All amounts in U.S. dollars unless otherwise
indicated
Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable”) today reported financial results for the three
months ended March 31, 2019.
“We had a strong start to the year as we
executed on key initiatives across our business, including
delivering operational performance, investing in growth, and
bolstering our liquidity position to over $2.3 billion,” said
Sachin Shah, CEO of Brookfield Renewable. “Looking ahead, our
investment strategy coupled with our ability to self-fund our
business positions us well to deliver strong results to unitholders
during all points in the economic cycle.”
Financial
Results |
|
|
|
|
|
|
|
|
|
For the period ended March 31 |
|
|
|
|
US$ millions (except per unit or otherwise noted) |
Three Months Ended |
Unaudited |
|
2019 |
|
2018 |
Total generation (GWh) |
|
|
|
|
- Actual generation |
|
14,125 |
|
12,880 |
- Long-term average generation |
|
13,761 |
|
12,852 |
Brookfield Renewable's share |
|
|
|
|
- Actual generation |
|
7,246 |
|
6,694 |
- Long-term average generation |
|
6,776 |
|
6,351 |
Funds From Operations (FFO)(1) |
$ |
227 |
$ |
193 |
Per Unit(1)(2) |
$ |
0.73 |
$ |
0.62 |
Net Income Attributable to Unitholders |
$ |
43 |
$ |
8 |
Per Unit(2) |
$ |
0.14 |
$ |
0.03 |
(1) Non-IFRS measures. Refer to
“Cautionary Statement Regarding Use of Non-IFRS
Measures”. (2) For the three months ended March 31, 2019,
weighted average LP Units, Redeemable/Exchangeable partnership
units and GP interest totaled 311.1 million (2018: 312.7
million).
Brookfield Renewable reported Net Income of for
the three months ended March 31, 2019 of $43 million or $0.14 per
unit compared to net income of $8 million or $0.03 per unit for the
same period in 2018. Funds from Operations was $227 million or
$0.73 per unit for the three months ended March 31, 2019 compared
to $193 million or $0.62 per unit for the same period in 2018. This
reflects growth of 18%. These strong results were supported by our
execution on operating and growth initiatives.
Brookfield Renewable First Quarter
Highlights
- Generated FFO per unit of $0.73, an 18% increase over the prior
year;
- Agreed to invest approximately $630 million of capital (~$160
million net to BEP) across two transactions (one in Canada and one
in India) at returns commensurate with our long-term targets;
- Commissioned a 19 megawatt hydroelectric facility in Brazil,
and advanced an additional 134 megawatts of hydro, wind, storage
and rooftop solar construction projects globally;
- Raised over $400 million of proceeds through asset sale
initiatives and the issuance of preferred units, and ended the
quarter with $2.3 billion of available liquidity;
- Reduced our FFO payout ratio on an annualized basis to below
90%.
Investments
In March 2019, we, together with our
institutional partners, agreed to invest C$750 million (C$188
million net to BEP) in 7% convertible securities of TransAlta
Corporation, the largest power producer in Alberta, Canada. The
investment will occur in two tranches; C$350 million was funded at
initial closing on May 1st, and C$400 million will be funded in
October 2020. The convertible securities provide us with the option
to convert into an interest in TransAlta’s 813 megawatt portfolio
of high quality hydroelectric assets in Alberta between 2025 and
2028, based on a multiple of 13 times the average annual EBITDA
over the three years prior to conversion. As part of the
transaction, we also agreed to increase our ownership of
TransAlta’s common shares from approximately 5% today to over 9%.
The TransAlta investment was the culmination of a multi-year
dialogue and establishes a strategic relationship with the company
to help advance its growth strategy as it transitions to a low
carbon energy future.
In India, we have been assessing opportunities
over the last number of years but have generally remained patient
as valuations remain high. Today, we are seeing compelling
opportunities driven by capital constraints in the renewable power
sector. We are pleased to announce that in April we entered into an
agreement to acquire two wind farms totaling 210 megawatts in India
for $70 million ($18 million net to BEP), bringing our total
portfolio in that country to 510 megawatts. These assets are high
quality, recently constructed with a track record of operating
performance, and are fully contracted under a long-term, 25 year
power purchase agreement with a credit-worthy utility.
Operations
During the first quarter, we generated FFO of
$227 million, up from $193 million in the prior year.
Our business continues to benefit from growing
resource diversity, limited off-taker concentration risk, and the
build-out of our development pipeline. During the quarter, overall
generation exceeded long-term average by 7%. As we have stated for
many years, we do not manage the business based on under- or
over-performance of generation relative to the long-term average
and do not factor this into our planning. Instead, our focus
remains on diversifying the business which, over the long term,
mitigates exposure to resource volatility, regional or market
disruptions, and potential credit events. For example, given the
breadth of our business, the recent events with PG&E will have
no impact on our business (less than 0.1% of exposure).
Furthermore, our single largest non-government third-party customer
represents only 3% of generation, providing strong downside
protection and safeguarding our cash flows.
During the first quarter, our hydroelectric
segment contributed $218 million to FFO. In North America,
generation was above the long-term average, and we ended the
quarter with above-average reservoir levels in Canada and PJM where
we have significant seasonal storage flexibility. Additionally, we
saw strong results in South America, supported by high prices for
our energy and ancillary products.
We continue to make progress on contracting
initiatives for our hydroelectric portfolio, signing 15 contracts
in the quarter for a total of approximately 2,300 gigawatt-hours
per year. Our focus in Colombia and Brazil has been to lengthen the
term of our power purchase contracts, as power price volatility in
these markets provides an opportunity to stabilize future revenues
while locking in upside as our contracts are generally at or below
market.
Our wind and solar businesses contributed $67
million to FFO during the quarter, a 43% increase relative to the
prior year as we benefitted from acquisitions and contributions
from recently commissioned projects. We continue to generate stable
revenues from these assets as we benefit from the diversification
of our fleet and highly contracted cash flows with long duration
power purchase agreements. Our storage facilities and other
operations, which are not reliant on power prices but rather sell
services to the grid contributed $7 million to FFO during the
quarter.
We commissioned a 19 megawatt hydroelectric
facility in Brazil from our development pipeline during the
quarter. In addition, we continue to build out 134 megawatts
of hydroelectric, wind, solar and storage projects that are
currently under construction that are expected to contribute $13
million to FFO once commissioned. We are also advancing our global
hydro, wind, solar and distributed generation development pipeline,
including 636 megawatts of construction-ready and advanced stage
projects through final permitting and securing a route-to-market.
We are also assessing 220 megawatts of repowering projects in New
York, California and Hawaii, all markets where renewables play a
critical role in providing low cost, clean energy.
Balance Sheet and Liquidity
Our balance sheet remains strong with $2.3
billion of available liquidity at quarter-end. We have no material
debt maturities over the next four years and our overall debt
duration is 10 years. We remain well protected from foreign
exchange volatility due to our hedging program. Accordingly, an
overall 10% move in the currencies of markets we operate in would
have an overall 4% impact to our FFO.
During the quarter we raised $400 million
through asset sales and the issuance of preferred units. We
completed the sale an additional 25% interest in a portfolio of
Canadian hydroelectric assets. We also advanced the sales of our
non-core portfolios in South Africa, Thailand and Malaysia that,
once closed, will generate an additional $90 million of total
liquidity net to BEP.
Distribution Declaration
The next quarterly distribution in the amount of
$0.515 per LP Unit, is payable on June 28, 2019 to unitholders of
record as at the close of business on May 31, 2019. 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 over $365 billion of assets
under management.
Please note that Brookfield Renewable’s previous
audited annual and unaudited quarterly reports filed with the U.S.
Securities and Exchange Commission (“SEC”) and securities
regulators in Canada, are available on our website at
https://bep.brookfield.com, on SEC’s website at
www.sec.gov and on SEDAR’s website at www.sedar.com. Hard
copies of the annual and quarterly reports can be obtained free of
charge upon request.
Contact information: |
|
Media: |
Investors: |
Claire Holland |
Divya Biyani |
Vice President - Communications |
Director – Investor Relations |
(416) 369-8236 |
(416) 369-2616 |
claire.holland@brookfield.com |
divya.biyani@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2019 First Quarter 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 May 2, 2019 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/m6/p/hz56brma or via teleconference
at 1-866-688-9430 toll free in North America. If dialing from
outside Canada or the U.S., please dial 1-409-216-0817 at
approximately 8:50 a.m. Eastern Time. When prompted, enter the
conference ID, 3444318. A recording of the teleconference can be
accessed through May 9, 2019 at 1-855-859-2056, or from outside
Canada and the U.S. please call 1-404-537-3406. When prompted,
enter the conference ID, 3444318.
Cautionary Statement Regarding Forward-looking
Statements
This news release contains forward-looking
statements and information within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “intend”,
“should”, “could”, “target”, “growth”, “expect”, “believe”, “plan”,
derivatives thereof and other expressions which are predictions of
or indicate future events, trends or prospects and which do not
relate to historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this news
release include statements regarding the quality of Brookfield
Renewable’s and its subsidiaries’ businesses and our expectations
regarding future cash flows and distribution growth. They include
statements regarding our expected liquidity, the expected closing
of the sales of our non-core portfolios in South Africa, Thailand
and Malaysia, the expected closing of the second tranche of our
investment in TransAlta, the expected increase in our ownership of
TransAlta common shares, the expected closing of our acquisition of
certain wind farms in India, the expected proceeds from
opportunistically recycling capital, as well as the benefits from
acquisitions and Brookfield Renewable’s global scale and resource
diversity. They also include statements regarding the strengthening
of its trading and commercial capabilities, statements regarding
the progress towards completion of development projects, and the
expected contribution of development projects to future generation
capacity and cash flows. 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 news release contains references to
Adjusted EBITDA, FFO and FFO per Unit which are not generally
accepted accounting measures under IFRS and therefore may differ
from definitions of Adjusted EBITDA, FFO and FFO per Unit used by
other entities. We believe that Adjusted EBITDA, FFO and FFO per
Unit are useful supplemental measures that may assist investors in
assessing the financial performance and the cash anticipated to be
generated by our operating portfolio. None of Adjusted EBITDA, FFO
or FFO per Unit should be considered as the sole measure of our
performance and should not be considered in isolation from, or as a
substitute for, analysis of our financial statements prepared in
accordance with IFRS. For a reconciliation of Adjusted EBITDA, FFO
and FFO per Unit to the most directly comparable IFRS measure,
please see “– Reconciliation of non-IFRS measures” below and “PART
4 – Financial Performance Review on Proportionate Information –
Reconciliation of non-IFRS measures” included in our Management’s
Discussion and Analysis for the three months ended March 31,
2019.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
_________________________________________________
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
UNAUDITED |
|
|
|
|
FOR THE THREE MONTHS
ENDED MARCH 31 |
|
(MILLIONS, EXCEPT AS NOTED) |
2019 |
|
2018 |
|
Revenues |
$ |
825 |
|
$ |
793 |
|
Other income |
|
8 |
|
|
9 |
|
Direct operating
costs |
|
(254 |
) |
|
(256 |
) |
Management service
costs |
|
(21 |
) |
|
(21 |
) |
Interest expense –
borrowings |
|
(173 |
) |
|
(180 |
) |
Share of earnings
from |
|
|
|
|
equity-accounted investments |
|
32 |
|
|
- |
|
Foreign exchange
and |
|
(18 |
) |
|
8 |
|
unrealized financial instruments (loss) gain |
|
|
|
|
Depreciation |
|
(200 |
) |
|
(213 |
) |
Other |
|
(2 |
) |
|
(44 |
) |
Income tax expense |
|
|
|
|
Current |
|
(24 |
) |
|
(7 |
) |
Deferred |
|
(20 |
) |
|
(9 |
) |
|
|
(44 |
) |
|
(16 |
) |
Net
income |
$ |
153 |
|
$ |
80 |
|
Net income attributable
to: |
|
|
|
|
Non-controlling
interests |
|
|
|
|
Participating non-controlling interests - in |
|
|
|
|
operating
subsidiaries |
$ |
94 |
|
$ |
56 |
|
General
partnership interest in a holding |
|
|
|
|
subsidiary held by Brookfield |
|
- |
|
|
- |
|
Participating non-controlling interests - in a |
|
|
|
|
holding
subsidiary - Redeemable/ |
|
|
|
|
Exchangeable units held by Brookfield |
|
18 |
|
|
3 |
|
Preferred
equity |
|
6 |
|
|
7 |
|
Preferred limited
partners' equity |
|
10 |
|
|
9 |
|
Limited
partners' equity |
|
25 |
|
|
5 |
|
|
$ |
153 |
|
$ |
80 |
|
Basic and
diluted earnings per LP Unit |
$ |
0.14 |
|
$ |
0.03 |
|
BROOKFIELD
RENEWABLE PARTNERS L.P. |
|
|
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
UNAUDITED |
|
Mar
31 |
|
Dec
31 |
(MILLIONS) |
|
2019 |
|
2018 |
Assets |
|
|
|
|
Cash and
cash equivalents |
$ |
177 |
$ |
173 |
Trade
receivables and other financial assets |
|
1,068 |
|
992 |
Equity-accounted investments |
|
1,601 |
|
1,569 |
Property,
plant and equipment, at fair value |
|
29,252 |
|
29,025 |
Goodwill |
|
847 |
|
828 |
Deferred income tax and other assets |
|
1,536 |
|
1,516 |
Total Assets |
$ |
34,481 |
$ |
34,103 |
Liabilities |
|
|
|
|
Corporate
borrowings |
$ |
1,668 |
$ |
2,334 |
Non-recourse borrowings |
|
8,425 |
|
8,384 |
Accounts
payable and other finacial liabilities |
|
1,157 |
|
772 |
Deferred
income tax liabilities |
|
4,219 |
|
4,140 |
Other
liabilities |
|
1,414 |
|
1,267 |
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests - in operating |
|
8,456 |
|
8,129 |
General
partnership interest in a holding subsidiary held by
Brookfield |
|
66 |
|
66 |
Participating non-controlling interests - in a holding
subsidiary |
|
|
|
|
-
Redeemable/Exchangeable units held by Brookfield |
|
3,221 |
|
3,252 |
Preferred
equity |
|
580 |
|
568 |
Preferred
limited partners' equity |
|
833 |
|
707 |
Limited partners' equity |
|
4,442 |
|
4,484 |
Total Equity |
|
17,598 |
|
17,206 |
Total Liabilities and Equity |
$ |
34,481 |
$ |
34,103 |
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
UNAUDITED |
|
|
|
|
THREE MONTHS ENDED
MARCH 31 |
|
(MILLIONS) |
|
2019 |
|
|
2018 |
|
Operating
activities |
|
|
|
|
Net income |
$ |
153 |
|
$ |
80 |
|
Adjustments for the
following non-cash items: |
|
|
|
|
Depreciation |
|
200 |
|
|
213 |
|
Foreign
exchange and |
|
|
|
|
unrealized financial instrument loss |
|
20 |
|
|
7 |
|
Share of
earnings from |
|
|
|
|
equity-accounted investments |
|
(32 |
) |
|
- |
|
Deferred
income tax expense |
|
20 |
|
|
9 |
|
Other
non-cash items |
|
17 |
|
|
- |
|
Net
change in working capital |
|
(11 |
) |
|
(9 |
) |
|
|
367 |
|
|
300 |
|
Financing
activities |
|
|
|
|
Net corporate
borrowings |
|
(341 |
) |
|
7 |
|
Net subsidiary
borrowings |
|
5 |
|
|
(451 |
) |
Capital contributions
from participating non-controlling |
|
|
|
|
interests
- in operating subsidiaries |
|
247 |
|
|
4 |
|
Issuance of preferred
limited partnership units |
|
126 |
|
|
196 |
|
Repurchase of LP
Units |
|
(1 |
) |
|
- |
|
Distributions
paid: |
|
|
|
|
To
participating non-controlling interests - in operating |
|
|
|
|
subsidiaries |
|
(134 |
) |
|
(176 |
) |
To
preferred shareholders |
|
(6 |
) |
|
(7 |
) |
To
preferred limited partners' unitholders |
|
(9 |
) |
|
(8 |
) |
To unitholders of Brookfield Renewable or BRELP |
|
(171 |
) |
|
(160 |
) |
|
|
(284 |
) |
|
(595 |
) |
Investing
activities |
|
|
|
|
Acquisitions net of
cash and |
|
|
|
|
cash
equivalents in acquired entity |
|
- |
|
|
(12 |
) |
Investment in property,
plant and equipment |
|
(29 |
) |
|
(52 |
) |
Disposal of
securities |
|
5 |
|
|
38 |
|
Restricted cash and other |
|
(55 |
) |
|
(78 |
) |
|
|
(79 |
) |
|
(104 |
) |
Foreign
exchange gain on cash |
|
- |
|
|
4 |
|
Cash and cash
equivalents |
|
|
|
|
Increase
(decrease) |
|
4 |
|
|
(395 |
) |
Balance, beginning of period |
|
173 |
|
|
799 |
|
Balance, end of period |
$ |
177 |
|
$ |
404 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED MARCH 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended March 31:
|
(GWh) |
(MILLIONS) |
|
Actual Generation |
LTA Generation |
Revenues |
Adjusted EBITDA |
FFO |
Net Income (Loss) |
|
2019 |
2018 |
2019 |
2018 |
|
2019 |
|
2018 |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
3,849 |
3,765 |
3,300 |
3,439 |
$ |
262 |
$ |
261 |
$ |
195 |
|
$ |
191 |
|
$ |
152 |
|
$ |
146 |
|
$ |
67 |
|
$ |
67 |
|
Brazil |
1,090 |
1,038 |
980 |
957 |
|
65 |
|
69 |
|
49 |
|
|
51 |
|
|
40 |
|
|
41 |
|
|
17 |
|
|
1 |
|
Colombia |
765 |
768 |
844 |
844 |
|
62 |
|
53 |
|
38 |
|
|
31 |
|
|
26 |
|
|
21 |
|
|
20 |
|
|
12 |
|
|
5,704 |
5,571 |
5,124 |
5,240 |
|
389 |
|
383 |
|
282 |
|
|
273 |
|
|
218 |
|
|
208 |
|
|
104 |
|
|
80 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
850 |
645 |
960 |
697 |
|
63 |
|
54 |
|
48 |
|
|
41 |
|
|
29 |
|
|
26 |
|
|
4 |
|
|
(6 |
) |
Europe |
274 |
165 |
308 |
155 |
|
28 |
|
17 |
|
20 |
|
|
11 |
|
|
17 |
|
|
8 |
|
|
11 |
|
|
(1 |
) |
Brazil |
106 |
103 |
151 |
118 |
|
7 |
|
8 |
|
5 |
|
|
5 |
|
|
2 |
|
|
3 |
|
|
(3 |
) |
|
(1 |
) |
Asia |
39 |
32 |
38 |
34 |
|
2 |
|
2 |
|
1 |
|
|
1 |
|
|
1 |
|
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
1,269 |
945 |
1,457 |
1,004 |
|
100 |
|
81 |
|
74 |
|
|
58 |
|
|
49 |
|
|
37 |
|
|
11 |
|
|
(9 |
) |
Solar |
199 |
115 |
195 |
107 |
|
38 |
|
18 |
|
32 |
|
|
16 |
|
|
18 |
|
|
10 |
|
|
9 |
|
|
(2 |
) |
Storage &
Other |
74 |
63 |
- |
- |
|
24 |
|
17 |
|
11 |
|
|
9 |
|
|
7 |
|
|
5 |
|
|
- |
|
|
(12 |
) |
Corporate |
- |
- |
- |
- |
|
- |
|
- |
|
(4 |
) |
|
(5 |
) |
|
(65 |
) |
|
(67 |
) |
|
(81 |
) |
|
(49 |
) |
Total |
7,246 |
6,694 |
6,776 |
6,351 |
$ |
551 |
$ |
499 |
$ |
395 |
|
$ |
351 |
|
$ |
227 |
|
$ |
193 |
|
$ |
43 |
|
$ |
8 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
FFO and provides a reconciliation to net income (loss) attributable
to Unitholders for the three months ended March 31, 2019:
|
|
|
|
|
|
|
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 |
|
financial(1) |
|
Revenues |
389 |
|
100 |
|
38 |
|
24 |
|
- |
|
551 |
|
(91 |
) |
365 |
|
825 |
|
Other income |
2 |
|
2 |
|
1 |
|
- |
|
2 |
|
7 |
|
(4 |
) |
5 |
|
8 |
|
Direct operating
costs |
(109 |
) |
(28 |
) |
(7 |
) |
(13 |
) |
(6 |
) |
(163 |
) |
29 |
|
(120 |
) |
(254 |
) |
Share of Adjusted
EBITDA from |
|
|
|
|
|
|
|
|
|
equity accounted investments |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
66 |
|
7 |
|
73 |
|
Adjusted EBITDA |
282 |
|
74 |
|
32 |
|
11 |
|
(4 |
) |
395 |
|
- |
|
257 |
|
|
Management service
costs |
- |
|
- |
|
- |
|
- |
|
(21 |
) |
(21 |
) |
- |
|
- |
|
(21 |
) |
Interest expense -
borrowings |
(55 |
) |
(24 |
) |
(14 |
) |
(4 |
) |
(24 |
) |
(121 |
) |
24 |
|
(76 |
) |
(173 |
) |
Current income
taxes |
(9 |
) |
(1 |
) |
- |
|
- |
|
- |
|
(10 |
) |
1 |
|
(15 |
) |
(24 |
) |
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 |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(25 |
) |
(4 |
) |
(29 |
) |
Share of FFO |
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(162 |
) |
(162 |
) |
FFO |
218 |
|
49 |
|
18 |
|
7 |
|
(65 |
) |
227 |
|
- |
|
- |
|
|
Depreciation |
(82 |
) |
(55 |
) |
(13 |
) |
(6 |
) |
(1 |
) |
(157 |
) |
33 |
|
(76 |
) |
(200 |
) |
Foreign exchange
and |
|
|
|
|
|
|
|
|
|
unrealized financial instrument loss |
1 |
|
(2 |
) |
- |
|
(1 |
) |
(16 |
) |
(18 |
) |
1 |
|
(1 |
) |
(18 |
) |
Deferred income tax
expense |
(18 |
) |
20 |
|
16 |
|
- |
|
6 |
|
24 |
|
(35 |
) |
(9 |
) |
(20 |
) |
Other |
(15 |
) |
(1 |
) |
(12 |
) |
- |
|
(5 |
) |
(33 |
) |
13 |
|
18 |
|
(2 |
) |
Share of earnings
from |
|
|
|
|
|
|
|
|
|
equity
accounted investments |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(12 |
) |
- |
|
(12 |
) |
Net loss attributable
to |
|
|
|
|
|
|
|
|
|
non-controlling interests |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
68 |
|
68 |
|
Net
income (loss) attributable to Unitholders(2) |
104 |
|
11 |
|
9 |
|
- |
|
(81 |
) |
43 |
|
- |
|
- |
|
43 |
|
(1) Share of earnings from
equity-accounted investments of $32 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 $94 million is comprised of amounts found on Share of FFO
attributable to non-controlling interests and Net loss attributable
to non-controlling interests. (2) Net income (loss)
attributable to Unitholders includes net income (loss) attributable
to GP interest, Redeemable/Exchangeable partnership units and LP
Units. Total net income (loss) includes amounts attributable to
Unitholders, non-controlling interests, preferred limited partners
equity and preferred equity.
The following table reflects Adjusted EBITDA and
FFO and provides a reconciliation to net income (loss) attributable
to Unitholders for the three months ended March 31, 2018:
|
Attributable to Unitholders |
Contribution |
|
Attributable |
|
|
|
Hydroelectric |
|
Wind |
|
Solar |
|
Storage |
|
Corporate |
|
Total |
|
from
equity |
|
to
non- |
|
As
per |
|
|
|
|
|
and |
|
|
|
accounted |
|
controlling |
|
IFRS |
|
($
MILLIONS) |
|
|
|
Other |
|
|
|
investments |
|
interests |
|
financials(1) |
|
Revenues |
383 |
|
81 |
|
18 |
|
17 |
|
- |
|
499 |
|
(39 |
) |
333 |
|
793 |
|
Other income |
2 |
|
1 |
|
2 |
|
- |
|
1 |
|
6 |
|
(2 |
) |
5 |
|
9 |
|
Direct operating
costs |
(112 |
) |
(24 |
) |
(4 |
) |
(8 |
) |
(6 |
) |
(154 |
) |
13 |
|
(115 |
) |
(256 |
) |
Share of Adjusted
EBITDA from |
|
|
|
|
|
|
|
|
|
equity accounted investments |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
28 |
|
8 |
|
36 |
|
Adjusted EBITDA |
273 |
|
58 |
|
16 |
|
9 |
|
(5 |
) |
351 |
|
- |
|
231 |
|
|
Management service
costs |
- |
|
- |
|
- |
|
- |
|
(21 |
) |
(21 |
) |
- |
|
- |
|
(21 |
) |
Interest expense -
borrowings |
(61 |
) |
(20 |
) |
(6 |
) |
(4 |
) |
(25 |
) |
(116 |
) |
9 |
|
(73 |
) |
(180 |
) |
Current income
taxes |
(4 |
) |
(1 |
) |
- |
|
- |
|
- |
|
(5 |
) |
- |
|
(2 |
) |
(7 |
) |
Distributions
attributable to |
|
|
|
|
|
|
|
|
|
Preferred
limited partners equity |
- |
|
- |
|
- |
|
- |
|
(9 |
) |
(9 |
) |
- |
|
- |
|
(9 |
) |
Preferred
equity |
- |
|
- |
|
- |
|
- |
|
(7 |
) |
(7 |
) |
- |
|
- |
|
(7 |
) |
Share of interest and
cash taxes from |
|
|
|
|
|
|
|
|
|
equity
accounted investments |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(9 |
) |
(8 |
) |
(17 |
) |
Share of FFO |
|
|
|
|
|
|
|
|
|
attributable to non-controlling interests |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(148 |
) |
(148 |
) |
FFO |
208 |
|
37 |
|
10 |
|
5 |
|
(67 |
) |
193 |
|
- |
|
- |
|
|
Depreciation |
(100 |
) |
(39 |
) |
(6 |
) |
(6 |
) |
- |
|
(151 |
) |
12 |
|
(74 |
) |
(213 |
) |
Foreign exchange
and |
|
|
|
|
|
|
|
|
|
unrealized financial instrument loss |
- |
|
(1 |
) |
(2 |
) |
1 |
|
7 |
|
5 |
|
- |
|
3 |
|
8 |
|
Deferred income tax
expenses (recovery) |
(15 |
) |
(6 |
) |
(1 |
) |
- |
|
15 |
|
(7 |
) |
2 |
|
(4 |
) |
(9 |
) |
Other |
(13 |
) |
- |
|
(3 |
) |
(12 |
) |
(4 |
) |
(32 |
) |
5 |
|
(17 |
) |
(44 |
) |
Share of earnings
from |
|
|
|
|
|
|
|
|
|
equity
accounted investments |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(19 |
) |
- |
|
(19 |
) |
Net loss attributable
to |
|
|
|
|
|
|
|
|
|
non-controlling interests |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
92 |
|
92 |
|
Net
income (loss) attributable to Unitholders(2) |
80 |
|
(9 |
) |
(2 |
) |
(12 |
) |
(49 |
) |
8 |
|
- |
|
- |
|
8 |
|
(1) Share of earnings from
equity-accounted investments of nil 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 $56 million is comprised of amounts found on Share of FFO
attributable to non-controlling interests and Net loss attributable
to non-controlling interests. (2) 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 Unitholders and earnings per unit, the most
directly comparable IFRS measures, to FFO, and FFO per unit, both
non-IFRS financial metrics for the three months ended March 31:
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS NOTED) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net income attributable
to: |
|
|
|
|
|
|
|
|
Limited
partners' equity |
$ |
25 |
|
$ |
5 |
|
$ |
0.14 |
|
$ |
0.03 |
|
General
partnership interest in a holding |
|
|
|
|
|
|
|
|
subsidiary held by Brookfield |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Participating non-controlling interests - in a holding |
|
|
|
|
|
|
|
|
subsidiary - Redeemable/Exchangeable units |
|
|
|
|
|
|
|
|
held by Brookfield |
|
18 |
|
|
3 |
|
|
- |
|
|
- |
|
Net income attributable
to Unitholders |
$ |
43 |
|
$ |
8 |
|
$ |
0.14 |
|
$ |
0.03 |
|
Adjusted for
proportionate share of: |
|
|
|
|
|
|
|
|
Depreciation |
|
157 |
|
|
151 |
|
|
0.50 |
|
|
0.49 |
|
Foreign
exchange and |
|
|
|
|
|
|
|
|
unrealized financial instruments loss (gain) |
|
18 |
|
|
(5 |
) |
|
0.06 |
|
|
(0.02 |
) |
Deferred
income tax (recovery) expense |
|
(24 |
) |
|
7 |
|
|
(0.08 |
) |
|
0.02 |
|
Other |
|
33 |
|
|
32 |
|
|
0.11 |
|
|
0.10 |
|
FFO |
$ |
227 |
|
$ |
193 |
|
$ |
0.73 |
|
$ |
0.62 |
|
Weighted
average units outstanding(1) |
|
|
|
|
|
311.1 |
|
|
312.7 |
|
(1) Includes GP interest,
Redeemable/Exchangeable partnership units, and LP Units.
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