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 nine months ended September 30, 2020.
“We had a strong quarter, as we executed on a
broad range of transactions that highlight the unique strengths and
differentiated value of our business,” said Connor Teskey, CEO of
Brookfield Renewable. “Our strategy going forward is unchanged. We
remain focused on growing our business, while continuing to deliver
on our target of 12-15% long-term returns to equity holders, by
leveraging our scale and operational expertise to help governments
and businesses around the world transition to a greener
future."
Financial
Results |
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Millions
(except per unit or otherwise noted) |
|
Three months ended September 30 |
Nine months ended September 30 |
Unaudited |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total
generation (GWh) |
|
|
|
|
|
|
|
|
– Long-term average generation |
|
13,446 |
|
|
12,332 |
|
|
43,124 |
|
|
40,077 |
|
– Actual generation |
|
12,007 |
|
|
11,089 |
|
|
39,534 |
|
|
40,095 |
|
Brookfield Renewable Partner's share (GWh) |
|
|
|
|
|
|
|
|
– Long-term average generation |
|
6,618 |
|
|
5,821 |
|
|
20,644 |
|
|
19,628 |
|
– Actual generation |
|
5,753 |
|
|
5,213 |
|
|
19,469 |
|
|
20,061 |
|
Net
(loss) income Attributable to Unitholders |
$ |
(162 |
) |
$ |
(58 |
) |
$ |
(184 |
) |
$ |
(29 |
) |
Per LP unit(1) |
|
(0.44 |
) |
|
(0.18 |
) |
|
(0.58 |
) |
|
(0.17 |
) |
Funds
From Operations (FFO)(2) |
|
157 |
|
|
133 |
|
|
606 |
|
|
590 |
|
Per Unit(2)(3) |
|
0.38 |
|
|
0.34 |
|
|
1.52 |
|
|
1.52 |
|
Normalized Funds From Operations (FFO)(2)(4) |
|
206 |
|
|
151 |
|
|
659 |
|
|
581 |
|
Per Unit(2)(3)(4) |
|
0.50 |
|
|
0.39 |
|
|
1.65 |
|
|
1.49 |
|
(1) |
For the three and nine months ended September 30, 2020,
weighted average LP units totaled 181.7 million and 179.9 million,
respectively (2019: 178.9 million and 178.9 million,
respectively). |
(2) |
Non-IFRS measures. Refer
to “Cautionary Statement Regarding Use of Non-IFRS
Measures”. |
(3) |
Average Units outstanding,
adjusted for the special distribution as if it had been completed
prior to the periods presented, for the three and nine months ended
September 30, 2020 were 416.4 million and 398.3 million,
respectively (2019: 389.1 million and 389.0 million, respectively),
being inclusive of our LP units, Redeemable/Exchangeable
partnership units, exchangeable shares and GP interest. The actual
Units outstanding at September 30, 2020 were 430.3 million
(2019: 311.2 million). |
(4) |
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 nine months ended September 30, 2020, the change
related to long-term average generation totaled $40 million and $34
million, respectively (2019: $18 million and $(9) million,
respectively) and the change related to foreign currency totaled $9
million and $19 million, respectively. |
Brookfield Renewable reported FFO of $157
million ($0.38 per unit) for the three months ended
September 30, 2020, a 12% increase from prior year, and $206
million ($0.50 per unit) on a normalized basis, a 28% increase from
the prior year. After deducting non-cash depreciation, our net loss
attributable to unitholders for the three months ended
September 30, 2020 was $162
million or $0.44 per LP unit.
Highlights
- We agreed on transactions to invest ~$900 million (~$250
million net to BEP) of equity;
- We completed the special distribution of Brookfield Renewable
Corporation which has led to increased demand and enhanced
liquidity for our securities; and
- Our liquidity remains robust at $3.3 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 $900
million of proceeds ($326 million net to BEP) from asset recycling
initiatives.
Update on Growth
Initiatives
Recently we executed on a broad range of
transactions that highlight the unique strengths and differentiated
value of our business. Our largest transaction was completing the
merger of TerraForm Power on an all-stock basis. The transaction
was immediately cash accretive, expands our wind and solar business
in North America and Europe and further enhances our position as
one of the largest, publicly traded pure-play renewable power
businesses globally.
We also closed the acquisition of a 1,200 MW
shovel-ready solar development project in Brazil, one of the
largest solar projects globally. The project is over 75% contracted
under long-term agreement and we intend to leverage our local power
marketing expertise to contract the remaining generation and use
our global scale to drive down equipment procurement and operating
costs to deliver value over time.
This week, we announced our intention to launch
an offer to privatize Polenergia, a scale renewable business in
Europe, in partnership with the current majority shareholder. The
investment represents an opportunity to invest in an attractive
onshore wind platform and provides an attractive entry into the
offshore wind sector in Europe through a 3,000-megawatt development
pipeline, which we expect to construct over the next 5 to 7 years
in partnership with an experienced offshore wind
developer.
And we acquired a portfolio of loans from one of
the largest non-bank financial companies in India for approximately
$200 million. The investment, which is secured by approximately
2,500-megawatts of operating assets, is expected to earn returns in
excess of 15%, and further expands our presence in the region.
Finally, we funded the final C$400 million
tranche of the C$750 million convertible securities we agreed to
invest in TransAlta Corporation at the beginning of 2019. The
convertible securities provide us with the option to convert into
an interest in TransAlta’s 813 megawatt portfolio of high-quality
hydroelectric facilities in Alberta between 2025 and 2028 based on
a multiple of 13 times the average annual EBITDA for the three
years prior to conversion. The investment, which was the
culmination of a multi-year dialogue, enhances our strategic
relationship with the company to help advance its goal of
transitioning to a low carbon energy future.
Results from Operations
During the third quarter, we generated FFO of
$157 million or $0.38 per unit, a 12% increase from prior year as
the business benefited from strong asset availability and
contributions from organic growth and recent acquisitions. On
a normalized basis, our results are up 28%.
During the quarter, our hydroelectric segment
delivered FFO of $113 million. While generation for the quarter was
below the long-term average level, driven by drier conditions
across our fleet, year-to-date generation has been roughly in line
with long term average. As we have consistently emphasized, we do
not manage the business on under or overperformance of generation
relative to the long-term average in any given period. Instead, we
remain focused on diversifying the business from both a geographic
and technology perspective, which mitigates short-term exposure to
resource volatility, and regional or market disruptions.
Across our hydroelectric portfolio, we continue
to focus on securing contracts that value the uniqueness of our
fleet as a generator of dispatchable carbon free electricity and
ancillary services. Subsequent to quarter-end, we agreed to supply
100% renewable energy to one of the first planned industrial-scale
green hydrogen production plants in North America and over 90% of
JPMorgan’s real estate operations in New York. These transactions
demonstrate our ability to address diverse customer needs for
renewable supply across both wholesale and retail energy markets.
Additionally, in South America we signed 25 contracts in the
quarter with high-quality, creditworthy counterparties for a total
of almost 2,000 gigawatt-hours per year, substantially contracting
our recently acquired development assets in the region.
Our wind and solar segments continue to generate
stable revenues and benefit from the diversification of our fleet
and highly contracted cash flows with long duration power purchase
agreements. During the quarter, these segments generated a combined
$126 million of FFO, representing a 70% increase over the prior
year, as we benefited from contributions from acquisitions,
including our increased ownership in TerraForm Power, and 33
megawatts of solar projects commissioned during the quarter.
Finally, we continued to advance our global
development activities, including progressing almost 2,700
megawatts of construction diversified across distributed- and
utility-scale solar, wind, storage, and hydro in 8 different
countries. We are also progressing approximately 1,110 megawatts of
advanced-stage projects through final permitting and contracting.
In total, we expect these projects to contribute approximately $116
million in FFO on a run-rate basis.
Balance Sheet and Liquidity
Our financial position continues to be in
excellent shape. We have approximately $3.3 billion of total
available liquidity, and our investment grade balance sheet has no
material maturities over the next five years and approximately 90%
of our financings are non-recourse to BEP.
During the quarter, we continued to take
advantage of the low interest environment and executed on $900
million of investment grade financings, including a C$425 million,
30-year corporate green bond issuance, which brings our total green
financings to date to over $4 billion and extends our average
corporate debt duration to 14 years.
We continued to execute on our capital recycling
program of monetizing mature, de-risked assets. During the quarter,
we closed the sale of the final project in our South African
portfolio. Since acquiring these assets as part of a broader global
transaction in 2017, we have returned almost $200 million of
capital (~$60 million net to BEP) representing over 2.5 times our
investment. Following the quarter, we also executed the sale of a
40% equity interest in an 852-megawatt portfolio in the U.S. and 47
megawatts of operating wind assets in Ireland for total proceeds of
over $400 million ($233 million net to BEP).
Stock Split
Brookfield Renewable announced today that the
Board of Directors of BEP has approved a three-for-two unit split
of BEP’s outstanding units. The split will be implemented by way of
a subdivision whereby unitholders will receive an additional
one-half of a unit for each unit held (i.e. one additional unit for
every two units held).
In conjunction with BEP’s unit split, the Board
of Directors of Brookfield Renewable Corporation ("BEPC") has
approved a concurrent three-for-two share split of BEPC’s
outstanding shares. The BEPC split will also be implemented by way
of a subdivision whereby shareholders will receive an additional
one-half of a share for each share held.
On December 11, 2020, the additional
units/shares required to give effect to the unit/share splits will
be issued to holders of record at the close of business on December
7, 2020. Any fractional units/shares to be issued to registered
holders as a result of the unit/share splits will be rounded up to
the nearest whole unit/share. Brookfield Renewable's preferred
units will not be affected by the unit/share splits.
As a result of the three-for-two unit/share
splits, BEP and BEPC will adjust their distribution/dividend
following the effective date to reflect the additional number of
units/shares that will be outstanding. The unit/share splits will
not dilute holders’ equity and will not be taxable in Canada or the
United States.
BEP’s units and BEPC’s shares will begin trading
with “due bills” on the Toronto Stock Exchange (“TSX”) and New York
Stock Exchange (“NYSE”) at the opening of business on Friday,
December 4, 2020 (one trading day before the record date) until
Friday, December 11, 2020 (the payment date), inclusively. During
such period, anyone who purchases units or shares on the TSX and/or
NYSE will receive the entitlement to be issued additional units or
shares pursuant to the stock splits. The units and shares will
commence trading on an “ex-dividend” (post-split) basis on the TSX
and NYSE at the opening of business on Monday, December 14, 2020,
as of which date purchases of units and shares will no longer have
an attaching entitlement to additional units and shares issued
pursuant to the unit/share splits.
Distribution Declaration
The next quarterly distribution in the amount of
$0.434 per LP unit, is payable on December 31, 2020 to unitholders
of record as at the close of business on November 30, 2020. In
conjunction with the Partnership’s distribution declaration, the
Board of Directors of BEPC has declared an equivalent quarterly
dividend of $0.434 per share, also payable on December 31, 2020 to
shareholders of record as at the close of business on November 30,
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 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 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 over 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 Partners L.P. and Brookfield Renewable
Corporation are the flagship listed renewable power issuers of
Brookfield Asset Management, a leading global alternative asset
manager with approximately $575 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 |
Robin Kooyman |
Senior Vice President - Communications |
Senior Vice President - Investor Relations |
(416) 369-8236 |
(416) 649-8172 |
claire.holland@brookfield.com |
robin.kooyman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2020 Third 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 November 4, 2020 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/zdqvh5w7 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, 2594418. 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, 2594418.
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
UNAUDITED
(MILLIONS) |
September 30 |
December 31 |
|
2020 |
|
2019 |
Assets |
|
|
|
As adjusted(1) |
Cash and cash equivalents |
|
$ |
482 |
|
$ |
352 |
Trade receivables and other financial assets |
|
1,725 |
|
1,541 |
Equity-accounted investments |
|
916 |
|
937 |
Property, plant and equipment, at fair value |
|
38,939 |
|
41,055 |
Goodwill |
|
871 |
|
949 |
Deferred income tax and other assets |
|
1,190 |
|
1,362 |
Total Assets |
|
$ |
44,123 |
|
$ |
46,196 |
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,419 |
|
$ |
2,100 |
Borrowings which have recourse only to assets they finance |
|
15,134 |
|
15,200 |
Accounts payable and other liabilities |
|
4,277 |
|
3,561 |
Deferred income tax liabilities |
|
4,474 |
|
4,855 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
8,758 |
|
$ |
11,086 |
|
General partnership interest held by Brookfield |
46 |
|
68 |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
2,245 |
|
3,317 |
|
Class A shares of Brookfield Renewable Corporation |
1,988 |
|
— |
|
Preferred equity |
581 |
|
597 |
|
Preferred limited partners' equity |
1,028 |
|
833 |
|
Limited partners' equity |
3,173 |
17,819 |
4,579 |
20,480 |
Total Liabilities and Equity |
|
$ |
44,123 |
|
$ |
46,196 |
(1) |
As adjusted to
reflect the historical financial statements of TerraForm Power Inc.
acquired on July 31, 2020. |
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED
STATEMENTS OF INCOME |
UNAUDITED |
Three months ended September 30 |
|
Nine months ended September 30 |
(MILLIONS, EXCEPT PER UNIT INFORMATION) |
2020 |
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
|
|
As adjusted(1) |
|
|
|
|
As adjusted(1) |
|
Revenues |
$ |
867 |
|
|
$ |
897 |
|
|
|
$ |
2,858 |
|
|
$ |
3,006 |
|
Other income |
12 |
|
|
38 |
|
|
|
51 |
|
|
77 |
|
Direct operating costs |
(281 |
) |
|
(303 |
) |
|
|
(917 |
) |
|
(937 |
) |
Management service costs |
(65 |
) |
|
(36 |
) |
|
|
(151 |
) |
|
(91 |
) |
Interest expense |
(233 |
) |
|
(236 |
) |
|
|
(733 |
) |
|
(746 |
) |
Share of (loss) earnings from
equity-accounted investments |
(5 |
) |
|
7 |
|
|
|
(4 |
) |
|
21 |
|
Foreign exchange and financial
instrument gain (loss) |
38 |
|
|
(24 |
) |
|
|
12 |
|
|
(75 |
) |
Depreciation |
(369 |
) |
|
(318 |
) |
|
|
(1,030 |
) |
|
(924 |
) |
Other |
(110 |
) |
|
(58 |
) |
|
|
(125 |
) |
|
(107 |
) |
Income tax expense |
|
|
|
|
|
Current |
(13 |
) |
|
(10 |
) |
|
|
(29 |
) |
|
(50 |
) |
Deferred |
40 |
|
|
25 |
|
|
|
28 |
|
|
(4 |
) |
|
27 |
|
|
15 |
|
|
|
(1 |
) |
|
(54 |
) |
Net
income (loss) |
$ |
(119 |
) |
|
$ |
(18 |
) |
|
|
$ |
(40 |
) |
|
$ |
170 |
|
Net income (loss) attributable
to: |
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
23 |
|
|
$ |
22 |
|
|
|
$ |
85 |
|
|
$ |
147 |
|
General partnership interest held by Brookfield |
15 |
|
|
11 |
|
|
|
46 |
|
|
36 |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
(67 |
) |
|
(30 |
) |
|
|
(89 |
) |
|
(28 |
) |
Class A shares of Brookfield Renewable Corporation |
(18 |
) |
|
— |
|
|
|
(18 |
) |
|
— |
|
Preferred equity |
6 |
|
|
6 |
|
|
|
19 |
|
|
19 |
|
Preferred limited partners' equity |
14 |
|
|
12 |
|
|
|
40 |
|
|
33 |
|
Limited partners' equity |
(92 |
) |
|
(39 |
) |
|
|
(123 |
) |
|
(37 |
) |
|
$ |
(119 |
) |
|
$ |
(18 |
) |
|
|
$ |
(40 |
) |
|
$ |
170 |
|
Basic
and diluted (loss) earnings per LP unit |
$ |
(0.44 |
) |
|
$ |
(0.18 |
) |
|
|
$ |
(0.58 |
) |
|
$ |
(0.17 |
) |
(1) |
As adjusted to
reflect the historical financial statements of TerraForm Power Inc.
acquired on July 31, 2020. |
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
UNAUDITED |
Three months ended September 30 |
|
Nine months ended September 30 |
(MILLIONS) |
2020 |
|
|
2019 |
|
|
|
2020 |
|
|
2019 |
|
Operating
activities |
|
As adjusted(1) |
|
|
|
|
As adjusted(1) |
|
Net income |
$ |
(119 |
) |
|
$ |
(18 |
) |
|
|
$ |
(40 |
) |
|
$ |
170 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
369 |
|
|
318 |
|
|
|
1,030 |
|
|
924 |
|
Unrealized foreign exchange and financial instrument loss
(gain) |
(34 |
) |
|
22 |
|
|
|
(15 |
) |
|
73 |
|
Share of earnings from equity-accounted investments |
5 |
|
|
(7 |
) |
|
|
4 |
|
|
(21 |
) |
Deferred income tax expense |
(41 |
) |
|
(25 |
) |
|
|
(28 |
) |
|
4 |
|
Other non-cash items |
85 |
|
|
40 |
|
|
|
140 |
|
|
141 |
|
Net
change in working capital |
(81 |
) |
|
40 |
|
|
|
(74 |
) |
|
14 |
|
|
184 |
|
|
370 |
|
|
|
1,017 |
|
|
1,305 |
|
Financing
activities |
|
|
|
|
|
Net corporate borrowings |
16 |
|
|
449 |
|
|
|
266 |
|
|
449 |
|
Commercial paper and corporate
credit facilities, net |
239 |
|
|
12 |
|
|
|
80 |
|
|
(709 |
) |
Non-recourse borrowings,
net |
8 |
|
|
544 |
|
|
|
1 |
|
|
647 |
|
Capital contributions from
participating non-controlling interests – in operating
subsidiaries, net |
62 |
|
|
35 |
|
|
|
68 |
|
|
292 |
|
Issuance of preferred limited
partnership units |
— |
|
|
— |
|
|
|
195 |
|
|
126 |
|
Issuance of Units, net |
(21 |
) |
|
— |
|
|
|
(21 |
) |
|
— |
|
Distributions paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
(86 |
) |
|
(154 |
) |
|
|
(426 |
) |
|
(613 |
) |
To preferred shareholders & limited partners' unitholders |
(21 |
) |
|
(17 |
) |
|
|
(57 |
) |
|
(50 |
) |
To unitholders of Brookfield Renewable or BRELP |
(202 |
) |
|
(171 |
) |
|
|
(567 |
) |
|
(513 |
) |
Borrowings from related party, net |
— |
|
|
(322 |
) |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
376 |
|
|
|
(461 |
) |
|
(371 |
) |
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
— |
|
|
(787 |
) |
|
|
(105 |
) |
|
(813 |
) |
Investment in property, plant
and equipment |
(113 |
) |
|
(62 |
) |
|
|
(257 |
) |
|
(150 |
) |
Disposal of subsidiaries,
associates and other securities, net |
21 |
|
|
77 |
|
|
|
35 |
|
|
68 |
|
Restricted cash and other |
(91 |
) |
|
(43 |
) |
|
|
(78 |
) |
|
4 |
|
|
(183 |
) |
|
(815 |
) |
|
|
(405 |
) |
|
(891 |
) |
Foreign
exchange gain (loss) on cash |
— |
|
|
(9 |
) |
|
|
(10 |
) |
|
(9 |
) |
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
(4 |
) |
|
(78 |
) |
|
|
141 |
|
|
34 |
|
Net change in cash classified within assets held for sale |
(3 |
) |
|
(2 |
) |
|
|
(11 |
) |
|
(9 |
) |
Balance, beginning of period |
489 |
|
|
526 |
|
|
|
352 |
|
|
421 |
|
Balance, end of period |
$ |
482 |
|
|
$ |
446 |
|
|
|
$ |
482 |
|
|
$ |
446 |
|
(1) |
As adjusted to
reflect the historical financial statements of TerraForm Power Inc.
acquired on July 31, 2020. |
PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED
SEPTEMBER 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended September 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 |
2,151 |
2,277 |
|
|
2,441 |
2,443 |
|
|
$ |
160 |
$ |
161 |
|
|
$ |
101 |
$ |
95 |
|
|
|
$ |
66 |
|
$ |
55 |
|
|
|
$ |
(17 |
) |
$ |
1 |
|
Brazil |
663 |
734 |
|
|
1,011 |
1,009 |
|
|
36 |
50 |
|
|
32 |
53 |
|
|
|
24 |
|
46 |
|
|
|
4 |
|
22 |
|
Colombia |
792 |
721 |
|
|
843 |
853 |
|
|
49 |
56 |
|
|
32 |
34 |
|
|
|
23 |
|
24 |
|
|
|
15 |
|
19 |
|
|
3,606 |
3,732 |
|
|
4,295 |
4,305 |
|
|
245 |
267 |
|
|
165 |
182 |
|
|
|
113 |
|
125 |
|
|
|
2 |
|
42 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
832 |
579 |
|
|
1,008 |
713 |
|
|
57 |
46 |
|
|
45 |
32 |
|
|
|
24 |
|
16 |
|
|
|
(23 |
) |
(28 |
) |
Europe |
209 |
185 |
|
|
217 |
198 |
|
|
27 |
21 |
|
|
19 |
15 |
|
|
|
13 |
|
10 |
|
|
|
(20 |
) |
(9 |
) |
Brazil |
199 |
201 |
|
|
208 |
215 |
|
|
10 |
11 |
|
|
9 |
9 |
|
|
|
7 |
|
7 |
|
|
|
5 |
|
(1 |
) |
Asia |
105 |
93 |
|
|
121 |
97 |
|
|
7 |
8 |
|
|
6 |
7 |
|
|
|
6 |
|
5 |
|
|
|
4 |
|
— |
|
|
1,345 |
1,058 |
|
|
1,554 |
1,223 |
|
|
101 |
86 |
|
|
79 |
63 |
|
|
|
50 |
|
38 |
|
|
|
(34 |
) |
(38 |
) |
Solar |
666 |
279 |
|
|
769 |
293 |
|
|
120 |
56 |
|
|
104 |
49 |
|
|
|
76 |
|
36 |
|
|
|
6 |
|
12 |
|
Storage &
Other |
136 |
144 |
|
|
— |
— |
|
|
16 |
21 |
|
|
6 |
9 |
|
|
|
2 |
|
6 |
|
|
|
(4 |
) |
(1 |
) |
Corporate |
— |
— |
|
|
— |
— |
|
|
— |
— |
|
|
17 |
(2 |
) |
|
|
(84 |
) |
(72 |
) |
|
|
(132 |
) |
(73 |
) |
Total |
5,753 |
5,213 |
|
|
6,618 |
5,821 |
|
|
$ |
482 |
$ |
430 |
|
|
$ |
371 |
$ |
301 |
|
|
|
$ |
157 |
|
$ |
133 |
|
|
|
$ |
(162 |
) |
$ |
(58 |
) |
PROPORTIONATE RESULTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the nine months ended September 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 |
9,349 |
10,260 |
|
|
9,254 |
9,326 |
|
|
$ |
642 |
$ |
700 |
|
|
$ |
472 |
$ |
501 |
|
|
|
$ |
367 |
|
$ |
375 |
|
|
|
$ |
68 |
|
$ |
146 |
|
Brazil |
2,814 |
2,347 |
|
|
2,997 |
2,520 |
|
|
136 |
173 |
|
|
114 |
144 |
|
|
|
94 |
|
119 |
|
|
|
37 |
|
55 |
|
Colombia |
2,033 |
2,890 |
|
|
2,511 |
2,987 |
|
|
154 |
174 |
|
|
93 |
107 |
|
|
|
67 |
|
75 |
|
|
|
47 |
|
56 |
|
|
14,196 |
15,497 |
|
|
14,762 |
14,833 |
|
|
932 |
1,047 |
|
|
679 |
752 |
|
|
|
528 |
|
569 |
|
|
|
152 |
|
257 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,428 |
2,190 |
|
|
2,890 |
2,622 |
|
|
173 |
167 |
|
|
138 |
120 |
|
|
|
85 |
|
67 |
|
|
|
(40 |
) |
(59 |
) |
Europe |
570 |
663 |
|
|
645 |
729 |
|
|
64 |
71 |
|
|
45 |
50 |
|
|
|
34 |
|
38 |
|
|
|
(40 |
) |
(18 |
) |
Brazil |
409 |
454 |
|
|
502 |
475 |
|
|
21 |
27 |
|
|
18 |
20 |
|
|
|
13 |
|
14 |
|
|
|
1 |
|
3 |
|
Asia |
305 |
184 |
|
|
339 |
186 |
|
|
20 |
13 |
|
|
17 |
10 |
|
|
|
13 |
|
8 |
|
|
|
5 |
|
2 |
|
|
3,712 |
3,491 |
|
|
4,376 |
4,012 |
|
|
278 |
278 |
|
|
218 |
200 |
|
|
|
145 |
|
127 |
|
|
|
(74 |
) |
(72 |
) |
Solar |
1,282 |
765 |
|
|
1,506 |
783 |
|
|
230 |
145 |
|
|
199 |
123 |
|
|
|
133 |
|
83 |
|
|
|
2 |
|
11 |
|
Storage &
Other |
279 |
308 |
|
|
— |
— |
|
|
53 |
66 |
|
|
26 |
30 |
|
|
|
17 |
|
20 |
|
|
|
(5 |
) |
2 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
— |
— |
|
|
36 |
(9 |
) |
|
|
(217 |
) |
(209 |
) |
|
|
(259 |
) |
(227 |
) |
Total |
19,469 |
20,061 |
|
|
20,644 |
19,628 |
|
|
$ |
1,493 |
$ |
1,536 |
|
|
$ |
1,158 |
$ |
1,096 |
|
|
|
$ |
606 |
|
$ |
590 |
|
|
|
$ |
(184 |
) |
$ |
(29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized long-term average generation adjustment |
|
|
34 |
|
(9 |
) |
|
|
|
|
|
|
|
|
|
Normalized foreign exchange adjustment |
|
|
19 |
|
— |
|
|
|
|
|
|
|
|
|
|
Normalized FFO |
|
|
$ |
659 |
|
$ |
581 |
|
|
|
|
|
The following table reconciles the non-IFRS financial metrics to
the most directly comparable IFRS measures. Net income attributable
to Unitholders is reconciled to Funds From Operations and
reconciled to Proportionate Adjusted EBITDA for the three and nine
months ended September 30:
|
Three months ended September 30 |
|
Nine months ended September 30 |
(MILLIONS) |
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
Net income attributable
to: |
|
As adjusted(1) |
|
|
|
As adjusted(1) |
|
Limited partners' equity |
$ |
(92 |
) |
$ |
(39 |
) |
|
$ |
(123 |
) |
$ |
(37 |
) |
General partnership interest in a holding subsidiary held by
Brookfield |
15 |
|
11 |
|
|
46 |
|
36 |
|
Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
(67 |
) |
(30 |
) |
|
(89 |
) |
(28 |
) |
Class A shares of Brookfield Renewable Corporation |
(18 |
) |
— |
|
|
(18 |
) |
— |
|
Net income attributable to
Unitholders |
$ |
(162 |
) |
$ |
(58 |
) |
|
$ |
(184 |
) |
$ |
(29 |
) |
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
210 |
|
160 |
|
|
540 |
|
477 |
|
Foreign exchange and financial instruments loss (gain) |
33 |
|
9 |
|
|
68 |
|
44 |
|
Deferred income tax recovery |
(39 |
) |
(25 |
) |
|
(30 |
) |
(7 |
) |
Other |
115 |
|
47 |
|
|
212 |
|
105 |
|
Funds From Operations |
$ |
157 |
|
$ |
133 |
|
|
$ |
606 |
|
$ |
590 |
|
Distributions attributable
to: |
|
|
|
|
|
Preferred limited partners' equity |
14 |
|
12 |
|
|
40 |
|
33 |
|
Preferred equity |
6 |
|
6 |
|
|
19 |
|
19 |
|
Current income taxes |
6 |
|
6 |
|
|
14 |
|
26 |
|
Interest expense |
129 |
|
113 |
|
|
347 |
|
350 |
|
Management service costs |
59 |
|
31 |
|
|
132 |
|
78 |
|
Proportionate Adjusted
EBITDA |
371 |
|
301 |
|
|
1,158 |
|
1,096 |
|
Attributable to
non-controlling interests |
240 |
|
348 |
|
|
887 |
|
1,101 |
|
Consolidated Adjusted
EBITDA |
$ |
611 |
|
$ |
649 |
|
|
$ |
2,045 |
|
$ |
2,197 |
|
(1) |
As adjusted to reflect the historical financial statements of
TerraForm Power Inc. acquired on July 31, 2020. |
The following table reconciles the per unit
non-IFRS financial metrics to the most directly comparable IFRS
measures. Basic earnings per LP unit is reconciled to FFO per unit,
for the three and nine months ended September 30:
|
Three months ended September 30 |
|
Nine months ended September 30 |
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
|
|
As adjusted(1) |
|
|
|
|
|
As adjusted(1) |
|
Net income (loss) per LP unit(2) |
$ |
(0.44 |
) |
$ |
(0.18 |
) |
|
$ |
(0.58 |
) |
$ |
(0.17 |
) |
Depreciation |
0.50 |
|
0.42 |
|
|
1.36 |
|
1.23 |
|
Foreign exchange and financial instruments loss |
0.08 |
|
0.02 |
|
|
0.17 |
|
0.11 |
|
Deferred income tax recovery |
(0.09 |
) |
(0.06 |
) |
|
(0.08 |
) |
(0.02 |
) |
Other |
0.33 |
|
0.14 |
|
|
0.65 |
|
0.37 |
|
Funds From Operations per
Unit(3) |
$ |
0.38 |
|
$ |
0.34 |
|
|
$ |
1.52 |
|
$ |
1.52 |
|
Normalized long-term average generation adjustment |
0.10 |
|
0.05 |
|
|
0.08 |
|
(0.03 |
) |
Normalized foreign exchange adjustment |
0.02 |
|
— |
|
|
0.05 |
|
— |
|
Normalized Funds From
Operations per Unit |
$ |
0.50 |
|
$ |
0.39 |
|
|
$ |
1.65 |
|
$ |
1.49 |
|
(1) |
As adjusted to reflect the historical financial statements of
TerraForm Power Inc. acquired on July 31, 2020. |
(2) |
Average LP units outstanding for the three and nine months ended
September 30, 2020 were 181.7 million and 179.9 million,
respectively (2019: 178.9 million and 178.9 million). Net (loss)
income per LP unit has been adjusted to reflect the dilutive impact
of the special distribution. |
(3) |
Average units, adjusted for the special distribution as if it had
been completed prior to the periods presented, for the three months
and nine months ended September 30, 2020 were 416.4 million
and 178.9 million, respectively (2019: 389.1 million and 389.0
million), being inclusive of LP units, Redeemable/Exchangeable
partnership units, GP interest, and exchangeable shares. |
BROOKFIELD RENEWABLE CORPORATION
REPORTS THIRD 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 $0.434 per class A exchangeable
subordinate voting share of BEPC (a "Share"), payable on December
31, 2020 to shareholders of record as at the close of business on
November 30, 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 Limited Partnership units
("LP 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 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
are available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR at www.sedar.com.
Financial
Results |
|
|
Millions
(except, otherwise noted) |
Three months ended September 30 |
|
|
Nine months ended September 30 |
Unaudited |
2020 |
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Proportionate Generation (GWh) |
3,275 |
|
3,122 |
|
|
11,607 |
|
|
12,336 |
Net (loss) income attributable to Brookfield Renewable |
$ |
(1,295 |
) |
$ |
3 |
|
|
$ |
(1,222 |
) |
|
$ |
128 |
Funds From Operations (FFO)(1) |
$ |
64 |
|
$ |
84 |
|
|
$ |
317 |
|
|
$ |
383 |
(1) |
Non-IFRS
measures. Refer to “Cautionary Statement Regarding Use of
Non-IFRS Measures”. |
Brookfield Renewable Corporation reported FFO of
$64 million for the three months ended September 30, 2020,
compared to $84 million in the prior year. After deducting non-cash
depreciation and remeasurement of the Shares, our net loss
attributable to the company for the three months ended
September 30, 2020 was $1,295 million.
BROOKFIELD
RENEWABLE CORPORATION |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
UNAUDITED
(MILLIONS) |
September 30 |
December 31 |
|
2020 |
|
2019 |
Assets |
|
|
|
As adjusted(1) |
Cash and cash equivalents |
|
$ |
377 |
|
$ |
304 |
Trade receivables and other financial assets |
|
1,227 |
|
1,118 |
Equity-accounted investments |
|
345 |
|
360 |
Property, plant and equipment, at fair value |
|
31,170 |
|
32,647 |
Goodwill |
|
871 |
|
949 |
Deferred income tax and other assets |
|
353 |
|
379 |
Total Assets |
|
$ |
34,343 |
|
$ |
35,757 |
Liabilities |
|
|
|
|
Exchangeable and class B shares |
|
$ |
6,032 |
|
$ |
— |
Borrowings which have recourse only to assets they finance |
|
12,012 |
|
11,958 |
Accounts payable and other liabilities |
|
3,296 |
|
2,335 |
Deferred income tax liabilities |
|
3,287 |
|
3,590 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
8,212 |
|
$ |
10,258 |
|
Participating non-controlling interests – in a holding subsidiary
held by Brookfield Renewable |
209 |
|
268 |
|
Brookfield Renewable |
1,295 |
9,716 |
7,348 |
17,874 |
Total Liabilities and Equity |
|
$ |
34,343 |
|
$ |
35,757 |
(1) |
As
adjusted to reflect the historical financial statements of the
combined United States, Colombian and Brazilian operations of
Brookfield Renewable Partners L.P. contributed to our company on
July 30, 2020 and TerraForm Power Inc. acquired on July 31, 2020
from Brookfield. |
BROOKFIELD
RENEWABLE CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
UNAUDITED |
Three months ended September 30 |
|
Nine months ended September 30 |
(MILLIONS) |
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
|
|
As adjusted(1) |
|
|
|
As adjusted(1) |
|
Revenues |
$ |
724 |
|
$ |
736 |
|
|
$ |
2,341 |
|
$ |
2,445 |
|
Other income |
5 |
|
32 |
|
|
29 |
|
56 |
|
Direct operating costs |
(238 |
) |
(259 |
) |
|
(781 |
) |
(785 |
) |
Management service costs |
(41 |
) |
(28 |
) |
|
(106 |
) |
(72 |
) |
Interest expense |
(230 |
) |
(164 |
) |
|
(587 |
) |
(516 |
) |
Share of (loss) earnings from
equity-accounted investments |
(4 |
) |
3 |
|
|
(3 |
) |
9 |
|
Foreign exchange and financial
instrument gain (loss) |
17 |
|
(13 |
) |
|
11 |
|
(22 |
) |
Depreciation |
(293 |
) |
(247 |
) |
|
(806 |
) |
(710 |
) |
Other |
(79 |
) |
(26 |
) |
|
(64 |
) |
(70 |
) |
Remeasurement of exchangeable
and class B shares |
(1,163 |
) |
— |
|
|
(1,163 |
) |
— |
|
Income tax expense |
|
|
|
|
|
Current |
(12 |
) |
(12 |
) |
|
(26 |
) |
(48 |
) |
Deferred |
17 |
|
9 |
|
|
(32 |
) |
(33 |
) |
|
5 |
|
(3 |
) |
|
(58 |
) |
(81 |
) |
Net
income (loss) |
$ |
(1,297 |
) |
$ |
31 |
|
|
$ |
(1,187 |
) |
$ |
254 |
|
Net income (loss) attributable
to: |
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
— |
|
$ |
27 |
|
|
$ |
31 |
|
$ |
118 |
|
Participating non-controlling interests – in a holding subsidiary
held by Brookfield Renewable |
(2 |
) |
1 |
|
|
4 |
|
8 |
|
Brookfield Renewable |
(1,295 |
) |
3 |
|
|
(1,222 |
) |
128 |
|
|
$ |
(1,297 |
) |
$ |
31 |
|
|
$ |
(1,187 |
) |
$ |
254 |
|
(1) |
As
adjusted to reflect the historical financial statements of the
combined United States, Colombian and Brazilian operations of
Brookfield Renewable Partners L.P. contributed to our company on
July 30, 2020 and TerraForm Power Inc. acquired on July 31, 2020
from Brookfield. |
BROOKFIELD RENEWABLE CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
UNAUDITED (MILLIONS) |
Three months ended September 30 |
|
Nine months ended September 30 |
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
Operating
activities |
|
As adjusted(1) |
|
|
|
As adjusted(1) |
|
Net income |
$ |
(1,297 |
) |
$ |
31 |
|
|
$ |
(1,187 |
) |
$ |
254 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
293 |
|
247 |
|
|
806 |
|
710 |
|
Unrealized foreign exchange and financial instruments loss
(gain) |
(19 |
) |
13 |
|
|
(14 |
) |
20 |
|
Share of earnings from equity-accounted investments |
4 |
|
(3 |
) |
|
3 |
|
(9 |
) |
Deferred income tax expense |
(17 |
) |
(9 |
) |
|
32 |
|
33 |
|
Other non-cash items |
61 |
|
10 |
|
|
48 |
|
32 |
|
Remeasurement of exchangeable
and class B shares |
1,163 |
|
— |
|
|
1,163 |
|
— |
|
Net
change in working capital |
(47 |
) |
7 |
|
|
20 |
|
107 |
|
|
141 |
|
296 |
|
|
871 |
|
1,147 |
|
Financing
activities |
|
|
|
|
|
Non-recourse borrowings,
net |
35 |
|
635 |
|
|
112 |
|
663 |
|
Capital contributions from
participating non-controlling interests |
17 |
|
— |
|
|
29 |
|
— |
|
Capital contributions from
Brookfield Renewable |
2 |
|
13 |
|
|
102 |
|
13 |
|
Issuance of exchangeable
shares, net |
(21 |
) |
— |
|
|
(21 |
) |
— |
|
Distributions paid and return
of capital: |
|
|
|
|
|
To participating non-controlling interests |
(79 |
) |
(124 |
) |
|
(365 |
) |
(487 |
) |
To Brookfield Renewable |
— |
|
(82 |
) |
|
(236 |
) |
(267 |
) |
Borrowings from related party, net |
77 |
|
47 |
|
|
19 |
|
(129 |
) |
|
31 |
|
489 |
|
|
(360 |
) |
(207 |
) |
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
— |
|
(732 |
) |
|
(105 |
) |
(732 |
) |
Investment in property, plant
and equipment |
(91 |
) |
(46 |
) |
|
(198 |
) |
(122 |
) |
Disposal of subsidiaries,
associates and other securities, net |
— |
|
— |
|
|
11 |
|
— |
|
Restricted cash and other |
(117 |
) |
(58 |
) |
|
(143 |
) |
(33 |
) |
|
(208 |
) |
(836 |
) |
|
(435 |
) |
(887 |
) |
Foreign
exchange gain (loss) on cash |
7 |
|
(6 |
) |
|
(3 |
) |
(6 |
) |
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
(29 |
) |
(57 |
) |
|
73 |
|
47 |
|
Balance, beginning of period |
406 |
|
446 |
|
|
304 |
|
342 |
|
Balance, end of period |
$ |
377 |
|
$ |
389 |
|
|
$ |
377 |
|
$ |
389 |
|
(1) |
As
adjusted to reflect the historical financial statements of the
combined United States, Colombian and Brazilian operations of
Brookfield Renewable Partners L.P. contributed to our company on
July 30, 2020 and TerraForm Power Inc. acquired on July 31, 2020
from Brookfield. |
The following table reconciles net income (loss)
attributable to Brookfield Renewable to Funds From Operations for
the three and nine months ended September 30:
|
Three months ended September 30 |
Nine months ended September 30 |
(MILLIONS) |
2020 |
2019 |
2020 |
2019 |
|
|
As adjusted(1) |
|
As adjusted(1) |
Net income (loss) attributable to Brookfield Renewable |
$ |
(1,295 |
) |
$ |
3 |
$ |
(1,222 |
) |
$ |
128 |
Adjusted for proportionate
share of: |
|
|
|
|
Depreciation |
102 |
|
76 |
247 |
|
227 |
Other |
28 |
|
5 |
63 |
|
28 |
Dividends on class A exchangeable shares |
66 |
|
— |
66 |
|
— |
Remeasurement of exchangeable and class B shares |
1,163 |
|
— |
1,163 |
|
— |
Funds
From Operations |
$ |
64 |
|
$ |
84 |
317 |
|
383 |
(1) |
As
adjusted to reflect the historical financial statements of the
combined United States, Colombian and Brazilian operations of
Brookfield Renewable Partners L.P. contributed to our company on
July 30, 2020 and TerraForm Power Inc. acquired on July 31, 2020
from Brookfield. |
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 the announcement of a three-for-two unit/stock
split of BEP and BEPC’s respective units and Shares, including the
expected record and payment dates in respect thereof, 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 tender offer
to privatize Polenergia, 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 tender offer to privatize Polenergia; 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 nine months ended September 30, 2020. Normalized FFO assumes
long-term average generation in all segments except the Brazil and
Colombia hydroelectric segments and uses 2019 foreign currency
rates.
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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