Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable” or "
BEP") today reported
financial results for the three months ended March 31, 2020.
“We are currently in the midst of an
unprecedented global health and financial crisis,” said Sachin
Shah, CEO of Brookfield Renewable. “In spite of the significant
market volatility and a potentially deep recession, our operations
remain resilient, our earnings are expected to be stable, and our
financial position, which allows us to pursue growth, is in
excellent shape.”
Financial
Results |
|
|
|
|
|
For the period ended March 31 |
|
|
Millions
(except per unit or otherwise noted) |
Three months ended March 31 |
Unaudited |
2020 |
|
2019 |
|
Total generation (GWh) |
|
|
– Long-term average generation |
14,151 |
|
13,493 |
|
– Actual generation |
14,264 |
|
14,125 |
|
Brookfield Renewable's share |
|
|
– Long-term average generation |
6,717 |
|
6,698 |
|
– Actual generation |
7,164 |
|
7,246 |
|
Funds From Operations (FFO)(1) |
$ |
217 |
|
$ |
227 |
|
Per Unit(1)(2) |
0.70 |
|
0.73 |
|
Normalized Funds From Operations (FFO)(1) |
212 |
|
201 |
|
Per Unit(1) |
0.68 |
|
0.65 |
|
Net
Income Attributable to Unitholders |
18 |
|
43 |
|
Per Unit(2) |
0.06 |
|
0.14 |
|
(1) |
Non-IFRS measures. Refer to “Cautionary Statement Regarding
Use of Non-IFRS Measures”. |
(2) |
For the three months ended March 31, 2020, weighted average LP
Units, Redeemable/Exchangeable partnership units and GP interest
totaled 311.3 million (2019: 311.1 million). The actual units
outstanding at March 31, 2020 were 311.3 million (2019: 311.1
million). |
Brookfield Renewable reported FFO of $217
million for the three months ended March 31, 2020, or $212
million on a normalized basis ($0.68 per unit), a 5% increase from
the prior year. After deducting non-cash depreciation, our net
income attributable to unitholders for the three months ended March
31, 2020 was $18 million or $0.06 per unit.
These results were supported by strong asset availability and
execution on our key operating initiatives.
Highlights
- Delivered FFO of $217 million or
$0.68 per unit on a normalized basis, a 5% increase over the prior
year;
- Agreed to merge our subsidiary,
TerraForm Power ("TERP"), into Brookfield Renewable, on an all
stock basis; and
- Maintained robust total available
liquidity of over $3 billion, and raised $1.4 billion from
investment grade financings, including $450 million in corporate
green financings, and $94 million of proceeds through capital
recycling initiatives ($29 million net to BEP)
Results from Operations
During the first quarter, we generated FFO of
$217 million, or $0.70 per unit, reflecting solid performance, as
our operations benefited from strong underlying asset availability
and resource, and growth and efficiency initiatives. On a
normalized basis, our results are up 5% over last year.
Our business continues to benefit from our
growing and diverse generation portfolio, limited off-taker
concentration risk, and a strong contract profile. During the
quarter, overall generation was slightly ahead of long-term average
as we continue to benefit from the diversity of our fleet. Our
focus over the last decade has been to diversify the business
which, over the long-term, mitigates exposure to water, wind and
sun, regional or market disruptions, and potential credit
events.
For example, with over 600 counterparties, we
have a diversified high-quality customer base comprised primarily
of public power authorities and utilities that is insulated from
single counterparty risk. Our single largest non-government
third-party customer represents 2% of generation, providing strong
downside protection and safeguarding our cash flows. Furthermore,
our cash flows are long duration, with a weighted-average remaining
contract length of 14 years. The portfolio is largely contracted,
with 95% of total generation contracted in 2020, meaning our
business does not have meaningful exposure to short-term price
declines from slowing economic activity or lower power demand.
During the quarter, our hydroelectric segment
delivered FFO of $222 million. Our storage segment performed
particularly well, generating $6 million of FFO in the quarter. Our
focus in Latin America continues to be extending the average
duration of our power purchase agreements where power price
volatility provides opportunities to enhance and stabilize future
revenues. In this regard, we signed 17 contracts in the quarter
with high-quality, creditworthy counterparties for a total of 312
gigawatt-hours per year. As a result, today our contract profile
stands at 9 years and 3 years in Brazil and Colombia,
respectively.
In North America, where power prices remain low,
we are focused on securing shorter term contracts at our
hydroelectric facilities to ensure we retain upside optionality for
when we believe prices will improve. Across our hydroelectric fleet
in North America, starting next year we have three contracts
rolling off for assets that primarily deliver power to markets in
the U.S. northeast. Fortunately, these contracts, on a net basis,
deliver power at prices in the range of the current market.
Therefore, on renewal, we expect minimal impact to our overall
revenue. Beyond these contracts, we do not have any material PPA
maturities in North America until 2029.
Our wind and solar segments generated a combined
$62 million of FFO, as we continue to generate stable revenues from
these assets and benefit from the diversification of our fleet and
highly contracted cash flows with long duration power purchase
agreements. We also continue to execute on opportunistic O&M
outsourcing agreements aimed at de-risking our portfolios and,
where appropriate, delivering cost savings. We are in the process
of implementing four such agreements across our portfolio, all of
which provide attractive availability guarantees and a more
comprehensive scope than what is currently in place.
Balance Sheet and Liquidity
Our liquidity position remains robust, with over
$3 billion of total available liquidity. During the quarter, we
bolstered our liquidity position, by executing on key financing and
capital raising initiatives, all while maintaining a low-risk
balance sheet.
Our balance sheet has a BBB+ investment grade
rating, no material maturities over the next five years, an average
overall debt duration of 10 years, and 80% of our financings are
non-recourse to BEP. So far this year, we have executed $1.4
billion of financings across the business, and we continued to
advance our green financing initiatives. We further diversified our
sources of capital by issuing our inaugural green perpetual
preferred units for $200 million at 5.25% in the U.S. market.
Additionally, in early April, we took advantage of strong investor
demand for our offerings by issuing approximately C$350 million of
ten-year corporate green bonds at approximately 3.5%. In aggregate,
we will have completed $2.8 billion in green financing initiatives
over the last two years.
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 quarter, we completed the
sale of our solar assets in Thailand that we had acquired through
our investment in TerraForm Global, for proceeds of $94 million
($29 million net to BEP), allowing us to realize an over 30% return
on our original invested capital.
We also have limited exposure to foreign
exchange volatility as we employ a disciplined hedging strategy
where we hedge developed market exposure and opportunistically
hedge our emerging market exposure, where cost effective. As a
result, 25% of our FFO in 2020 is exposed to foreign currency
volatility, meaning an overall 10% move in the currencies of
markets we operate in (developed or emerging) would have an overall
2.5% impact to our FFO. Indeed, during the quarter, while we saw a
dramatic strengthening of the U.S. dollar versus all the foreign
currencies in which we operate, the impact on our business was $9
million of FFO or less than 4%.
Distribution Declaration
The next quarterly distribution in the amount of
$0.5425 per LP Unit, is payable on June 30, 2020 to unitholders of
record as at the close of business on May 29, 2020. 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 BEP
units are declared in U.S. dollars. Unitholders who are residents
in the United States will receive payment in U.S. dollars and
unitholders who are residents in Canada will receive the Canadian
dollar equivalent unless they request otherwise. The Canadian
dollar equivalent of the quarterly distribution will be based on
the Bank of Canada daily average exchange rate on the record date
or, if the record date falls on a weekend or holiday, on the Bank
of Canada daily average exchange rate of the preceding business
day.
Registered unitholders who are residents in
Canada who wish to receive a U.S. dollar distribution and
registered unitholders who are residents in the United States
wishing to receive the Canadian dollar distribution equivalent
should contact Brookfield Renewable’s transfer agent, Computershare
Trust Company of Canada, in writing at 100 University Avenue, 8th
Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253.
Beneficial unitholders (i.e., those holding their units in street
name with their brokerage) should contact the broker with whom
their units are held.
Distribution Reinvestment
Plan
Brookfield Renewable maintains a Distribution
Reinvestment Plan (“DRIP”) which allows holders of BEP units who
are residents in Canada to acquire additional BEP 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 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 $515 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 |
Cara Silverman |
Senior Vice President - Communications |
Manager - Investor Relations |
(416) 369-8236 |
(416) 649-8172 |
claire.holland@brookfield.com |
cara.silverman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2020 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 6, 2020, 2020 at 9:00 a.m. Eastern Time
at https://edge.media-server.com/mmc/p/z8d43nof 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, 9254309. A recording of the teleconference can be
accessed through May 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, 9254309.
BROOKFIELD RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
UNAUDITED |
March 31 |
|
December 31 |
|
(MILLIONS) |
|
2020 |
|
|
|
|
2019 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
294 |
|
|
$ |
115 |
|
Trade receivables and other financial assets |
|
1,268 |
|
|
1,172 |
|
Equity-accounted investments |
|
1,791 |
|
|
1,889 |
|
Property, plant and equipment, at fair value |
|
27,873 |
|
|
30,714 |
|
Goodwill |
|
662 |
|
|
821 |
|
Deferred income tax and other assets |
|
775 |
|
|
980 |
|
Total Assets |
|
$ |
32,663 |
|
|
$ |
35,691 |
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,002 |
|
|
$ |
2,100 |
|
|
|
|
|
|
Borrowings which have recourse only to assets they finance |
|
8,269 |
|
|
8,904 |
|
Accounts payable and other liabilities |
|
1,940 |
|
|
2,019 |
|
Deferred income tax liabilities |
|
4,095 |
|
|
4,537 |
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
7,760 |
|
|
$ |
8,742 |
|
|
General partnership interest held by Brookfield |
60 |
|
|
68 |
|
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
2,923 |
|
|
3,315 |
|
|
Preferred equity |
551 |
|
|
597 |
|
|
Preferred limited partners' equity |
1,028 |
|
|
833 |
|
|
Limited partners' equity |
$ |
4,035 |
|
16,357 |
|
$ |
4,576 |
|
18,131 |
|
Total Liabilities and Equity |
|
$ |
32,663 |
|
|
$ |
35,691 |
|
|
|
|
|
|
|
|
|
|
|
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF INCOME |
UNAUDITED |
|
FOR THE THREE MONTHS ENDED
MARCH 31 |
|
(MILLIONS, EXCEPT AS
NOTED) |
2020 |
|
2019 |
|
Revenues |
$ |
792 |
|
$ |
825 |
|
Other income |
10 |
|
8 |
|
Direct operating costs |
(261 |
) |
(254 |
) |
Management service costs |
(31 |
) |
(21 |
) |
Interest expense –
borrowings |
(162 |
) |
(173 |
) |
Share of (loss) earnings from
equity-accounted investments |
(16 |
) |
32 |
|
Foreign exchange and
unrealized financial instrument gain (loss) |
20 |
|
(18 |
) |
Depreciation |
(206 |
) |
(200 |
) |
Other |
(8 |
) |
(2 |
) |
Income tax expense |
|
|
Current |
(19 |
) |
(24 |
) |
Deferred |
1 |
|
(20 |
) |
|
(18 |
) |
(44 |
) |
Net income |
$ |
120 |
|
$ |
153 |
|
Net income attributable to: |
|
|
Non-controlling interests: |
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
83 |
|
$ |
94 |
|
General partnership interest held by Brookfield |
— |
|
— |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
8 |
|
18 |
|
Preferred equity |
7 |
|
6 |
|
Preferred limited partners' equity |
12 |
|
10 |
|
Limited partners' equity |
10 |
|
25 |
|
|
$ |
120 |
|
$ |
153 |
|
Basic and diluted earnings per LP Unit |
$ |
0.06 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
BROOKFIELD
RENEWABLE PARTNERS L.P. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
UNAUDITED |
|
|
|
|
|
|
THREE
MONTHS ENDED MARCH 31(MILLIONS) |
2020 |
|
2019 |
|
Operating
activities |
|
|
Net income |
$ |
120 |
|
$ |
153 |
|
Adjustments for the following
non-cash items: |
|
|
Depreciation |
206 |
|
200 |
|
Unrealized foreign exchange and financial instrument loss |
(21 |
) |
20 |
|
Share of earnings from equity-accounted investments |
16 |
|
(32 |
) |
Deferred income tax expense |
(1 |
) |
20 |
|
Other non-cash items |
22 |
|
17 |
|
Net
change in working capital |
13 |
|
(11 |
) |
|
355 |
|
367 |
|
Financing
activities |
|
|
Commercial paper and corporate
credit facilities, net |
39 |
|
(696 |
) |
Non-recourse borrowings,
net |
(95 |
) |
5 |
|
Capital contributions from
participating non-controlling interests – in operating
subsidiaries |
7 |
|
247 |
|
Issuance of preferred limited
partnership units |
195 |
|
126 |
|
Repurchase of LP Units |
— |
|
(1 |
) |
Distributions paid: |
|
|
To participating non-controlling interests - in
operating subsidiaries |
(77 |
) |
(134 |
) |
To preferred shareholders |
(7 |
) |
(6 |
) |
To preferred limited partners' unitholders |
(11 |
) |
(9 |
) |
To unitholders of Brookfield Renewable or BRELP |
(182 |
) |
(171 |
) |
Borrowings from related party,
net |
— |
|
355 |
|
|
(131 |
) |
(284 |
) |
Investing
activities |
|
|
Investment in property, plant
and equipment |
(53 |
) |
(29 |
) |
Disposal of subsidiaries,
associates and other securities, net |
84 |
|
5 |
|
Restricted cash and other |
(60 |
) |
(55 |
) |
|
(29 |
) |
(79 |
) |
Foreign
exchange gain (loss) on cash |
(12 |
) |
— |
|
Cash and cash equivalents |
|
|
Increase (decrease) |
183 |
|
4 |
|
Net change in cash classified within assets held for sale |
(4 |
) |
— |
|
Balance, beginning of period |
115 |
|
173 |
|
Balance, end of period |
$ |
294 |
|
$ |
177 |
|
|
|
|
|
|
|
|
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) |
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
3,722 |
|
3,849 |
|
|
|
3,233 |
|
3,300 |
|
|
|
$ |
265 |
|
$ |
262 |
|
|
|
$ |
198 |
|
$ |
195 |
|
|
|
$ |
156 |
|
$ |
152 |
|
|
|
$ |
76 |
|
$ |
67 |
|
Brazil |
1,227 |
|
1,090 |
|
|
|
988 |
|
980 |
|
|
|
61 |
|
65 |
|
|
|
47 |
|
49 |
|
|
|
41 |
|
40 |
|
|
|
25 |
17 |
|
Colombia |
709 |
|
765 |
|
|
|
798 |
|
798 |
|
|
|
60 |
|
62 |
|
|
|
36 |
|
38 |
|
|
|
25 |
|
26 |
|
|
|
23 |
20 |
|
|
5,658 |
|
5,704 |
|
|
|
5,019 |
|
5,078 |
|
|
|
386 |
|
389 |
|
|
|
281 |
|
282 |
|
|
|
222 |
|
218 |
|
|
|
124 |
104 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
831 |
|
850 |
|
|
|
944 |
|
960 |
|
|
|
60 |
|
63 |
|
|
|
48 |
|
48 |
|
|
|
29 |
|
29 |
|
|
|
(12 |
) |
4 |
|
Europe |
221 |
|
274 |
|
|
|
253 |
|
308 |
|
|
|
22 |
|
28 |
|
|
|
13 |
|
20 |
|
|
|
11 |
|
17 |
|
|
|
(11 |
) |
11 |
|
Brazil |
68 |
|
106 |
|
|
|
126 |
|
119 |
|
|
|
4 |
|
7 |
|
|
|
3 |
|
5 |
|
|
|
1 |
|
2 |
|
|
|
(3 |
) |
(3 |
) |
Asia |
90 |
|
39 |
|
|
|
100 |
|
38 |
|
|
|
6 |
|
2 |
|
|
|
5 |
|
1 |
|
|
|
3 |
|
1 |
|
|
|
2 |
|
(1 |
) |
|
1,210 |
|
1,269 |
|
|
|
1,423 |
|
1,425 |
|
|
|
92 |
|
100 |
|
|
|
69 |
|
74 |
|
|
|
44 |
|
49 |
|
|
|
(24 |
) |
11 |
|
Solar |
240 |
|
199 |
|
|
|
275 |
|
195 |
|
|
|
49 |
|
38 |
|
|
|
36 |
|
32 |
|
|
|
18 |
|
18 |
|
|
|
(10 |
) |
9 |
|
Storage &
Other |
56 |
|
74 |
|
|
|
— |
|
— |
|
|
|
18 |
|
24 |
|
|
|
8 |
|
11 |
|
|
|
6 |
|
7 |
|
|
|
1 |
|
— |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
(3 |
) |
(4 |
) |
|
|
(73 |
) |
(65 |
) |
|
|
(73 |
) |
(81 |
) |
Total |
7,164 |
|
7,246 |
|
|
|
6,717 |
|
6,698 |
|
|
|
$ |
545 |
|
$ |
551 |
|
|
|
$ |
391 |
|
$ |
395 |
|
|
|
$ |
217 |
|
$ |
227 |
|
|
|
$ |
18 |
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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) |
2020 |
|
|
2019 |
|
|
2020 |
|
2019 |
|
Net income attributable to: |
|
|
|
|
|
|
Limited partners' equity |
$ |
10 |
|
|
$ |
25 |
|
|
$ |
0.06 |
|
$ |
0.14 |
|
General partnership interest held by Brookfield |
— |
|
|
— |
|
|
— |
|
— |
|
Participating non-controlling interests – Redeemable/Exchangeable
units held by Brookfield |
8 |
|
|
18 |
|
|
— |
|
— |
|
Net income attributable to
Unitholders |
$ |
18 |
|
|
$ |
43 |
|
|
$ |
0.06 |
|
$ |
0.14 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
172 |
|
|
157 |
|
|
0.55 |
|
0.50 |
|
Foreign exchange and unrealized financial instruments loss |
1 |
|
|
18 |
|
|
— |
|
0.06 |
|
Deferred income tax expense (recovery) |
6 |
|
|
(24 |
) |
|
0.02 |
|
(0.08 |
) |
Other |
20 |
|
|
33 |
|
|
0.07 |
|
0.11 |
|
FFO |
$ |
217 |
|
|
$ |
227 |
|
|
$ |
0.70 |
|
$ |
0.73 |
|
Distributions attributable
to: |
|
|
|
|
|
|
Preferred limited partners' equity |
12 |
|
|
10 |
|
|
|
|
Preferred equity |
7 |
|
|
6 |
|
|
|
|
Current income taxes |
11 |
|
|
10 |
|
|
|
|
Interest expense –
borrowings |
113 |
|
|
121 |
|
|
|
|
Management service costs |
31 |
|
|
21 |
|
|
|
|
Proportionate Adjusted
EBITDA |
$ |
391 |
|
|
$ |
395 |
|
|
|
|
Attributable to non-controlling interests |
227 |
|
|
257 |
|
|
|
|
Consolidated Adjusted EBITDA |
$ |
618 |
|
|
$ |
652 |
|
|
|
|
Weighted average units outstanding(1) |
|
|
|
|
311.3 |
|
311.1 |
|
(1)
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 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) our inability to identify sufficient investment
opportunities and complete transactions, including the proposed
TERP acquisition; uncertainties as to whether TERP’s stockholders
not affiliated with Brookfield Renewable will approve any
transaction; uncertainties as to whether the other conditions to
the TERP acquisition will be satisfied or satisfied on the
anticipated schedule; the growth of our portfolio and our inability
to realize the expected benefits of our transactions or
acquisitions, including the proposed TERP acquisition; 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 and other risks and factors that are described
therein and that are described in the Brookfield Renewable's and
BEPC's registration statement on Form F-1/F-4 filed in connection
with the distribution of BEPC’s class A shares and the TERP
acquisition and the preliminary prospectus filed with the
securities regulators in Canada qualifying 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, FFO per Unit, Normalized FFO and Normalized
FFO per Unit, which are not generally accepted accounting measures
under IFRS and therefore may differ from definitions of Adjusted
EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per
Unit used by other entities. We believe that Adjusted EBITDA, FFO,
FFO per Unit, Normalized FFO and Normalized FFO per Unit are useful
supplemental measures that may assist investors in assessing the
financial performance and the cash anticipated to be generated by
our operating portfolio. None of Adjusted EBITDA, FFO, FFO per
Unit, Normalized FFO and Normalized FFO per Unit should be
considered as the sole measure of our performance and should not be
considered in isolation from, or as a substitute for, analysis of
our financial statements prepared in accordance with IFRS. For a
reconciliation of 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, 2020. Normalized FFO assumes long-term
average generation in North America and Europe and uses 2019
foreign currency rates and management service costs. For the three
months ended March 31, 2020, the change related to long-term
average generation which totaled $(24) million (2019: $(26)
million) and the change to foreign currency and management service
costs which totaled $9 million and $10 million, respectively.
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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