Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable” or "
BEP") today reported
financial results for the three and nine months ended
September 30, 2019.
“We continued to execute on key strategic
priorities in the third quarter including a number of new
investments, improved operations, and generating liquidity to
bolster our already strong balance sheet,” said Sachin Shah, CEO of
Brookfield Renewable. “We are also pleased to announce our
intention to create a Canadian corporation with publicly-traded
shares that we expect will be economically-equivalent to the units
of the partnership. This should position us well to continue
attracting new investors to our globally-diversified renewable
power portfolio.”
Financial
Results |
|
|
|
|
|
For the period ended September 30 |
|
|
|
|
|
Millions
(except per unit or otherwise noted) |
Three months ended September 30 |
|
Nine months ended September 30 |
Unaudited |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Total generation (GWh) |
|
|
|
|
|
– Long-term average generation |
12,332 |
|
12,113 |
|
|
40,077 |
|
38,486 |
|
– Actual generation |
11,089 |
|
11,609 |
|
|
40,095 |
|
37,611 |
|
Brookfield Renewable's share |
|
|
|
|
|
– Actual generation |
5,213 |
|
5,552 |
|
|
20,061 |
|
18,701 |
|
– Long-term average generation |
5,821 |
|
5,956 |
|
|
19,628 |
|
19,242 |
|
Funds From Operations (FFO)(1) |
$ |
133 |
|
$ |
105 |
|
|
$ |
590 |
|
$ |
470 |
|
Per Unit(1)(2) |
0.43 |
|
|
0.33 |
|
|
|
1.90 |
|
|
1.50 |
|
Net
Income (Loss) Attributable to Unitholders |
(53 |
) |
(55 |
) |
|
7 |
|
(49 |
) |
Per Unit(2) |
(0.17 |
) |
(0.18 |
) |
|
0.02 |
|
(0.16 |
) |
- Non-IFRS measures. Refer to “Cautionary Statement
Regarding Use of Non-IFRS Measures”.
- For the three and nine months ended September 30, 2019,
weighted average LP Units, Redeemable/Exchangeable partnership
units and GP interest totaled 311.2 million and 311.2 million,
respectively (2018: 312.6 million and 312.7 million).
Brookfield Renewable reported FFO growth of 27% leading to $133
million of FFO for the three months ended September 30, 2019, or
$0.43 per unit. After deducting non-cash depreciation, our net loss
for the three months ended September 30, 2019 was $53 million or
$0.17 per unit. These results were supported by contributions from
recent acquisitions and execution of our operating initiatives.
Highlights
- Invested $100 million of BEP equity into TerraForm Power and
the acquisition of a 200 megawatt wind farm in China;
- Sold two mature European wind portfolios for total combined
proceeds of US$186 million ($74 million net to BEP), and
crystallized an ~18% compounded annual return to BEP since
acquisition; we have also now completed the sale of five of our six
assets in South Africa for total proceeds of $135 million ($42
million net to BEP) returning almost two times our capital invested
into the country;
- Completed a C$600 million green bond issuance - the largest
corporate-level green bond ever issued in Canada - increasing the
average term of our corporate debt by 5 years to 10 years and
reducing the average cost of our debt; and
- Maintain robust total available liquidity of $2.5 billion
Unit Split and Creation of an Exchange
Corporation
Today we announced our intention to create a Canadian
corporation in order to provide investors with greater flexibility
in how they invest in Brookfield Renewable’s globally diversified,
multi-technology renewable power portfolio. This entity will be
publicly listed on the same exchanges as the current partnership
("BEP"), giving investors the optionality to invest in Brookfield
Renewable through either a partnership or Canadian corporation and
could therefore lead to increased demand and enhanced liquidity for
Brookfield Renewable.
Brookfield Renewable intends to distribute to existing
unitholders, on a tax-free basis to the majority of unitholders,
class A shares of the new corporation, Brookfield Renewable
Corporation (“BEPC”). From an economic and accounting perspective,
the transaction will be analogous to a unit split as it will not
result in any underlying change to aggregate cash flows or net
asset value except for the adjustment for the number of
units/shares outstanding.
The class A shares will be structured with the intention of
providing an economic return equivalent to BEP units, including
identical distributions, and will be exchangeable, at the
shareholder's option, for one BEP unit. The class A shares are also
intended to provide investors with the ability to have economic
exposure to BEP through a more traditional corporate structure.
Current unitholders are expected to receive one BEPC class A
share for every four BEP units held (i.e. 0.25 BEPC class A shares
for each unit held of BEP) in the form of a special
distribution.
The benefits of the creation of BEPC will be:
- Potential increased demand from
retail investors;
- Potential increased demand from
certain institutional investors who are currently unable, or prefer
not to, own partnership units;
- The ability to qualify for further
index or ETF inclusion, which is not available today.
Following completion of the special
distribution, the aggregate quarterly distributions and dividends
from Brookfield Renewable and BEPC will correspond to the quarterly
distributions made on Brookfield Renewable units as if the special
distribution did not take place.
Holders of Brookfield Renewable’s preferred
limited partnership units will not receive the class A shares.
The majority of the BEPC class A shares will be
held by the holders of Brookfield Renewable’s units immediately
after the effective split. Brookfield Renewable will own all of the
BEPC class B and C shares. The class A and class B shares will
control 25% and 75%, respectively, of the aggregate voting rights
of the shares of BEPC. Brookfield Asset Management, as a unitholder
of Brookfield Renewable, is expected to hold approximately 60% of
the BEPC class A shares, which is equivalent to its effective
ownership of Brookfield Renewable units. BEPC intends to apply to
list its class A shares in the United States on the NYSE and in
Canada on the TSX. Subject to the receipt of normal course
regulatory approvals, Brookfield Renewable anticipates completing
the special distribution in the first half of 2020.
In connection with this transaction, a
registration statement (including a prospectus) has been filed with
the U.S. Securities and Exchange Commission (the “SEC”) and a
preliminary prospectus will be filed with the Canadian securities
regulatory authorities. You should read the prospectus and other
documents that have and will be filed with the SEC for more
complete information about the transaction. You may get these
documents for free by visiting EDGAR on the SEC web site at
www.sec.gov. Alternatively, a copy of the prospectus can be sent to
you at no cost, upon request, using the contact information below
in this press release.RBC Capital Markets are acting as financial
advisors and Torys LLP as legal advisors to Brookfield Renewable
for this transaction.
Operations
During the third quarter, we generated FFO of $133 million, up
from $105 million during the same period the prior year.
In the third quarter, our hydroelectric segment generated FFO of
$125 million, up 20% relative to the same quarter the prior year.
While generation for the quarter was below the long-term average
level, driven largely by drier conditions in the U.S. Northeast and
Canada, generation so far this year has exceeded the long-term
average by 5%. 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, we remain focused on diversifying the
business from both a geographic and technology perspective, which
mitigates exposure to resource volatility, and regional or market
disruptions. Additionally, we continue to advance initiatives to
extract additional value from our hydroelectric portfolio. For
example, earlier this year we qualified our 820 megawatt Sogamoso
hydro facility in Colombia, which has 12 months of reservoir
capacity, to provide grid-stabilizing ancillary services which is
expected to add an incremental $3 million to our FFO on an
annualized basis.
Our wind and solar segments generated a combined $72 million of
FFO, up 20% relative to the same period the prior year. We
benefitted from contributions from our operating and growth
initiatives, including 210 megawatts of wind acquired in India, 51
megawatts of wind capacity commissioned and acquired last year in
Ireland, and significant cost savings realized from the
implementation of TerraForm Power’s new long-term service agreement
for its North American wind fleet.
Our storage and other segments generated $6 million of FFO
during the quarter as our portfolio continues to provide critical
grid-stabilizing ancillary services and back-up capacity to
increasingly intermittent grids. For example, in mid-August the
U.K. experienced a major electricity disconnection event that
resulted in a blackout affecting more than 1.1 million customers.
Between 60 seconds to 4 minutes after the disconnection event, our
First Hydro portfolio, which represents 75% of the U.K.’s storage
capacity and has very fast ramp-up capabilities, provided more than
half of the power used to restart the grid. We were the critical
link to re-starting the electricity grid in the U.K. on that day.
We continue to work with all stakeholders to highlight the
strategic importance of First Hydro in the U.K. and Bear Swamp in
the U.S., and how the scale and speed of their response
capabilities can be instrumental in managing the grid.
Distribution Declaration
The next quarterly distribution in the amount of
$0.515 per LP Unit, is payable on December 31, 2019 to unitholders
of record as at the close of business on November 29, 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 18,000 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 $500 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 Third 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 November 11, 2019 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/dcdu7y7w 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, 3097657. A recording of the teleconference can be
accessed through November 18, 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, 3097657.
BROOKFIELD
RENEWABLE PARTNERS L.P. |
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
|
|
|
|
|
|
|
Three months ended September 30 |
|
Nine months ended September 30 |
UNAUDITED(MILLIONS, EXCEPT AS
NOTED) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Revenues |
$ |
642 |
|
$ |
674 |
|
|
$ |
2,254 |
|
$ |
2,202 |
|
Other income |
25 |
|
7 |
|
|
50 |
|
26 |
|
Direct operating costs |
(239 |
) |
(257 |
) |
|
(745 |
) |
(760 |
) |
Management service costs |
(29 |
) |
(22 |
) |
|
(73 |
) |
(64 |
) |
Interest expense –
borrowings |
(164 |
) |
(176 |
) |
|
(515 |
) |
(534 |
) |
Share of earnings from
equity-accounted investments |
1 |
|
6 |
|
|
33 |
|
12 |
|
Foreign exchange and
unrealized financial instrument loss |
(10 |
) |
(10 |
) |
|
(40 |
) |
(35 |
) |
Depreciation |
(200 |
) |
(192 |
) |
|
(600 |
) |
(611 |
) |
Other |
(38 |
) |
(18 |
) |
|
(41 |
) |
(72 |
) |
Income tax expense |
|
|
|
|
|
Current |
(10 |
) |
(6 |
) |
|
(49 |
) |
(20 |
) |
Deferred |
23 |
|
11 |
|
|
(11 |
) |
(2 |
) |
|
13 |
|
5 |
|
|
(60 |
) |
(22 |
) |
Net income |
$ |
1 |
|
$ |
17 |
|
|
$ |
263 |
|
$ |
142 |
|
Net income attributable to: |
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
Participating non-controlling interests - in operating
subsidiaries |
$ |
36 |
|
$ |
55 |
|
|
$ |
204 |
|
$ |
142 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
(1 |
) |
(1 |
) |
|
— |
|
(1 |
) |
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(22 |
) |
(22 |
) |
|
3 |
|
(20 |
) |
Preferred equity |
6 |
|
7 |
|
|
19 |
|
20 |
|
Preferred limited partners'
equity |
12 |
|
10 |
|
|
33 |
|
29 |
|
Limited partners' equity |
(30 |
) |
(32 |
) |
|
4 |
|
(28 |
) |
|
$ |
1 |
|
$ |
17 |
|
|
$ |
263 |
|
$ |
142 |
|
Basic and diluted (loss) earnings per LP Unit |
$ |
(0.17 |
) |
$ |
(0.18 |
) |
|
$ |
0.02 |
|
$ |
(0.16 |
) |
BROOKFIELD RENEWABLE
PARTNERS L.P. |
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION |
|
|
|
|
|
UNAUDITED(MILLIONS) |
September 30 |
|
December 31 |
|
2019 |
|
2018 |
|
Assets |
|
|
Cash and cash equivalents |
$ |
209 |
|
$ |
173 |
|
Trade receivables and other financial assets |
1,148 |
|
992 |
|
Equity-accounted investments |
1,536 |
|
1,569 |
|
Property, plant and equipment, at fair value |
28,350 |
|
29,025 |
|
Goodwill |
777 |
|
828 |
|
Deferred income tax and other assets |
1,415 |
|
1,516 |
|
Total Assets |
$ |
33,435 |
|
$ |
34,103 |
|
Liabilities |
|
|
Corporate borrowings |
$ |
2,119 |
|
$ |
2,328 |
|
Non-recourse borrowings |
8,506 |
|
8,390 |
|
Accounts payable and other financial liabilities |
975 |
|
772 |
|
Deferred income tax liabilities |
4,096 |
|
4,140 |
|
Other liabilities |
1,341 |
|
1,267 |
|
Equity |
|
|
Non-controlling interests |
|
|
Participating non-controlling interests - in operating
subsidiaries |
7,841 |
|
8,129 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
61 |
|
66 |
|
Participating non-controlling interests - in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
2,974 |
|
3,252 |
|
Preferred equity |
585 |
|
568 |
|
Preferred limited partners' equity |
833 |
|
707 |
|
Limited partners' equity |
4,104 |
|
4,484 |
|
Total Equity |
16,398 |
|
17,206 |
|
Total Liabilities and Equity |
$ |
33,435 |
|
$ |
34,103 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED SEPTEMBER 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended September 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
|
Net Income (Loss) |
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,277 |
|
2,526 |
|
|
|
2,443 |
|
2,654 |
|
|
|
$ |
161 |
|
$ |
166 |
|
|
|
$ |
95 |
|
$ |
99 |
|
|
|
$ |
55 |
|
$ |
53 |
|
|
|
$ |
— |
|
$ |
(3 |
) |
Brazil |
734 |
|
791 |
|
|
|
1,009 |
|
996 |
|
|
|
50 |
|
53 |
|
|
|
53 |
|
38 |
|
|
|
46 |
|
31 |
|
|
|
|
22 |
|
2 |
|
Colombia |
721 |
|
742 |
|
|
|
853 |
|
859 |
|
|
|
56 |
|
54 |
|
|
|
34 |
|
29 |
|
|
|
24 |
|
20 |
|
|
|
|
19 |
|
11 |
|
|
3,732 |
|
4,059 |
|
|
|
4,305 |
|
4,509 |
|
|
|
267 |
|
273 |
|
|
|
182 |
|
166 |
|
|
|
125 |
|
104 |
|
|
|
|
41 |
|
10 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
579 |
|
597 |
|
|
|
713 |
|
723 |
|
|
|
46 |
|
50 |
|
|
|
32 |
|
30 |
|
|
|
15 |
|
14 |
|
|
|
(26 |
) |
(27 |
) |
Europe |
185 |
|
141 |
|
|
|
198 |
|
208 |
|
|
|
21 |
|
17 |
|
|
|
15 |
|
9 |
|
|
|
9 |
|
2 |
|
|
|
(7 |
) |
(9 |
) |
Brazil |
201 |
|
211 |
|
|
|
215 |
|
215 |
|
|
|
11 |
|
15 |
|
|
|
9 |
|
13 |
|
|
|
7 |
|
11 |
|
|
|
(3 |
) |
5 |
|
Asia |
93 |
|
48 |
|
|
|
97 |
|
41 |
|
|
|
8 |
|
4 |
|
|
|
7 |
|
3 |
|
|
|
5 |
|
2 |
|
|
|
1 |
|
1 |
|
|
1,058 |
|
997 |
|
|
|
1,223 |
|
1,187 |
|
|
|
86 |
|
86 |
|
|
|
63 |
|
55 |
|
|
|
36 |
|
29 |
|
|
|
(35 |
) |
(30 |
) |
Solar |
279 |
|
279 |
|
|
|
293 |
|
260 |
|
|
|
56 |
|
58 |
|
|
|
49 |
|
46 |
|
|
|
36 |
|
31 |
|
|
|
10 |
|
19 |
|
Storage &
Other |
144 |
|
217 |
|
|
|
— |
|
— |
|
|
|
21 |
|
25 |
|
|
|
9 |
|
14 |
|
|
|
6 |
|
11 |
|
|
|
(1 |
) |
5 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
(2 |
) |
(4 |
) |
|
|
(70 |
) |
(70 |
) |
|
|
(68 |
) |
(59 |
) |
Total |
5,213 |
|
5,552 |
|
|
|
5,821 |
|
5,956 |
|
|
|
$ |
430 |
|
$ |
442 |
|
|
|
$ |
301 |
|
$ |
277 |
|
|
|
$ |
133 |
|
$ |
105 |
|
|
|
$ |
(53 |
) |
$ |
(55 |
) |
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 September
30:
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS
NOTED) |
2019 |
|
|
2018 |
|
|
2019 |
|
2018 |
|
Net income attributable to: |
|
|
|
|
|
|
Limited partners' equity |
$ |
(30 |
) |
|
$ |
(32 |
) |
|
$ |
(0.17 |
) |
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partnership interest in a holding subsidiary held by
Brookfield |
(1 |
) |
|
(1 |
) |
|
— |
|
— |
|
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(22 |
) |
|
(22 |
) |
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
(53 |
) |
|
$ |
(55 |
) |
|
$ |
(0.17 |
) |
$ |
(0.18 |
) |
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
158 |
|
|
160 |
|
|
0.51 |
|
0.51 |
|
Foreign exchange and unrealized financial instruments loss
(gain) |
14 |
|
|
6 |
|
|
0.04 |
|
0.02 |
|
Deferred income tax (recovery) expense |
(26 |
) |
|
(17 |
) |
|
(0.08 |
) |
(0.05 |
) |
Other |
40 |
|
|
11 |
|
|
0.13 |
|
0.03 |
|
FFO |
$ |
133 |
|
|
$ |
105 |
|
|
$ |
0.43 |
|
$ |
0.33 |
|
Weighted average units outstanding(1) |
|
|
|
|
311.2 |
|
312.6 |
|
- Includes GP interest, Redeemable/Exchangeable partnership
units, and LP Units.
PROPORTIONATE RESULTS FOR THE NINE
MONTHS ENDED SEPTEMBER 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the nine months ended September 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
|
Net Income (Loss) |
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
10,260 |
|
9,704 |
|
|
|
9,326 |
|
9,915 |
|
|
|
$ |
700 |
|
$ |
655 |
|
|
|
$ |
501 |
|
$ |
455 |
|
|
|
$ |
375 |
|
$ |
322 |
|
|
|
$ |
146 |
|
$ |
130 |
|
Brazil |
2,890 |
|
2,731 |
|
|
|
2,987 |
|
2,931 |
|
|
|
173 |
|
185 |
|
|
|
144 |
|
133 |
|
|
|
119 |
|
109 |
|
|
|
|
55 |
|
5 |
|
Colombia |
2,347 |
|
2,382 |
|
|
|
2,520 |
|
2,547 |
|
|
|
174 |
|
160 |
|
|
|
107 |
|
91 |
|
|
|
75 |
|
62 |
|
|
|
|
56 |
|
41 |
|
|
15,497 |
|
14,817 |
|
|
|
14,833 |
|
15,393 |
|
|
|
1,047 |
|
1,000 |
|
|
|
752 |
|
679 |
|
|
|
569 |
|
493 |
|
|
|
|
257 |
|
176 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,190 |
|
1,905 |
|
|
|
2,622 |
|
2,215 |
|
|
|
167 |
|
158 |
|
|
|
120 |
|
109 |
|
|
|
67 |
|
64 |
|
|
|
(44 |
) |
(39 |
) |
Europe |
663 |
|
413 |
|
|
|
729 |
|
496 |
|
|
|
71 |
|
46 |
|
|
|
50 |
|
27 |
|
|
|
37 |
|
13 |
|
|
|
(7 |
) |
(12 |
) |
Brazil |
454 |
|
473 |
|
|
|
475 |
|
475 |
|
|
|
27 |
|
33 |
|
|
|
20 |
|
26 |
|
|
|
13 |
|
20 |
|
|
|
(2 |
) |
(1 |
) |
Asia |
184 |
|
117 |
|
|
|
186 |
|
117 |
|
|
|
13 |
|
9 |
|
|
|
10 |
|
6 |
|
|
|
7 |
|
3 |
|
|
|
2 |
|
(3 |
) |
|
3,491 |
|
2,908 |
|
|
|
4,012 |
|
3,303 |
|
|
|
278 |
|
246 |
|
|
|
200 |
|
168 |
|
|
|
124 |
|
100 |
|
|
|
(51 |
) |
(55 |
) |
Solar |
765 |
|
569 |
|
|
|
783 |
|
546 |
|
|
|
145 |
|
106 |
|
|
|
123 |
|
87 |
|
|
|
81 |
|
57 |
|
|
|
23 |
|
19 |
|
Storage &
Other |
308 |
|
407 |
|
|
|
— |
|
— |
|
|
|
66 |
|
62 |
|
|
|
30 |
|
33 |
|
|
|
20 |
|
23 |
|
|
|
— |
|
(6 |
) |
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
(9 |
) |
(15 |
) |
|
|
(204 |
) |
(203 |
) |
|
|
(222 |
) |
(183 |
) |
Total |
20,061 |
|
18,701 |
|
|
|
19,628 |
|
19,242 |
|
|
|
$ |
1,536 |
|
$ |
1,414 |
|
|
|
$ |
1,096 |
|
$ |
952 |
|
|
|
$ |
590 |
|
$ |
470 |
|
|
|
$ |
7 |
|
$ |
(49 |
) |
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 nine months ended September
30:
|
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS
NOTED) |
2019 |
|
|
2018 |
|
|
2019 |
|
2018 |
|
Net income attributable to: |
|
|
|
|
|
|
Limited partners' equity |
$ |
4 |
|
|
$ |
(28 |
) |
|
$ |
0.02 |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
3 |
|
|
(20 |
) |
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
7 |
|
|
$ |
(49 |
) |
|
$ |
0.02 |
|
$ |
(0.16 |
) |
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
478 |
|
|
460 |
|
|
1.54 |
|
1.47 |
|
Foreign exchange and unrealized financial instruments loss
(gain) |
45 |
|
|
(2 |
) |
|
0.14 |
|
(0.01 |
) |
Deferred income tax (recovery) expense |
(40 |
) |
|
(14 |
) |
|
(0.13 |
) |
(0.04 |
) |
Other |
100 |
|
|
75 |
|
|
0.33 |
|
0.24 |
|
FFO |
$ |
590 |
|
|
$ |
470 |
|
|
$ |
1.90 |
|
$ |
1.50 |
|
Weighted average units outstanding(1) |
|
|
|
|
311.2 |
|
312.7 |
|
- Includes GP interest, Redeemable/Exchangeable partnership
units, and LP Units.
Cautionary Statement Regarding Forward-looking
Statements
This news release contains forward-looking statements and
information within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended, Section 21E of
the U.S. Securities Exchange Act of 1934, as amended, “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. The words “will”, “intend”, “should”, “could”,
“target”, “growth”, “expect”, “believe”, “plan”, derivatives
thereof and other expressions which are predictions of or indicate
future events, trends or prospects and which do not relate to
historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this news
release include statements regarding the quality of Brookfield
Renewable’s and its subsidiaries’ businesses and our expectations
regarding future cash flows and distribution growth. They include
statements regarding the special distribution of BEPC’s class A
shares, BEPC’s eligibility for index inclusion, BEPC’s ability to
attract new investors as well as the future performance and
prospects of BEPC and Brookfield Renewable following the
distribution of BEPC’s class A shares, the expected proceeds from
opportunistically recycling capital, as well as the benefits from
acquisitions and Brookfield Renewable’s global scale and resource
diversity. Although Brookfield Renewable believes that these
forward-looking statements and information are based upon
reasonable assumptions and expectations, you should not place undue
reliance on them, or any other forward-looking statements or
information in this news release. The future performance and
prospects of Brookfield Renewable are subject to a number of known
and unknown risks and uncertainties. Factors that could cause
actual results of Brookfield Renewable to differ materially from
those contemplated or implied by the statements in this news
release include (without limitation) the fact that there can be no
assurance that the stock exchanges on which BEPC intends to apply
to list its class A shares will approve the listing of such shares
or that BEPC will be included in any indices; weather conditions
and other factors which may impact generation levels at facilities;
economic conditions in the jurisdictions in which Brookfield
Renewable operates; ability to sell products and services under
contract or into merchant energy markets; changes to government
regulations, including incentives for renewable energy; ability to
complete development and capital projects on time and on budget;
inability to finance operations or fund future acquisitions due to
the status of the capital markets; health, safety, security or
environmental incidents; regulatory risks relating to the power
markets in which Brookfield Renewable operates, including relating
to the regulation of our assets, licensing and litigation; risks
relating to internal control environment; contract counterparties
not fulfilling their obligations; changes in operating expenses,
including employee wages, benefits and training, governmental and
public policy changes, and other risks associated with
the construction, development and operation of power generating
facilities. For further information on these known and unknown
risks, please see “Risk Factors” included in the Form 20-F of
Brookfield Renewable Partners L.P. and other risks and factors that
are described therein and that are described in the U.S.
registration statement filed in connection with the distribution of
BEPC’s class A shares.
The foregoing list of important factors that may affect future
results is not exhaustive. The forward-looking statements represent
our views as of the date of this news release and should not be
relied upon as representing our views as of any subsequent date.
While we anticipate that subsequent events and developments may
cause our views to change, we disclaim any obligation to update the
forward-looking statements, other than as required by applicable
law.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. This news release
is for information purposes only and shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
Cautionary Statement Regarding Use of Non-IFRS
Measures
This news release contains references to
Adjusted EBITDA, FFO 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 and nine months ended
September 30, 2019.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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