Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield Renewable
Partners”, "
BEP") today reported
financial results for the three and nine months ended
September 30, 2022.
"We had another successful quarter, as we
delivered excellent financial results and executed on several
large-scale transactions from our robust pipeline of renewable and
energy transition growth opportunities," said Connor Teskey, CEO of
Brookfield Renewable. "We are thrilled to be putting more dollars
to work in our U.S. renewables business and one of the world's
largest nuclear power generation services businesses. We continue
to believe our clean energy platform and access to capital
positions us as a key facilitator of the global transition to net
zero."
|
|
For the three months endedSeptember
30 |
For the nine months
endedSeptember 30 |
US$ millions (except per unit
amounts), unaudited |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss attributable to Unitholders |
$ |
(136 |
) |
$ |
(115 |
) |
$ |
(213 |
) |
$ |
(311 |
) |
– per LP unit(1) |
|
(0.25 |
) |
|
(0.21 |
) |
|
(0.44 |
) |
|
(0.58 |
) |
Funds From Operations
(FFO)(2) |
|
243 |
|
|
210 |
|
|
780 |
|
|
720 |
|
– per Unit(2)(3) |
|
0.38 |
|
|
0.33 |
|
|
1.21 |
|
|
1.12 |
|
Brookfield Renewable reported FFO of $243
million or $0.38 per Unit for the three months ended
September 30, 2022, a 15% increase on a per Unit basis over
the same period in the prior year. After deducting non-cash
depreciation, our Net loss attributable to Unitholders for the
three months ended September 30, 2022
was $136 million.
Highlights
- We closed
or secured investments of up to $6 billion ($1.5 billion net to
Brookfield Renewable) of capital across various transactions and
regions.
- We
advanced key commercial priorities, securing contracts to deliver
an incremental 2,600-gigawatt hours of clean energy annually
including 1,200-gigawatt hours to corporate offtakers.
- We
continued to accelerate our development activities, commissioning
approximately 2,700 megawatts of new projects. This includes
commencing the commissioning of our 1,200-megawatt solar facility
in Brazil. We also continue to execute on our 19,000-megawatt
under-construction and advanced-stage pipeline. Together these
projects are expected to contribute approximately $260 million of
FFO annually to Brookfield Renewable
- We have
completed or are advancing $1.4 billion ($520 million net to
Brookfield Renewable) of asset recycling activities and continue to
maintain robust financial capacity with over $3.5 billion of
available liquidity, no material near-term maturities, and limited
floating rate exposure.
Growth Initiatives
2022 has already been a record year for growth.
We have secured opportunities to deploy up to $12 billion ($2.8
billion net to Brookfield Renewable) of capital across a wide range
of investments, including utility-scale wind and solar, distributed
generation, nuclear, battery storage, and transition
investments.
We continue to believe that renewable
opportunities represent the largest decarbonization opportunities
today and will remain so for the foreseeable future. However, we
are increasingly finding attractive opportunities across emerging
transition asset classes where our initial investments will
position us for future large-scale decarbonization investment. We
have already begun investing in these emerging assets classes in a
prudent and structured manner.
Importantly, we are well positioned to fund this
accelerated pace of growth. Our access to deep and varied sources
of capital is increasingly valuable in the current environment. A
significant portion of our recent growth is already funded or is
structured to have capital deployed over a prolonged period and/or
at our option. Further, we intend to more actively take advantage
of the strong bids we are seeing for a number of our mature assets
where we have successfully executed our business plans. Recycling
proceeds from mature assets into new growth opportunities remains
one of the most value accretive levers within our business, and we
are advancing several attractive opportunities in this regard.
U.S. Renewable Development
We continue to see significant growth in our
U.S. business through our existing development pipeline as well as
adding complementary renewable platforms that provide enhanced
capacity and capabilities to our business. Our development pipeline
in the country now stands at over 60,000 megawatts and is well
diversified across utility-scale wind and solar, distributed
generation, and energy storage. Combined with our existing fleet,
we are well positioned for continued growth as owners and operators
of one of the largest diversified clean power businesses in the
country.
We recently signed an agreement to acquire Scout
Clean Energy for $1 billion with the potential to invest an
additional $350 million to support the business’ development
activities ($270 million in total net to Brookfield Renewable).
Scout’s portfolio includes over 800 megawatts of operating wind
assets and a pipeline of over 22,000 megawatts of wind, solar and
storage projects across 24 states, including almost 2,500 megawatts
of under construction and advanced-stage projects. To complement
our development capabilities, there is a strong management team in
place with 80+ years of cumulative renewable power experience and a
strong track record of developing and financing over 20 gigawatts
of clean energy assets.
Our distributed generation business continues to
be a significant area of growth globally, as the trends of
decentralized power generation and direct customer interaction
accelerate. In the past twelve months, in the U.S. alone, we have
grown our distributed generation business by nearly three times to
9,000 megawatts. Since last quarter, we closed the previously
announced Standard Solar for consideration of $540 million with the
potential to invest an additional $160 million to support the
business’ growth initiatives ($140 million in total net to
Brookfield Renewable). Standard Solar is a market-leading owner and
operator of commercial and community distributed solar, with
end-to-end development capabilities and a strong track record of
delivering high-quality assets. The business has approximately 500
megawatts of operating and under construction contracted assets, a
robust development pipeline of almost 2,000 megawatts, and a strong
team to execute on significant growth opportunities across several
high value solar markets in the U.S. that are highly complementary
to our existing business.
The timing of these investments has afforded us
significant upside potential. We underwrote these investments, as
well as Urban Grid—our utility-scale solar development platform
that we acquired in the first quarter—to attractive returns prior
to the enactment of the Inflation Reduction Act. However, all three
platforms will meaningfully benefit from the Inflation Reduction
Act, which provides significant upside to our underwriting.
Nuclear is Critical to the Net-Zero
Transition and Energy Security
In October, we agreed to form a strategic
partnership with Cameco to acquire Westinghouse, one of the world’s
largest nuclear services businesses. The partnership brings
together Cameco’s expertise as one of the largest global suppliers
of uranium fuel for nuclear energy with Brookfield Renewable’s
clean energy capabilities to create a powerful platform for
strategic growth across the nuclear sector. The total equity
invested will be approximately $4.5 billion ($750 million net to
Brookfield Renewable), and we, alongside our institutional
partners, will own a 51% interest with Cameco owning 49%.
Westinghouse and nuclear power generation
benefit from the same industry tailwinds as wind, solar, and
hydro—decarbonization, electrification, and energy security. Recent
geopolitical uncertainty is accelerating the need for countries to
achieve energy independence. Further, any credible net-zero plan
must include a meaningful and growing amount of nuclear power.
Intermittent renewable technologies must be complemented by
dispatchable resources. As the owner of one of the largest hydro
businesses globally, we are seeing the increasing value of clean,
dispatchable, baseload power generation. Like hydro, nuclear power
provides a reliable and economic source of electricity to the grid.
Going forward, we believe hydro and nuclear power will be the key
technologies facilitating the rapid growth of intermittent solar
and wind.
As the leading original equipment manufacturer
and scale provider of mission-critical technologies, products, and
services to half the global nuclear power generation fleet,
Westinghouse is well positioned to capture nuclear industry
tailwinds. Further, Westinghouse serves as a critical enabler of
the energy transition across the world, providing products and
services essential for the continued operation and growth of the
global nuclear fleet.
The business operates well in all environments,
given it is underpinned by highly durable cash flows, with
approximately 85% of revenue coming from long-term,
inflation-linked contracted or highly recurring service provision
and a nearly 100% customer retention rate. Further, Westinghouse
takes no commodity, construction, or significant fixed price
contract risk, and it operates in countries where the liability for
nuclear accidents lies entirely with the plant operators.
With over 50 gigawatts of plant extensions
announced and more than 60 gigawatts of new-build reactors expected
between 2020 and 2040 across more than 20 countries globally,
Westinghouse is well positioned to benefit. The company has also
secured new business servicing dozens of nuclear facilities across
Eastern European countries that Russia traditionally served and is
supporting the growing pipeline for extending and uprating existing
nuclear power plants. And finally, there are multi-decade growth
opportunities in the rollout of next-generation advanced nuclear
technology, such as Westinghouse’s eVinci micro-reactor technology,
which can play a growing role in an increasingly decentralized and
decarbonized energy system.
Other Growth Initiatives
We recently agreed to two transition
investments, progressing our strategy of prudently entering large
and growing investible markets. Each of these opportunities has a
small initial investment, is structured with significant downside
protection, provides discretion over future investment, and
establishes partnerships with experienced leaders in a growing
space. This provides us with preferred investor status on
significant capital investment opportunities and widens the range
of decarbonization solutions we can offer our corporate customers
around the world.
We formed a funding partnership with LanzaTech,
a U.S. based carbon capture and transformation company. LanzaTech
transforms waste carbon into usable net-zero inputs into industrial
processes for products such as fuels, fabrics, and packaging. We
invested $50 million in the form of a convertible note and secured
the preferred right to invest up to $500 million (in aggregate $110
million net to Brookfield Renewable) of equity into carbon capture
development projects that employ LanzaTech’s technology and meet
pre-agreed risk-adjusted returns.
We also agreed to invest in a U.S.-based
pure-play recycling business with total annual recycling capacity
of 1.3 million tons and a large pipeline of growth opportunities.
We will make an initial investment of $200 million in preferred
equity securities and have the preferred right to invest up to an
additional $500 million (in aggregate $140 million net to
Brookfield Renewable) to support the development of up to 19
new-build recycling facilities that meet pre-agreed risk-adjusted
returns. The preferred equity structure is protected by a put right
at a pre-determined valuation.
Operating Results
We are a real assets business that performs
positively in an inflationary environment. Our cash flows remain
stable and growing given they are supported by long-term contracts
with creditworthy offtakes that are indexed to inflation. As
material and construction costs of new projects go up, these costs
can be passed onto customers in the form of higher PPA prices that
are still at a significant discount to market energy prices.
Additionally, in the current market, we are able
to offer critical electricity to the global economy at the lowest
cost. Renewables have zero input cost, meaning that, unlike thermal
generation, we do not need to rely on fossil fuel imports and are
not subject to short-term price volatility. Further, as noted
earlier, our large, scarce, perpetual hydro portfolio has become
increasingly valuable in today’s environment as a provider of
dispatchable, clean, baseload power. The punchline is simple: in
addition to our record levels of growth, our underlying business
continues to perform well and is backed by high-quality cash
flows.
During the quarter, we generated FFO of $243
million, or $0.38 per unit, reflecting solid performance and an
increase of 15% versus the same period last year. Our operations
benefited from strong global power prices, and continued growth,
both through development and acquisitions.
Our hydroelectric segment delivered FFO of $130
million. Our hydro assets globally continue to exhibit strong cash
flow resiliency given our increasingly diversified asset base,
inflation-linked power purchase agreements, and ability to capture
strong power prices.
Our wind and solar segments generated a combined
$147 million of FFO. We continue to benefit from contributions from
acquisitions and the diversification of our fleet, which is
underpinned by long duration power purchase agreements that provide
stable revenues. Our distributed energy and sustainable solutions
segment generated $43 million of FFO, benefiting from both
acquisitions and organic growth across the portfolio.
We are also expanding and delivering on our
19,000-megawatt construction and advanced-stage pipeline with
significant development dollars in the ground. So far this year, we
have commissioned approximately 2,700 megawatts of capacity,
including nearly completing our 850-megawatt Shepherds Flat wind
repowering project, and we are on track to commission an additional
1,400 megawatts of new capacity by the end of the year. Together,
these projects are expected to contribute approximately $50 million
of incremental run-rate FFO. Furthermore, we have a line of sight
to commission approximately 10,000 megawatts through 2024, a
significant portion of which we have already funded, that is
expected to contribute an additional approximately $130 million of
annual FFO.
Balance Sheet and Liquidity
Our balance sheet is in excellent shape, with
S&P and Fitch affirming our credit rating at BBB+ with a stable
outlook. We remain resilient to the rising interest rates globally,
with over 90% of our borrowings being project level non-recourse
debt, with an average remaining term of 12 years, no material
near-term maturities in the next five years, and only 3% exposure
to floating rate debt.
Despite market volatility, our access to diverse
pools of capital continues to be differentiated, We have over
$3.5 billion of available liquidity, giving us significant
financial flexibility during periods of capital scarcity. During
the quarter, we secured over $3.7 billion of non-recourse
financings across the business that will close this year, resulting
in approximately $400 million in upfinancing proceeds to Brookfield
Renewable.
We are also accelerating our capital recycling
program, which is not only an important part of our funding plan,
but also a critical way we create value through a full cycle
investment strategy. Continuing our recent trend of consistent
monetizations, we have now agreed to close the sale of two solar
facilities in Germany and four of five tranches of the sale of our
630-megawatt solar portfolio in Mexico, where we expect to
close the final tranche by the end of the year, generating $400
million in the aggregate ($50 million net to Brookfield
Renewable).
To date this year, we have initiated capital
recycling initiatives that we expect to generate approximately $830
million of proceeds ($430 million net to Brookfield Renewable) when
closed. We have also launched sales processes for some of our
mature assets in select markets, which are garnering significant
interest at attractive valuations providing significant visibility
to our capital recycling program for the coming quarters.
Distribution Declaration
The next quarterly distribution in the amount of
$0.32 per LP unit, is payable on December 30, 2022 to unitholders
of record as at the close of business on November 30, 2022. In
conjunction with the Partnership’s distribution declaration, the
Board of Directors of BEPC has declared an equivalent quarterly
dividend of $0.32 per share, also payable on December 30, 2022 to
shareholders of record as at the close of business on November 30,
2022. Brookfield Renewable targets a sustainable distribution with
increases targeted on average at 5% to 9% annually.
The quarterly dividends on BEP's preferred
shares and preferred LP units have also been declared.
Distribution Currency
Option
The quarterly distributions payable on the BEP
units and BEPC shares are declared in U.S. dollars. Unitholders who
are residents in the United States will receive payment in U.S.
dollars and unitholders who are residents in Canada will receive
the Canadian dollar equivalent unless they request otherwise. The
Canadian dollar equivalent of the quarterly distribution will be
based on the Bank of Canada daily average exchange rate on the
record date or, if the record date falls on a weekend or holiday,
on the Bank of Canada daily average exchange rate of the preceding
business day.
Registered unitholders who are residents in
Canada who wish to receive a U.S. dollar distribution and
registered unitholders who are residents in the United States
wishing to receive the Canadian dollar distribution equivalent
should contact Brookfield Renewable’s transfer agent, Computershare
Trust Company of Canada, in writing at 100 University Avenue, 8th
Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253.
Beneficial unitholders (i.e., those holding their units in street
name with their brokerage) should contact the broker with whom
their units are held.
Distribution Reinvestment
Plan
Brookfield Renewable Partners maintains a
Distribution Reinvestment Plan (“DRIP”) which allows holders of BEP
units who are residents in Canada to acquire additional LP units by
reinvesting all or a portion of their cash distributions without
paying commissions. Information on the DRIP, including details on
how to enroll, is available on our website at
www.bep.brookfield.com/stock-and-distribution/distributions/drip.
Additional information on Brookfield Renewable’s
distributions and preferred share dividends can be found on our
website at www.bep.brookfield.com.
Brookfield Renewable
Brookfield Renewable operates one of the world’s
largest publicly traded, pure-play renewable power platforms. Our
portfolio consists of hydroelectric, wind, utility-scale solar and
storage facilities in North America, South America, Europe and
Asia, and totals approximately 24,000 megawatts of installed
capacity and an over 100,000-megawatt and 8 million metric tons per
annum ("MMTPA") of carbon capture and storage 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 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 over $750 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: |
Simon Maine |
Cara Silverman |
Managing Director – Communications |
Director – Investor Relations |
+44 (0)7398 909 278 |
(416) 649-8172 |
simon.maine@brookfield.com |
cara.silverman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s Third Quarter 2022 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 November 4, 2022 at 8:30 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/mxzjpn2f.
Brookfield Renewable Partners L.P. |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
September 30 |
December 31 |
2022 |
2021 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
846 |
|
$ |
764 |
Trade receivables and other financial assets(5) |
|
|
3,525 |
|
|
2,301 |
Equity-accounted investments |
|
|
1,261 |
|
|
1,107 |
Property, plant and equipment, at fair value |
|
|
49,079 |
|
|
49,432 |
Goodwill, deferred income tax and other assets(6) |
|
|
2,677 |
|
|
2,263 |
Total Assets |
|
$ |
57,388 |
|
$ |
55,867 |
|
|
|
|
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,761 |
|
$ |
2,149 |
Borrowings which have recourse only to assets they finance(7) |
|
|
22,021 |
|
|
19,380 |
Accounts payable and other liabilities(8) |
|
|
4,709 |
|
|
4,127 |
Deferred income tax liabilities |
|
|
5,926 |
|
|
6,215 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
11,380 |
|
$ |
12,303 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
|
53 |
|
|
59 |
|
Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
|
2,613 |
|
|
2,894 |
|
BEPC exchangeable shares |
|
2,314 |
|
|
2,562 |
|
Preferred equity |
|
560 |
|
|
613 |
|
Perpetual subordinated notes |
|
592 |
|
|
592 |
|
Preferred limited partners' equity |
|
760 |
|
|
881 |
|
Limited partners' equity |
|
3,699 |
|
21,971 |
|
4,092 |
|
23,996 |
Total Liabilities and Equity |
|
$ |
57,388 |
|
$ |
55,867 |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Operating Results |
UNAUDITED |
For the three months endedSeptember
30 |
|
For the nine months
endedSeptember 30 |
(MILLIONS, EXCEPT AS NOTED) |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Revenues |
$ |
1,105 |
|
$ |
966 |
|
|
$ |
3,515 |
|
$ |
3,005 |
|
Other income |
|
22 |
|
|
42 |
|
|
|
107 |
|
|
289 |
|
Direct operating costs(9) |
|
(344 |
) |
|
(292 |
) |
|
|
(1,060 |
) |
|
(990 |
) |
Management service costs |
|
(58 |
) |
|
(71 |
) |
|
|
(199 |
) |
|
(224 |
) |
Interest expense |
|
(313 |
) |
|
(247 |
) |
|
|
(873 |
) |
|
(726 |
) |
Share of earnings (loss) from
equity-accounted investments |
|
12 |
|
|
(4 |
) |
|
|
60 |
|
|
3 |
|
Foreign exchange and financial
instrument (loss) gain |
|
(60 |
) |
|
21 |
|
|
|
(103 |
) |
|
22 |
|
Depreciation |
|
(385 |
) |
|
(373 |
) |
|
|
(1,175 |
) |
|
(1,120 |
) |
Other |
|
(64 |
) |
|
(53 |
) |
|
|
(124 |
) |
|
(230 |
) |
Income tax recovery
(expense) |
|
|
|
|
|
Current |
|
(33 |
) |
|
(22 |
) |
|
|
(106 |
) |
|
(60 |
) |
Deferred |
|
41 |
|
|
(121 |
) |
|
|
36 |
|
|
(68 |
) |
Net income (loss) |
$ |
(77 |
) |
$ |
(154 |
) |
|
$ |
78 |
|
$ |
(99 |
) |
Net
income attributable to preferred equity, preferred limited
partners' equity, perpetual subordinated notes and non-controlling
interests in operating subsidiaries |
$ |
(59 |
) |
$ |
39 |
|
|
$ |
(291 |
) |
$ |
(212 |
) |
Net loss attributable to Unitholders |
|
(136 |
) |
|
(115 |
) |
|
|
(213 |
) |
|
(311 |
) |
Basic and diluted loss per LP unit |
$ |
(0.25 |
) |
$ |
(0.21 |
) |
|
$ |
(0.44 |
) |
$ |
(0.58 |
) |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
For the three months endedSeptember
30 |
|
For the nine months
endedSeptember 30 |
UNAUDITED(MILLIONS) |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Operating activities |
|
|
|
|
|
Net loss |
$ |
(77 |
) |
$ |
(154 |
) |
|
$ |
78 |
|
$ |
(99 |
) |
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
|
385 |
|
|
373 |
|
|
|
1,175 |
|
|
1,120 |
|
Unrealized foreign exchange and financial instrument loss
(gain) |
|
122 |
|
|
(9 |
) |
|
|
222 |
|
|
22 |
|
Share of (earnings) loss from equity-accounted investments |
|
(12 |
) |
|
4 |
|
|
|
(60 |
) |
|
(3 |
) |
Deferred income tax recovery |
|
(41 |
) |
|
121 |
|
|
|
(36 |
) |
|
68 |
|
Other non-cash items |
|
50 |
|
|
10 |
|
|
|
68 |
|
|
(110 |
) |
|
|
427 |
|
|
345 |
|
|
|
1,447 |
|
|
998 |
|
Net
change in working capital and other(10) |
|
(33 |
) |
|
(117 |
) |
|
|
(312 |
) |
|
(526 |
) |
|
|
394 |
|
|
228 |
|
|
|
1,135 |
|
|
472 |
|
Financing activities |
|
|
|
|
|
Corporate credit facilities,
net |
|
200 |
|
|
150 |
|
|
|
200 |
|
|
150 |
|
Non-recourse borrowings,
commercial paper, and related party borrowings, net |
|
1,108 |
|
|
262 |
|
|
|
3,463 |
|
|
1,496 |
|
Capital contributions from
participating non-controlling interests – in operating
subsidiaries, net |
|
64 |
|
|
(137 |
) |
|
|
338 |
|
|
658 |
|
Redemption of equity
instruments, net and related costs |
|
— |
|
|
(153 |
) |
|
|
(137 |
) |
|
187 |
|
Distributions paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
|
(252 |
) |
|
(223 |
) |
|
|
(1,109 |
) |
|
(645 |
) |
To unitholders of Brookfield Renewable or BRELP |
|
(228 |
) |
|
(213 |
) |
|
|
(686 |
) |
|
(642 |
) |
|
|
892 |
|
|
(314 |
) |
|
|
2,069 |
|
|
1,204 |
|
Investing activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
|
(602 |
) |
|
— |
|
|
|
(1,381 |
) |
|
(1,426 |
) |
Investment in property, plant
and equipment |
|
(577 |
) |
|
(298 |
) |
|
|
(1,478 |
) |
|
(831 |
) |
Disposal of associates and
other securities, net |
|
(43 |
) |
|
435 |
|
|
|
(102 |
) |
|
833 |
|
Restricted cash and other |
|
(11 |
) |
|
(48 |
) |
|
|
(111 |
) |
|
(126 |
) |
|
|
(1,233 |
) |
|
89 |
|
|
|
(3,072 |
) |
|
(1,550 |
) |
Foreign exchange gain (loss) on cash |
|
(30 |
) |
|
(10 |
) |
|
|
(50 |
) |
|
(16 |
) |
Cash and cash equivalents |
|
|
|
|
|
Decrease (increase) |
|
23 |
|
|
(7 |
) |
|
|
82 |
|
|
110 |
|
Net change in cash classified within assets held for sale |
|
— |
|
|
14 |
|
|
|
— |
|
|
(4 |
) |
Balance, beginning of period |
|
823 |
|
|
530 |
|
|
|
764 |
|
|
431 |
|
Balance, end of period |
$ |
846 |
|
$ |
537 |
|
|
$ |
846 |
|
$ |
537 |
|
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 |
|
2022 |
2021 |
|
|
2022 |
2021 |
|
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,236 |
2,333 |
|
|
2,445 |
2,441 |
|
|
$ |
212 |
$ |
192 |
|
|
$ |
127 |
$ |
119 |
|
|
$ |
76 |
|
$ |
80 |
|
Brazil |
849 |
552 |
|
|
1,035 |
1,011 |
|
|
|
49 |
|
34 |
|
|
|
40 |
|
48 |
|
|
|
31 |
|
|
43 |
|
Colombia |
1,092 |
1,045 |
|
|
924 |
858 |
|
|
|
65 |
|
54 |
|
|
|
45 |
|
40 |
|
|
|
23 |
|
|
28 |
|
|
4,177 |
3,930 |
|
|
4,404 |
4,310 |
|
|
|
326 |
|
280 |
|
|
|
212 |
|
207 |
|
|
|
130 |
|
|
151 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
725 |
797 |
|
|
908 |
975 |
|
|
|
70 |
|
70 |
|
|
|
46 |
|
64 |
|
|
|
28 |
|
|
48 |
|
Europe |
179 |
168 |
|
|
190 |
174 |
|
|
|
19 |
|
18 |
|
|
|
23 |
|
17 |
|
|
|
20 |
|
|
11 |
|
Brazil |
197 |
194 |
|
|
210 |
208 |
|
|
|
10 |
|
10 |
|
|
|
9 |
|
9 |
|
|
|
7 |
|
|
7 |
|
Asia |
148 |
107 |
|
|
154 |
121 |
|
|
|
10 |
|
8 |
|
|
|
9 |
|
5 |
|
|
|
6 |
|
|
3 |
|
|
1,249 |
1,266 |
|
|
1,462 |
1,478 |
|
|
|
109 |
|
106 |
|
|
|
87 |
|
95 |
|
|
|
61 |
|
|
69 |
|
Utility-scale solar |
569 |
556 |
|
|
773 |
651 |
|
|
|
104 |
|
101 |
|
|
|
114 |
|
91 |
|
|
|
86 |
|
|
61 |
|
Distributed energy
& sustainable
solutions(11) |
445 |
373 |
|
|
266 |
258 |
|
|
|
80 |
|
67 |
|
|
|
52 |
|
47 |
|
|
|
43 |
|
|
39 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
30 |
|
6 |
|
|
|
(77 |
) |
|
(110 |
) |
Total |
6,440 |
6,125 |
|
|
6,905 |
6,697 |
|
|
$ |
619 |
$ |
554 |
|
|
$ |
495 |
$ |
446 |
|
|
$ |
243 |
|
$ |
210 |
|
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 |
|
2022 |
2021 |
|
|
2022 |
2021 |
|
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
8,858 |
7,911 |
|
|
9,251 |
9,254 |
|
|
$ |
745 |
$ |
614 |
|
|
$ |
472 |
$ |
405 |
|
|
$ |
325 |
|
$ |
286 |
|
Brazil |
2,868 |
2,816 |
|
|
3,040 |
2,997 |
|
|
|
142 |
|
131 |
|
|
|
127 |
|
129 |
|
|
|
100 |
|
|
113 |
|
Colombia |
3,189 |
2,850 |
|
|
2,738 |
2,551 |
|
|
|
205 |
|
160 |
|
|
|
143 |
|
117 |
|
|
|
84 |
|
|
88 |
|
|
14,915 |
13,577 |
|
|
15,029 |
14,802 |
|
|
|
1,092 |
|
905 |
|
|
|
742 |
|
651 |
|
|
|
509 |
|
|
487 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,927 |
2,965 |
|
|
3,264 |
3,856 |
|
|
|
241 |
|
287 |
|
|
|
160 |
|
224 |
|
|
|
110 |
|
|
164 |
|
Europe |
633 |
767 |
|
|
682 |
826 |
|
|
|
102 |
|
90 |
|
|
|
102 |
|
151 |
|
|
|
89 |
|
|
134 |
|
Brazil |
424 |
461 |
|
|
503 |
502 |
|
|
|
23 |
|
24 |
|
|
|
19 |
|
19 |
|
|
|
14 |
|
|
13 |
|
Asia |
436 |
348 |
|
|
426 |
338 |
|
|
|
29 |
|
24 |
|
|
|
25 |
|
17 |
|
|
|
16 |
|
|
11 |
|
|
4,420 |
4,541 |
|
|
4,875 |
5,522 |
|
|
|
395 |
|
425 |
|
|
|
306 |
|
411 |
|
|
|
229 |
|
|
322 |
|
Utility-scale solar |
1,464 |
1,421 |
|
|
1,859 |
1,635 |
|
|
|
297 |
|
280 |
|
|
|
308 |
|
231 |
|
|
|
224 |
|
|
144 |
|
Distributed energy
& sustainable
solutions(12) |
1,044 |
974 |
|
|
708 |
696 |
|
|
|
207 |
|
188 |
|
|
|
147 |
|
134 |
|
|
|
118 |
|
|
104 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
38 |
|
18 |
|
|
|
(300 |
) |
|
(337 |
) |
Total |
21,843 |
20,513 |
|
|
22,471 |
22,655 |
|
|
$ |
1,991 |
$ |
1,798 |
|
|
$ |
1,541 |
$ |
1,445 |
|
|
$ |
780 |
|
$ |
720 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation from Net income (loss) to Adjusted EBITDA
for the three months ended September 30, 2022:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scalesolar |
Distributed energy& sustainablesolutions |
Corporate |
Total |
Net income (loss) |
$ |
(20 |
) |
$ |
(23 |
) |
$ |
25 |
|
$ |
25 |
|
$ |
(84 |
) |
$ |
(77 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
150 |
|
|
135 |
|
|
69 |
|
|
31 |
|
|
— |
|
|
385 |
|
Deferred income tax expense (recovery) |
|
(29 |
) |
|
9 |
|
|
(2 |
) |
|
2 |
|
|
(21 |
) |
|
(41 |
) |
Foreign exchange and financial instrument loss (gain) |
|
115 |
|
|
(39 |
) |
|
(7 |
) |
|
1 |
|
|
(10 |
) |
|
60 |
|
Other(13) |
|
3 |
|
|
42 |
|
|
48 |
|
|
10 |
|
|
73 |
|
|
176 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
58 |
|
|
58 |
|
Interest expense |
|
152 |
|
|
66 |
|
|
47 |
|
|
20 |
|
|
28 |
|
|
313 |
|
Current income tax expense |
|
28 |
|
|
2 |
|
|
2 |
|
|
1 |
|
|
— |
|
|
33 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(187 |
) |
|
(105 |
) |
|
(68 |
) |
|
(38 |
) |
|
(14 |
) |
|
(412 |
) |
Adjusted EBITDA |
$ |
212 |
|
$ |
87 |
|
$ |
114 |
|
$ |
52 |
|
$ |
30 |
|
$ |
495 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation from Net income (loss) to Adjusted EBITDA
for the three months ended September 30, 2021:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scalesolar |
District energy& sustainablesolutions |
Corporate |
Total |
Net income (loss) |
$ |
(60 |
) |
$ |
(51 |
) |
$ |
32 |
|
$ |
16 |
|
$ |
(91 |
) |
$ |
(154 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
132 |
|
|
149 |
|
|
66 |
|
|
25 |
|
|
1 |
|
|
373 |
|
Deferred income tax expense (recovery) |
|
146 |
|
|
(6 |
) |
|
(4 |
) |
|
(1 |
) |
|
(14 |
) |
|
121 |
|
Foreign exchange and financial instrument loss (gain) |
|
3 |
|
|
(8 |
) |
|
(12 |
) |
|
2 |
|
|
(6 |
) |
|
(21 |
) |
Other(13) |
|
12 |
|
|
46 |
|
|
23 |
|
|
5 |
|
|
21 |
|
|
107 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
71 |
|
|
71 |
|
Interest expense |
|
98 |
|
|
62 |
|
|
47 |
|
|
16 |
|
|
24 |
|
|
247 |
|
Current income tax expense |
|
18 |
|
|
2 |
|
|
1 |
|
|
1 |
|
|
— |
|
|
22 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(142 |
) |
|
(99 |
) |
|
(62 |
) |
|
(17 |
) |
|
— |
|
|
(320 |
) |
Adjusted EBITDA |
$ |
207 |
|
$ |
95 |
|
$ |
91 |
|
$ |
47 |
|
$ |
6 |
|
$ |
446 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the nine months ended September 30, 2022:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scalesolar |
Distributed energy& sustainablesolutions |
Corporate |
Total |
Net income (loss) |
$ |
198 |
|
$ |
(24 |
) |
$ |
34 |
|
$ |
87 |
|
$ |
(217 |
) |
$ |
78 |
|
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
461 |
|
|
417 |
|
|
203 |
|
|
92 |
|
|
2 |
|
|
1,175 |
|
Deferred income tax expense (recovery) |
|
(14 |
) |
|
41 |
|
|
(9 |
) |
|
2 |
|
|
(56 |
) |
|
(36 |
) |
Foreign exchange and financial instrument loss (gain) |
|
200 |
|
|
(63 |
) |
|
10 |
|
|
(8 |
) |
|
(36 |
) |
|
103 |
|
Other(13) |
|
8 |
|
|
74 |
|
|
102 |
|
|
17 |
|
|
93 |
|
|
294 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
199 |
|
|
199 |
|
Interest expense |
|
420 |
|
|
188 |
|
|
133 |
|
|
55 |
|
|
77 |
|
|
873 |
|
Current income tax expense |
|
92 |
|
|
8 |
|
|
5 |
|
|
1 |
|
|
— |
|
|
106 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(623 |
) |
|
(335 |
) |
|
(170 |
) |
|
(99 |
) |
|
(24 |
) |
|
(1,251 |
) |
Adjusted EBITDA |
$ |
742 |
|
$ |
306 |
|
$ |
308 |
|
$ |
147 |
|
$ |
38 |
|
$ |
1,541 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the nine months ended September 30, 2021:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Utility-scalesolar |
District energy& sustainablesolutions |
Corporate |
Total |
Net income (loss) |
$ |
125 |
|
$ |
(31 |
) |
$ |
36 |
|
$ |
60 |
|
$ |
(289 |
) |
$ |
(99 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
407 |
|
|
443 |
|
|
198 |
|
|
71 |
|
|
1 |
|
|
1,120 |
|
Deferred income tax expense (recovery) |
|
132 |
|
|
(12 |
) |
|
(10 |
) |
|
(2 |
) |
|
(40 |
) |
|
68 |
|
Foreign exchange and financial instrument loss (gain) |
|
29 |
|
|
11 |
|
|
(34 |
) |
|
(1 |
) |
|
(27 |
) |
|
(22 |
) |
Other(13) |
|
73 |
|
|
172 |
|
|
53 |
|
|
13 |
|
|
138 |
|
|
449 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
224 |
|
|
224 |
|
Interest expense |
|
294 |
|
|
187 |
|
|
135 |
|
|
39 |
|
|
71 |
|
|
726 |
|
Current income tax expense |
|
45 |
|
|
10 |
|
|
3 |
|
|
2 |
|
|
— |
|
|
60 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(454 |
) |
|
(369 |
) |
|
(150 |
) |
|
(48 |
) |
|
(60 |
) |
|
(1,081 |
) |
Adjusted EBITDA |
$ |
651 |
|
$ |
411 |
|
$ |
231 |
|
$ |
134 |
|
$ |
18 |
|
$ |
1,445 |
|
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income (loss) is reconciled to Funds From Operations:
|
For the three months endedSeptember
30 |
For the nine months endedSeptember
30 |
UNAUDITED(MILLIONS) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income |
$ |
(77 |
) |
$ |
(154 |
) |
$ |
78 |
|
$ |
(99 |
) |
Add back or deduct the
following: |
|
|
|
|
Depreciation |
|
385 |
|
|
373 |
|
|
1,175 |
|
|
1,120 |
|
Deferred income tax recovery |
|
(41 |
) |
|
121 |
|
|
(36 |
) |
|
68 |
|
Foreign exchange and financial instruments gain (loss) |
|
60 |
|
|
(21 |
) |
|
103 |
|
|
(22 |
) |
Other(15) |
|
176 |
|
|
107 |
|
|
294 |
|
|
449 |
|
Amount
attributable to equity accounted investment and non-controlling
interest(16) |
|
(260 |
) |
|
(216 |
) |
|
(834 |
) |
|
(796 |
) |
Funds From Operations |
$ |
243 |
|
$ |
210 |
|
$ |
780 |
|
$ |
720 |
|
Normalized long-term average generation adjustment |
|
45 |
|
|
42 |
|
|
103 |
|
|
118 |
|
Normalized foreign currency adjustment |
|
4 |
|
|
— |
|
|
8 |
|
|
— |
|
Normalized Funds From Operations |
$ |
292 |
|
$ |
252 |
|
$ |
891 |
|
$ |
838 |
|
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:
|
For the three months endedSeptember
30 |
|
For the nine months endedSeptember
30 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Net income (loss) per LP
unit(1) |
$ |
(0.25 |
) |
$ |
(0.21 |
) |
|
$ |
(0.44 |
) |
$ |
(0.58 |
) |
Adjust for the proportionate
share of |
|
|
|
|
|
Depreciation |
|
0.36 |
|
|
0.35 |
|
|
|
1.10 |
|
|
1.09 |
|
Deferred income tax recovery and other |
|
0.13 |
|
|
0.19 |
|
|
|
0.35 |
|
|
0.51 |
|
Foreign exchange and financial instruments loss (gain) |
|
0.14 |
|
|
— |
|
|
|
0.20 |
|
|
0.10 |
|
Funds From Operations per
Unit(3) |
$ |
0.38 |
|
$ |
0.33 |
|
|
$ |
1.21 |
|
$ |
1.12 |
|
Normalized long-term average generation adjustment |
|
0.07 |
|
|
0.06 |
|
|
|
0.16 |
|
|
0.18 |
|
Normalized foreign exchange adjustment |
|
— |
|
|
— |
|
|
|
0.01 |
|
|
— |
|
Normalized Funds From Operations per
Unit(3) |
$ |
0.45 |
|
$ |
0.39 |
|
|
$ |
1.38 |
|
$ |
1.30 |
|
BROOKFIELD RENEWABLE CORPORATION
REPORTS THIRD QUARTER RESULTS
All amounts in U.S. dollars unless otherwise
indicated
The Board of Directors of Brookfield Renewable
Corporation ("BEPC" or our "company") (NYSE, TSX: BEPC) today has
declared a quarterly dividend of $0.32 per class A exchangeable
subordinate voting share of BEPC (a "Share"), payable on December
30, 2022 to shareholders of record as at the close of business on
November 30, 2022. This dividend is identical in amount per share
and has identical record and payment dates to the quarterly
distribution announced today by BEP on BEP's LP units.
The BEPC exchangeable shares are structured with
the intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Renewable Partners L.P.
("BEP" or the "Partnership") (NYSE: BEP; TSX: BEP.UN). We believe
economic equivalence is achieved through identical dividends and
distributions on the BEPC exchangeable shares and BEP's LP units
and each BEPC exchangeable share being exchangeable at the option
of the holder for one BEP LP unit at any time. Given the economic
equivalence, we expect that the market price of the Shares will be
significantly impacted by the market price of BEP's LP units and
the combined business performance of our company and BEP as a
whole. In addition to carefully considering the disclosures made in
this news release in its entirety, shareholders are strongly
encouraged to carefully review BEP's continuous disclosure filings
available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR at www.sedar.com.
|
For the three months endedSeptember
30 |
|
For the nine months
endedSeptember 30 |
US$ millions (except per unit amounts), unaudited |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Net income attributable to the
partnership |
$ |
480 |
$ |
214 |
|
$ |
550 |
$ |
816 |
Funds From Operations (FFO)(2) |
|
139 |
|
152 |
|
|
473 |
|
417 |
BEPC reported FFO of $139 million for the three
months ended September 30, 2022 compared to $152 million in
the prior year. After deducting non-cash depreciation,
remeasurement of the BEPC exchangeable and class B shares, and
other non-cash items our Net income attributable to the partnership
for the three months ended September 30, 2022 was $480
million.
Brookfield Renewable Corporation |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
September 30 |
December 31 |
2022 |
2021 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
566 |
|
$ |
410 |
Trade receivables and other financial assets(5) |
|
|
2,370 |
|
|
1,956 |
Equity-accounted investments |
|
|
505 |
|
|
455 |
Property, plant and equipment, at fair value |
|
|
36,158 |
|
|
37,915 |
Goodwill, deferred income tax and other assets(6) |
|
|
1,206 |
|
|
1,250 |
Total Assets |
|
$ |
40,805 |
|
$ |
41,986 |
|
|
|
|
|
Liabilities |
|
|
|
|
Borrowings which have recourse only to assets they finance(7) |
|
$ |
13,588 |
|
$ |
13,512 |
Accounts payable and other liabilities(8) |
|
|
3,325 |
|
|
3,066 |
Deferred income tax liabilities |
|
|
4,774 |
|
|
5,020 |
|
|
|
|
|
BEPC exchangeable and class B shares |
|
|
5,390 |
|
|
6,163 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
9,304 |
|
$ |
10,297 |
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
246 |
|
|
261 |
|
The partnership |
|
4,178 |
|
13,728 |
|
3,667 |
|
14,225 |
Total Liabilities and Equity |
|
$ |
40,805 |
|
$ |
41,986 |
Brookfield Renewable Corporation |
Consolidated Statements of Income (Loss) |
|
|
|
|
|
UNAUDITED(MILLIONS) |
|
For the three months endedSeptember
30 |
|
For the nine months endedSeptember
30 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
896 |
|
$ |
806 |
|
|
$ |
2,822 |
|
$ |
2,462 |
|
Other income |
|
|
9 |
|
|
29 |
|
|
|
79 |
|
|
48 |
|
Direct operating costs(9) |
|
|
(293 |
) |
|
(254 |
) |
|
|
(880 |
) |
|
(841 |
) |
Management service costs |
|
|
(37 |
) |
|
(45 |
) |
|
|
(132 |
) |
|
(147 |
) |
Interest expense |
|
|
(264 |
) |
|
(231 |
) |
|
|
(747 |
) |
|
(671 |
) |
Share of (loss) earnings from
equity-accounted investments |
|
|
2 |
|
|
1 |
|
|
|
1 |
|
|
2 |
|
Foreign exchange and financial
instrument gain (loss) |
|
|
(68 |
) |
|
39 |
|
|
|
(98 |
) |
|
55 |
|
Depreciation |
|
|
(288 |
) |
|
(269 |
) |
|
|
(870 |
) |
|
(834 |
) |
Other |
|
|
(28 |
) |
|
(44 |
) |
|
|
(54 |
) |
|
(221 |
) |
Remeasurement of BEPC
exchangeable and class B shares |
|
|
603 |
|
|
286 |
|
|
|
774 |
|
|
1,074 |
|
Income tax (expense)
recovery |
|
|
|
|
|
|
Current |
|
|
(31 |
) |
|
(20 |
) |
|
|
(98 |
) |
|
(51 |
) |
Deferred |
|
|
16 |
|
|
(145 |
) |
|
|
(25 |
) |
|
(126 |
) |
Net income |
|
$ |
517 |
|
$ |
153 |
|
|
$ |
772 |
|
$ |
750 |
|
Net income (loss) attributable to: |
|
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
|
$ |
35 |
|
$ |
(59 |
) |
|
$ |
215 |
|
$ |
(69 |
) |
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
|
2 |
|
|
(2 |
) |
|
|
7 |
|
|
3 |
|
The partnership |
|
|
480 |
|
|
214 |
|
|
|
550 |
|
|
816 |
|
|
|
$ |
517 |
|
$ |
153 |
|
|
$ |
772 |
|
$ |
750 |
|
Brookfield Renewable Corporation |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
UNAUDITED(MILLIONS) |
For the three months endedSeptember
30 |
|
For the nine months endedSeptember
30 |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
Operating activities |
|
|
|
|
|
Net income |
$ |
517 |
|
$ |
153 |
|
|
$ |
772 |
|
$ |
750 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
|
288 |
|
|
269 |
|
|
|
870 |
|
|
834 |
|
Unrealized foreign exchange and financial instruments loss
(gain) |
|
128 |
|
|
(27 |
) |
|
|
212 |
|
|
(24 |
) |
Share of earnings from equity-accounted investments |
|
(2 |
) |
|
(1 |
) |
|
|
(1 |
) |
|
(2 |
) |
Deferred income tax expense |
|
(16 |
) |
|
145 |
|
|
|
25 |
|
|
126 |
|
Other non-cash items |
|
15 |
|
|
(5 |
) |
|
|
10 |
|
|
50 |
|
Remeasurement of exchangeable
and class B shares |
|
(603 |
) |
|
(286 |
) |
|
|
(774 |
) |
|
(1,074 |
) |
Dividends received from equity-accounted investments |
|
|
|
|
|
|
|
327 |
|
|
248 |
|
|
|
1,114 |
|
|
660 |
|
Net change in working capital and other(10) |
|
(37 |
) |
|
(163 |
) |
|
|
(249 |
) |
|
(495 |
) |
|
|
290 |
|
|
85 |
|
|
|
865 |
|
|
165 |
|
Financing activities |
|
|
|
|
|
Non-recourse borrowings and
related party borrowings, net |
|
201 |
|
|
91 |
|
|
|
866 |
|
|
815 |
|
Capital contributions from
participating non-controlling interests |
|
88 |
|
|
4 |
|
|
|
284 |
|
|
42 |
|
Return of capital to
participating non-controlling interests |
|
(54 |
) |
|
(181 |
) |
|
|
(54 |
) |
|
(181 |
) |
Distributions paid and return
of capital: |
|
|
|
|
|
To participating
non-controlling interests |
|
(251 |
) |
|
(201 |
) |
|
|
(1,058 |
) |
|
(491 |
) |
|
|
(16 |
) |
|
(287 |
) |
|
|
38 |
|
|
185 |
|
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
|
— |
|
|
— |
|
|
|
— |
|
|
(12 |
) |
Investment in equity-accounted
investments |
|
(48 |
) |
|
— |
|
|
|
(48 |
) |
|
— |
|
Investment in property, plant
and equipment |
|
(210 |
) |
|
(158 |
) |
|
|
(624 |
) |
|
(563 |
) |
Disposal of subsidiaries,
associates and other securities, net |
|
4 |
|
|
376 |
|
|
|
92 |
|
|
376 |
|
Restricted cash and other |
|
(4 |
) |
|
(6 |
) |
|
|
(129 |
) |
|
(78 |
) |
|
|
(258 |
) |
|
212 |
|
|
|
(709 |
) |
|
(277 |
) |
Foreign exchange gain (loss) on cash |
|
(21 |
) |
|
(9 |
) |
|
|
(38 |
) |
|
(15 |
) |
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
|
(5 |
) |
|
1 |
|
|
|
156 |
|
|
58 |
|
Net change in cash classified within assets held for sale |
|
— |
|
|
16 |
|
|
|
— |
|
|
— |
|
Balance, beginning of period |
|
571 |
|
|
396 |
|
|
|
410 |
|
|
355 |
|
Balance, end of period |
|
566 |
|
|
413 |
|
|
$ |
566 |
|
$ |
413 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reconciles Net income (loss)
to Funds From Operations:
|
For the three months endedSeptember
30 |
|
For the nine months endedSeptember
30 |
UNAUDITED(MILLIONS) |
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
Net income |
$ |
517 |
|
$ |
153 |
|
|
$ |
772 |
|
$ |
750 |
|
Add back or deduct the
following: |
|
|
|
|
|
Depreciation |
|
288 |
|
|
269 |
|
|
|
870 |
|
|
834 |
|
Foreign exchange and financial instruments loss (gain) |
|
68 |
|
|
(39 |
) |
|
|
98 |
|
|
(55 |
) |
Deferred income tax expense (recovery) |
|
(16 |
) |
|
145 |
|
|
|
25 |
|
|
126 |
|
Other(17) |
|
89 |
|
|
330 |
|
|
|
174 |
|
|
330 |
|
Dividends on BEPC exchangeable shares(18) |
|
55 |
|
|
52 |
|
|
|
165 |
|
|
156 |
|
Remeasurement of BEPC
exchangeable and BEPC class B shares |
|
(603 |
) |
|
(286 |
) |
|
|
(774 |
) |
|
(1,074 |
) |
Amount attributable to equity
accounted investments and non-controlling interests(19) |
|
(259 |
) |
|
(472 |
) |
|
|
(857 |
) |
|
(650 |
) |
Funds
From Operations |
$ |
139 |
|
$ |
152 |
|
|
$ |
473 |
|
$ |
417 |
|
Cautionary Statement Regarding
Forward-looking Statements
This news release contains forward-looking
statements and information within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “intend”,
“should”, “could”, “target”, “growth”, “expect”, “believe”, “plan”,
derivatives thereof and other expressions which are predictions of
or indicate future events, trends or prospects and which do not
relate to historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this
letter to unitholders include statements regarding the quality of
Brookfield Renewable’s and its subsidiaries’ businesses and our
expectations regarding future cash flows and distribution growth.
They include statements regarding Brookfield Renewable’s
anticipated financial performance, future commissioning of assets,
contracted nature of our portfolio (including our ability to
recontract certain asset), technology diversification, acquisition
opportunities, expected completion of acquisitions and
dispositions, financing and refinancing opportunities, future
energy prices and demand for electricity, global decarbonization
targets, economic recovery, achieving long-term average generation,
project development and capital expenditure costs, energy policies,
economic growth, growth potential of the renewable asset class, the
future growth prospects and distribution profile of Brookfield
Renewable and Brookfield Renewable’s access to capital. Although
Brookfield Renewable believes that these forward-looking statements
and information are based upon reasonable assumptions and
expectations, you should not place undue reliance on them, or any
other forward-looking statements or information in this letter to
unitholders. The future performance and prospects of Brookfield
Renewable are subject to a number of known and unknown risks and
uncertainties. Factors that could cause actual results of
Brookfield Renewable to differ materially from those contemplated
or implied by the statements in this letter to unitholders include
(without limitation) our inability to identify sufficient
investment opportunities and complete transactions; the growth of
our portfolio and our inability to realize the expected benefits of
our transactions or acquisitions; weather conditions and other
factors which may impact generation levels at facilities; adverse
outcomes with respect to outstanding, pending or future litigation;
economic conditions in the jurisdictions in which Brookfield
Renewable operates; ability to sell products and services under
contract or into merchant energy markets; changes to government
regulations, including incentives for renewable energy; ability to
complete development and capital projects on time and on budget;
inability to finance operations or fund future acquisitions due to
the status of the capital markets; health, safety, security or
environmental incidents; regulatory risks relating to the power
markets in which Brookfield Renewable operates, including relating
to the regulation of our assets, licensing and litigation; risks
relating to internal control environment; contract counterparties
not fulfilling their obligations; changes in operating expenses,
including employee wages, benefits and training, governmental and
public policy changes, and other risks associated with the
construction, development and operation of power generating
facilities. For further information on these known and unknown
risks, please see “Risk Factors” included in the Form 20-F of BEP
and in the Form 20-F of BEPC and other risks and factors that are
described therein.
The foregoing list of important factors that may
affect future results is not exhaustive. The forward-looking
statements represent our views as of the date of this letter to
unitholders and should not be relied upon as representing our views
as of any subsequent date. While we anticipate that subsequent
events and developments may cause our views to change, we disclaim
any obligation to update the forward-looking statements, other than
as required by applicable law.
No securities regulatory authority has either
approved or disapproved of the contents of this letter to
unitholders. This letter to unitholders is for information purposes
only and shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction.
Cautionary Statement Regarding Use of
Non-IFRS Measures
This news release contains references to to 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 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
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 FFO and FFO per Unit to the most
directly comparable IFRS measure, please see “Reconciliation of
Non-IFRS Measures - Three Months Ended September 30” included
elsewhere herein and “Financial Performance Review on Proportionate
Information - Reconciliation of Non-IFRS Measures” included in our
unaudited Q3 2022 interim report. Normalized FFO assumes long-term
average generation in all segments and uses 2021 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.
Endnotes
(1) |
For the three and nine months ended September 30, 2022,
average LP units totaled 275.2 million and 275.2 million,
respectively (2021: 274.9 million and 274.9 million,
respectively). |
|
|
(2) |
Non-IFRS measures. Refer to “Cautionary Statement Regarding
Use of Non-IFRS Measures”. |
|
|
(3) |
Average Units outstanding for the three and nine months ended
September 30, 2022 were 645.9 million and 645.8 million,
respectively (2021: 645.6 million and 645.6 million,
respectively), being inclusive of our LP units,
Redeemable/Exchangeable partnership units, BEPC exchangeable shares
and general partner interest. The actual Units outstanding as at
September 30, 2022 were 646.0 million (2021: 645.7
million). |
|
|
(4) |
Normalized FFO assumes long-term average generation in all segments
and uses 2021 foreign currency rates. For the three and nine months
ended September 30, 2022, the change related to long-term average
generation totaled $45 million and $103 million, respectively
(2021: $42 million and $118 million, respectively ) and the change
related to foreign currency totaled $4 million and $8
million. |
|
|
(5) |
Balance includes restricted cash, trades receivables and other
current assets, financial instrument assets, and due from related
parties. |
|
|
(6) |
Balance includes goodwill, deferred income tax assets, assets held
for sale, intangible assets, and other long-term assets. |
|
|
(7) |
Balance includes current and non-current portion of non-recourse
borrowings on the consolidated statement of financial
position. |
|
|
(8) |
Balance includes accounts payable and accrued liabilities,
financial instrument liabilities, due to related parties,
provisions, liabilities directly associated with assets held for
sale and other long-term liabilities. |
|
|
(9) |
Direct operating costs exclude depreciation expense disclosed
below. |
|
|
(10) |
Balance includes dividends received from equity accounted
investments and changes due to or from related parties. |
|
|
(11) |
Actual generation includes 198 GWh (2021:157 GWh) from facilities
that do not have a corresponding LTA. |
|
|
(12) |
Actual generation includes 401 GWh (2021:352 GWh) from facilities
that do not have a corresponding LTA. |
|
|
(13) |
Other corresponds to amounts that are not related to the revenue
earning activities and are not normal, recurring cash operating
expenses necessary for business operations. Other balance also
includes derivative and other revaluations and settlements, gains
or losses on debt extinguishment/modification, transaction costs,
legal, provisions, amortization of concession assets and Brookfield
Renewable’s economic share of foreign currency hedges and realized
disposition gains and losses on assets that we developed and/or did
not intend to hold over the long-term that are included within
Adjusted EBITDA. |
|
|
(14) |
Amount attributable to equity accounted investments corresponds to
the Adjusted EBITDA to Brookfield Renewable that are generated by
its investments in associates and joint ventures accounted for
using the equity method. Amounts attributable to non-controlling
interest are calculated based on the economic ownership interest
held by non-controlling interests in consolidated subsidiaries. By
adjusting Adjusted EBITDA attributable to non-controlling interest,
our partnership is able to remove the portion of Adjusted EBITDA
earned at non-wholly owned subsidiaries that are not attributable
to our partnership. |
|
|
(15) |
Other corresponds to amounts that are not related to the revenue
earning activities and are not normal, recurring cash operating
expenses necessary for business operations. Other balance also
includes derivative and other revaluations and settlements, gains
or losses on debt extinguishment/modification, transaction costs,
legal, provisions, amortization of concession assets and Brookfield
Renewable’s economic share of foreign currency hedges and realized
disposition gains and losses on assets that we developed and/or did
not intend to hold over the long-term that are included in Funds
From Operations. |
|
|
(16) |
Amount attributable to equity accounted investments corresponds to
the Funds From Operations that are generated by its investments in
associates and joint ventures accounted for using the equity
method. Amounts attributable to non-controlling interest are
calculated based on the economic ownership interest held by
non-controlling interests in consolidated subsidiaries. By
adjusting Funds From Operations attributable to non-controlling
interest, our partnership is able to remove the portion of Funds
From Operations earned at non-wholly owned subsidiaries that are
not attributable to our partnership. |
|
|
(17) |
Other corresponds to amounts that are not related to the revenue
earning activities and are not normal, recurring cash operating
expenses necessary for business operations. Other balance also
includes derivative and other revaluations and settlements, gains
or losses on debt extinguishment/modification, transaction costs,
legal, provisions, amortization of concession assets and the
company’s economic share of foreign currency hedges and realized
disposition gains and losses on assets that we developed and/or did
not intend to hold over the long-term that are included in Funds
From Operations. |
|
|
(18) |
Balance is included within interest expense on the consolidated
statements of income (loss). |
|
|
(19) |
Amount attributable to equity accounted investments corresponds to
the Funds From Operations that are generated by its investments in
associates and joint ventures accounted for using the equity
method. Amounts attributable to non-controlling interest are
calculated based on the economic ownership interest held by
non-controlling interests in consolidated subsidiaries. By
adjusting Funds From Operations attributable to non-controlling
interest, our company is able to remove the portion of Funds From
Operations earned at non-wholly owned subsidiaries that are not
attributable to our company. |
|
|
(20) |
Any references to capital refer to Brookfield's cash deployed,
excluding any debt financing. |
|
|
(21) |
Available liquidity of over $3.5 billion refers to "Part 5 -
Liquidity and Capital Resources" in the Management Discussion and
Analysis in the Q3 2022 Interim Report. |
|
|
(22) |
12-15% target returns are calculated as annualized cash return on
investment. |
Brookfield Renewable Par... (NYSE:BEP)
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