Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable” or "
BEP") today reported
financial results for the three and twelve months ended
December 31, 2019.
“Over the last twenty years, we have established
ourselves as one of the leading producers of renewable resources
globally,” said Sachin Shan, CEO of Brookfield Renewable. “We have
built a business where the generation from our 19,000 megawatt
fleet avoids approximately 27 million tons of carbon dioxide
emissions annually, all while delivering strong compound returns to
our unitholders. Looking forward, we believe our global scale,
operational depth and financial strength position us well to
participate in the global trend towards decarbonization while
continuing to deliver 12-15% long-term returns on a per unit
basis.”
Financial
Results |
|
|
|
|
|
|
|
|
|
|
|
For the periods ended December 31 |
|
|
|
|
|
Millions
(except per Unit or otherwise noted) |
Three Months Ended December 31 |
|
|
Twelve Months Ended December 31 |
|
Unaudited |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Total generation (GWh) |
|
|
|
|
|
– Long-term average generation |
13,850 |
|
13,485 |
|
|
53,926 |
|
51,971 |
|
– Actual generation |
12,465 |
|
14,445 |
|
|
52,560 |
|
52,056 |
|
Brookfield Renewable's share |
|
|
|
|
|
– Long-term average generation |
6,561 |
|
6,602 |
|
|
26,189 |
|
25,844 |
|
– Actual generation |
5,977 |
|
7,052 |
|
|
26,038 |
|
25,753 |
|
Funds From Operations (FFO)(1) |
$ |
171 |
|
$ |
206 |
|
|
$ |
761 |
|
$ |
676 |
|
Per Unit(1)(2) |
0.55 |
|
|
0.66 |
|
|
2.45 |
|
|
2.16 |
|
Net
Income (Loss) Attributable to Unitholders |
(66 |
) |
91 |
|
|
(59 |
) |
42 |
|
Per Unit(2) |
(0.21 |
) |
0.29 |
|
|
(0.19 |
) |
0.13 |
|
(1) Non-IFRS measures. Refer
to “Cautionary Statement Regarding Use of Non-IFRS
Measures”.(2) For the three and twelve months ended months
ended December 31, 2019, weighted average LP Units ("LP Units"
or "Units"), Redeemable/Exchangeable partnership units and GP
interest totaled 311.3 million and 311.2 million, respectively
(2018: 312.2 million and 312.6 million).
Brookfield Renewable reported FFO growth of 13%
leading to $761 million of FFO for the twelve months ended December
31, 2019, or $2.45 per Unit. After deducting non-cash depreciation,
our net loss attributable to unitholders for the twelve months
ended December 31, 2019 was $59 million or $0.19 per Unit. These
results were supported by contributions from recent acquisitions
and newly commissioned facilities, and execution on our key
operating initiatives.
Highlights
- Increased FFO per unit by 13%
driven by accretive growth and strong operational performance. We
continue our track record of strong FFO per unit growth, at a 10%
annual growth rate since our strategic combination with
Brookfield’s renewable assets in 2011;
- We advanced key commercial
priorities and delivered on cost saving initiatives totaling ~$40
million globally on an annualized basis (~$12 million net to
BEP);
- Invested $2 billion ($550 million
net to BEP) of equity in nine transactions, including doubling the
size of our Asian and distributed generation businesses, adding a
leading global solar developer, and investing in a hydro portfolio
in Canada;
- Commissioned 50 megawatts of new
capacity, progressed approximately 2,100 megawatts through
construction and advanced-stage permitting, and increased the size
of our development pipeline to approximately 13,000 megawatts;
- Maintained our robust investment
grade balance sheet, ended the year with ~$2.7 billion of available
liquidity, and raised approximately $1.4 billion in incremental
liquidity through asset sales and strategic upfinancings; and
- Announced the creation of a
Canadian corporation (BEPC) that will provide investors the
optionality to invest in BEP through either the current partnership
or through a corporation, which is expected to support the
expansion of our investor base.
Update on Growth Initiatives
During the fourth quarter, we closed our
acquisition of a 50% interest in X-Elio, a leading global solar
developer. With this acquisition, we have significantly enhanced
our solar development capabilities adding 972 megawatts of
operating assets and almost 6,000 megawatts to our global
construction and development pipeline.
Also, in the fourth quarter, we signed two
agreements to acquire 14 solar development projects in Brazil with
428 MW of total capacity for total consideration of $120 million
($30 million net to BEP). Both these transactions are expected to
close in the first quarter of 2020 and represent attractive
additions to our business in Brazil with approximately 2,100 MW of
capacity across multiple technologies – hydro, wind and solar.
Furthermore, through our interest in TerraForm Power, we acquired
44 MW of PV solar assets in Spain for $70 million and signed an
agreement to acquire 100 MW of solar CSP assets in Spain, located
proximate to TerraForm Power’s CSP plants, for $115 million, which
TerraForm Power expects to close in the first quarter of 2020.
Operations
In 2019, we generated FFO of $761 million, a 13%
increase over the prior year, as the business benefitted from
recent acquisitions, strong operational performance, and execution
on margin enhancement initiatives.
During the year, our hydroelectric segment
delivered FFO of $720 million, representing a 7% increase over the
prior year. Our storage segment also performed well, generating $27
million of FFO in the year, as our portfolio continues to provide
critical grid-stabilizing ancillary services and backup capacity to
increasingly intermittent grids. During the year, our generation
was roughly in-line with the long-term average as we continue to
benefit from the diversity of our fleet. Our priority over the past
decade has been to diversify the business which, over the
long-term, mitigates exposure to resource volatility, regional or
market disruptions, and potential credit events. We also continued
to execute on key contracting initiatives across all our
businesses.
Our focus in Latin America continues to be on
extending the average duration of our power purchase agreements,
which today stands at 10 years in Brazil and 3 years in Colombia,
as well as signing contracts with high-quality, credit-worthy
counterparties. Globally, we continue to see increasing value
ascribed to the unique, scale renewable storage capabilities that
hydroelectric assets provide to increasingly intermittent
electricity grids. For example, in Colombia we secured ~$3 million
of ancillary services revenues, in the United States, we qualified
to receive the highest-tier renewable energy credits for a number
of our hydroelectric assets in the Northeast which will contribute
~$3 million to FFO annually, and in the U.K., our First Hydro
portfolio was the critical link to restarting the grid following a
nation-wide blackout in August.
Our wind and solar segments generated a combined
$274 million of FFO, representing an 18% increase over the prior
year. These portfolios benefitted from contributions from recent
growth initiatives including the acquisition of two wind portfolios
in Asia, and, through our interest in TerraForm Power, a large
distributed generation portfolio in the United States and full-year
contributions from Saeta Yield, a scale European wind and solar
portfolio. We also benefitted from executing on opportunistic
O&M outsourcing agreements aimed at de-risking the portfolios
owned by TerraForm Power and, where appropriate, delivering cost
savings. We executed on three such agreements across TerraForm
Power, and our wind portfolio in Brazil. A common theme across all
these opportunities was attractive availability guarantees and a
more comprehensive scope than what was currently in place. At
TerraForm Power, these initiatives will deliver aggregate cost
savings of approximately $30 million ($9 million net to BEP).
Finally, we continued to advance our global
greenfield development activities, including progressing 717
megawatts of construction diversified across distributed- and
utility-scale solar, wind, storage and hydro in 7 different
countries. We are also progressing 1,380 megawatts of
advanced-stage projects through final permitting and contracting,
and our total greenfield development pipeline now totals
approximately 13,000 megawatts. Of note, during the year, we signed
power purchase agreements for three wind repowering projects in New
York and California totaling 220 megawatts, and these projects are
expected to be commissioned in 2021.
Environmental, Social and Governance
(ESG) Reporting
We have been owner-operators of long-duration,
critical electricity assets for over a century, and therefore
understand that embedding strong ESG practices into our investing
and operating activities is essential to preserving capital,
mitigating risk, and creating long-term value. Fundamentally,
strong ESG practices drive further economic value to our business
and inherently create higher barriers to entry. As such, we
integrate relevant ESG considerations into our investing and
operating strategies. We are therefore proud to announce that we
are publishing our inaugural ESG report, which, among other things,
illustrates the on-the-ground work we do to maintain our social
license to operate.
With one of the largest public, pure-play
renewable portfolios globally, we are helping to accelerate the
decarbonization of global electricity grids. Additionally,
maintaining socially responsible practices - from health and safety
to community relations to biodiversity - is a critical component of
successful operations over the long-term. We operate with the
highest ethical standards, conducting our business with integrity
and above compliance with laws and regulations - we aim for best
practice, everywhere we operate.
ESG and sustainability investing continues to
gain momentum globally, with ESG funds expected to rise into the
trillions over the next decade. We believe our portfolio’s inherent
environmental attributes, coupled with our long-standing practices
around maintaining a social license to operate provide significant
tailwinds to demand growth for Brookfield Renewable.
Balance Sheet and Liquidity
Our liquidity position remains robust, with
~$2.7 billion of total available liquidity at year-end. During the
year, we executed on key financing and capital raising initiatives
aimed at maintaining robust access to capital, a prudent debt
maturity ladder, and a low-risk, investment grade balance
sheet.
During the year, we executed on more than $6
billion of financings across the business which allowed us to raise
$1 billion of incremental liquidity to BEP, extend our average debt
portfolio duration to 10 years, and reduce annual interest costs by
~$15 million ($9 million net to BEP). Of note, we continue to
advance our green financing strategy in order to capitalize on
growing demand for carbon-free debt products and diversify our debt
investor base.
To date, we have issued six green bonds, at both
the corporate- and project-levels, which all together totaled
approximately $2.4 billion. During the fourth quarter, we also
closed our first incentive-linked loan as part of our corporate
credit facility that will allow us to reduce our cost of borrowing
as we continue to accelerate the decarbonization of global
electricity grids. As demand for sustainability focused investing
continues to grow, we expect green financings and
sustainability-linked loans will increasingly become a more
prominent funding lever within our business.
In 2019, we also continued to execute our
capital recycling strategy of selling mature, de-risked or non-core
assets to lower cost of capital buyers and redeploying the proceeds
into higher yielding opportunities. During the year, we raised
almost $600 million ($365 million net to BEP) through this funding
strategy, allowing us to crystallize an approximate 18% return on
our Portuguese and Northern Ireland wind assets and to return more
than two times our capital invested in South Africa.
Distribution Currency
Option
The quarterly distributions payable on
Brookfield Renewable’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
Brookfield Renewable operates one of the world’s
largest publicly traded, pure-play renewable power platforms. Our
portfolio consists of hydroelectric, wind, solar and storage
facilities in North America, South America, Europe and Asia, and
totals over 19,000 megawatts of installed capacity and a 13,000
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 $540 billion of assets
under management.
Please note that Brookfield Renewable’s previous
audited annual and unaudited quarterly reports filed with the U.S.
Securities and Exchange Commission (“SEC”) and securities
regulators in Canada, are available on our website at
https://bep.brookfield.com, on SEC’s website at
www.sec.gov and on SEDAR’s website at www.sedar.com. Hard
copies of the annual and quarterly reports can be obtained free of
charge upon request.
Contact information: |
|
Media: |
Investors: |
Claire Holland |
Robin Kooyman |
Vice President - Communications |
Senior Vice President – Investor Relations |
(416) 369-8236 |
(416) 369-2616 |
claire.holland@brookfield.com |
robin.kooyman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2019 Fourth 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 February 6, 2020 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/9hmszyxp 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, 6677065. A recording of the teleconference can be
accessed through February 13, 2020 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, 6677065.
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF INCOME |
|
|
Three Months Ended December 31 |
|
|
Twelve Months Ended December 31 |
|
UNAUDITED(MILLIONS, EXCEPT AS NOTED) |
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
Revenues |
$ |
726 |
|
$ |
780 |
|
|
$ |
2,980 |
|
$ |
2,982 |
|
Other income |
7 |
|
24 |
|
|
57 |
|
50 |
|
Direct operating costs |
(267 |
) |
(276 |
) |
|
(1,012 |
) |
(1,036 |
) |
Management service costs |
(35 |
) |
(16 |
) |
|
(108 |
) |
(80 |
) |
Interest expense –
borrowings |
(167 |
) |
(171 |
) |
|
(682 |
) |
(705 |
) |
Share of earnings from
equity-accounted investments |
(22 |
) |
56 |
|
|
11 |
|
68 |
|
Foreign exchange and
unrealized financial instrument (loss) gain |
7 |
|
1 |
|
|
(33 |
) |
(34 |
) |
Depreciation |
(198 |
) |
(208 |
) |
|
(798 |
) |
(819 |
) |
Other |
(50 |
) |
(10 |
) |
|
(91 |
) |
(82 |
) |
Income tax expense |
|
|
|
|
|
Current |
(16 |
) |
(10 |
) |
|
(65 |
) |
(30 |
) |
Deferred |
25 |
|
91 |
|
|
14 |
|
89 |
|
|
9 |
|
81 |
|
|
(51 |
) |
59 |
|
Net income |
$ |
10 |
|
$ |
261 |
|
|
$ |
273 |
|
$ |
403 |
|
Net income attributable to: |
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
Participating non-controlling interests - in operating
subsidiaries |
$ |
58 |
|
$ |
155 |
|
|
$ |
262 |
|
$ |
297 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
— |
|
2 |
|
|
— |
|
1 |
|
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(28 |
) |
37 |
|
|
(25 |
) |
17 |
|
Preferred equity |
7 |
|
6 |
|
|
26 |
|
26 |
|
Preferred limited partners'
equity |
11 |
|
9 |
|
|
44 |
|
38 |
|
Limited partners' equity |
(38 |
) |
52 |
|
|
(34 |
) |
24 |
|
|
$ |
10 |
|
$ |
261 |
|
|
$ |
273 |
|
$ |
403 |
|
Basic and diluted (loss) earnings per LP Unit |
$ |
(0.21 |
) |
$ |
0.29 |
|
|
$ |
(0.19 |
) |
$ |
0.13 |
|
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
UNAUDITED(MILLIONS) |
December 31, 2019 |
December 31, 2018 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
115 |
|
$ |
173 |
|
Trade receivables and other financial assets |
|
1,172 |
|
992 |
|
Equity-accounted investments |
|
1,889 |
|
1,569 |
|
Property, plant and equipment, at fair value |
|
30,714 |
|
29,025 |
|
Goodwill |
|
821 |
|
828 |
|
Deferred income tax and other assets |
|
980 |
|
1,516 |
|
Total Assets |
|
$ |
35,691 |
|
$ |
34,103 |
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,100 |
|
$ |
2,328 |
|
Non-recourse borrowings |
|
8,904 |
|
8,390 |
|
Accounts payable, accrued liabilities and other financial
liabilities |
|
895 |
|
772 |
|
Deferred income tax liabilities |
|
4,537 |
|
4,140 |
|
Other liabilities |
|
1,124 |
|
1,267 |
|
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests - in operating
subsidiaries |
|
8,742 |
|
8,129 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
|
68 |
|
66 |
|
Participating non-controlling interests - in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
|
3,315 |
|
3,252 |
|
Preferred equity |
|
597 |
|
568 |
|
Preferred limited partners' equity |
|
833 |
|
707 |
|
Limited partners' equity |
|
4,576 |
|
4,484 |
|
Total Equity |
|
18,131 |
|
17,206 |
|
Total Liabilities and Equity |
|
$ |
35,691 |
|
$ |
34,103 |
|
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
UNAUDITED(MILLIONS) |
Three months ended December 31 |
|
|
Twelve months ended December 31 |
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Operating
activities |
|
|
|
|
|
Net income |
$ |
10 |
|
$ |
261 |
|
|
$ |
273 |
|
$ |
403 |
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
198 |
|
208 |
|
|
798 |
|
819 |
|
Unrealized foreign exchange and financial instrument loss
(gain) |
(15 |
) |
(6 |
) |
|
27 |
|
8 |
|
Share of earnings from equity-accounted investments |
22 |
|
(57 |
) |
|
(11 |
) |
(68 |
) |
Deferred income tax expense |
(25 |
) |
(91 |
) |
|
(14 |
) |
(89 |
) |
Other non-cash items |
58 |
|
3 |
|
|
127 |
|
53 |
|
Net
change in working capital and other |
(41 |
) |
(32 |
) |
|
12 |
|
(23 |
) |
|
207 |
|
286 |
|
|
1,212 |
|
1,103 |
|
Financing
activities |
|
|
|
|
|
Net corporate borrowings |
(341 |
) |
(152 |
) |
|
108 |
|
79 |
|
Corporate credit facilities,
net |
287 |
|
(318 |
) |
|
(422 |
) |
36 |
|
Non-recourse borrowings,
net |
239 |
|
77 |
|
|
337 |
|
(381 |
) |
Capital contributions from
participating non-controlling interests - in operating
subsidiaries |
7 |
|
287 |
|
|
299 |
|
300 |
|
Issuance of preferred limited
partnership units |
— |
|
— |
|
|
126 |
|
196 |
|
Repurchase of LP Units |
— |
|
(43 |
) |
|
(1 |
) |
(51 |
) |
Distributions paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
(186 |
) |
(115 |
) |
|
(706 |
) |
(553 |
) |
To preferred shareholders |
(7 |
) |
(6 |
) |
|
(26 |
) |
(26 |
) |
To preferred limited partners' unitholders |
(12 |
) |
(10 |
) |
|
(43 |
) |
(37 |
) |
To unitholders of Brookfield Renewable or BRELP |
(171 |
) |
(161 |
) |
|
(684 |
) |
(643 |
) |
Borrowings from related party,
net |
2 |
|
— |
|
|
2 |
|
— |
|
|
(182 |
) |
(441 |
) |
|
(1,010 |
) |
(1,080 |
) |
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
(121 |
) |
(27 |
) |
|
(202 |
) |
(39 |
) |
Investment in property, plant
and equipment |
(80 |
) |
(82 |
) |
|
(195 |
) |
(235 |
) |
(Investment in) disposal of
subsidiaries, associates and other securities |
2 |
|
25 |
|
|
87 |
|
(370 |
) |
Restricted cash and other |
71 |
|
95 |
|
|
59 |
|
20 |
|
|
(128 |
) |
11 |
|
|
(251 |
) |
(624 |
) |
Foreign
exchange gain (loss) on cash |
4 |
|
(3 |
) |
|
(4 |
) |
(17 |
) |
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
(99 |
) |
(147 |
) |
|
(53 |
) |
(618 |
) |
Net change in cash classified within assets held for sale |
5 |
|
7 |
|
|
(5 |
) |
(8 |
) |
Balance, beginning of period |
209 |
|
313 |
|
|
173 |
|
799 |
|
Balance, end of period |
$ |
115 |
|
$ |
173 |
|
|
$ |
115 |
|
$ |
173 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended December 31:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
|
Net Income (Loss) |
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
|
|
2019 |
|
2018 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,858 |
|
3,604 |
|
|
|
2,912 |
|
3,065 |
|
|
|
$ |
205 |
|
$ |
238 |
|
|
|
$ |
131 |
|
$ |
164 |
|
|
|
$ |
94 |
|
$ |
121 |
|
|
|
$ |
4 |
|
$ |
59 |
|
Brazil |
817 |
|
902 |
|
|
|
1,009 |
|
996 |
|
|
|
61 |
|
59 |
|
|
|
37 |
|
40 |
|
|
|
31 |
|
33 |
|
|
|
4 |
(2 |
) |
Colombia |
749 |
|
982 |
|
|
|
968 |
|
935 |
|
|
|
63 |
|
56 |
|
|
|
37 |
|
35 |
|
|
|
26 |
|
24 |
|
|
|
16 |
46 |
|
|
4,424 |
|
5,488 |
|
|
|
4,889 |
|
4,996 |
|
|
|
329 |
|
353 |
|
|
|
205 |
|
239 |
|
|
|
151 |
|
178 |
|
|
|
24 |
103 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
779 |
|
808 |
|
|
|
934 |
|
951 |
|
|
|
56 |
|
61 |
|
|
|
43 |
|
48 |
|
|
|
27 |
|
29 |
|
|
|
(20 |
) |
21 |
|
Europe |
241 |
|
264 |
|
|
|
267 |
|
269 |
|
|
|
24 |
|
27 |
|
|
|
17 |
|
30 |
|
|
|
11 |
|
25 |
|
|
|
— |
|
17 |
|
Brazil |
176 |
|
153 |
|
|
|
172 |
|
171 |
|
|
|
10 |
|
9 |
|
|
|
8 |
|
7 |
|
|
|
6 |
|
4 |
|
|
|
3 |
|
2 |
|
Asia |
107 |
|
43 |
|
|
|
104 |
|
37 |
|
|
|
7 |
|
3 |
|
|
|
6 |
|
2 |
|
|
|
3 |
|
2 |
|
|
|
4 |
|
7 |
|
|
1,303 |
|
1,268 |
|
|
|
1,477 |
|
1,428 |
|
|
|
97 |
|
100 |
|
|
|
74 |
|
87 |
|
|
|
47 |
|
60 |
|
|
|
(13 |
) |
47 |
|
Solar |
184 |
|
184 |
|
|
|
195 |
|
178 |
|
|
|
38 |
|
40 |
|
|
|
39 |
|
30 |
|
|
|
22 |
|
15 |
|
|
|
(18 |
) |
14 |
|
Storage &
Other |
66 |
|
112 |
|
|
|
— |
|
— |
|
|
|
21 |
|
23 |
|
|
|
11 |
|
16 |
|
|
|
7 |
|
9 |
|
|
|
1 |
|
4 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
19 |
|
(1 |
) |
|
|
(56 |
) |
(56 |
) |
|
|
(60 |
) |
(77 |
) |
Total |
5,977 |
|
7,052 |
|
|
|
6,561 |
|
6,602 |
|
|
|
$ |
485 |
|
$ |
516 |
|
|
|
$ |
348 |
|
$ |
371 |
|
|
|
$ |
171 |
|
$ |
206 |
|
|
|
$ |
(66 |
) |
$ |
91 |
|
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income attributable to Unitholders is reconciled to FFO and
reconciled to Proportionate Adjusted EBITDA, and earnings per unit
is reconciled to FFO per unit, both for the three months ended
December 31:
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS
NOTED) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Net income attributable to: |
|
|
|
|
|
Limited partners' equity |
$ |
(38 |
) |
$ |
52 |
|
|
$ |
(0.21 |
) |
$ |
0.29 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
— |
|
2 |
|
|
— |
|
— |
|
Participating non-controlling interests - in a holding subsidiary -
Redeemable/Exchangeable units held by Brookfield |
(28 |
) |
37 |
|
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
(66 |
) |
$ |
91 |
|
|
$ |
(0.21 |
) |
$ |
0.29 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
172 |
|
170 |
|
|
0.55 |
|
0.54 |
|
Foreign exchange and unrealized financial instruments loss
(gain) |
(15 |
) |
4 |
|
|
(0.05 |
) |
0.01 |
|
Deferred income tax (recovery) expense |
(29 |
) |
(71 |
) |
|
(0.09 |
) |
(0.23 |
) |
Other |
109 |
|
12 |
|
|
0.35 |
|
0.05 |
|
FFO |
$ |
171 |
|
$ |
206 |
|
|
$ |
0.55 |
|
$ |
0.66 |
|
Distributions attributable
to: |
|
|
|
|
|
Preferred limited partners' equity |
11 |
|
9 |
|
|
|
|
Preferred equity |
7 |
|
6 |
|
|
|
|
Current income taxes |
9 |
|
2 |
|
|
|
|
Interest expense -
borrowings |
115 |
|
132 |
|
|
|
|
Management service costs |
35 |
|
16 |
|
|
|
|
Proportionate Adjusted
EBITDA |
348 |
|
371 |
|
|
|
|
Attributable to non-controlling interests |
202 |
|
233 |
|
|
|
|
Consolidated Adjusted EBITDA |
550 |
|
604 |
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
311.3 |
|
312.2 |
|
(1) Includes GP interest,
Redeemable/Exchangeable partnership units, and LP Units.
PROPORTIONATE RESULTS FOR THE YEAR ENDED
DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the year ended December 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 |
13,118 |
|
13,308 |
|
|
|
12,238 |
|
12,980 |
|
|
|
$ |
905 |
|
$ |
893 |
|
|
|
$ |
632 |
|
$ |
619 |
|
|
|
$ |
469 |
|
$ |
443 |
|
|
|
$ |
150 |
|
$ |
189 |
|
Brazil |
3,707 |
|
3,633 |
|
|
|
3,996 |
|
3,927 |
|
|
|
234 |
|
244 |
|
|
|
181 |
|
173 |
|
|
|
150 |
|
142 |
|
|
|
59 |
|
3 |
|
Colombia |
3,096 |
|
3,364 |
|
|
|
3,488 |
|
3,482 |
|
|
|
237 |
|
216 |
|
|
|
144 |
|
126 |
|
|
|
101 |
|
86 |
|
|
|
72 |
|
87 |
|
|
19,921 |
|
20,305 |
|
|
|
19,722 |
|
20,389 |
|
|
|
1,376 |
|
1,353 |
|
|
|
957 |
|
918 |
|
|
|
720 |
|
671 |
|
|
|
281 |
|
279 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,969 |
|
2,713 |
|
|
|
3,556 |
|
3,169 |
|
|
|
223 |
|
219 |
|
|
|
163 |
|
157 |
|
|
|
94 |
|
93 |
|
|
|
(64 |
) |
(18 |
) |
Europe |
904 |
|
677 |
|
|
|
996 |
|
764 |
|
|
|
95 |
|
73 |
|
|
|
67 |
|
57 |
|
|
|
48 |
|
38 |
|
|
|
(7 |
) |
5 |
|
Brazil |
630 |
|
626 |
|
|
|
647 |
|
645 |
|
|
|
37 |
|
42 |
|
|
|
28 |
|
33 |
|
|
|
19 |
|
24 |
|
|
|
1 |
|
1 |
|
Asia |
291 |
|
160 |
|
|
|
290 |
|
153 |
|
|
|
20 |
|
12 |
|
|
|
16 |
|
8 |
|
|
|
10 |
|
5 |
|
|
|
6 |
|
4 |
|
|
4,794 |
|
4,176 |
|
|
|
5,489 |
|
4,731 |
|
|
|
375 |
|
346 |
|
|
|
274 |
|
255 |
|
|
|
171 |
|
160 |
|
|
|
(64 |
) |
(8 |
) |
Solar |
949 |
|
753 |
|
|
|
978 |
|
724 |
|
|
|
183 |
|
146 |
|
|
|
162 |
|
117 |
|
|
|
103 |
|
72 |
|
|
|
5 |
|
33 |
|
Storage &
Other |
374 |
|
519 |
|
|
|
— |
|
— |
|
|
|
87 |
|
85 |
|
|
|
41 |
|
49 |
|
|
|
27 |
|
32 |
|
|
|
1 |
|
(2 |
) |
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
10 |
|
(16 |
) |
|
|
(260 |
) |
(259 |
) |
|
|
(282 |
) |
(260 |
) |
Total |
26,038 |
|
25,753 |
|
|
|
26,189 |
|
25,844 |
|
|
|
$ |
2,021 |
|
$ |
1,930 |
|
|
|
$ |
1,444 |
|
$ |
1,323 |
|
|
|
$ |
761 |
|
$ |
676 |
|
|
|
$ |
(59 |
) |
$ |
42 |
|
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income attributable to Unitholders is reconciled to FFO and
reconciled to Proportionate Adjusted EBITDA, and earnings per unit
is reconciled to FFO per unit, both for the year ended December
31:
|
|
|
|
Per unit |
(MILLIONS, EXCEPT AS
NOTED) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
Net income (loss) attributable to: |
|
|
|
|
|
Limited partners' equity |
$ |
(34 |
) |
$ |
24 |
|
|
$ |
(0.19 |
) |
$ |
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 |
(25 |
) |
17 |
|
|
— |
|
— |
|
Net income attributable to Unitholders |
$ |
(59 |
) |
$ |
42 |
|
|
$ |
(0.19 |
) |
$ |
0.13 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
650 |
|
630 |
|
|
2.09 |
|
2.02 |
|
Foreign exchange and unrealized financial instruments loss
(gain) |
30 |
|
2 |
|
|
0.10 |
|
0.01 |
|
Deferred income tax (recovery) expense |
(69 |
) |
(85 |
) |
|
(0.22 |
) |
(0.27 |
) |
Other |
209 |
|
87 |
|
|
0.67 |
|
0.27 |
|
FFO |
$ |
761 |
|
$ |
676 |
|
|
$ |
2.45 |
|
$ |
2.16 |
|
Distributions attributable
to: |
|
|
|
|
|
Preferred limited partners' equity |
44 |
|
38 |
|
|
|
|
Preferred equity |
26 |
|
26 |
|
|
|
|
Current income taxes |
35 |
|
17 |
|
|
|
|
Interest expense -
borrowings |
470 |
|
486 |
|
|
|
|
Management service costs |
108 |
|
80 |
|
|
|
|
Proportionate Adjusted
EBITDA |
1,444 |
|
1,323 |
|
|
|
|
Attributable to non-controlling interests |
895 |
|
900 |
|
|
|
|
Consolidated Adjusted EBITDA |
2,339 |
|
2,223 |
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
311.2 |
|
312.6 |
|
(1) Includes GP interest,
Redeemable/Exchangeable partnership units, and LP Units.
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 - Three Months
Ended December 31” and “Reconciliation of Non-IFRS Measures - Year
Ended December 31” above and “Financial Performance Review on
Proportionate Information - Reconciliation of Non-IFRS Measures”
included in our Form 20-F.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
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.
Non-solicitation
No securities regulatory authority has either
approved or disapproved of the contents of this communication. This
communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
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