Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable” or "
BEP") today reported
financial results for the three and twelve months ended December
31, 2020.
“2020 was another year of significant growth for
our business. Despite the economic challenges around the world, we
delivered record results and continued to broaden our operations,
as we look forward to a multi-decade opportunity to advance
decarbonization and assist with the transition of global
electricity grids to a more sustainable future,” said Connor
Teskey, CEO of Brookfield Renewable. “Our size, scale across
multiple technologies, and depth of operating and development
expertise continues to be a meaningful differentiator in sourcing
growth opportunities, and executing large, high value
investments.”
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions
(except per unit or otherwise noted) |
For the three months ended December 31 |
|
For the twelve months ended December 31 |
Unaudited |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Total generation (GWh) |
|
|
|
|
|
|
|
– Long-term average generation |
14,333 |
|
|
13,850 |
|
|
57,457 |
|
|
53,926 |
|
– Actual generation |
13,248 |
|
|
12,465 |
|
|
52,782 |
|
|
52,560 |
|
Brookfield Renewable Partner's share (GWh) |
|
|
|
|
|
|
|
– Long-term average generation |
7,354 |
|
|
6,561 |
|
|
27,998 |
|
|
26,189 |
|
– Actual generation |
6,583 |
|
|
5,977 |
|
|
26,052 |
|
|
26,038 |
|
Net loss attributable to Unitholders |
$ |
(120 |
) |
|
$ |
(74 |
) |
|
$ |
(304 |
) |
|
$ |
(103 |
) |
Per LP unit(1) |
(0.22 |
) |
|
(0.15 |
) |
|
(0.61 |
) |
|
(0.26 |
) |
Funds
From Operations (FFO)(2) |
201 |
|
|
171 |
|
|
807 |
|
|
761 |
|
Per Unit(1)(2)(3) |
0.31 |
|
|
0.29 |
|
|
1.32 |
|
|
1.30 |
|
Normalized Funds From Operations (FFO)(2)(4) |
265 |
|
|
167 |
|
|
924 |
|
|
725 |
|
Per Unit(1)(2)(3)(4) |
0.41 |
|
|
0.28 |
|
|
1.52 |
|
|
1.24 |
|
(1) |
Adjusted for the 3-for-2 Unit split effective December 11,
2020. |
(2) |
Non-IFRS measures. Refer to “Cautionary Statement Regarding
Use of Non-IFRS Measures”. |
(3) |
Average Units outstanding for the three and twelve months ended
December 31, 2020 were 645.5 million and 609.5 million,
respectively (2019: 583.6 million and 583.5 million, respectively),
being inclusive of our LP units, Redeemable/Exchangeable
partnership units, BEPC exchangeable shares and general partner
interest. The actual LP units outstanding at December 31, 2020
were 645.5 million (2019: 466.9 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 twelve months ended
December 31, 2020, the change related to long-term average
generation totaled $41 million and $75 million,
respectively (2019: $(4) million and $(36) million,
respectively) and the change related to foreign currency totaled
$23 million and $42 million, respectively. |
Brookfield Renewable reported FFO of $807
million ($1.32 per LP unit) for the twelve months ended
December 31, 2020, a 6% increase from the prior year supported
by contributions from growth initiatives and strong asset
availability. After deducting non-cash depreciation, our Net loss
attributable to Unitholders for the twelve months ended
December 31, 2020 was $304 million or $0.61 per LP
unit.
Highlights
- Advanced key commercial priorities,
including delivering on almost $40 million in cost saving
initiatives ($17 million net to Brookfield Renewable), securing
contracts to deliver 3,500 gigawatt hours of clean energy
annually (which has the equivalent carbon avoidance of planting
almost 30 million trees), and signing a number of strategic
contracts with corporate offtakers;
- Agreed to invest ~$4.6 billion
(~$2.5 billion net to Brookfield Renewable) of equity across ten
transactions, deploying capital in every major market we
operate;
- Completed the merger of TerraForm
Power, consolidating our activities in North America and
Europe;
- Commissioned approximately 460
megawatts of new capacity and progressed close to 4,200
megawatts through construction and advanced-stage permitting, and
increase the size of our development pipeline to over 23,000
megawatts;
- Maintained a
strong balance sheet and bolstered our liquidity, with over $3.3
billion of available liquidity, raising over $1 billion from asset
recycling initiatives, closing $3.4 billion of investment-grade
financings and extending the average duration of our corporate debt
from 10 to 14 years; and
- Broadened our
investor base with the creation of BEPC and through our addition to
several U.S. and global indices.
Update on Growth Initiatives
In December, we agreed to acquire Exelon
Generation Company’s U.S. distributed generation (DG) business
comprising 360 megawatts of operating generation across nearly 600
sites with an additional over 700 megawatts under development for
$810 million (approximately $200 million net to Brookfield
Renewable). In 2017, we took our first step into DG with an
acquisition after having identified a significant opportunity to
build a high-quality scale business in a highly fragmented and
rapidly growing market. Since then, through both acquisitions and
organic initiatives, we have expanded the business as demand for
on-site generation continued to grow as cost declines in solar
technology and decarbonization ambitions of commercial and
industrial clients accelerated.
With this acquisition, we will own one of the
leading distributed generation businesses in the U.S., with deep
operating, development and origination capabilities, and a 2,000
megawatt portfolio that generates high-quality contracted cash
flows that are diversified by geography and customer. This
investment represents the continuation of this strategy and
furthers our goal of offering corporates and other institutions a
‘one-stop’ solution for on- and off-site energy generation, storage
and procurement and energy efficiency services to help them achieve
their decarbonization objectives and transition to a lower carbon
future.
In December, we agreed to acquire the Shepherds
Flat wind farm, an 845 megawatt fully contracted wind generation
facility located in Oregon for $700 million ($175 million net to
Brookfield Renewable). The project, which is fully contracted with
a high-quality offtaker, is one of the largest onshore wind
projects in the United States and includes an attractive repowering
opportunity that we expect to deliver by the end of 2022. This
repowering opportunity is one of the largest in the world and is
expected to increase total generation by approximately 25%
increasing the clean energy produced by approximately 400 gigawatt
hours annually. Having the expertise to undertake a project of this
size showcases our decades of expertise to drive operational
efficiencies while generating attractive returns.
We also continue to use our differentiated
operating and commercial capabilities to acquire ready-to-build
development assets in Brazil at premium returns. In December, we
agreed to acquire a 270 megawatt late-stage development wind
project, including an option over a further 200 megawatt expansion.
Ahead of construction, we intend to leverage our energy marketing
capabilities to contract the project, which is located in one of
the highest wind regions in the country. Our relationships with
global turbine manufacturers, as one of the largest acquirers
globally, should enable us to outperform on equipment procurement,
installation and operating costs. With this latest addition, in the
last 18-months, we have acquired a collection of projects that once
constructed, will represent a combined portfolio of over 2,000
megawatts of long-term contracted wind and solar assets, more than
doubling our renewable energy capacity in the country.
Results from Operations
In 2020, we generated FFO of $807 million, a 6%
increase from prior year, as the business benefited from recent
acquisitions, strong underlying asset availability, and execution
on organic growth initiatives. On a normalized basis, our per unit
results are up 23%.
During the year, our hydroelectric segment
delivered FFO of $662 million. Although we experienced some drier
conditions across our fleet, particularly in regions with higher
value contracts, overall generation for the year was in line with
the long-term average and our reservoirs are well positioned for a
strong first quarter, which underscores the benefit of our diverse
portfolio.
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 year, these segments generated a combined
$376 million of FFO, representing a 51% increase over the prior
year, as we benefited from contributions from acquisitions,
and approximately 440 megawatts of solar and wind projects
commissioned during the year.
Our energy transition segment generated $103
million of FFO during the year as our portfolio continues to help
commercial and industrial partners achieve their decarbonization
goals and provides critical grid-stabilizing ancillary services and
back-up capacity required to address the increasing intermittency
of greener electric grids. For example, our First Hydro storage
portfolio achieved five of its highest revenue days ever in the
last couple months as we sold essential stabilizing services to the
UK power grid in response to high demand from cold weather and
intermittently low wind generation levels.
Across our portfolio, we continue to focus on
partnering with a broad range of customers in their decarbonization
efforts. During the year, we executed agreements to supply 100%
renewable energy to one of the first planned industrial-scale green
hydrogen production plants in North America with Plug Power and
over 90% of JPMorgan’s real estate operations in New York State. In
South America, our focus continues to be on extending the average
duration of our power purchase agreements, which today stand at 8
years in Brazil and 3 years in Colombia. We signed two long-term
inflation-linked power purchase agreements for our recently
acquired solar development projects in Brazil, substantially
contracting these assets.
In recent months, many governments in our target
markets have outlined new policies to address climate change. In
North America, where the majority of our hydro fleet is located,
governments are increasingly considering potential carbon pricing
mechanisms, for which our business is uniquely positioned to
benefit. As examples, the current U.S. administration has
re-established a working group that is expected to increase the
social cost of carbon to more than $50 per tonne and in Canada a
carbon tax has been set at $30 per tonne for 2020 and is set to
increase almost 6 times to $170 by 2030. Carbon taxes or carbon
pricing provide long-term support for growing wind and solar
capacity, which also increases the value of our hydroelectric power
facilities due to their dispatchable nature and the
grid-stabilizing services they can provide.
While we always prioritize contracted
generation, for our perpetual hydroelectric facilities, we always
look to ensure we retain upside optionality for when we believe
prices will improve. Across our hydroelectric fleet in North
America, we have contracts rolling off for assets that primarily
deliver power to markets in the U.S. northeast. Fortunately, these
contracts, on a net basis, deliver power at prices in the range of
the current market. Therefore, on renewal, we expect minimal impact
to our overall revenue, while retaining meaningful potential upside
should prices see future support from carbon pricing
mechanisms.
Finally, we continued to advance our global
development activities, including progressing 2,789 megawatts of
construction diversified across distributed- and utility-scale
solar, wind, storage, and hydro in over 11 different countries. We
are also progressing 1,394 megawatts of advanced-stage
projects through final permitting and contracting. In total, we
expect these projects to contribute approximately $109 million in
FFO net to Brookfield Renewable on a run-rate basis when
completed.
Balance Sheet and Liquidity
We continue to maintain a robust financial
position. 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 82% of our
financings are non-recourse to Brookfield Renewable.
During 2020, we continued to take advantage of
the low interest environment and executed on $3.4 billion of
investment grade financings, extending our average corporate debt
maturity to 14 years and reducing our borrowing costs by $5 million
per year. We continue to advance our green financing strategy to
benefit from growing demand for green securities and diversify our
debt investor base.
Environmental, Social and Governance
(ESG) Reporting
Operating a business with strong ESG principles
is simply the right thing to do, and we have always believed that
strong ESG practices drive long-term value to our business and
create higher barriers to entry. Inherent in our position as one of
the largest publicly traded renewable energy companies, is the
understanding that climate change poses a serious threat to
communities, businesses and ecosystems around the world. We have
established ourselves as one of the preeminent renewables
franchises and are playing a critical role in addressing climate
change and reducing carbon across the world, by shifting power
generation, which accounts for more than 70% of global carbon
emissions, to a sustainable pathway for the future. To demonstrate
our commitment, we were proud to announce in our second ESG report,
which was published today, our ambition to double our avoided
carbon emissions by 2030.
Distribution Declaration and
Increase
The next quarterly distribution in the amount of
$0.30375 per LP unit, is payable on March 31, 2021 to unitholders
of record as at the close of business on February 26, 2021. This
represents a 5% increase to our distribution, bringing our total
annual distribution per unit to $1.215.
In conjunction with the Partnership’s
distribution declaration, the Board of Directors of BEPC has
declared an equivalent quarterly dividend of $0.30375 per share,
also payable on March 31, 2021 to shareholders of record as at the
close of business on February 26, 2021.
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 maintains a Distribution
Reinvestment Plan (“DRIP”) which allows holders of its LP Units who
are resident 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
https://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
https://bep.brookfield.com.
Brookfield Renewable
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 approximately 19,000 megawatts of installed capacity
and an approximately 23,000 megawatt development pipeline.
Brookfield Renewable is listed on the New York and Toronto stock
exchanges. 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 company of Brookfield Asset Management, a leading
global alternative asset manager with approximately $600 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 |
Vice President - Communications |
Senior Vice President – Investor Relations |
(416) 369-8236 |
(416) 369-2616 |
claire.holland@brookfield.com |
robin.kooyman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2020 Fourth Quarter And Full-Year
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 February 4, 2021 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/zrk38kj4 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, 4993154. A recording of the teleconference can be
accessed through February 11, 2021 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, 4993154.
Brookfield Renewable Partners L.P. |
Consolidated Statements of Financial Position |
|
As of |
|
December 31 |
December 31 |
UNAUDITED(MILLIONS) |
2020 |
2019 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
431 |
|
|
|
|
$ |
352 |
|
Trade receivables and other financial assets |
|
1,661 |
|
|
1,541 |
|
Equity-accounted investments |
|
971 |
|
|
937 |
|
Property, plant and equipment, at fair value |
|
44,590 |
|
|
41,055 |
|
Goodwill |
|
970 |
|
|
949 |
|
Deferred income tax and other assets |
|
1,099 |
|
|
1,362 |
|
Total Assets |
|
$ |
49,722 |
|
|
$ |
46,196 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,135 |
|
|
$ |
2,100 |
|
Borrowings which have recourse only to assets they finance |
|
15,947 |
|
|
15,200 |
|
Accounts payable and other liabilities |
|
4,358 |
|
|
3,561 |
|
Deferred income tax liabilities |
|
5,515 |
|
|
4,855 |
|
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests - in operating
subsidiaries |
$ |
11,100 |
|
|
$ |
11,086 |
|
|
General partnership interest in a holding subsidiary held by
Brookfield |
56 |
|
|
68 |
|
|
Participating non-controlling interests - in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
2,721 |
|
|
3,317 |
|
|
Class A shares of Brookfield Renewable Corporation |
2,408 |
|
|
— |
|
|
Preferred equity |
609 |
|
|
597 |
|
|
Preferred limited partners' equity |
1,028 |
|
|
833 |
|
|
Limited partners' equity |
3,845 |
|
21,767 |
|
4,579 |
|
20,480 |
|
Total Liabilities and Equity |
|
$ |
49,722 |
|
|
$ |
46,196 |
|
Brookfield Renewable Partners L.P. |
Consolidated Statements of Operating Results |
|
|
|
|
|
|
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
UNAUDITED(MILLIONS, EXCEPT AS NOTED) |
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
Revenues |
$ |
952 |
|
|
$ |
965 |
|
|
|
$ |
3,810 |
|
|
$ |
3,971 |
|
Other income |
77 |
|
|
28 |
|
|
|
128 |
|
|
105 |
|
Direct operating costs |
(357 |
) |
|
(326 |
) |
|
|
(1,274 |
) |
|
(1,263 |
) |
Management service costs |
(84 |
) |
|
(44 |
) |
|
|
(235 |
) |
|
(135 |
) |
Interest expense |
(243 |
) |
|
(255 |
) |
|
|
(976 |
) |
|
(1,001 |
) |
Share of earnings from
equity-accounted investments |
31 |
|
|
8 |
|
|
|
27 |
|
|
29 |
|
Foreign exchange and financial
instrument gain (loss) |
115 |
|
|
39 |
|
|
|
127 |
|
|
(36 |
) |
Depreciation |
(337 |
) |
|
(347 |
) |
|
|
(1,367 |
) |
|
(1,271 |
) |
Other |
(307 |
) |
|
(169 |
) |
|
|
(432 |
) |
|
(276 |
) |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
(37 |
) |
|
(20 |
) |
|
|
(66 |
) |
|
(70 |
) |
Deferred |
185 |
|
|
31 |
|
|
|
213 |
|
|
27 |
|
|
148 |
|
|
11 |
|
|
|
147 |
|
|
(43 |
) |
Net income (loss) |
$ |
(5 |
) |
|
$ |
(90 |
) |
|
|
$ |
(45 |
) |
|
$ |
80 |
|
Net
income (loss) attributable to preferred equity and non-controlling
interests in operating subsidiaries |
|
(115 |
) |
|
|
16 |
|
|
|
|
(259 |
) |
|
|
(183 |
) |
Net income (loss) attributable to Unitholders |
$ |
(120 |
) |
|
$ |
(74 |
) |
|
|
$ |
(304 |
) |
|
$ |
(103 |
) |
Basic and diluted (loss) earnings per LP unit |
$ |
(0.22 |
) |
|
$ |
(0.15 |
) |
|
|
$ |
(0.61 |
) |
|
$ |
(0.26 |
) |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
UNAUDITED(MILLIONS) |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
(5 |
) |
|
$ |
(90 |
) |
|
|
$ |
(45 |
) |
|
$ |
80 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
337 |
|
|
347 |
|
|
|
1,367 |
|
|
1,271 |
|
Unrealized foreign exchange and financial instrument loss
(gain) |
|
(119 |
) |
|
(41 |
) |
|
|
(134 |
) |
|
32 |
|
Share of earnings from
equity-accounted investments |
|
(31 |
) |
|
(8 |
) |
|
|
(27 |
) |
|
(29 |
) |
Deferred income tax expense |
|
(185 |
) |
|
(31 |
) |
|
|
(213 |
) |
|
(27 |
) |
Other non-cash items |
|
248 |
|
|
90 |
|
|
|
388 |
|
|
231 |
|
Net
change in working capital and other |
|
34 |
|
|
(18 |
) |
|
|
(40 |
) |
|
(4 |
) |
|
|
279 |
|
|
249 |
|
|
|
1,296 |
|
|
1,554 |
|
Financing activities |
|
|
|
|
|
|
|
|
|
Net corporate borrowings |
|
— |
|
|
(341 |
) |
|
|
266 |
|
|
108 |
|
Commercial paper and corporate
credit facilities, net |
|
(376 |
) |
|
287 |
|
|
|
(296 |
) |
|
(422 |
) |
Non-recourse borrowings,
net |
|
(204 |
) |
|
145 |
|
|
|
(203 |
) |
|
792 |
|
Capital contributions from
participating non-controlling interests - in operating
subsidiaries, net |
|
407 |
|
|
300 |
|
|
|
475 |
|
|
592 |
|
Issuance of preferred limited
partnership units |
|
— |
|
|
— |
|
|
|
195 |
|
|
126 |
|
Issuance of Units, net |
|
(23 |
) |
|
(1 |
) |
|
|
(44 |
) |
|
(1 |
) |
Distributions paid: |
|
|
|
|
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
|
(233 |
) |
|
(231 |
) |
|
|
(659 |
) |
|
(844 |
) |
To preferred shareholders & limited partners' unitholders' |
|
(20 |
) |
|
(19 |
) |
|
|
(77 |
) |
|
(69 |
) |
To unitholders of Brookfield Renewable or BRELP |
|
(202 |
) |
|
(171 |
) |
|
|
(769 |
) |
|
(684 |
) |
Borrowings from related party, net |
|
320 |
|
|
— |
|
|
|
320 |
|
|
— |
|
|
|
(331 |
) |
|
(31 |
) |
|
|
(792 |
) |
|
(402 |
) |
Investing activities |
|
|
|
|
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
|
— |
|
|
(170 |
) |
|
|
(105 |
) |
|
(983 |
) |
Investment in property, plant
and equipment |
|
(190 |
) |
|
(310 |
) |
|
|
(447 |
) |
|
(460 |
) |
Disposal of subsidiaries,
associates and other securities, net |
|
23 |
|
|
86 |
|
|
|
58 |
|
|
154 |
|
Restricted cash and other |
|
146 |
|
|
74 |
|
|
|
68 |
|
|
78 |
|
|
|
(21 |
) |
|
(320 |
) |
|
|
(426 |
) |
|
(1,211 |
) |
Foreign exchange gain (loss) on cash |
|
23 |
|
|
4 |
|
|
|
13 |
|
|
(6 |
) |
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Increase (decrease) |
|
$ |
(50 |
) |
|
$ |
(98 |
) |
|
|
$ |
91 |
|
|
$ |
(65 |
) |
Net change in cash classified within assets held for sale |
|
(1 |
) |
|
4 |
|
|
|
(12 |
) |
|
(5 |
) |
Balance, beginning of period |
|
482 |
|
|
446 |
|
|
|
352 |
|
|
422 |
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
$ |
431 |
|
|
$ |
352 |
|
|
|
$ |
431 |
|
|
$ |
352 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended December 31:
|
(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 |
2,514 |
|
2,858 |
|
|
|
2,912 |
|
2,912 |
|
|
|
$ |
182 |
|
$ |
205 |
|
|
|
$ |
104 |
|
$ |
130 |
|
|
|
$ |
67 |
|
$ |
93 |
|
|
|
$ |
4 |
|
$ |
3 |
|
Brazil |
849 |
|
817 |
|
|
|
1,007 |
|
1,009 |
|
|
|
39 |
|
61 |
|
|
|
63 |
|
37 |
|
|
|
58 |
|
31 |
|
|
|
|
58 |
|
4 |
|
Colombia |
966 |
|
749 |
|
|
|
977 |
|
968 |
|
|
|
57 |
|
63 |
|
|
|
38 |
|
37 |
|
|
|
23 |
|
26 |
|
|
|
|
21 |
|
16 |
|
|
4,329 |
|
4,424 |
|
|
|
4,896 |
|
4,889 |
|
|
|
278 |
|
329 |
|
|
|
205 |
|
204 |
|
|
|
148 |
|
150 |
|
|
|
|
83 |
|
23 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
1,132 |
|
779 |
|
|
|
1,349 |
|
934 |
|
|
|
90 |
|
56 |
|
|
|
58 |
|
43 |
|
|
|
39 |
|
31 |
|
|
|
36 |
|
(28 |
) |
Europe |
338 |
|
241 |
|
|
|
357 |
|
267 |
|
|
|
41 |
|
24 |
|
|
|
51 |
|
17 |
|
|
|
45 |
|
10 |
|
|
|
13 |
|
7 |
|
Brazil |
143 |
|
176 |
|
|
|
169 |
|
172 |
|
|
|
6 |
|
10 |
|
|
|
6 |
|
8 |
|
|
|
4 |
|
5 |
|
|
|
2 |
|
(2 |
) |
Asia |
123 |
|
107 |
|
|
|
104 |
|
104 |
|
|
|
8 |
|
7 |
|
|
|
8 |
|
6 |
|
|
|
5 |
|
2 |
|
|
|
(1 |
) |
4 |
|
|
1,736 |
|
1,303 |
|
|
|
1,979 |
|
1,477 |
|
|
|
145 |
|
97 |
|
|
|
123 |
|
74 |
|
|
|
93 |
|
48 |
|
|
|
50 |
|
(19 |
) |
Solar |
303 |
|
139 |
|
|
|
339 |
|
139 |
|
|
|
77 |
|
26 |
|
|
|
84 |
|
29 |
|
|
|
52 |
|
16 |
|
|
|
34 |
|
(23 |
) |
Energy
transition |
215 |
|
111 |
|
|
|
140 |
|
56 |
|
|
|
54 |
|
33 |
|
|
|
39 |
|
22 |
|
|
|
28 |
|
16 |
|
|
|
15 |
|
8 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
5 |
|
19 |
|
|
|
(120 |
) |
(59 |
) |
|
|
(302 |
) |
(63 |
) |
Total |
6,583 |
|
5,977 |
|
|
|
7,354 |
|
6,561 |
|
|
|
$ |
554 |
|
$ |
485 |
|
|
|
$ |
456 |
|
$ |
348 |
|
|
|
$ |
201 |
|
$ |
171 |
|
|
|
$ |
(120 |
) |
$ |
(74 |
) |
PROPORTIONATE RESULTS FOR THE YEAR ENDED
DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the twelve months ended December 31:
|
(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 |
11,863 |
|
13,118 |
|
|
|
12,166 |
|
12,238 |
|
|
|
$ |
824 |
|
$ |
905 |
|
|
|
$ |
562 |
|
$ |
622 |
|
|
|
$ |
420 |
|
$ |
459 |
|
|
|
$ |
68 |
|
$ |
142 |
|
Brazil |
3,663 |
|
3,707 |
|
|
|
4,004 |
|
3,996 |
|
|
|
175 |
|
234 |
|
|
|
177 |
|
181 |
|
|
|
152 |
|
150 |
|
|
|
|
95 |
|
59 |
|
Colombia |
2,999 |
|
3,096 |
|
|
|
3,488 |
|
3,488 |
|
|
|
211 |
|
237 |
|
|
|
131 |
|
144 |
|
|
|
90 |
|
101 |
|
|
|
|
68 |
|
72 |
|
|
18,525 |
|
19,921 |
|
|
|
19,658 |
|
19,722 |
|
|
|
1,210 |
|
1,376 |
|
|
|
870 |
|
947 |
|
|
|
662 |
|
710 |
|
|
|
|
231 |
|
273 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
3,560 |
|
2,969 |
|
|
|
4,239 |
|
3,556 |
|
|
|
263 |
|
223 |
|
|
|
196 |
|
163 |
|
|
|
123 |
|
98 |
|
|
|
(4 |
) |
(87 |
) |
Europe |
908 |
|
904 |
|
|
|
1,002 |
|
996 |
|
|
|
105 |
|
95 |
|
|
|
96 |
|
67 |
|
|
|
79 |
|
48 |
|
|
|
(27 |
) |
(11 |
) |
Brazil |
552 |
|
630 |
|
|
|
671 |
|
647 |
|
|
|
27 |
|
37 |
|
|
|
24 |
|
28 |
|
|
|
17 |
|
19 |
|
|
|
3 |
|
1 |
|
Asia |
428 |
|
291 |
|
|
|
443 |
|
290 |
|
|
|
28 |
|
20 |
|
|
|
25 |
|
16 |
|
|
|
18 |
|
10 |
|
|
|
4 |
|
6 |
|
|
5,448 |
|
4,794 |
|
|
|
6,355 |
|
5,489 |
|
|
|
423 |
|
375 |
|
|
|
341 |
|
274 |
|
|
|
237 |
|
175 |
|
|
|
(24 |
) |
(91 |
) |
Solar |
1,284 |
|
773 |
|
|
|
1,510 |
|
782 |
|
|
|
245 |
|
138 |
|
|
|
232 |
|
126 |
|
|
|
139 |
|
74 |
|
|
|
49 |
|
(37 |
) |
Energy
transition |
795 |
|
550 |
|
|
|
475 |
|
196 |
|
|
|
169 |
|
132 |
|
|
|
130 |
|
87 |
|
|
|
103 |
|
70 |
|
|
|
1 |
|
42 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
41 |
|
10 |
|
|
|
(334 |
) |
(268 |
) |
|
|
(561 |
) |
(290 |
) |
Total |
26,052 |
|
26,038 |
|
|
|
27,998 |
|
26,189 |
|
|
|
$ |
2,047 |
|
$ |
2,021 |
|
|
|
$ |
1,614 |
|
$ |
1,444 |
|
|
|
$ |
807 |
|
$ |
761 |
|
|
|
$ |
(304 |
) |
$ |
(103 |
) |
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 months and twelve months ended December 31:
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
UNAUDITED(MILLIONS) |
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net income attributable to: |
|
|
|
|
|
Limited partners' equity |
$ |
(61 |
) |
|
$ |
(51 |
) |
|
$ |
(184 |
) |
|
$ |
(88 |
) |
General partnership interest in a holding subsidiary held by
Brookfield |
16 |
|
|
14 |
|
|
62 |
|
|
50 |
|
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(44 |
) |
|
(37 |
) |
|
(133 |
) |
|
(65 |
) |
Class A shares of Brookfield Renewable Corporation |
(31 |
) |
|
— |
|
|
(49 |
) |
|
— |
|
Net income attributable to Unitholders |
$ |
(120 |
) |
|
$ |
(74 |
) |
|
$ |
(304 |
) |
|
$ |
(103 |
) |
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
216 |
|
|
166 |
|
|
756 |
|
|
643 |
|
Foreign exchange and financial instruments loss (gain) |
2 |
|
|
(14 |
) |
|
35 |
|
|
30 |
|
Deferred income tax recovery |
(145 |
) |
|
(23 |
) |
|
(175 |
) |
|
(30 |
) |
Other |
248 |
|
|
116 |
|
|
495 |
|
|
221 |
|
Funds From Operations |
$ |
201 |
|
|
$ |
171 |
|
|
$ |
807 |
|
|
$ |
761 |
|
Normalized long-term average generation adjustment |
41 |
|
|
(4 |
) |
|
75 |
|
|
(36 |
) |
Normalized foreign currency adjustment |
23 |
|
|
— |
|
|
42 |
|
|
— |
|
Normalized Funds From Operations |
$ |
265 |
|
|
$ |
167 |
|
|
$ |
924 |
|
|
$ |
725 |
|
Normalized Funds From Operations Adjustments |
(64 |
) |
|
4 |
|
|
(117 |
) |
|
36 |
|
Distributions attributable
to: |
|
|
|
|
|
Preferred limited partners' equity |
14 |
|
|
11 |
|
|
54 |
|
|
44 |
|
Preferred equity |
6 |
|
|
7 |
|
|
25 |
|
|
26 |
|
Current income taxes |
12 |
|
|
5 |
|
|
26 |
|
|
31 |
|
Interest expense |
138 |
|
|
116 |
|
|
485 |
|
|
466 |
|
Management service costs |
85 |
|
|
38 |
|
|
217 |
|
|
116 |
|
Proportionate Adjusted EBITDA |
456 |
|
|
348 |
|
|
1,614 |
|
|
1,444 |
|
Attributable to non-controlling interests |
261 |
|
|
348 |
|
|
1,148 |
|
|
1,449 |
|
Consolidated Adjusted EBITDA |
$ |
717 |
|
|
$ |
696 |
|
|
$ |
2,762 |
|
|
$ |
2,893 |
|
The following table reconciles the per Unit
non-IFRS financial metrics to the most directly comparable IFRS
measures. Net income (loss) per LP unit is reconciled to Funds From
Operations per Unit, for the three and twelve months ended
December 31:
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income (loss) per LP unit(1) |
$ |
(0.22 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.26 |
) |
Depreciation |
0.33 |
|
|
0.28 |
|
|
1.24 |
|
|
1.10 |
|
Foreign exchange and financial instruments loss (gain) |
— |
|
|
(0.02 |
) |
|
0.06 |
|
|
0.05 |
|
Deferred income tax recovery and other |
0.20 |
|
|
0.18 |
|
|
0.63 |
|
|
0.41 |
|
Funds From Operations per Unit(2) |
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
1.32 |
|
|
$ |
1.30 |
|
Normalized long-term average generation adjustment |
0.06 |
|
|
(0.01 |
) |
|
0.12 |
|
|
(0.06 |
) |
Normalized foreign exchange adjustment |
0.04 |
|
|
— |
|
|
0.07 |
|
|
— |
|
Normalized Funds From Operations per Unit |
$ |
0.41 |
|
|
$ |
0.28 |
|
|
$ |
1.51 |
|
|
$ |
1.24 |
|
(1) |
Average LP units outstanding for the three and twelve months ended
December 31, 2020 were 274.8 million and
271.1 million, respectively (2019: 268.4 million and
268.3 million). Net (loss) income per LP unit has been
adjusted to reflect the dilutive impact of the special
distribution. |
(2) |
Average Units, adjusted for the special distribution as if it had
been completed prior to the periods presented, for the three months
and twelve months ended December 31, 2020 were
645.5 million and 609.5 million, respectively (2019:
583.6 million and 583.5 million), being inclusive of LP
units, Redeemable/Exchangeable partnership units, general partner
interest, and BEPC exchangeable shares. |
BROOKFIELD RENEWABLE CORPORATION
REPORTS FOURTH QUARTER AND FULL-YEAR 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 $0.30375 per class A exchangeable
subordinate voting share of BEPC (a "Share"), payable on March 31,
2021 to shareholders of record as at the close of business on
February 26, 2021. 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.sedar.com.
Financial Results
|
|
|
|
|
|
Millions
(except as noted) |
For the three months ended December 31 |
|
For the twelve months ended December 31 |
Unaudited |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
Proportionate Generation (GWh) |
3,971 |
|
|
3,675 |
|
|
15,578 |
|
|
16,011 |
|
Net (loss) income attributable to the partnership |
$ |
(1,516 |
) |
|
$ |
37 |
|
|
$ |
(2,738 |
) |
|
$ |
165 |
|
Funds From Operations (FFO)(1) |
$ |
85 |
|
|
$ |
97 |
|
|
$ |
402 |
|
|
$ |
480 |
|
(1) |
Non-IFRS measures. Refer to “Cautionary Statement Regarding
Use of Non-IFRS Measures”. |
BEPC reported FFO of $402 million for the twelve
months ended December 31, 2020, compared to $480 million in
the prior year. After deducting non-cash depreciation and
remeasurement of the Shares, our Net loss attributable to the
partnership for the twelve months ended December 31, 2020
was $2,738 million.
Brookfield Renewable Corporation |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
December 31 |
December 31 |
2020 |
2019 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
355 |
|
|
$ |
304 |
|
Trade receivables and other financial assets |
|
1,297 |
|
|
1,118 |
|
Equity-accounted investments |
|
372 |
|
|
360 |
|
Property, plant and equipment, at fair value |
|
36,097 |
|
|
32,647 |
|
Goodwill |
|
970 |
|
|
949 |
|
Deferred income tax and other assets |
|
382 |
|
|
379 |
|
Total Assets |
|
$ |
39,473 |
|
|
$ |
35,757 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Borrowings which have recourse only to assets they finance |
|
$ |
12,822 |
|
|
$ |
11,958 |
|
Accounts payable and other liabilities |
|
3,296 |
|
|
2,335 |
|
Deferred income tax liabilities |
|
4,200 |
|
|
3,590 |
|
Exchangeable and class B shares |
|
7,430 |
|
|
— |
|
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
10,290 |
|
|
$ |
10,258 |
|
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
258 |
|
|
268 |
|
|
The partnership |
1,177 |
|
11,725 |
|
7,348 |
|
17,874 |
|
Total Liabilities and Equity |
|
$ |
39,473 |
|
|
$ |
35,757 |
|
Brookfield Renewable Corporation |
Consolidated Statements of Income |
|
|
|
|
|
UNAUDITED(MILLIONS) |
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
746 |
|
|
$ |
781 |
|
|
$ |
3,087 |
|
|
$ |
3,226 |
|
Other income |
|
70 |
|
|
23 |
|
|
99 |
|
|
79 |
|
Direct operating costs |
|
(280 |
) |
|
(268 |
) |
|
(1,061 |
) |
|
(1,053 |
) |
Management service costs |
|
(46 |
) |
|
(37 |
) |
|
(152 |
) |
|
(109 |
) |
Interest expense |
|
(229 |
) |
|
(185 |
) |
|
(816 |
) |
|
(701 |
) |
Share of (loss) earnings from
equity-accounted investments |
|
(1 |
) |
|
3 |
|
|
(4 |
) |
|
12 |
|
Foreign exchange and financial
instrument gain (loss) |
|
63 |
|
|
27 |
|
|
74 |
|
|
5 |
|
Depreciation |
|
(259 |
) |
|
(273 |
) |
|
(1,065 |
) |
|
(983 |
) |
Other |
|
(429 |
) |
|
(127 |
) |
|
(493 |
) |
|
(197 |
) |
Remeasurement of exchangeable
and class B shares |
|
(1,398 |
) |
|
— |
|
|
(2,561 |
) |
|
— |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
(35 |
) |
|
(16 |
) |
|
(61 |
) |
|
(64 |
) |
Deferred |
|
166 |
|
|
30 |
|
|
134 |
|
|
(3 |
) |
|
|
131 |
|
|
14 |
|
|
73 |
|
|
(67 |
) |
Net income (loss) |
|
$ |
(1,632 |
) |
|
$ |
(42 |
) |
|
$ |
(2,819 |
) |
|
$ |
212 |
|
Net income (loss) attributable to: |
|
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
|
$ |
(123 |
) |
|
$ |
(82 |
) |
|
$ |
(92 |
) |
|
$ |
36 |
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
7 |
|
|
3 |
|
|
11 |
|
|
11 |
|
The partnership |
|
(1,516 |
) |
|
37 |
|
|
(2,738 |
) |
|
165 |
|
|
|
$ |
(1,632 |
) |
|
$ |
(42 |
) |
|
$ |
(2,819 |
) |
|
$ |
212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brookfield Renewable Corporation |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
UNAUDITED(MILLIONS) |
For the three months ended December 31 |
|
For the twelve months ended December 31 |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating activities |
|
|
|
|
|
Net income |
$ |
(1,632 |
) |
|
$ |
(42 |
) |
|
$ |
(2,819 |
) |
|
$ |
212 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
259 |
|
|
273 |
|
|
1,065 |
|
|
983 |
|
Unrealized foreign exchange and financial instruments loss
(gain) |
(64 |
) |
|
(8 |
) |
|
(78 |
) |
|
12 |
|
Share of earnings from equity-accounted investments |
1 |
|
|
(3 |
) |
|
4 |
|
|
(12 |
) |
Deferred income tax expense |
(166 |
) |
|
(30 |
) |
|
(134 |
) |
|
3 |
|
Other non-cash items |
361 |
|
|
77 |
|
|
409 |
|
|
109 |
|
Remeasurement of exchangeable
and class B shares |
1,398 |
|
|
— |
|
|
2,561 |
|
|
— |
|
Net
change in working capital and other |
(36 |
) |
|
(58 |
) |
|
(16 |
) |
|
49 |
|
|
121 |
|
|
209 |
|
|
992 |
|
|
1,356 |
|
Financing activities |
|
|
|
|
|
Non-recourse borrowings,
net |
(99 |
) |
|
(79 |
) |
|
13 |
|
|
584 |
|
Capital contributions from
participating non-controlling interests |
300 |
|
|
294 |
|
|
329 |
|
|
294 |
|
Capital contributions from the
partnership |
— |
|
|
— |
|
|
102 |
|
|
13 |
|
Issuance of exchangeable
shares, net |
(23 |
) |
|
— |
|
|
(44 |
) |
|
— |
|
Distributions paid and return
of capital: |
|
|
|
|
|
To participating non-controlling interests |
(230 |
) |
|
(186 |
) |
|
(595 |
) |
|
(673 |
) |
To the partnership |
1 |
|
|
(361 |
) |
|
(235 |
) |
|
(628 |
) |
Borrowings from related party, net |
(64) |
|
|
251 |
|
|
(45) |
|
|
122 |
|
|
(115) |
|
|
(81 |
) |
|
(475 |
) |
|
(288 |
) |
Investing activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
— |
|
|
— |
|
|
(105 |
) |
|
(732 |
) |
Investment in property, plant
and equipment |
(175 |
) |
|
(284 |
) |
|
(373 |
) |
|
(406 |
) |
Disposal of subsidiaries,
associates and other securities, net |
6 |
|
|
— |
|
|
17 |
|
|
— |
|
Restricted cash and other |
126 |
|
|
69 |
|
|
(17 |
) |
|
36 |
|
|
(43 |
) |
|
(215 |
) |
|
(478 |
) |
|
(1,102 |
) |
Foreign exchange gain (loss) on cash |
15 |
|
|
2 |
|
|
12 |
|
|
(4 |
) |
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
$ |
(22 |
) |
|
$ |
(85 |
) |
|
$ |
51 |
|
|
$ |
(38 |
) |
Balance, beginning of period |
377 |
|
|
389 |
|
|
304 |
|
|
342 |
|
|
|
|
|
|
|
Balance, end of period |
$ |
355 |
|
|
$ |
304 |
|
|
$ |
355 |
|
|
$ |
304 |
|
The following table reconciles net income (loss)
attributable to the partnership to Funds From Operations for the
three and twelve months ended December 31:
|
For the three months ended December 31 |
|
For the twelve months ended December 31 |
UNAUDITED(MILLIONS) |
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
Net income (loss) attributable to the partnership |
$ |
(1,516 |
) |
|
$ |
37 |
|
|
$ |
(2,738 |
) |
|
$ |
165 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
114 |
|
|
74 |
|
|
361 |
|
|
301 |
|
Other |
39 |
|
|
(14 |
) |
|
102 |
|
|
14 |
|
Dividends on class A exchangeable shares |
50 |
|
|
— |
|
|
116 |
|
|
— |
|
Remeasurement of exchangeable and class B shares |
1,398 |
|
|
— |
|
|
2,561 |
|
|
— |
|
Funds From Operations |
$ |
85 |
|
|
$ |
97 |
|
|
$ |
402 |
|
|
$ |
480 |
|
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 acquisitions of a distributed
generation development platform comprising 360 MW of operating and
under construction assets throughout the U.S. and an 845 MW
operating and fully contracted wind portfolio in Oregon, 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 acquisitions of a distributed
generation development platform comprising 360 MW of operating and
under construction assets throughout the U.S. and an 845 MW
operating and fully contracted wind portfolio in Oregon; 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 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 - Three Months Ended December 31”
and “Reconciliation of Non-IFRS Measures - Year Ended December
31” included elsewhere herein and “Financial Performance Review on
Proportionate Information - Reconciliation of Non-IFRS Measures”
included in our Form 20-F. Normalized FFO assumes long-term average
generation in all segments except the Brazil and Colombia
hydroelectric segments and uses 2020 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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