|
$ |
173 |
|
$ |
211 |
|
|
|
$ |
145 |
|
$ |
168 |
|
|
|
$ |
10 |
|
$ |
79 |
|
Brazil |
924 |
|
1,066 |
|
|
|
998 |
|
998 |
|
|
|
39 |
|
58 |
|
|
|
35 |
|
42 |
|
|
|
29 |
|
33 |
|
|
|
|
|
|
9 |
|
16 |
|
Colombia |
532 |
|
861 |
|
|
|
870 |
|
869 |
|
|
|
45 |
|
56 |
|
|
|
25 |
|
35 |
|
|
|
19 |
|
25 |
|
|
|
|
|
|
11 |
|
17 |
|
|
4,932 |
|
6,061 |
|
|
|
5,448 |
|
5,450 |
|
|
|
301 |
|
389 |
|
|
|
233 |
|
288 |
|
|
|
193 |
|
226 |
|
|
|
|
|
|
30 |
|
112 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
765 |
|
761 |
|
|
|
938 |
|
949 |
|
|
|
56 |
|
58 |
|
|
|
45 |
|
40 |
|
|
|
29 |
|
23 |
|
|
|
(11 |
) |
(22 |
) |
Europe |
140 |
|
204 |
|
|
|
175 |
|
223 |
|
|
|
15 |
|
22 |
|
|
|
13 |
|
15 |
|
|
|
10 |
|
11 |
|
|
|
(9 |
) |
(11 |
) |
Brazil |
142 |
|
147 |
|
|
|
168 |
|
141 |
|
|
|
7 |
|
9 |
|
|
|
6 |
|
6 |
|
|
|
5 |
|
4 |
|
|
|
— |
|
4 |
|
Asia |
110 |
|
52 |
|
|
|
118 |
|
51 |
|
|
|
7 |
|
3 |
|
|
|
6 |
|
2 |
|
|
|
4 |
|
1 |
|
|
|
2 |
|
2 |
|
|
1,157 |
|
1,164 |
|
|
|
1,399 |
|
1,364 |
|
|
|
85 |
|
92 |
|
|
|
70 |
|
63 |
|
|
|
48 |
|
39 |
|
|
|
(18 |
) |
(27 |
) |
Solar |
376 |
|
287 |
|
|
|
462 |
|
295 |
|
|
|
61 |
|
51 |
|
|
|
59 |
|
42 |
|
|
|
37 |
|
27 |
|
|
|
(6 |
) |
4 |
|
Storage &
Other |
87 |
|
90 |
|
|
|
— |
|
— |
|
|
|
19 |
|
21 |
|
|
|
12 |
|
10 |
|
|
|
8 |
|
7 |
|
|
|
(1 |
) |
1 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
22 |
|
(3 |
) |
|
|
(54 |
) |
(69 |
) |
|
|
(49 |
) |
(73 |
) |
Total |
6,552 |
|
7,602 |
|
|
|
7,309 |
|
7,109 |
|
|
|
$ |
466 |
|
$ |
553 |
|
|
|
$ |
396 |
|
$ |
400 |
|
|
|
$ |
232 |
|
$ |
230 |
|
|
|
$ |
(44 |
) |
$ |
17 |
|
The following table reconciles net income
attributable to Unitholders and earnings per unit, the most
directly comparable IFRS measures, to FFO, and FFO per unit, both
non-IFRS financial metrics for the three months ended June 30:
|
|
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS NOTED) |
2020 |
|
|
2019 |
|
|
2020 |
|
2019 |
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners' equity |
$ |
(25 |
) |
|
$ |
9 |
|
|
$ |
(0.14 |
) |
$ |
0.05 |
|
General partnership interest held by Brookfield |
— |
|
|
1 |
|
|
— |
|
— |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
(19 |
) |
|
7 |
|
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
(44 |
) |
|
$ |
17 |
|
|
$ |
(0.14 |
) |
$ |
0.05 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
158 |
|
|
164 |
|
|
0.51 |
|
0.54 |
|
Foreign exchange and unrealized financial instruments loss |
51 |
|
|
13 |
|
|
0.16 |
|
0.04 |
|
Deferred income tax expense (recovery) |
— |
|
|
10 |
|
|
— |
|
0.03 |
|
Other |
67 |
|
|
26 |
|
|
0.22 |
|
0.08 |
|
FFO |
$ |
232 |
|
|
$ |
230 |
|
|
$ |
0.75 |
|
$ |
0.74 |
|
Distributions attributable
to: |
|
|
|
|
|
|
Preferred limited partners' equity |
14 |
|
|
11 |
|
|
|
|
Preferred equity |
6 |
|
|
7 |
|
|
|
|
Current income taxes |
4 |
|
|
10 |
|
|
|
|
Interest expense –
borrowings |
104 |
|
|
119 |
|
|
|
|
Management service costs |
36 |
|
|
23 |
|
|
|
|
Proportionate Adjusted
EBITDA |
$ |
396 |
|
|
$ |
400 |
|
|
|
|
Attributable to non-controlling interests |
121 |
|
|
230 |
|
|
|
|
Consolidated Adjusted EBITDA |
$ |
517 |
|
|
$ |
630 |
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
|
311.3 |
|
311.2 |
|
(1) Includes GP
interest, Redeemable/Exchangeable partnership units, and LP
Units.
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 |
|
|
Net Income (Loss) |
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
2019 |
|
|
2018 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
7,198 |
|
7,983 |
|
|
|
6,813 |
|
6,883 |
|
|
|
$ |
482 |
|
$ |
539 |
|
|
|
$ |
371 |
|
$ |
406 |
|
|
|
$ |
301 |
|
$ |
320 |
|
|
|
$ |
86 |
|
$ |
146 |
|
Brazil |
2,151 |
|
2,156 |
|
|
|
1,986 |
|
1,978 |
|
|
|
100 |
|
123 |
|
|
|
82 |
|
91 |
|
|
|
70 |
|
73 |
|
|
|
|
|
|
34 |
|
33 |
|
Colombia |
1,241 |
|
1,626 |
|
|
|
1,668 |
|
1,667 |
|
|
|
105 |
|
118 |
|
|
|
61 |
|
73 |
|
|
|
44 |
|
51 |
|
|
|
|
|
|
34 |
|
37 |
|
|
10,590 |
|
11,765 |
|
|
|
10,467 |
|
10,528 |
|
|
|
687 |
|
780 |
|
|
|
514 |
|
570 |
|
|
|
415 |
|
444 |
|
|
|
|
|
|
154 |
|
216 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
1,596 |
|
1,611 |
|
|
|
1,882 |
|
1,909 |
|
|
|
116 |
|
121 |
|
|
|
93 |
|
88 |
|
|
|
58 |
|
52 |
|
|
|
(27 |
) |
(18 |
) |
Europe |
360 |
|
478 |
|
|
|
428 |
|
531 |
|
|
|
37 |
|
50 |
|
|
|
26 |
|
35 |
|
|
|
21 |
|
28 |
|
|
|
(12 |
) |
— |
|
Brazil |
212 |
|
253 |
|
|
|
294 |
|
260 |
|
|
|
11 |
|
16 |
|
|
|
9 |
|
11 |
|
|
|
6 |
|
6 |
|
|
|
(3 |
) |
1 |
|
Asia |
200 |
|
91 |
|
|
|
218 |
|
89 |
|
|
|
13 |
|
5 |
|
|
|
11 |
|
3 |
|
|
|
7 |
|
2 |
|
|
|
4 |
|
1 |
|
|
2,368 |
|
2,433 |
|
|
|
2,822 |
|
2,789 |
|
|
|
177 |
|
192 |
|
|
|
139 |
|
137 |
|
|
|
92 |
|
88 |
|
|
|
(38 |
) |
(16 |
) |
Solar |
616 |
|
486 |
|
|
|
737 |
|
490 |
|
|
|
110 |
|
89 |
|
|
|
95 |
|
74 |
|
|
|
55 |
|
45 |
|
|
|
(20 |
) |
13 |
|
Storage &
Other |
142 |
|
164 |
|
|
|
— |
|
— |
|
|
|
37 |
|
45 |
|
|
|
20 |
|
21 |
|
|
|
14 |
|
14 |
|
|
|
— |
|
1 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
19 |
|
(7 |
) |
|
|
(127 |
) |
(134 |
) |
|
|
(122 |
) |
(154 |
) |
Total |
13,716 |
|
14,848 |
|
|
|
14,026 |
|
13,807 |
|
|
|
$ |
1,011 |
|
$ |
1,106 |
|
|
|
$ |
787 |
|
$ |
795 |
|
|
|
$ |
449 |
|
$ |
457 |
|
|
|
$ |
(26 |
) |
$ |
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
453 |
|
$ |
407 |
|
|
|
|
|
The following table reconciles net income
attributable to Unitholders and earnings per unit, the most
directly comparable IFRS measures, to FFO, and FFO per unit, both
non-IFRS financial metrics for the six months ended June 30:
|
|
|
|
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS NOTED) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Net income attributable
to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners' equity |
$ |
(15 |
) |
|
$ |
34 |
|
|
$ |
(0.08 |
) |
$ |
0.19 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
— |
|
|
1 |
|
|
— |
|
— |
|
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(11 |
) |
|
25 |
|
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
(26 |
) |
|
$ |
60 |
|
|
$ |
(0.08 |
) |
$ |
0.19 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
330 |
|
|
321 |
|
|
1.06 |
|
1.03 |
|
Foreign exchange and unrealized financial instruments loss
(gain) |
44 |
|
|
31 |
|
|
0.14 |
|
0.10 |
|
Deferred income tax (recovery) expense |
6 |
|
|
(14 |
) |
|
0.02 |
|
(0.04 |
) |
Other |
95 |
|
|
59 |
|
|
0.30 |
|
0.19 |
|
FFO |
$ |
449 |
|
|
$ |
457 |
|
|
$ |
1.44 |
|
$ |
1.47 |
|
Distributions attributable
to: |
|
|
|
|
|
|
Preferred limited partners' equity |
26 |
|
|
21 |
|
|
|
|
Preferred equity |
13 |
|
|
13 |
|
|
|
|
Current income taxes |
15 |
|
|
20 |
|
|
|
|
Interest expense –
borrowings |
217 |
|
|
240 |
|
|
|
|
Management service costs |
67 |
|
|
44 |
|
|
|
|
Proportionate Adjusted
EBITDA |
$ |
787 |
|
|
$ |
795 |
|
|
|
|
Attributable to non-controlling interests |
348 |
|
|
487 |
|
|
|
|
Consolidated Adjusted EBITDA |
$ |
1,135 |
|
|
$ |
1,282 |
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
|
311.3 |
|
311.1 |
|
(1) Includes GP
interest, Redeemable/Exchangeable partnership units, and LP
Units.
BROOKFIELD RENEWABLE CORPORATION
REPORTS
SECOND QUARTER 2020 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 $0.4340 per class A
exchangeable subordinate voting share of BEPC (a "Share"), payable
on September 30, 2020 to shareholders of record as at the close of
business on August 31, 2020. 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 units.
The Shares of BEPC 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 Shares and BEP's units and each Share being
exchangeable at the option of the holder for one BEP 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 unit and the combined business performance of our
company and BEP as a whole. In addition to carefully considering
the disclose made in this news release in its entirety,
shareholders are strongly encouraged to carefully review BEP's
letter to unitholders, supplemental information and its other
continuous disclosure filings. BEP's letter to unitholders and
supplemental information are available at www.bep.brookfield.com.
Copies of the Partnership's continuous disclosure filings are
available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR at www.sedar.com.
Results
During the six month period ended June 30, 2020,
our company had not yet commenced operations.
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
|
UNAUDITED(MILLIONS) |
|
June 30 |
|
|
December 31 |
|
|
2020 |
|
|
2019 |
|
Assets |
|
|
Cash and cash equivalents |
$ |
100 |
|
$ |
100 |
|
Total Assets |
$ |
100 |
|
$ |
100 |
|
Equity |
|
|
Shareholders' equity |
$ |
100 |
|
$ |
100 |
|
Total Equity |
$ |
100 |
|
$ |
100 |
|
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 news
release 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, technology diversification, acquisition
opportunities, expected completion of acquisitions and
dispositions, including the proposed acquisition of a 1,200
megawatt solar development project in Brazil, financing and
refinancing opportunities, BEPC’s eligibility for index inclusion,
BEPC’s ability to attract new investors as well as the future
performance and prospects of BEPC and BEP, the prospects and
benefits of the combination of Brookfield Renewable and TerraForm
Power, including certain information regarding the combined
company’s expected cash flow profile and liquidity, future energy
prices and demand for electricity, 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 news release. 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 news release include (without limitation) our inability to
identify sufficient investment opportunities and complete
transactions, including the proposed acquisition of a 1,200
megawatt solar development project in Brazil; 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; 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 other risks and
factors that are described therein and that are described in the
BEP’s and BEPC's registration statement on Form F-1/F-4 filed in
connection with the distribution of BEPC’s Shares and the
acquisition of TerraForm Power and the Canadian prospectus filed
with the securities regulators in Canada qualifying the
distribution of BEPC's Shares.
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 news release
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 news release. This
news release 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
Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized
FFO per Unit, which are not generally accepted accounting measures
under IFRS and therefore may differ from definitions of Adjusted
EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per
Unit used by other entities. We believe that Adjusted EBITDA, FFO,
FFO per Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO, FFO per
Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO and FFO per Unit to the most
directly comparable IFRS measure, please see “- Reconciliation of
non-IFRS measures” below and “PART 4 - Financial Performance Review
on Proportionate Information - Reconciliation of non-IFRS measures”
included in our Management’s Discussion and Analysis for the three
and six months ended June 30, 2020. Normalized FFO assumes
long-term average generation in North America and Europe and uses
2019 foreign currency rates and management service costs.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
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