Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable”) today reported financial results for the three
and six months ended June 30, 2018.
“We continue to grow our operating and
investment capabilities across markets and technologies, recently
adding a scale solar business in Europe and expanding our wind
portfolio during the quarter,” said Sachin Shah, CEO of Brookfield
Renewable. “Combined with our strong investment grade balance sheet
and robust liquidity, we remain well positioned to deliver
long-term total returns of 12% to 15% on a per unit basis.”
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Financial
Results |
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For the periods ended June 30 |
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US$ millions (except per unit or otherwise noted) |
Three Months Ended |
Six Months Ended |
Unaudited |
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2018 |
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2017 |
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2018 |
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2017 |
Total generation (GWh) |
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- Actual generation |
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13,122 |
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11,618 |
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26,002 |
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22,102 |
- Long-term average generation |
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13,521 |
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10,674 |
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26,373 |
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21,038 |
Brookfield Renewable's share |
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- Actual generation |
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6,455 |
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6,719 |
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13,149 |
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12,880 |
- Long-term average generation |
|
6,935 |
|
|
6,277 |
|
13,286 |
|
12,166 |
Funds From Operations (FFO)(1) |
$ |
172 |
|
$ |
181 |
$ |
365 |
$ |
347 |
Per Unit(1)(2) |
$ |
0.55 |
|
$ |
0.61 |
$ |
1.17 |
$ |
1.16 |
Normalized FFO(1)(2)(3) |
$ |
206 |
|
$ |
170 |
$ |
374 |
$ |
306 |
Per Unit(1)(2)(3) |
$ |
0.66 |
|
$ |
0.57 |
$ |
1.20 |
$ |
1.02 |
Net (Loss) Income Attributable to Unitholders |
$ |
(2 |
) |
$ |
38 |
$ |
6 |
$ |
54 |
Per Unit(2) |
$ |
(0.01 |
) |
$ |
0.13 |
$ |
0.02 |
$ |
0.18 |
(1) Non-IFRS measure. Refer to “Cautionary
Statement Regarding Use of Non-IFRS Measures”.(2) For the
three and six months ended June 30, 2018, the weighted average LP
Units, Redeemable/Exchangeable partnership units and GP interest
totaled 312.8 million and 312.7 million, respectively (2017: 299.2
million and 299.2 million).(3) Normalized FFO assumes
long-term average generation in North America and Europe and uses
constant foreign currency rates. For the three and six months ended
June 30, 2018, the change related to long-term average generation
totaled $34 million and $12 million (2017: ($10) million and ($31)
million), respectively, and the change to foreign currency totaled
$nil and ($3) million (2017: ($1) million and ($10) million),
respectively.
Brookfield Renewable reported net loss for the
three months ended June 30, 2018 of $2 million ($0.01 per Unit)
compared to net income of $38 million ($0.13 per Unit) for the same
period in 2017. Fund From Operations (FFO) totaled $172 million
($0.55 per Unit) compared to $181 million ($0.61 per Unit) for the
same period in 2017. On a normalized basis, we would have achieved
FFO of $206 million ($0.66 per Unit) compared to $170 million
($0.57 per Unit) for the same period in 2017, representing a 16%
year-over-year per unit increase in normalized FFO. These results
reflect the continued strength of our operating business as well as
contributions from recent acquisitions.
Operating and Financial
Results
Our hydroelectric assets contributed $181
million of FFO. While hydrology remains close to long-term average
levels in South America, we experienced lower rainfall in Ontario
and New York impacting generation levels. During the quarter, we
continued to focus on extending our contract profile at premium
pricing. At PJM’s recent capacity auction, we sold 964 megawatts
into strong markets, securing $17 million of revenue (net to BEP)
for the 2021/2022 delivery period – 70% higher than the prior year.
In Colombia, we signed almost 20 new contracts with 5 to 10 year
terms. In Brazil, we secured five new contracts at average pricing
of approximately R$260 per megawatt-hour (~U.S.$70 per
megawatt-hour). We also commissioned our 28 megawatt Brazilian
Verde 4A hydroelectric facility.
Our wind segment delivered $34 million of FFO in
the second quarter, $10 million ahead of prior year as we continue
to benefit from new acquisitions and development projects coming
online. At TerraForm Power, wind performance has been consistent
with our expectations and we continued to progress outsourcing of
the wind fleet’s operations and maintenance, which is expected to
drive meaningful operating cost savings over the next few years.
Our Brazilian wind business continues to deliver very strong
results with capacity factors consistently around 40%.
Our solar business delivered $16 million of FFO
this quarter, as our global fleet continues to perform well, with
strong availability across the portfolio. Our storage facilities
delivered $7 million of FFO in the second quarter as these
facilities continue to provide essential grid-stabilizing ancillary
services and large-scale back-up capacity. At our First Hydro
business, we continue to work with our partner to optimize asset
operation, dispatch and trading.
We continue to pursue development across all
business lines. We are currently advancing two hydro facilities in
Brazil totaling 49 megawatts, two wind farms in Europe totaling 47
megawatts and a 63 megawatt storage expansion project in the U.S.
Our total equity investment in these projects is approximately $75
million, the majority of which has already been funded and all
projects are advancing on scope, schedule and budget. Once
completed, these assets should contribute an additional $20 million
to our FFO.
Transaction Update
During the second quarter, we invested $450
million into growth and development initiatives. This includes our
investment in additional shares of TerraForm Power bringing the
total ownership between ourselves and our partners up to 65% (from
51%) and increasing BEP’s interest from 16% to 30%. The share
issuance from TerraForm Power was used to fund its acquisition of
Saeta Yield – a high quality, stable portfolio of 1,028 megawatt
European solar and wind portfolio with a $1.2 billion equity
valuation. Saeta’s revenues are underpinned primarily by a stable
regulated rate base in Spain which supports over 80% of the
company’s EBITDA and protects the business from production
variability. The balance of the business’ revenues are subject to
long term power purchase agreements which exceed 16 years in term.
Looking forward, the portfolio provides a number of operational and
balance sheet enhancement opportunities which should provide
meaningful margin expansion over time, consistent with our
operations-oriented approach to investing.
Balance Sheet, Liquidity and Interest
Rates
Factoring in recent investments, we ended the
quarter with $1.7 billion of liquidity and continue to focus on
strengthening our investment grade balance sheet. Our priorities
remain the same; terming out our debt, extending maturities on a
fixed rate basis, reducing borrowing costs and monetizing mature
assets to redeploy capital into higher value opportunities.
During the quarter we extended the duration of
our corporate credit facility to five years and executed $1.1
billion of refinancing initiatives across the portfolio. In the
process, we extended the average duration of our asset level debt
to over 10 years and lowered our interest costs by 25 basis points.
We have minimal interest rate exposure having locked-in low,
long-term rates over the last several years. As a result, today
only 14% of our debt is floating rate, of which less than 8% is in
North America and Europe.
We also advanced our capital recycling
initiatives. Post quarter-end, we entered into an agreement to sell
100% of our 178 megawatt South African wind and solar portfolio for
total proceeds of $166 million, with BEP’s share totaling
approximately $50 million. These assets were acquired as part of
broader TerraForm Global portfolio in late 2017 and the sale will
allow us to focus our investments on our core markets where we see
considerable opportunity.
Distribution Declaration
The next quarterly distribution in the amount of
$0.49 per LP Unit, is payable on September 28, 2018 to unitholders
of record as at the close of business on June 30, 2018. Brookfield
Renewable targets a sustainable distribution with increases
targeted on average at 5% to 9% annually.
The quarterly dividends on Brookfield
Renewable’s preferred shares and preferred LP units have also been
declared.
Distribution Currency
Option
The quarterly distributions payable on the
Partnership’s LP Units are declared in U.S. dollars. Unitholders
resident in the United States will receive payment in U.S. dollars
and unitholders resident 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 resident in Canada who
wish to receive a U.S. dollar distribution and registered
unitholders resident 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
Partners
Brookfield Renewable Partners operates one of
the world’s largest publicly traded, pure-play renewable power
platforms. Our portfolio consists of hydroelectric, wind, solar and
storage facilities in North America, South America, Europe and
Asia, and totals over 17,000 megawatts of installed capacity and an
8,000 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 $285 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.
For more information, please
contact:Media:Claire Holland(416)
369-8236claire.holland@brookfield.com
Investors:Divya Biyani(416)
369-2616divya.biyani@brookfield.com
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2018 Second Quarter Results as
well as the Letter to Shareholders and Supplemental Information on
Brookfield Renewable’s website at https://bep.brookfield.com.
The conference call can be accessed via webcast
on August 3, 2018 at 11:00 a.m. Eastern Time at
https://event.on24.com/wcc/r/1792632/F051185B24D07EDB9D68B579DD6A37A2,
or via teleconference at 1-866-521-4909 toll free in North America.
If dialing from outside Canada or the U.S., please dial
1-647-427-2311, at approximately 10:50 a.m. Eastern Time. A
recording of the teleconference can be accessed through September
3, 2018 at 1-800-585-8367, or from outside Canada and the U.S.
please call 1-416-621-4642.
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”, “should”,
“could”, “target” “future”, “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 our liquidity, the expected benefits to
unitholders of re-financing debt at low, long-term interest rates
in a rising rate environment, as well as acquisitions, and the
availability of acquisition opportunities. They also include
statements regarding the progress towards completion of development
projects, including by way of joint ventures with institutional
partners, and the expected contribution of development projects to
future generation capacity and cash flows as well as statements
regarding the prospects of future growth in core markets.
Additionally, they include statements regarding the expected
benefits to Brookfield Renewable of redeploying recycled capital
from non-core assets into new, value-based opportunities. 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 economic
conditions in the jurisdictions in which we operate; our ability to
sell products and services under contract or into merchant energy
markets; weather conditions and other factors which may impact
generation levels at our facilities; our ability to grow within our
current markets or expand into new markets; our ability to complete
development and capital projects on time and on budget; our
inability to finance our operations or fund future acquisitions due
to the status of the capital markets; the ability to effectively
source, complete and integrate new acquisitions and to realize the
benefits of such acquisitions; health, safety, security or
environmental incidents; changes to government regulations;
regulatory risks relating to the power markets in which we operate,
including relating to the regulation of our assets, licensing and
litigation; risks relating to our internal control environment; our
lack of control over all of our operations; contract counterparties
not fulfilling their obligations; and other risks associated with
the construction, development and operation of power generating
facilities.
We caution that 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. For further
information on these known and unknown risks, please see “Risk
Factors” included in our Form 20-F.
Cautionary Statement Regarding Use of Non-IFRS
Measures
This press release contains references to Adjusted EBITDA, Funds
From Operations, Normalized Funds From Operations, Adjusted Funds
From Operations, Funds From Operations per Unit and Normalized
Funds From Operations per Unit which are not generally accepted
accounting measures under IFRS and therefore may differ from
definitions of Adjusted EBITDA, Funds From Operations, Normalized
Funds From Operations, Adjusted Funds From Operations, Funds From
Operations per Unit and Normalized Funds From Operations per Unit
used by other entities. We believe that Adjusted EBITDA, Funds From
Operations, Normalized Funds From Operations, Adjusted Funds From
Operations, Funds From Operations per Unit and Normalized Funds
From Operations 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.
Neither Adjusted EBITDA, Funds From Operations, Normalized Funds
From Operations, Adjusted Funds From Operations, Funds From
Operations per Unit nor Normalized Funds From Operations 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.
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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BROOKFIELD RENEWABLE PARTNERS L.P. |
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CONSOLIDATED STATEMENTS OF INCOME |
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UNAUDITED |
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Three months ended Jun 30 |
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Six months ended Jun 30 |
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(MILLIONS, EXCEPT AS NOTED) |
2018 |
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2017 |
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2018 |
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2017 |
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Revenues |
$ |
735 |
|
$ |
683 |
|
$ |
1,528 |
|
$ |
1,360 |
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Other
income |
|
10 |
|
|
10 |
|
|
19 |
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|
18 |
|
Direct
operating costs |
|
(247 |
) |
|
(240 |
) |
|
(503 |
) |
|
(473 |
) |
Management
service costs |
|
(21 |
) |
|
(21 |
) |
|
(42 |
) |
|
(37 |
) |
Interest
expense – borrowings |
|
(178 |
) |
|
(156 |
) |
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(358 |
) |
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(319 |
) |
Share of
earnings (loss) from |
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equity-accounted investments |
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6 |
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2 |
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6 |
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(1 |
) |
Foreign
exchange and |
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(33 |
) |
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(6 |
) |
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(25 |
) |
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(26 |
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unrealized
financial instruments loss |
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Depreciation |
|
(206 |
) |
|
(198 |
) |
|
(419 |
) |
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(398 |
) |
Other |
|
(10 |
) |
|
23 |
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(54 |
) |
|
21 |
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Income tax
expense |
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|
|
|
|
|
|
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Current |
|
(7 |
) |
|
4 |
|
|
(14 |
) |
|
(12 |
) |
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Deferred |
|
(4 |
) |
|
(16 |
) |
|
(13 |
) |
|
(21 |
) |
|
|
(11 |
) |
|
(12 |
) |
|
(27 |
) |
|
(33 |
) |
Net income |
$ |
45 |
|
$ |
85 |
|
$ |
125 |
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$ |
112 |
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Net income
attributable to: |
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Non-controlling interests |
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Participating non-controlling interests - in |
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operating
subsidiaries |
$ |
31 |
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$ |
34 |
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$ |
87 |
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$ |
33 |
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General
partnership interest in a holding |
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subsidiary held by
Brookfield |
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- |
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1 |
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- |
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1 |
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Participating non-controlling interests - in a |
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holding subsidiary -
Redeemable/ |
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Exchangeable units held
by Brookfield |
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(1 |
) |
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16 |
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2 |
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23 |
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Preferred
equity |
|
6 |
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|
6 |
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|
13 |
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|
12 |
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Preferred
limited partners' equity |
|
10 |
|
|
7 |
|
|
19 |
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|
13 |
|
Limited partners' equity |
|
(1 |
) |
|
21 |
|
|
4 |
|
|
30 |
|
|
|
|
$ |
45 |
|
$ |
85 |
|
$ |
125 |
|
$ |
112 |
|
Basic and diluted (loss) earnings per LP Unit |
$ |
(0.01 |
) |
$ |
0.13 |
|
$ |
0.02 |
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$ |
0.18 |
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BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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UNAUDITED |
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Jun
30 |
|
Dec
31 |
(MILLIONS) |
|
2018 |
|
2017 |
Assets |
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
$ |
237 |
$ |
799 |
|
Restricted
cash |
|
179 |
|
181 |
|
Trade
receivables and other current assets |
|
503 |
|
554 |
|
Financial
instrument assets |
|
64 |
|
72 |
|
Due from
related parties |
|
51 |
|
60 |
|
Assets held for sale |
|
799 |
|
- |
|
|
|
|
1,833 |
|
1,666 |
Financial
instrument assets |
|
153 |
|
113 |
Equity-accounted investments |
|
1,123 |
|
721 |
Property,
plant and equipment, at fair value |
|
25,774 |
|
27,096 |
Goodwill |
|
918 |
|
901 |
Deferred
income tax assets |
|
178 |
|
177 |
Other long-term assets |
|
111 |
|
230 |
|
$ |
30,090 |
$ |
30,904 |
Liabilities |
|
|
|
|
Current
liabilities |
|
|
|
|
|
Accounts
payable and accrued liabilities |
$ |
454 |
$ |
542 |
|
Financial
instrument liabilities |
|
106 |
|
184 |
|
Due to
related parties |
|
307 |
|
112 |
|
Current
portion of long-term debt |
|
929 |
|
1,676 |
|
Liabilities directly associated with assets held for
sale |
|
563 |
|
- |
|
|
|
|
2,359 |
|
2,514 |
Financial
instrument liabilities |
|
52 |
|
86 |
Long-term
debt and credit facilities |
|
10,045 |
|
10,090 |
Deferred
income tax liabilities |
|
3,575 |
|
3,588 |
Other long-term liabilities |
|
333 |
|
344 |
|
|
|
|
16,364 |
|
16,622 |
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
|
Participating non-controlling interests - in operating |
|
6,140 |
|
6,298 |
|
General
partnership interest in a holding subsidiary held by
Brookfield |
|
53 |
|
58 |
|
Participating non-controlling interests - in a holding
subsidiary |
|
|
|
|
|
|
-
Redeemable/Exchangeable units held by Brookfield |
|
2,609 |
|
2,843 |
|
Preferred
equity |
|
589 |
|
616 |
Preferred
limited partners' equity |
|
707 |
|
511 |
Limited partners' equity |
|
3,628 |
|
3,956 |
|
|
|
|
13,726 |
|
14,282 |
|
|
|
$ |
30,090 |
$ |
30,904 |
|
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BROOKFIELD RENEWABLE PARTNERS L.P. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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UNAUDITED |
|
Three months ended Jun 30 |
|
|
Six months ended Jun 30 |
|
(MILLIONS) |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Operating activities |
|
|
|
|
|
|
|
|
Net
income |
$ |
45 |
|
$ |
85 |
|
$ |
125 |
|
$ |
112 |
|
Adjustments
for the following non-cash items: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
206 |
|
|
198 |
|
|
419 |
|
|
398 |
|
|
Unrealized
financial instrument loss |
|
33 |
|
|
6 |
|
|
25 |
|
|
26 |
|
|
Share of
(earnings) loss from |
|
|
|
|
|
|
|
|
|
|
equity-accounted
investments |
|
(6 |
) |
|
(2 |
) |
|
(6 |
) |
|
1 |
|
|
Deferred
income tax expense |
|
4 |
|
|
16 |
|
|
13 |
|
|
21 |
|
|
Other
non-cash items |
|
9 |
|
|
(32 |
) |
|
24 |
|
|
(31 |
) |
Dividends
received from equity-accounted investments |
|
12 |
|
|
3 |
|
|
14 |
|
|
3 |
|
Changes in
due to or from related parties |
|
(9 |
) |
|
(5 |
) |
|
12 |
|
|
(10 |
) |
Net change in working capital balances |
|
(31 |
) |
|
(27 |
) |
|
(63 |
) |
|
22 |
|
|
|
|
|
263 |
|
|
242 |
|
|
563 |
|
|
542 |
|
Financing activities |
|
|
|
|
|
|
|
|
Long-term
debt - borrowings |
|
472 |
|
|
152 |
|
|
1,963 |
|
|
299 |
|
Long-term
debt - repayments |
|
(298 |
) |
|
(207 |
) |
|
(2,233 |
) |
|
(462 |
) |
Capital
contributions from participating non-controlling |
|
|
|
|
|
|
|
|
|
interests -
in operating subsidiaries |
|
- |
|
|
11 |
|
|
4 |
|
|
49 |
|
Acquisition
of Isagen from non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
(5 |
) |
Issuance of
preferred limited partnership units |
|
- |
|
|
- |
|
|
196 |
|
|
187 |
|
Repurchase
of LP Units |
|
(8 |
) |
|
- |
|
|
(8 |
) |
|
|
Distributions paid: |
|
|
|
|
|
|
|
|
|
To
participating non-controlling interests - in operating |
|
|
|
|
|
|
|
|
|
|
subsidiaries |
|
(181 |
) |
|
(161 |
) |
|
(357 |
) |
|
(296 |
) |
|
To
preferred shareholders |
|
(6 |
) |
|
(6 |
) |
|
(13 |
) |
|
(12 |
) |
|
To
preferred limited partners' unitholders |
|
(10 |
) |
|
(6 |
) |
|
(18 |
) |
|
(11 |
) |
|
To
unitholders of Brookfield Renewable or BRELP |
|
(161 |
) |
|
(145 |
) |
|
(321 |
) |
|
(289 |
) |
Borrowings from related party |
|
200 |
|
|
- |
|
|
200 |
|
|
- |
|
|
|
|
|
8 |
|
|
(362 |
) |
|
(587 |
) |
|
(540 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Acquisitions |
|
- |
|
|
- |
|
|
(12 |
) |
|
- |
|
Investment
in: |
|
|
|
|
|
|
|
|
|
Sustaining
capital expenditures |
|
(29 |
) |
|
(33 |
) |
|
(56 |
) |
|
(51 |
) |
|
Development
and construction of renewable power |
|
|
|
|
|
|
|
|
|
|
generating assets |
|
(13 |
) |
|
(40 |
) |
|
(38 |
) |
|
(89 |
) |
Proceeds
from disposal of assets |
|
- |
|
|
- |
|
|
- |
|
|
150 |
|
Investment
in securities |
|
(13 |
) |
|
- |
|
|
25 |
|
|
- |
|
Investment
in equity accounted investments |
|
(420 |
) |
|
(27 |
) |
|
(420 |
) |
|
(39 |
) |
Restricted cash and other |
|
49 |
|
|
63 |
|
|
(29 |
) |
|
(22 |
) |
|
|
|
|
(426 |
) |
|
(37 |
) |
|
(530 |
) |
|
(51 |
) |
Foreign exchange loss on cash |
|
(12 |
) |
|
(5 |
) |
|
(8 |
) |
|
- |
|
Cash and
cash equivalents |
|
|
|
|
|
|
|
|
|
Decrease |
|
(167 |
) |
|
(162 |
) |
|
(562 |
) |
|
(49 |
) |
|
Balance, beginning of period |
|
404 |
|
|
336 |
|
|
799 |
|
|
223 |
|
|
Balance, end of period |
$ |
237 |
|
$ |
174 |
|
$ |
237 |
|
$ |
174 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
Interest
paid |
$ |
185 |
|
$ |
188 |
|
$ |
315 |
|
$ |
305 |
|
|
Interest
received |
$ |
5 |
|
$ |
9 |
|
$ |
12 |
|
$ |
17 |
|
|
Income taxes paid |
$ |
10 |
|
$ |
12 |
|
$ |
23 |
|
$ |
28 |
|
|
|
|
|
|
|
|
|
|
|
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED June 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended June 30:
|
|
|
(GWh) |
(MILLIONS) |
|
Actual Generation |
LTA Generation |
Revenues |
Adjusted EBITDA(1) |
Funds From Operations(1) |
Net Income (Loss) |
|
2018 |
2017 |
2018 |
2017 |
|
2018 |
|
2017 |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
3,413 |
4,186 |
3,822 |
3,822 |
$ |
228 |
$ |
270 |
$ |
165 |
|
$ |
199 |
|
$ |
123 |
|
$ |
158 |
|
$ |
56 |
|
$ |
82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
902 |
886 |
978 |
968 |
|
63 |
|
66 |
|
44 |
|
|
51 |
|
|
37 |
|
|
45 |
|
|
2 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colombia |
872 |
998 |
844 |
846 |
|
53 |
|
46 |
|
31 |
|
|
24 |
|
|
21 |
|
|
15 |
|
|
18 |
|
|
11 |
|
|
|
|
5,187 |
6,070 |
5,644 |
5,636 |
|
344 |
|
382 |
|
240 |
|
|
274 |
|
|
181 |
|
|
218 |
|
|
76 |
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
663 |
434 |
791 |
496 |
|
54 |
|
40 |
|
38 |
|
|
31 |
|
|
24 |
|
|
20 |
|
|
(6 |
) |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
107 |
94 |
133 |
103 |
|
12 |
|
9 |
|
7 |
|
|
4 |
|
|
3 |
|
|
2 |
|
|
(2 |
) |
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
159 |
51 |
146 |
42 |
|
10 |
|
5 |
|
8 |
|
|
3 |
|
|
6 |
|
|
2 |
|
|
(5 |
) |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
37 |
- |
42 |
- |
|
3 |
|
- |
|
2 |
|
|
- |
|
|
1 |
|
|
- |
|
|
(3 |
) |
|
- |
|
|
|
|
966 |
579 |
1,112 |
641 |
|
79 |
|
54 |
|
55 |
|
|
38 |
|
|
34 |
|
|
24 |
|
|
(16 |
) |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solar |
175 |
- |
179 |
- |
|
30 |
|
- |
|
25 |
|
|
- |
|
|
16 |
|
|
- |
|
|
2 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage & Other |
127 |
70 |
- |
- |
|
20 |
|
11 |
|
10 |
|
|
4 |
|
|
7 |
|
|
(1 |
) |
|
1 |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
- |
- |
- |
- |
|
- |
|
- |
|
(6 |
) |
|
(4 |
) |
|
(66 |
) |
|
(60 |
) |
|
(65 |
) |
|
(62 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
6,455 |
6,719 |
6,935 |
6,277 |
$ |
473 |
$ |
447 |
$ |
324 |
|
$ |
312 |
|
$ |
172 |
|
$ |
181 |
|
$ |
(2 |
) |
$ |
38 |
|
(1) Non-IFRS measures. Refer to “Cautionary Statement
Regarding Use of Non-IFRS Measures”.
The following table reflects Adjusted EBITDA,
Funds From Operations and provides reconciliation to net income
(loss) for the three months ended June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
|
|
|
|
|
|
|
Attributable to Unitholders |
from |
Attributable |
|
|
|
|
|
Hydroelectric |
Wind |
Solar |
Storage |
Corporate |
|
Total |
equity |
to non- |
As per |
|
|
|
|
|
|
|
|
|
and |
|
|
|
accounted |
controlling |
IFRS |
($ MILLIONS) |
|
|
|
|
|
|
Other |
|
|
|
investments |
interests |
financials(1) |
Revenues |
|
344 |
|
|
79 |
|
|
30 |
|
|
20 |
|
|
- |
|
|
473 |
|
|
(58 |
) |
|
320 |
|
|
735 |
|
Other
income |
|
6 |
|
|
1 |
|
|
1 |
|
|
- |
|
|
- |
|
|
8 |
|
|
(2 |
) |
|
4 |
|
|
10 |
|
Direct
operating costs |
|
(110 |
) |
|
(25 |
) |
|
(6 |
) |
|
(10 |
) |
|
(6 |
) |
|
(157 |
) |
|
19 |
|
|
(109 |
) |
|
(247 |
) |
Share of
Adjusted EBITDA from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
41 |
|
|
4 |
|
|
45 |
|
Adjusted
EBITDA |
|
240 |
|
|
55 |
|
|
25 |
|
|
10 |
|
|
(6 |
) |
|
324 |
|
|
- |
|
|
219 |
|
|
|
Management
service costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(21 |
) |
|
(21 |
) |
|
- |
|
|
- |
|
|
(21 |
) |
Interest
expense - borrowings |
|
(55 |
) |
|
(20 |
) |
|
(9 |
) |
|
(3 |
) |
|
(23 |
) |
|
(110 |
) |
|
16 |
|
|
(84 |
) |
|
(178 |
) |
Current
income taxes |
|
(4 |
) |
|
(1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(5 |
) |
|
1 |
|
|
(3 |
) |
|
(7 |
) |
Distributions attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
limited partners equity |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(10 |
) |
|
(10 |
) |
|
- |
|
|
- |
|
|
(10 |
) |
|
Preferred
equity |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
|
(6 |
) |
|
- |
|
|
- |
|
|
(6 |
) |
Share of
interest and cash taxes from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(17 |
) |
|
(4 |
) |
|
(21 |
) |
Share of
Funds From Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(128 |
) |
|
(128 |
) |
Funds From
Operations |
|
181 |
|
|
34 |
|
|
16 |
|
|
7 |
|
|
(66 |
) |
|
172 |
|
|
- |
|
|
- |
|
|
|
Adjusted sustaining capital expenditures(2) |
|
(16 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
(18 |
) |
|
- |
|
|
- |
|
|
|
Adjusted
Funds From Operations |
|
165 |
|
|
34 |
|
|
16 |
|
|
7 |
|
|
(68 |
) |
|
154 |
|
|
- |
|
|
- |
|
|
|
Adjusted
sustaining capital expenditures(2) |
|
16 |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
18 |
|
|
- |
|
|
- |
|
|
|
Depreciation |
|
(94 |
) |
|
(42 |
) |
|
(7 |
) |
|
(6 |
) |
|
- |
|
|
(149 |
) |
|
17 |
|
|
(74 |
) |
|
(206 |
) |
Foreign
exchange and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized
financial instrument loss |
|
2 |
|
|
(2 |
) |
|
(4 |
) |
|
- |
|
|
5 |
|
|
1 |
|
|
(6 |
) |
|
(28 |
) |
|
(33 |
) |
Deferred
income tax expense |
|
(3 |
) |
|
2 |
|
|
1 |
|
|
- |
|
|
4 |
|
|
4 |
|
|
(3 |
) |
|
(5 |
) |
|
(4 |
) |
Other |
|
(10 |
) |
|
(8 |
) |
|
(4 |
) |
|
- |
|
|
(8 |
) |
|
(30 |
) |
|
10 |
|
|
10 |
|
|
(10 |
) |
Share of
earnings from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(18 |
) |
|
- |
|
|
(18 |
) |
Net loss
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
97 |
|
|
97 |
|
Net income (loss) attributable to Unitholders(3) |
|
76 |
|
|
(16 |
) |
|
2 |
|
|
1 |
|
|
(65 |
) |
|
(2 |
) |
|
- |
|
|
- |
|
|
(2 |
) |
(1) Share of earnings from equity-accounted
investments of $6 million is comprised of amounts found on the
share of Adjusted EBITDA, share of interest and cash taxes and
share of earnings lines. Net income attributable to participating
non-controlling interests – in operating subsidiaries of $31
million is comprised of amounts found on Share of Funds From
Operations attributable to non-controlling interests and Net loss
attributable to non-controlling interests.(2) Based on
long-term sustaining capital expenditure plans.(3) Net income
(loss) attributable to Unitholders includes net income (loss)
attributable to GP interest, Redeemable/Exchangeable partnership
units and LP Units. Total net income (loss) includes amounts
attributable to Unitholders, non-controlling interests, preferred
limited partners equity and preferred equity.
The following table reflects Adjusted EBITDA,
Funds From Operations and provides reconciliation to net income
(loss) for the three months ended June 30, 2017:
|
|
|
Attributable to Unitholders |
Contribution |
Attributable |
|
|
|
|
|
Hydroelectric |
Wind |
Storage |
Corporate |
|
Total |
from equity |
to non- |
As per |
|
|
|
|
|
|
and |
|
|
|
accounted |
controlling |
IFRS |
($ MILLIONS) |
|
|
|
Other |
|
|
|
investments |
interests |
financials(1) |
Revenues |
|
382 |
|
|
54 |
|
|
11 |
|
|
- |
|
|
447 |
|
|
(11 |
) |
|
247 |
|
|
683 |
|
Other
income |
|
4 |
|
|
- |
|
|
- |
|
|
1 |
|
|
5 |
|
|
- |
|
|
5 |
|
|
10 |
|
Direct
operating costs |
|
(112 |
) |
|
(16 |
) |
|
(7 |
) |
|
(5 |
) |
|
(140 |
) |
|
4 |
|
|
(104 |
) |
|
(240 |
) |
Share of
Adjusted EBITDA from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7 |
|
|
- |
|
|
7 |
|
Adjusted
EBITDA |
|
274 |
|
|
38 |
|
|
4 |
|
|
(4 |
) |
|
312 |
|
|
- |
|
|
148 |
|
|
|
Management
service costs |
|
- |
|
|
- |
|
|
- |
|
|
(21 |
) |
|
(21 |
) |
|
- |
|
|
- |
|
|
(21 |
) |
Interest
expense - borrowings |
|
(57 |
) |
|
(14 |
) |
|
(5 |
) |
|
(22 |
) |
|
(98 |
) |
|
3 |
|
|
(61 |
) |
|
(156 |
) |
Current
income taxes |
|
1 |
|
|
- |
|
|
- |
|
|
- |
|
|
1 |
|
|
- |
|
|
3 |
|
|
4 |
|
Distributions attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
limited partners equity |
|
- |
|
|
- |
|
|
- |
|
|
(7 |
) |
|
(7 |
) |
|
- |
|
|
- |
|
|
(7 |
) |
|
Preferred
equity |
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
|
(6 |
) |
|
- |
|
|
- |
|
|
(6 |
) |
Share of
interest and cash taxes from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(3 |
) |
|
- |
|
|
(3 |
) |
Share of
Funds From Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(90 |
) |
|
(90 |
) |
Funds From
Operations |
|
218 |
|
|
24 |
|
|
(1 |
) |
|
(60 |
) |
|
181 |
|
|
- |
|
|
- |
|
|
|
Adjusted sustaining capital expenditures(2) |
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
(17 |
) |
|
- |
|
|
- |
|
|
|
Adjusted
Funds From Operations |
|
218 |
|
|
24 |
|
|
(1 |
) |
|
(62 |
) |
|
164 |
|
|
- |
|
|
- |
|
|
|
Adjusted
sustaining capital expenditures(2) |
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
17 |
|
|
- |
|
|
- |
|
|
|
Depreciation |
|
(98 |
) |
|
(26 |
) |
|
(6 |
) |
|
- |
|
|
(130 |
) |
|
3 |
|
|
(71 |
) |
|
(198 |
) |
Foreign
exchange and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized
financial instrument loss |
|
1 |
|
|
(6 |
) |
|
- |
|
|
(7 |
) |
|
(12 |
) |
|
- |
|
|
6 |
|
|
(6 |
) |
Deferred
income tax expenses (recovery) |
|
(15 |
) |
|
7 |
|
|
- |
|
|
5 |
|
|
(3 |
) |
|
- |
|
|
(13 |
) |
|
(16 |
) |
Other |
|
(7 |
) |
|
5 |
|
|
4 |
|
|
- |
|
|
2 |
|
|
(1 |
) |
|
22 |
|
|
23 |
|
Share of
earnings from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2 |
) |
|
- |
|
|
(2 |
) |
Net loss
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
56 |
|
|
56 |
|
Net income (loss) attributable to Unitholders(3) |
|
99 |
|
|
4 |
|
|
(3 |
) |
|
(62 |
) |
|
38 |
|
|
- |
|
|
- |
|
|
38 |
|
(1) Share of earnings from equity-accounted
investments of $2 million is comprised of amounts found on the
share of Adjusted EBITDA, share of interest and cash taxes and
share of earnings lines. Net income attributable to participating
non-controlling interests – in operating subsidiaries of $34
million is comprised of amounts found on Share of Funds From
Operations attributable to non-controlling interests and Net loss
attributable to non-controlling interests.(2) Based on
long-term sustaining capital expenditure plans.(3) Net income
(loss) attributable to Unitholders includes net income (loss)
attributable to GP interest, Redeemable/Exchangeable partnership
units and LP Units. Total net income (loss) includes amounts
attributable to Unitholders, non-controlling interests, preferred
limited partners equity and preferred equity.
The following table reconciles net (loss) income
attributable to Unitholders and (loss) earnings per unit, the most
directly comparable IFRS measures, to Funds From Operations, and
Funds From Operations per unit, both non-IFRS financial metrics for
the three months ended June 30:
|
|
|
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS NOTED) |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Net (loss)
income attributable to: |
|
|
|
|
|
|
|
|
Limited partners' equity |
$ |
(1 |
) |
$ |
21 |
|
$ |
(0.01 |
) |
$ |
0.13 |
General partnership interest in a holding |
|
|
|
|
|
|
|
|
|
|
subsidiary
held by Brookfield |
|
- |
|
|
1 |
|
|
- |
|
|
- |
Participating non-controlling interests - in a holding |
|
|
|
|
|
|
|
|
|
|
subsidiary
- Redeemable/Exchangeable units |
|
|
|
|
|
|
|
|
|
|
held by Brookfield |
|
(1 |
) |
|
16 |
|
|
- |
|
|
- |
Net (loss)
income attributable to Unitholders |
$ |
(2 |
) |
$ |
38 |
|
$ |
(0.01 |
) |
$ |
0.13 |
Adjusted
for proportionate share of: |
|
|
|
|
|
|
|
|
Depreciation |
|
149 |
|
|
130 |
|
|
0.48 |
|
|
0.43 |
Foreign exchange and |
|
|
|
|
|
|
|
|
|
|
unrealized
financial instruments (gain) loss |
|
(1 |
) |
|
12 |
|
|
- |
|
|
0.04 |
Deferred income tax (recovery) expense |
|
(4 |
) |
|
3 |
|
|
(0.01 |
) |
|
0.01 |
Other |
|
30 |
|
|
(2 |
) |
|
0.09 |
|
|
- |
Funds From
Operations |
$ |
172 |
|
$ |
181 |
|
$ |
0.55 |
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
|
|
312.8 |
|
|
299.2 |
(1) Includes GP interest,
Redeemable/Exchangeable partnership units, and LP Units.
PROPORTIONATE RESULTS FOR THE SIX MONTHS
ENDED JUNE 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the six months ended June 30:
|
(GWh) |
|
(MILLIONS) |
|
Actual Generation |
LTA Generation |
|
Revenues |
|
Adjusted EBITDA(1) |
|
Funds From Operations(1) |
|
Net Income (Loss) |
|
2018 |
2017 |
2018 |
2017 |
|
2018 |
|
2017 |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
7,178 |
7,952 |
7,261 |
7,261 |
$ |
489 |
$ |
525 |
$ |
356 |
|
$ |
393 |
|
$ |
269 |
|
$ |
306 |
|
$ |
133 |
|
$ |
165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
1,940 |
1,757 |
1,935 |
1,918 |
|
132 |
|
118 |
|
95 |
|
|
93 |
|
|
78 |
|
|
78 |
|
|
3 |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colombia |
1,640 |
1,824 |
1,688 |
1,692 |
|
106 |
|
93 |
|
62 |
|
|
48 |
|
|
42 |
|
|
25 |
|
|
30 |
|
|
11 |
|
|
10,758 |
11,533 |
10,884 |
10,871 |
|
727 |
|
736 |
|
513 |
|
|
534 |
|
|
389 |
|
|
409 |
|
|
166 |
|
|
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
1,308 |
832 |
1,488 |
948 |
|
108 |
|
79 |
|
79 |
|
|
62 |
|
|
50 |
|
|
41 |
|
|
(12 |
) |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
272 |
266 |
288 |
272 |
|
29 |
|
24 |
|
18 |
|
|
15 |
|
|
11 |
|
|
9 |
|
|
(3 |
) |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
262 |
109 |
264 |
75 |
|
18 |
|
9 |
|
13 |
|
|
6 |
|
|
9 |
|
|
4 |
|
|
(6 |
) |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
69 |
- |
76 |
- |
|
5 |
|
- |
|
3 |
|
|
- |
|
|
1 |
|
|
- |
|
|
(4 |
) |
|
- |
|
|
1,911 |
1,207 |
2,116 |
1,295 |
|
160 |
|
112 |
|
113 |
|
|
83 |
|
|
71 |
|
|
54 |
|
|
(25 |
) |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solar |
290 |
- |
286 |
- |
|
48 |
|
- |
|
41 |
|
|
- |
|
|
26 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage &
Other |
190 |
140 |
- |
- |
|
37 |
|
24 |
|
19 |
|
|
7 |
|
|
12 |
|
|
(1 |
) |
|
(11 |
) |
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
- |
- |
- |
- |
|
- |
|
- |
|
(11 |
) |
|
(10 |
) |
|
(133 |
) |
|
(115 |
) |
|
(124 |
) |
|
(120 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
13,149 |
12,880 |
13,286 |
12,166 |
$ |
972 |
$ |
872 |
$ |
675 |
|
$ |
614 |
|
$ |
365 |
|
$ |
347 |
|
$ |
6 |
|
$ |
54 |
|
(1) Non-IFRS measures. Refer to “Cautionary Statement
Regarding Use of Non-IFRS Measures”.
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA,
Funds From Operations, Adjusted Funds From Operations and provides
a reconciliation to net income (loss) for the six months ended June
30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
|
|
|
|
|
Attributable to Unitholders |
from |
Attributable |
|
|
|
Hydroelectric |
Wind |
Solar |
Storage |
Corporate |
|
Total |
equity |
to non- |
As per |
|
|
|
|
|
|
|
and |
|
|
|
accounted |
controlling |
IFRS |
($
MILLIONS) |
|
|
|
|
Other |
|
|
|
investments |
interests |
financials(1) |
Revenues |
|
727 |
|
|
160 |
|
|
48 |
|
|
37 |
|
|
- |
|
|
972 |
|
|
(97 |
) |
|
653 |
|
|
1,528 |
|
Other income |
|
8 |
|
|
2 |
|
|
3 |
|
|
- |
|
|
1 |
|
|
14 |
|
|
(4 |
) |
|
9 |
|
|
19 |
|
Direct operating
costs |
|
(222 |
) |
|
(49 |
) |
|
(10 |
) |
|
(18 |
) |
|
(12 |
) |
|
(311 |
) |
|
32 |
|
|
(224 |
) |
|
(503 |
) |
Share of Adjusted
EBITDA from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
69 |
|
|
12 |
|
|
81 |
|
Adjusted EBITDA |
|
513 |
|
|
113 |
|
|
41 |
|
|
19 |
|
|
(11 |
) |
|
675 |
|
|
- |
|
|
450 |
|
|
|
Management service
costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(42 |
) |
|
(42 |
) |
|
- |
|
|
- |
|
|
(42 |
) |
Interest expense -
borrowings |
|
(116 |
) |
|
(40 |
) |
|
(15 |
) |
|
(7 |
) |
|
(48 |
) |
|
(226 |
) |
|
25 |
|
|
(157 |
) |
|
(358 |
) |
Current income
taxes |
|
(8 |
) |
|
(2 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(10 |
) |
|
1 |
|
|
(5 |
) |
|
(14 |
) |
Distributions
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
limited partners equity |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(19 |
) |
|
(19 |
) |
|
- |
|
|
- |
|
|
(19 |
) |
Preferred
equity |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(13 |
) |
|
(13 |
) |
|
- |
|
|
- |
|
|
(13 |
) |
Share of interest and
cash taxes from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(26 |
) |
|
(10 |
) |
|
(36 |
) |
Share of Funds From
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(278 |
) |
|
(278 |
) |
Funds From
Operations |
|
389 |
|
|
71 |
|
|
26 |
|
|
12 |
|
|
(133 |
) |
|
365 |
|
|
- |
|
|
- |
|
|
|
Adjusted
sustaining capital expenditures(2) |
|
(32 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(4 |
) |
|
(36 |
) |
|
- |
|
|
- |
|
|
|
Adjusted Funds From
Operations |
|
357 |
|
|
71 |
|
|
26 |
|
|
12 |
|
|
(137 |
) |
|
329 |
|
|
- |
|
|
- |
|
|
|
Adjusted sustaining
capital expenditures(2) |
|
32 |
|
|
- |
|
|
- |
|
|
- |
|
|
4 |
|
|
36 |
|
|
- |
|
|
- |
|
|
|
Depreciation |
|
(194 |
) |
|
(81 |
) |
|
(13 |
) |
|
(12 |
) |
|
- |
|
|
(300 |
) |
|
29 |
|
|
(148 |
) |
|
(419 |
) |
Foreign exchange
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized financial instrument loss |
|
1 |
|
|
(1 |
) |
|
(3 |
) |
|
(2 |
) |
|
13 |
|
|
8 |
|
|
(6 |
) |
|
(27 |
) |
|
(25 |
) |
Deferred income tax
expense |
|
(8 |
) |
|
(4 |
) |
|
- |
|
|
- |
|
|
9 |
|
|
(3 |
) |
|
(1 |
) |
|
(9 |
) |
|
(13 |
) |
Other |
|
(22 |
) |
|
(10 |
) |
|
(10 |
) |
|
(9 |
) |
|
(13 |
) |
|
(64 |
) |
|
17 |
|
|
(7 |
) |
|
(54 |
) |
Share of earnings
from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(39 |
) |
|
- |
|
|
(39 |
) |
Net income attributable
to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
191 |
|
|
191 |
|
Net
income (loss) attributable to Unitholders(3) |
|
166 |
|
|
(25 |
) |
|
- |
|
|
(11 |
) |
|
(124 |
) |
|
6 |
|
|
- |
|
|
- |
|
|
6 |
|
(1) Share of earnings from equity-accounted
investments of $6 million is comprised of amounts found on the
share of Adjusted EBITDA, share of interest and cash taxes and
share of earnings lines. Net income attributable to participating
non-controlling interests – in operating subsidiaries of $87
million is comprised of amounts found on Share of Funds From
Operations attributable to non-controlling interests and Net Income
attributable to non-controlling interests.(2) Based on
long-term sustaining capital expenditure plans.(3) Net income
(loss) attributable to Unitholders includes net income (loss)
attributable to GP interest, Redeemable/Exchangeable partnership
units and LP Units. Total net income (loss) includes amounts
attributable to Unitholders, non-controlling interests, preferred
limited partners equity and preferred equity.
The following table reflects Adjusted EBITDA,
Funds From Operations, Adjusted Funds From Operations and provides
a reconciliation to net income (loss) for the six months ended June
30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to Unitholders |
Contribution |
Attributable |
|
|
|
Hydroelectric |
Wind |
Storage |
Corporate |
|
Total |
from equity |
to non- |
As per |
|
|
|
|
|
and |
|
|
|
accounted |
controlling |
IFRS |
($
MILLIONS) |
|
|
|
Other |
|
|
|
investments |
interests |
financials(1) |
Revenues |
|
736 |
|
|
112 |
|
|
24 |
|
|
- |
|
|
872 |
|
|
(20 |
) |
|
508 |
|
|
1,360 |
|
Other income |
|
8 |
|
|
0 |
|
|
- |
|
|
1 |
|
|
9 |
|
|
- |
|
|
9 |
|
|
18 |
|
Direct operating
costs |
|
(210 |
) |
|
(29 |
) |
|
(17 |
) |
|
(11 |
) |
|
(267 |
) |
|
9 |
|
|
(215 |
) |
|
(473 |
) |
Share of Adjusted
EBITDA from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
11 |
|
|
- |
|
|
11 |
|
Adjusted EBITDA |
|
534 |
|
|
83 |
|
|
7 |
|
|
(10 |
) |
|
614 |
|
|
- |
|
|
302 |
|
|
|
Management service
costs |
|
- |
|
|
- |
|
|
- |
|
|
(37 |
) |
|
(37 |
) |
|
- |
|
|
- |
|
|
(37 |
) |
Interest expense -
borrowings |
|
(120 |
) |
|
(29 |
) |
|
(8 |
) |
|
(43 |
) |
|
(200 |
) |
|
6 |
|
|
(125 |
) |
|
(319 |
) |
Current income
taxes |
|
(5 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(5 |
) |
|
- |
|
|
(7 |
) |
|
(12 |
) |
Distributions
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
limited partners equity |
|
- |
|
|
- |
|
|
- |
|
|
(13 |
) |
|
(13 |
) |
|
- |
|
|
- |
|
|
(13 |
) |
Preferred
equity |
|
- |
|
|
- |
|
|
- |
|
|
(12 |
) |
|
(12 |
) |
|
- |
|
|
- |
|
|
(12 |
) |
Share of interest and
cash taxes from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
|
- |
|
|
(6 |
) |
Share of Funds From
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(170 |
) |
|
(170 |
) |
Funds From
Operations |
|
409 |
|
|
54 |
|
|
(1 |
) |
|
(115 |
) |
|
347 |
|
|
- |
|
|
- |
|
|
|
Adjusted
sustaining capital expenditures(2) |
|
(30 |
) |
|
- |
|
|
- |
|
|
(4 |
) |
|
(34 |
) |
|
- |
|
|
- |
|
|
|
Adjusted Funds From
Operations |
|
379 |
|
|
54 |
|
|
(1 |
) |
|
(119 |
) |
|
313 |
|
|
- |
|
|
- |
|
|
|
Adjusted sustaining
capital expenditures(2) |
|
30 |
|
|
- |
|
|
- |
|
|
4 |
|
|
34 |
|
|
- |
|
|
- |
|
|
|
Depreciation |
|
(195 |
) |
|
(56 |
) |
|
(12 |
) |
|
- |
|
|
(263 |
) |
|
6 |
|
|
(141 |
) |
|
(398 |
) |
Foreign exchange
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unrealized financial instrument loss |
|
(6 |
) |
|
(5 |
) |
|
- |
|
|
(16 |
) |
|
(27 |
) |
|
1 |
|
|
- |
|
|
(26 |
) |
Deferred income tax
expense |
|
(22 |
) |
|
8 |
|
|
- |
|
|
11 |
|
|
(3 |
) |
|
- |
|
|
(18 |
) |
|
(21 |
) |
Other |
|
(8 |
) |
|
4 |
|
|
4 |
|
|
- |
|
|
- |
|
|
(1 |
) |
|
22 |
|
|
21 |
|
Share of earnings
from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
accounted investments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
|
- |
|
|
(6 |
) |
Net income attributable
to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
137 |
|
|
137 |
|
Net
income (loss) attributable to Unitholders(3) |
|
178 |
|
|
5 |
|
|
(9 |
) |
|
(120 |
) |
|
54 |
|
|
- |
|
|
- |
|
|
54 |
|
(1) Share of loss from equity-accounted investments of $1
million is comprised of amounts found on the share of Adjusted
EBITDA, share of interest and cash taxes and share of earnings
lines. Net income attributable to participating non-controlling
interests – in operating subsidiaries of $33 million is comprised
of amounts found on Share of Funds From Operations attributable to
non-controlling interests and Net Income attributable to
non-controlling interests.(2) Based on long-term sustaining
capital expenditure plans.(3) Net income (loss) attributable
to Unitholders includes net income (loss) attributable to GP
interest, Redeemable/Exchangeable partnership units and LP Units.
Total net income (loss) includes amounts attributable to
Unitholders, non-controlling interests, preferred limited partners
equity and preferred equity.
The following table reconciles net income attributable to
Limited partners’ equity and earnings per LP Unit, the most
directly comparable IFRS measures, to Funds From Operations, Funds
From Operations per Unit and Adjusted EBITDA, all non-IFRS
financial metrics for the six months ended June 30:
|
|
|
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS NOTED) |
|
2018 |
|
|
2017 |
|
2018 |
|
|
2017 |
Net income
attributable to: |
|
|
|
|
|
|
|
|
|
Limited
partners' equity |
$ |
4 |
|
$ |
30 |
$ |
0.02 |
|
$ |
0.18 |
|
General
partnership interest in a holding |
|
|
|
|
|
|
|
|
|
|
subsidiary
held by Brookfield |
|
- |
|
|
1 |
|
- |
|
|
- |
|
Participating non-controlling interests - in a holding |
|
|
|
|
|
|
|
|
|
|
subsidiary
- Redeemable/Exchangeable units |
|
|
|
|
|
|
|
|
|
|
held by Brookfield |
|
2 |
|
|
23 |
|
- |
|
|
- |
Net income
attributable to Unitholders |
$ |
6 |
|
$ |
54 |
$ |
0.02 |
|
$ |
0.18 |
|
Depreciation |
|
300 |
|
|
263 |
|
0.96 |
|
|
0.88 |
|
Foreign
exchange and |
|
|
|
|
|
|
|
|
|
|
unrealized
financial instruments (gain) loss |
|
(8 |
) |
|
27 |
|
(0.02 |
) |
|
0.09 |
|
Deferred
income tax expense |
|
3 |
|
|
3 |
|
0.01 |
|
|
0.01 |
|
Other |
|
64 |
|
|
- |
|
0.20 |
|
|
- |
Funds From Operations |
$ |
365 |
|
$ |
347 |
$ |
1.17 |
|
$ |
1.16 |
Weighted average Units outstanding(1) |
|
|
|
|
|
312.7 |
|
|
299.2 |
(1) Includes GP interest,
Redeemable/Exchangeable partnership units, and LP Units.
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