Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield Renewable
Partners”, "
BEP") today reported
financial results for the three and six months ended June 30,
2021.
“We had a strong quarter, as we delivered solid
financial results and executed on a number of key strategic
initiatives including securing a 25-year contract-for-difference to
support almost 1.5 gigawatts of offshore wind, initiated one of the
largest onshore wind repowerings in the world, and entered a
strategic collaboration with the world's largest corporate buyer of
renewable power,” said Connor Teskey, CEO of Brookfield Renewable.
“This broad range of transactions and agreements highlight the
unique strengths of our business. We continue to see attractive
large-scale opportunities leveraging our strengths to participate
in the accelerating build out of renewables and the transition of
existing generation to cleaner forms of electricity
production.”
Financial
Results |
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Millions
(except per unit or otherwise noted) |
|
For the three months endedJune
30 |
For the six months endedJune
30 |
Unaudited |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Total generation (GWh) |
|
|
|
|
|
|
|
|
– Long-term average generation |
|
16,092 |
|
|
|
15,527 |
|
|
|
30,191 |
|
|
|
29,678 |
|
|
– Actual generation |
|
14,683 |
|
|
|
13,264 |
|
|
|
28,511 |
|
|
|
27,528 |
|
|
Brookfield Renewable Partner's share (GWh) |
|
|
|
|
|
|
|
|
– Long-term average generation |
|
8,356 |
|
|
|
7,309 |
|
|
|
15,958 |
|
|
|
14,026 |
|
|
– Actual generation |
|
7,013 |
|
|
|
6,552 |
|
|
|
14,388 |
|
|
|
13,716 |
|
|
Net loss
attributable to Unitholders |
$ |
(63 |
) |
|
$ |
(42 |
) |
|
$ |
(196 |
) |
|
$ |
(22 |
) |
|
Per LP unit(1) |
|
(0.13 |
) |
|
|
(0.11 |
) |
|
|
(0.37 |
) |
|
|
(0.10 |
) |
|
Funds
From Operations (FFO)(2) |
|
268 |
|
|
|
232 |
|
|
|
510 |
|
|
|
449 |
|
|
Per Unit(2)(3) |
|
0.42 |
|
|
|
0.40 |
|
|
|
0.79 |
|
|
|
0.77 |
|
|
Normalized Funds From Operations (FFO)(2)(4) |
|
340 |
|
|
|
251 |
|
|
|
597 |
|
|
|
443 |
|
|
Per Unit(2)(3)(4) |
|
0.53 |
|
|
|
0.43 |
|
|
|
0.92 |
|
|
|
0.76 |
|
|
(1) |
|
For the three and six months ended June 30, 2021, average LP
units totaled 274.9 million and 274.9 million, respectively
(2020: 268.5 million and 268.5 million, respectively). |
(2) |
|
Non-IFRS measures. Refer to “Cautionary Statement Regarding
Use of Non-IFRS Measures”. |
(3) |
|
Average Units outstanding for the three and six months ended
June 30, 2021 were 645.6 million and 645.5 million,
respectively (2020: 583.8 million and 583.7 million,
respectively), being inclusive of our LP units,
Redeemable/Exchangeable partnership units, BEPC exchangeable shares
and general partner interest. The actual Units outstanding at
June 30, 2021 were 645.6 million (2020: 467.0 million). |
(4) |
|
Normalized FFO assumes long-term average generation in all segments
except the Brazil and Colombia hydroelectric segments and uses 2020
foreign currency rates. For the three and six months ended June 30,
2021, the change related to long-term average generation totaled
$85 million and $97 million, respectively (2020: $19 million and
$(6) million, respectively) and the change related to foreign
currency totaled $(13) million and $(10) million,
respectively. |
Brookfield Renewable reported FFO of $268
million or $0.42 per Unit for the three months ended June 30,
2021, a 5% increase from prior year, and $340 million or $0.53 per
Unit on a normalized basis, a 23% increase from the prior year.
After deducting depreciation and one-time non-cash charges, our Net
loss attributable to Unitholders for the three months ended
June 30, 2021
was $63 million or $0.13 per LP unit.
Highlights
- Generated FFO of $268 million, or
$0.42 per unit, a 23% increase on a normalized per unit basis over
the same period in the prior year as our assets continue to perform
well with high levels of asset availability, and we benefit from
growth from new acquisitions and development assets coming
online;
- We signed 28 agreements for
approximately 800 GWh of renewable generation with corporate
off-takers across all major industries. Our momentum with corporate
contracting continues to grow and demonstrates our leadership in a
rapidly growing industry trend;
- Progressed approximately 7,500
megawatts of development projects through construction and advanced
stage permitting. We also added approximately 4,000 megawatts to
our global development pipeline, which is now approximately 31,000
megawatts;
- Invested or agreed to invest
approximately $1.9 billion (approximately $500 million net to
Brookfield Renewable) of equity across a range of transactions
year-to-date;
- Our balance sheet remains robust
with almost $3.3 billion of available liquidity and no meaningful
near-term maturities; and
- Raised approximately $1.3 billion
(over $650 million net to Brookfield Renewable) from asset
recycling and strategic upfinancing activities this year.
Update on Growth
Initiatives
As more capital continues to flow into renewable
energy and decarbonization solutions, our approach to growth will
continue to favor opportunities that allow us to utilize our
strengths – investing for value and leveraging our operating
capabilities to drive cashflow growth. We recently executed several
agreements and transactions that highlight this approach.
In June, we commenced the repowering of the
fully contracted 845-megawatt Shepherds Flat wind project, which we
acquired earlier this year. Shepherds Flat, located in the United
States, is one of the largest repowering projects in the world. We
will replace the turbine hardware with longer rotors and more
efficient equipment while maintaining the rest of the
infrastructure. This is expected to increase production by
approximately 25%, generating 400 gigawatt hours of additional
clean energy annually, while meaningfully extending the asset’s
useful life. Furthermore, given that it costs only a fraction of a
comparable greenfield project and the enhanced generation can
support a more robust capital structure, the repowering requires no
additional equity investment from us, generating attractive
mid-to-high teens returns on this investment.
This repowering is an example of how we
capitalize on our competitive advantages in the current market
environment. By the time we complete the repowering by the end of
2022, it is expected that 320 turbines will have been retrofitted
with almost 130 meter rotors and other technologically advanced
equipment, as we continue to deliver power and receive revenues
under the power purchase agreement. Doing so requires the
combination of our operating capabilities as well as our position
as one of the leading renewable power platforms in the world. We
are leveraging our existing relationships with equipment suppliers,
financing partners, and power offtakes to largely de-risk this
project.
With an estimated 200 gigawatts of global wind
capacity reaching 15 years of age within the next five years, the
global market for repowerings is large – Shepherds Flat is by no
means the only opportunity – and is only one segment where we
continue to grow our business at attractive returns. Given our
global reach and operating capabilities, we expect to capitalize on
scale opportunities to repower other facilities, both across our
existing portfolio as well as those we acquire, to deliver
attractive returns for our investors.
This quarter, we signed a strategic
collaboration agreement with Amazon to develop new renewable energy
projects supported by power purchase agreements and to work
together on additional green energy opportunities in the future.
This agreement, with the world’s largest corporate buyer of
renewable power, will leverage our deep operating capabilities and
local teams in North America, Europe, Brazil, and Asia to support
the construction of projects from our 31,000 megawatt global
development pipeline. We are excited to collaborate with Amazon and
support them in achieving their climate goals and the transition of
global electricity grids to greener energy.
We also agreed with Trane Technologies, a global
climate innovator, to jointly pursue and offer
decarbonization-as-a-service for commercial, industrial, and public
sector customers, comprising energy efficient retrofits and
upgrades of building energy infrastructure along with captive
distributed solar, energy storage and other power generation across
North America. The agreement leverages our leading U.S. distributed
generation business and Trane’s leading energy efficiency and
technical, engineering, construction and project development
experience to jointly develop and implement new customer
opportunities. The innovative decarbonization solutions provided
will help customers meet sustainability targets while reducing
operating costs through upgrading critical energy infrastructure
and installing onsite renewable energy.
At our Polish renewable business, we made
significant progress on our development activities. We secured a
25-year contract to support the buildout of almost 1.5 gigawatts of
offshore projects at a very attractive price, escalating with
inflation, with no basis or curtailment risk. As we have stated
previously, we believe these are the most attractive contract
structures available in the global offshore sector. We are now
focused on executing construction activities, with the goal of
delivering the facilities starting in 2025. In addition, we are on
track to deliver our 200-megawatt under construction onshore wind
portfolio by next year and are advancing opportunities to grow our
onshore wind and solar footprint in the country. To fund these
growth activities, shareholders have agreed to the capital increase
required over the next two years, providing the framework for us to
invest an additional €150 million (approximately $50 million net to
Brookfield Renewable) and increase our stake in the business to
almost 40%.
In Brazil, our construction activities continue
to progress on budget and schedule across our almost 2-gigawatt
portfolio of under construction solar projects. Recently, we
completed construction activities at our approximately 300-megawatt
project ahead of schedule and under budget. Our global procurement
platform and construction capabilities have positioned us well and
we are on track to deliver an additional approximately 900
megawatts of fully contracted projects in 2022.
Alongside Apple’s China Renewable Energy Fund,
which was raised by Apple and its suppliers to advance their
collective transition to net zero in the country, we agreed to
acquire a 55% stake in a 213-megawatt high quality, contracted
portfolio of wind assets in China for ~$60 million ($15 million net
to Brookfield Renewable). This transaction continues to expand and
diversify our platform in China, providing a path to continue to
prudently grow our capacity in the country. The acquisition is
expected to close in the third quarter.
In India, we agreed to invest $130 million ($35
million net to Brookfield Renewable), totaling 900 megawatts of
capacity across two transactions. The first is with a local solar
developer from whom we acquired assets in 2019. We will acquire a
450-megawatt fully contracted ready-to-build solar project. The
opportunity is a part of a 1.7-gigawatt pipeline that we are
developing in a joint venture with them, where they undertake
development activities, and we have the option to acquire the
projects once they are fully permitted and ready to begin
construction. The second is with a large Indian solar developer
that was one of the underlying borrowers in a portfolio of loans we
acquired in late 2020. The investment gives us the right to acquire
a 450-megawatt fully contracted solar project one year following
commissioning once the project has been substantially
de-risked.
Brookfield Renewable Corporation
(BEPC)
It has been 12 months since we spun out our
corporate entity, Brookfield Renewable Corporation (BEPC). In that
time, it has achieved many of the goals we set at launch including
welcoming almost 250 new institutional investors and the addition
to many indices including the Russell 1000, the MSCI Canada and the
S&P Global Clean Energy Index. We were able to offer BEPC
shares as consideration in the privatization of TerraForm Power and
expanded the public float since launch by approximately 300%. We
are pleased with the positive market reception. Looking forward, we
expect that BEPC will continue to offer investors an additional way
to access our globally leading portfolio of renewable and
decarbonization assets, broadening our investor base and enhancing
the liquidity of our securities.
Results from Operations
During the second quarter, we generated FFO of
$268 million, or $0.42 per unit, as our business benefited from
recent acquisitions, strong asset availability, and margin
enhancing initiatives. On a normalized basis, our per unit results
were up 23% year-over-year.
During the quarter, our hydroelectric segment
delivered FFO of $154 million. Despite generation for the quarter
coming in below the long-term average, the portfolio continues to
exhibit strong cash flow resiliency given the increasingly
diversified asset base and contract profile. As we have reiterated
previously, resource cyclicality is expected but does not impact
how we manage the business. Our focus remains on mitigating
exposure to any single resource, market, or counterparty by
continuously diversifying and contracting the business while
prudently managing the assets. Securing contracts that value the
uniqueness of our fleet as a generator of dispatchable clean
electricity and ancillary services further bolsters our portfolio
against inevitable variability.
Brazil has been impacted by a drier than normal
rainy season, particularly in the Southeastern region of the
country, and reservoirs are well below long-term average. As a
result, spot prices have increased significantly, as the grid
operator has been forced to dispatch higher priced thermal
generation, and there is modest risk of energy rationing. Our
portfolio is well positioned in this environment. We have little to
no risk of being short of our power delivery obligations for the
rest of this year and 2022, and we could potentially realize very
strong pricing on contracts we sign for next year.
Our wind and solar segments generated a combined
$178 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. Further, to take advantage of the strong pricing
environment in Brazil, we executed on a regulatory mechanism to
uncontract our generation for 2022 from our approximately
300-megawatt solar project. Concurrently, we executed on new
contracts for this generation in the free market at double the
power purchase agreement price, generating an additional R$135
million (US$27 million) of revenue from the project.
Our energy transition segment generated $44
million of FFO during the quarter as our portfolio continues to
grow while we assist commercial and industrial partners achieve
their decarbonization goals and provide critical grid-stabilizing
ancillary services and back-up capacity required to address the
increasing intermittency of greener electricity grids.
Balance Sheet and Liquidity
Our financial position continues to be strong.
We have approximately $3.3 billion of available liquidity, our
investment grade balance sheet has no meaningful near-term
maturities, and approximately 90% of our financings are
non-recourse to Brookfield Renewable. Recently, Fitch initiated
coverage of our business, assigning a BBB+ rating, which is
consistent with our existing rating from S&P.
During the quarter, we continued to take
advantage of the low interest rate environment and executed on
approximately $1.5 billion of investment grade financings and
upfinancings across the business. We also continued to execute on
several initiatives to further bolster our liquidity and support
growth. Recently, we raised over $850 million (approximately $410
million net to Brookfield Renewable) of equity proceeds from
capital recycling initiatives. Looking forward, we expect to
continue to generate meaningful proceeds from strategic upfinancing
and capital recycling initiatives, so we are not reliant on capital
markets to fund the growth of our business.
Distribution Declaration
The next quarterly distribution in the amount of
$0.30375 per LP unit, is payable on September 29, 2021 to
unitholders of record as at the close of business on August 31,
2021. In conjunction with the Partnership’s distribution
declaration, the Board of Directors of BEPC has declared an
equivalent quarterly dividend of $0.30375 per share, also payable
on September 29, 2021 to shareholders of record as at the close of
business on August 31, 2021. Brookfield Renewable targets a
sustainable distribution with increases targeted on average at 5%
to 9% annually.
The quarterly dividends on BEP's preferred
shares and preferred LP units have also been declared.
Distribution Currency
Option
The quarterly distributions payable on the BEP
units and BEPC shares 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 Partners maintains a
Distribution Reinvestment Plan (“DRIP”) which allows holders of BEP
units who are residents 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
www.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 www.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 20,000 megawatts of installed capacity and an
approximately 31,000 megawatt development pipeline. Investors can
access its portfolio either through Brookfield Renewable Partners
L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership,
or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian
corporation. 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 $625 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 |
Senior Vice President - Communications |
Senior Vice President - Investor Relations |
(416) 369-8236 |
(416) 649-8172 |
claire.holland@brookfield.com |
robin.kooyman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s 2021 Second 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 August 5, 2021 at 11:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/i5rvi5om 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 10:50 a.m. Eastern Time. When prompted, enter the
conference ID, 7282435. A recording of the teleconference can be
accessed through August 12, 2021 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, 7282435.
Brookfield Renewable Partners L.P. |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED |
June 30 |
December 31 |
(MILLIONS) |
2021 |
2020 |
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
530 |
|
|
|
|
$ |
431 |
|
Trade receivables and other financial assets |
|
|
|
2,015 |
|
|
|
|
1,661 |
|
Equity-accounted investments |
|
|
|
979 |
|
|
|
|
971 |
|
Property, plant and equipment, at fair value |
|
|
|
44,646 |
|
|
|
|
44,590 |
|
Goodwill |
|
|
|
998 |
|
|
|
|
970 |
|
Deferred income tax and other assets |
|
|
|
1,953 |
|
|
|
|
1,099 |
|
Total Assets |
|
|
|
$ |
51,121 |
|
|
|
|
$ |
49,722 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Corporate borrowings |
|
|
|
$ |
2,191 |
|
|
|
|
$ |
2,135 |
|
Borrowings which have recourse only to assets they finance |
|
|
|
17,186 |
|
|
|
|
15,947 |
|
Accounts payable and other liabilities |
|
|
|
4,864 |
|
|
|
|
4,358 |
|
Deferred income tax liabilities |
|
|
|
5,149 |
|
|
|
|
5,515 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
11,644 |
|
|
$ |
11,100 |
|
|
General partnership interest in a holding subsidiary held by
Brookfield |
50 |
|
|
56 |
|
|
Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
2,439 |
|
|
2,721 |
|
|
BEPC exchangeable shares |
2,159 |
|
|
2,408 |
|
|
Preferred equity |
624 |
|
|
609 |
|
|
Perpetual subordinated notes |
340 |
|
|
— |
|
|
Preferred limited partners' equity |
1,028 |
|
|
1,028 |
|
|
Limited partners' equity |
3,447 |
|
21,731 |
|
3,845 |
|
21,767 |
|
Total Liabilities and Equity |
|
|
|
$ |
51,121 |
|
|
|
|
$ |
49,722 |
|
Brookfield Renewable Partners L.P. |
Consolidated Statements of Operating Results |
UNAUDITED |
For the three months endedJune
30 |
|
For the six months endedJune
30 |
(MILLIONS, EXCEPT AS NOTED) |
2021 |
2020 |
|
2021 |
2020 |
Revenues |
$ |
1,019 |
|
|
$ |
942 |
|
|
|
$ |
2,039 |
|
|
$ |
1,991 |
|
|
Other income |
178 |
|
|
24 |
|
|
|
205 |
|
|
39 |
|
|
Direct operating costs |
(307 |
) |
|
(310 |
) |
|
|
(698 |
) |
|
(636 |
) |
|
Management service costs |
(72 |
) |
|
(46 |
) |
|
|
(153 |
) |
|
(86 |
) |
|
Interest expense |
(246 |
) |
|
(261 |
) |
|
|
(479 |
) |
|
(500 |
) |
|
Share of earnings (losses)
from equity-accounted investments |
2 |
|
|
(1 |
) |
|
|
7 |
|
|
1 |
|
|
Foreign exchange and financial
instrument gain (loss) |
(47 |
) |
|
(46 |
) |
|
|
1 |
|
|
(26 |
) |
|
Depreciation |
(379 |
) |
|
(324 |
) |
|
|
(747 |
) |
|
(661 |
) |
|
Other |
(36 |
) |
|
(3 |
) |
|
|
(135 |
) |
|
(15 |
) |
|
Income tax recovery
(expense) |
|
|
|
|
|
Current |
(22 |
) |
|
4 |
|
|
|
(38 |
) |
|
(16 |
) |
|
Deferred |
20 |
|
|
11 |
|
|
|
53 |
|
|
(12 |
) |
|
Net income (loss) |
$ |
110 |
|
|
$ |
(10 |
) |
|
|
$ |
55 |
|
|
$ |
79 |
|
|
Net
loss attributable to preferred equity, perpetual subordinated notes
and non-controlling interests in operating subsidiaries |
$ |
(173 |
) |
|
$ |
(32 |
) |
|
|
(251 |
) |
|
(101 |
) |
|
Net
loss attributable to Unitholders |
(63 |
) |
|
(42 |
) |
|
|
$ |
(196 |
) |
|
$ |
(22 |
) |
|
Basic
and diluted loss per LP unit |
$ |
(0.13 |
) |
|
$ |
(0.11 |
) |
|
|
$ |
(0.37 |
) |
|
$ |
(0.10 |
) |
|
Brookfield Renewable Partners L.P. |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
For the three months endedJune
30 |
|
For the six months endedJune
30 |
UNAUDITED(MILLIONS) |
2021 |
2020 |
|
2021 |
2020 |
Operating
activities |
|
|
|
|
|
Net income (loss) |
$ |
110 |
|
|
$ |
(10 |
) |
|
|
$ |
55 |
|
|
$ |
79 |
|
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
379 |
|
|
324 |
|
|
|
747 |
|
|
661 |
|
|
Unrealized foreign exchange and financial instrument loss |
58 |
|
|
45 |
|
|
|
31 |
|
|
25 |
|
|
Share of loss (earnings) from equity-accounted investments |
(2 |
) |
|
1 |
|
|
|
(7 |
) |
|
(1 |
) |
|
Deferred income tax expense (recovery) |
(20 |
) |
|
(11 |
) |
|
|
(53 |
) |
|
12 |
|
|
Other non-cash items |
(134 |
) |
|
26 |
|
|
|
(120 |
) |
|
41 |
|
|
Net
change in working capital and other |
(391 |
) |
|
(1 |
) |
|
|
(302 |
) |
|
16 |
|
|
|
— |
|
|
374 |
|
|
|
351 |
|
|
833 |
|
|
Financing
activities |
|
|
|
|
|
Net corporate borrowings |
— |
|
|
250 |
|
|
|
— |
|
|
250 |
|
|
Commercial paper and corporate
credit facilities, net |
— |
|
|
(197 |
) |
|
|
(3 |
) |
|
(159 |
) |
|
Non-recourse borrowings,
net |
236 |
|
|
4 |
|
|
|
910 |
|
|
(7 |
) |
|
Capital contributions from
participating non-controlling interests – in operating
subsidiaries, net |
(19 |
) |
|
(59 |
) |
|
|
795 |
|
|
(50 |
) |
|
Issuance of perpetual
subordinated notes |
340 |
|
|
— |
|
|
|
340 |
|
|
195 |
|
|
Distributions paid: |
|
|
|
|
|
To participating non-controlling interests - in operating
subsidiaries |
(262 |
) |
|
(150 |
) |
|
|
(380 |
) |
|
(284 |
) |
|
To preferred shareholders & limited partners' unitholders |
(21 |
) |
|
(18 |
) |
|
|
(42 |
) |
|
(36 |
) |
|
To unitholders of Brookfield Renewable or BRELP |
(213 |
) |
|
(183 |
) |
|
|
(429 |
) |
|
(365 |
) |
|
Borrowings from related party, net |
(25 |
) |
|
— |
|
|
|
220 |
|
|
— |
|
|
|
36 |
|
|
(353 |
) |
|
|
1,411 |
|
|
(456 |
) |
|
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
2 |
|
|
1 |
|
|
|
(1,426 |
) |
|
(105 |
) |
|
Investment in property, plant
and equipment |
(244 |
) |
|
(79 |
) |
|
|
(533 |
) |
|
(144 |
) |
|
Disposal of subsidiaries,
associates and other securities, net |
396 |
|
|
(67 |
) |
|
|
398 |
|
|
14 |
|
|
Restricted cash and other |
(28 |
) |
|
64 |
|
|
|
(78 |
) |
|
14 |
|
|
|
126 |
|
|
(81 |
) |
|
|
(1,639 |
) |
|
(221 |
) |
|
Foreign
exchange gain (loss) on cash |
5 |
|
|
4 |
|
|
|
(6 |
) |
|
(11 |
) |
|
Cash and cash
equivalents |
|
|
|
|
|
Increase (decrease) |
167 |
|
|
(56 |
) |
|
|
117 |
|
|
145 |
|
|
Net change in cash classified within assets held for sale |
5 |
|
|
(4 |
) |
|
|
(18 |
) |
|
(8 |
) |
|
Balance, beginning of period |
358 |
|
|
549 |
|
|
|
431 |
|
|
352 |
|
|
Balance, end of period |
$ |
530 |
|
|
$ |
489 |
|
|
|
$ |
530 |
|
|
$ |
489 |
|
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED JUNE 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended June 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
|
Net Income (Loss) |
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,450 |
|
3,476 |
|
|
|
3,580 |
|
3,580 |
|
|
|
$ |
190 |
|
$ |
217 |
|
|
|
$ |
128 |
|
$ |
165 |
|
|
|
$ |
90 |
|
$ |
137 |
|
|
|
|
$ |
(16 |
) |
$ |
7 |
|
Brazil |
1,112 |
|
924 |
|
|
|
998 |
|
998 |
|
|
|
45 |
|
39 |
|
|
|
33 |
|
35 |
|
|
|
31 |
|
29 |
|
|
|
|
|
4 |
|
9 |
|
Colombia |
972 |
|
532 |
|
|
|
887 |
|
870 |
|
|
|
51 |
|
45 |
|
|
|
42 |
|
25 |
|
|
|
33 |
|
19 |
|
|
|
|
|
20 |
|
11 |
|
|
4,534 |
|
4,932 |
|
|
|
5,465 |
|
5,448 |
|
|
|
286 |
|
301 |
|
|
|
203 |
|
225 |
|
|
|
154 |
|
185 |
|
|
|
|
|
8 |
|
27 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
1,061 |
|
765 |
|
|
|
1,446 |
|
938 |
|
|
|
86 |
|
56 |
|
|
|
79 |
|
45 |
|
|
|
54 |
|
31 |
|
|
|
|
(32 |
) |
(7 |
) |
Europe |
228 |
|
140 |
|
|
|
272 |
|
175 |
|
|
|
29 |
|
15 |
|
|
|
67 |
|
13 |
|
|
|
63 |
|
11 |
|
|
|
|
31 |
|
(9 |
) |
Brazil |
141 |
|
142 |
|
|
|
168 |
|
168 |
|
|
|
7 |
|
7 |
|
|
|
6 |
|
6 |
|
|
|
4 |
|
5 |
|
|
|
|
— |
|
— |
|
Asia |
129 |
|
110 |
|
|
|
117 |
|
118 |
|
|
|
9 |
|
7 |
|
|
|
6 |
|
6 |
|
|
|
4 |
|
4 |
|
|
|
|
1 |
|
2 |
|
|
1,559 |
|
1,157 |
|
|
|
2,003 |
|
1,399 |
|
|
|
131 |
|
85 |
|
|
|
158 |
|
70 |
|
|
|
125 |
|
51 |
|
|
|
|
— |
|
(14 |
) |
Solar |
538 |
|
285 |
|
|
|
620 |
|
366 |
|
|
|
102 |
|
44 |
|
|
|
81 |
|
45 |
|
|
|
53 |
|
29 |
|
|
|
|
13 |
|
(10 |
) |
Energy
transition(1) |
382 |
|
178 |
|
|
|
268 |
|
96 |
|
|
|
78 |
|
36 |
|
|
|
58 |
|
34 |
|
|
|
44 |
|
27 |
|
|
|
|
10 |
|
10 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
10 |
|
22 |
|
|
|
(108 |
) |
(60 |
) |
|
|
|
(94 |
) |
(55 |
) |
Total |
7,013 |
|
6,552 |
|
|
|
8,356 |
|
7,309 |
|
|
|
$ |
597 |
|
$ |
466 |
|
|
|
$ |
510 |
|
$ |
396 |
|
|
|
$ |
268 |
|
$ |
232 |
|
|
|
|
$ |
(63 |
) |
$ |
(42 |
) |
(1) Actual generation includes 123 GWh (2020: 86 GWh) from
facilities that do not have a corresponding LTA.
PROPORTIONATE RESULTS FOR THE SIX MONTHS
ENDED JUNE 30
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the six months ended June 30:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
|
Net Income (Loss) |
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
2021 |
2020 |
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
5,578 |
|
7,198 |
|
|
|
6,813 |
|
6,813 |
|
|
|
$ |
395 |
|
$ |
482 |
|
|
|
$ |
269 |
|
$ |
362 |
|
|
|
$ |
194 |
|
$ |
292 |
|
|
|
$ |
(12 |
) |
|
$ |
82 |
|
Brazil |
2,264 |
|
2,151 |
|
|
|
1,986 |
|
1,986 |
|
|
|
97 |
|
100 |
|
|
|
81 |
|
82 |
|
|
|
70 |
|
70 |
|
|
|
|
27 |
|
|
34 |
|
Colombia |
1,805 |
|
1,241 |
|
|
|
1,693 |
|
1,668 |
|
|
|
106 |
|
105 |
|
|
|
77 |
|
61 |
|
|
|
60 |
|
44 |
|
|
|
|
42 |
|
|
34 |
|
|
9,647 |
|
10,590 |
|
|
|
10,492 |
|
10,467 |
|
|
|
598 |
|
687 |
|
|
|
427 |
|
505 |
|
|
|
324 |
|
406 |
|
|
|
|
57 |
|
|
150 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,168 |
|
1,596 |
|
|
|
2,881 |
|
1,882 |
|
|
|
208 |
|
116 |
|
|
|
160 |
|
93 |
|
|
|
116 |
|
61 |
|
|
|
(56 |
) |
|
(17 |
) |
Europe |
599 |
|
360 |
|
|
|
652 |
|
428 |
|
|
|
72 |
|
37 |
|
|
|
134 |
|
26 |
|
|
|
123 |
|
21 |
|
|
|
41 |
|
|
(20 |
) |
Brazil |
267 |
|
212 |
|
|
|
294 |
|
294 |
|
|
|
14 |
|
11 |
|
|
|
10 |
|
9 |
|
|
|
6 |
|
6 |
|
|
|
(2 |
) |
|
(4 |
) |
Asia |
241 |
|
200 |
|
|
|
217 |
|
218 |
|
|
|
16 |
|
13 |
|
|
|
12 |
|
11 |
|
|
|
8 |
|
7 |
|
|
|
2 |
|
|
1 |
|
|
3,275 |
|
2,368 |
|
|
|
4,044 |
|
2,822 |
|
|
|
310 |
|
177 |
|
|
|
316 |
|
139 |
|
|
|
253 |
|
95 |
|
|
|
(15 |
) |
|
(40 |
) |
Solar |
865 |
|
468 |
|
|
|
984 |
|
580 |
|
|
|
179 |
|
78 |
|
|
|
140 |
|
69 |
|
|
|
83 |
|
37 |
|
|
|
(9 |
) |
|
(24 |
) |
Energy
transition(1) |
601 |
|
290 |
|
|
|
438 |
|
157 |
|
|
|
148 |
|
69 |
|
|
|
104 |
|
55 |
|
|
|
77 |
|
44 |
|
|
|
17 |
|
|
19 |
|
Corporate |
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
12 |
|
19 |
|
|
|
(227 |
) |
(133 |
) |
|
|
(246 |
) |
|
(127 |
) |
Total |
14,388 |
|
13,716 |
|
|
|
15,958 |
|
14,026 |
|
|
|
$ |
1,235 |
|
$ |
1,011 |
|
|
|
$ |
999 |
|
$ |
787 |
|
|
|
$ |
510 |
|
$ |
449 |
|
|
|
$ |
(196 |
) |
|
$ |
(22 |
) |
(1) Actual generation includes 195 GWh (2020: 142 GWh) from
facilities that do not have a corresponding LTA.
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income attributable to Unitholders is reconciled to Funds From
Operations and reconciled to Proportionate Adjusted EBITDA for the
three and six months ended June 30:
|
For the three months endedJune
30 |
|
For the six months endedJune
30 |
UNAUDITED(MILLIONS) |
2021 |
2020 |
|
2021 |
2020 |
Net income (loss) attributable
to: |
|
|
|
|
|
Limited partners' equity |
$ |
(35 |
) |
|
$ |
(33 |
) |
|
|
$ |
(101 |
) |
|
$ |
(31 |
) |
|
General partnership interest in a holding subsidiary held by
Brookfield |
19 |
|
|
15 |
|
|
|
39 |
|
|
31 |
|
|
Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
(25 |
) |
|
(24 |
) |
|
|
(71 |
) |
|
(22 |
) |
|
Class A shares of Brookfield Renewable Corporation |
(22 |
) |
|
— |
|
|
|
(63 |
) |
|
— |
|
|
Net income (loss) attributable
to Unitholders |
$ |
(63 |
) |
|
$ |
(42 |
) |
|
|
$ |
(196 |
) |
|
$ |
(22 |
) |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
Depreciation |
246 |
|
|
160 |
|
|
|
483 |
|
|
330 |
|
|
Foreign exchange and financial instruments gain |
67 |
|
|
36 |
|
|
|
67 |
|
|
35 |
|
|
Deferred income tax expense (recovery) |
(24 |
) |
|
3 |
|
|
|
(59 |
) |
|
9 |
|
|
Other |
42 |
|
|
75 |
|
|
|
215 |
|
|
97 |
|
|
Funds From Operations |
$ |
268 |
|
|
$ |
232 |
|
|
|
$ |
510 |
|
|
$ |
449 |
|
|
Normalized long-term average
generation adjustment |
85 |
|
|
19 |
|
|
|
97 |
|
|
(6 |
) |
|
Normalized foreign currency adjustment |
(13 |
) |
|
— |
|
|
|
(10 |
) |
|
— |
|
|
Normalized Funds From
Operations |
$ |
340 |
|
|
$ |
251 |
|
|
|
$ |
597 |
|
|
$ |
443 |
|
|
Normalized Funds From
Operations Adjustments |
(72 |
) |
|
(19 |
) |
|
|
(87 |
) |
|
6 |
|
|
Distributions attributable
to: |
|
|
|
|
|
Preferred limited partners' equity |
15 |
|
|
14 |
|
|
|
29 |
|
|
26 |
|
|
Preferred equity |
6 |
|
|
6 |
|
|
|
13 |
|
|
13 |
|
|
Perpetual subordinated notes |
3 |
|
|
— |
|
|
|
3 |
|
|
— |
|
|
Current income taxes |
8 |
|
|
(1 |
) |
|
|
14 |
|
|
8 |
|
|
Interest expense |
138 |
|
|
105 |
|
|
|
277 |
|
|
218 |
|
|
Management service costs |
72 |
|
|
40 |
|
|
|
153 |
|
|
73 |
|
|
Proportionate Adjusted
EBITDA |
510 |
|
|
396 |
|
|
|
999 |
|
|
787 |
|
|
Attributable to
non-controlling interests |
417 |
|
|
277 |
|
|
|
614 |
|
|
647 |
|
|
Consolidated Adjusted EBITDA |
$ |
927 |
|
|
$ |
673 |
|
|
|
$ |
1,613 |
|
|
$ |
1,434 |
|
|
The following table reconciles the per Unit
non-IFRS financial metrics to the most directly comparable IFRS
measures. Basic income per LP unit is reconciled to FFO per Unit
for the three and six months ended June 30:
|
For the three months endedJune
30 |
|
For the six months endedJune
30 |
|
2021 |
2020 |
|
2021 |
2020 |
Basic income (loss) per LP unit(1) |
$ |
(0.13 |
) |
|
$ |
(0.11 |
) |
|
|
$ |
(0.37 |
) |
|
$ |
(0.10 |
) |
|
Depreciation |
0.38 |
|
|
0.27 |
|
|
|
0.75 |
|
|
0.57 |
|
|
Foreign exchange and financial instruments loss (gain) |
0.10 |
|
|
0.06 |
|
|
|
0.10 |
|
|
0.06 |
|
|
Deferred income tax recovery (expense) |
(0.04 |
) |
|
0.01 |
|
|
|
(0.09 |
) |
|
0.02 |
|
|
Other |
0.11 |
|
|
0.17 |
|
|
|
0.40 |
|
|
0.22 |
|
|
Funds From Operations per
Unit(2) |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
|
$ |
0.79 |
|
|
$ |
0.77 |
|
|
Normalized long-term average generation adjustment |
0.13 |
|
|
0.03 |
|
|
|
0.15 |
|
|
(0.01 |
) |
|
Normalized foreign exchange adjustment |
(0.02 |
) |
|
— |
|
|
|
(0.02 |
) |
|
— |
|
|
Normalized Funds From Operations per Unit |
$ |
0.53 |
|
|
$ |
0.43 |
|
|
|
$ |
0.92 |
|
|
$ |
0.76 |
|
|
1. |
|
Average LP units outstanding for the three and six months ended
June 30, 2021 were 274.9 million and 274.9 million,
respectively (2020: 268.5 million and 268.5 million,
respectively). |
2. |
|
Average Units for the three and six months ended June 30, 2021
were 645.6 million and 645.5 million, respectively (2020:
583.8 million and 583.7 million, respectively), being
inclusive of LP units, Redeemable/Exchangeable partnership units,
BEPC exchangeable shares and general partner interest. |
BROOKFIELD RENEWABLE CORPORATION
REPORTS SECOND QUARTER 2021 RESULTS
All amounts in U.S. dollars unless otherwise
indicated
The Board of Directors of Brookfield Renewable
Corporation ("BEPC" or our "company") (NYSE, TSX: BEPC) today has
declared a quarterly dividend of $0.30375 per class A exchangeable
subordinate voting share of BEPC (a "Share"), payable on September
29, 2021 to shareholders of record as at the close of business on
August 31, 2021. This dividend is identical in amount per share and
has identical record and payment dates to the quarterly
distribution announced today by BEP on BEP's LP units.
The BEPC exchangeable shares are structured with
the intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Renewable Partners L.P.
("BEP" or the "Partnership") (NYSE, BEP; TSX: BEP.UN). We believe
economic equivalence is achieved through identical dividends and
distributions on the BEPC exchangeable shares and BEP's LP units
and each BEPC exchangeable share being exchangeable at the option
of the holder for one BEP LP unit at any time. Given the economic
equivalence, we expect that the market price of the Shares will be
significantly impacted by the market price of BEP's LP units and
the combined business performance of our company and BEP as a
whole. In addition to carefully considering the disclosures made in
this news release in its entirety, shareholders are strongly
encouraged to carefully review BEP's continuous disclosure filings
available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR at www.sedar.com.
Financial
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions (except, otherwise noted) |
Three months ended June 30 |
|
Six months ended June 30 |
Unaudited |
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Proportionate Generation (GWh) |
4,588 |
|
3,692 |
|
|
9,291 |
|
8,332 |
|
Net income (loss) attributable to the partnership |
$ |
611 |
|
$ |
11 |
|
|
$ |
602 |
|
$ |
73 |
|
Funds From Operations (FFO)(1) |
$ |
139 |
|
$ |
105 |
|
|
$ |
265 |
|
$ |
253 |
|
(1) Non-IFRS
measures. Refer to “Cautionary Statement Regarding Use of
Non-IFRS Measures”.
BEPC reported FFO of $139 million for the three
months ended June 30, 2021, compared to $105 million in the
prior year. After deducting non-cash depreciation, our net income
attributable to the partnership for the three months ended
June 30, 2021 was $611 million.
BROOKFIELD RENEWABLE CORPORATION |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
|
|
|
|
|
|
|
UNAUDITED |
June 30 |
December 31 |
(MILLIONS) |
|
|
|
2021 |
|
|
|
2020 |
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
396 |
|
|
|
|
$ |
355 |
|
Trade receivables and other financial assets |
|
|
|
1,659 |
|
|
|
|
1,297 |
|
Equity-accounted investments |
|
|
|
374 |
|
|
|
|
372 |
|
Property, plant and equipment, at fair value |
|
|
|
34,248 |
|
|
|
|
36,097 |
|
Goodwill |
|
|
|
896 |
|
|
|
|
970 |
|
Deferred income tax and other assets |
|
|
|
1,232 |
|
|
|
|
382 |
|
Total Assets |
|
|
|
$ |
38,805 |
|
|
|
|
$ |
39,473 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
Borrowings which have recourse only to assets they finance |
|
|
|
$ |
12,908 |
|
|
|
|
$ |
12,822 |
|
Accounts payable and other liabilities |
|
|
|
3,825 |
|
|
|
|
3,296 |
|
Deferred income tax liabilities |
|
|
|
3,986 |
|
|
|
|
4,200 |
|
|
|
|
|
|
|
|
|
|
BEPC exchangeable and class B shares |
|
|
|
6,642 |
|
|
|
|
7,430 |
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
|
|
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
9,627 |
|
|
$ |
10,290 |
|
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
258 |
|
|
258 |
|
|
The partnership |
1,559 |
|
11,444 |
|
1,177 |
|
11,725 |
|
Total Liabilities and Equity |
|
|
|
$ |
38,805 |
|
|
|
|
$ |
39,473 |
|
BROOKFIELD
RENEWABLE CORPORATION |
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
UNAUDITED |
Three months ended June 30 |
|
Six months ended June 30 |
(MILLIONS) |
2021 |
2020 |
|
2021 |
2020 |
|
|
|
|
|
|
Revenues |
$ |
817 |
|
|
$ |
764 |
|
|
|
$ |
1,656 |
|
|
$ |
1,617 |
|
|
Other income |
5 |
|
|
14 |
|
|
|
19 |
|
|
24 |
|
|
Direct operating costs |
(249 |
) |
|
(264 |
) |
|
|
(587 |
) |
|
(543 |
) |
|
Management service costs |
(47 |
) |
|
(36 |
) |
|
|
(102 |
) |
|
(65 |
) |
|
Interest expense |
(220 |
) |
|
(189 |
) |
|
|
(440 |
) |
|
(357 |
) |
|
Share of earnings (loss) from
equity-accounted investments |
(1 |
) |
|
— |
|
|
|
1 |
|
|
1 |
|
|
Foreign exchange and financial
instrument gain |
(18 |
) |
|
(41 |
) |
|
|
16 |
|
|
(6 |
) |
|
Depreciation |
(275 |
) |
|
(254 |
) |
|
|
(565 |
) |
|
(513 |
) |
|
Other |
(31 |
) |
|
24 |
|
|
|
(177 |
) |
|
15 |
|
|
Remeasurement of BEPC
exchangeable and class B shares |
694 |
|
|
— |
|
|
|
788 |
|
|
— |
|
|
Income tax expense |
|
|
|
|
|
Current |
(18 |
) |
|
5 |
|
|
|
(31 |
) |
|
(14 |
) |
|
Deferred |
2 |
|
|
(8 |
) |
|
|
19 |
|
|
(49 |
) |
|
Net income |
$ |
659 |
|
|
$ |
15 |
|
|
|
$ |
597 |
|
|
$ |
110 |
|
|
Net income (loss) attributable
to: |
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
46 |
|
|
$ |
2 |
|
|
|
$ |
(10 |
) |
|
$ |
31 |
|
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
2 |
|
|
2 |
|
|
|
5 |
|
|
6 |
|
|
The partnership |
611 |
|
|
11 |
|
|
|
602 |
|
|
73 |
|
|
|
$ |
659 |
|
|
$ |
15 |
|
|
|
$ |
597 |
|
|
$ |
110 |
|
|
BROOKFIELD
RENEWABLE CORPORATION |
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
|
UNAUDITED(MILLIONS) |
Three months ended June 30 |
|
Six months ended June 30 |
|
2021 |
2020 |
|
2021 |
2020 |
Operating
activities |
|
|
|
|
|
Net income (loss) |
$ |
659 |
|
|
$ |
15 |
|
|
|
$ |
597 |
|
|
$ |
110 |
|
|
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
275 |
|
|
254 |
|
|
|
565 |
|
|
513 |
|
|
Unrealized foreign exchange and financial instruments gain |
20 |
|
|
40 |
|
|
|
3 |
|
|
5 |
|
|
Share of earnings from equity-accounted investments |
1 |
|
|
— |
|
|
|
(1 |
) |
|
(1 |
) |
|
Deferred income tax expense |
(2 |
) |
|
8 |
|
|
|
(19 |
) |
|
49 |
|
|
Other non-cash items |
5 |
|
|
(3 |
) |
|
|
55 |
|
|
(13 |
) |
|
Remeasurement of BEPC
exchangeable and class B shares |
(694 |
) |
|
— |
|
|
|
(788 |
) |
|
— |
|
|
Net
change in working capital |
(369 |
) |
|
49 |
|
|
|
(225 |
) |
|
67 |
|
|
|
(105 |
) |
|
363 |
|
|
|
187 |
|
|
730 |
|
|
Financing
activities |
|
|
|
|
|
Non-recourse borrowings,
net |
450 |
|
|
(51 |
) |
|
|
449 |
|
|
77 |
|
|
Capital contributions from
participating non-controlling interests |
11 |
|
|
7 |
|
|
|
38 |
|
|
12 |
|
|
Capital contributions from the
Partnership |
— |
|
|
50 |
|
|
|
— |
|
|
100 |
|
|
Distributions paid and return
of capital: |
|
|
|
|
|
To participating non-controlling interests |
(154 |
) |
|
(147 |
) |
|
|
(290 |
) |
|
(286 |
) |
|
To the Partnership |
— |
|
|
(136 |
) |
|
|
— |
|
|
(236 |
) |
|
Borrowings from related party, net |
115 |
|
|
(29 |
) |
|
|
168 |
|
|
(58 |
) |
|
|
422 |
|
|
(306 |
) |
|
|
365 |
|
|
(391 |
) |
|
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
(12 |
) |
|
— |
|
|
|
(12 |
) |
|
(105 |
) |
|
Investment in property, plant
and equipment |
(166 |
) |
|
(74 |
) |
|
|
(405 |
) |
|
(107 |
) |
|
Disposal of subsidiaries,
associates and other securities, net |
— |
|
|
11 |
|
|
|
— |
|
|
11 |
|
|
Investment in financial assets and other |
(34 |
) |
|
4 |
|
|
|
(72 |
) |
|
(26 |
) |
|
|
(212 |
) |
|
(59 |
) |
|
|
(489 |
) |
|
(227 |
) |
|
Foreign
exchange gain (loss) on cash |
4 |
|
|
2 |
|
|
|
(6 |
) |
|
(10 |
) |
|
Cash and cash
equivalents |
|
|
|
|
|
Increase (decrease) |
109 |
|
|
— |
|
|
|
57 |
|
|
102 |
|
|
Net change in cash classified within assets held for sale |
(11 |
) |
|
— |
|
|
|
(16 |
) |
|
— |
|
|
Balance, beginning of period |
298 |
|
|
406 |
|
|
|
355 |
|
|
304 |
|
|
Balance, end of period |
$ |
396 |
|
|
$ |
406 |
|
|
|
$ |
396 |
|
|
$ |
406 |
|
|
The following table reconciles net income (loss)
attributable to Brookfield Renewable to Funds From Operations for
the three and six months ended June 30:
|
Three months ended June 30 |
|
Six months ended June 30 |
(MILLIONS) |
2021 |
|
2020 |
|
2021 |
2020 |
Net income (loss) attributable to the partnership |
$ |
611 |
|
|
|
$ |
11 |
|
|
$ |
602 |
|
|
$ |
73 |
|
Adjusted for proportionate
share of: |
|
|
|
|
|
|
Depreciation |
122 |
|
|
|
70 |
|
|
248 |
|
|
145 |
|
Other |
48 |
|
|
|
24 |
|
|
99 |
|
|
35 |
|
Dividends on BEPC class A exchangeable shares |
52 |
|
|
|
— |
|
|
104 |
|
|
— |
|
Remeasurement of BEPC exchangeable and class B shares |
(694 |
) |
|
|
— |
|
|
(788 |
) |
|
— |
|
Funds
From Operations |
$ |
139 |
|
|
|
$ |
105 |
|
|
$ |
265 |
|
|
$ |
253 |
|
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 Brookfield Renewable’s anticipated financial
performance, future commissioning of assets, contracted nature of
our portfolio, technology diversification, acquisition
opportunities, expected completion of acquisitions and
dispositions, financing and refinancing opportunities, BEPC’s
ability to attract new investors as well as the future performance
and prospects of BEPC and BEP, the prospects and benefits of the
combination of Brookfield Renewable and TerraForm Power, including
certain information regarding the combined company’s expected cash
flow profile and liquidity, future energy prices and demand for
electricity, economic recovery, achieving long-term average
generation, project development and capital expenditure costs,
energy policies, economic growth, growth potential of the renewable
asset class, the future growth prospects and distribution profile
of Brookfield Renewable and Brookfield Renewable’s access to
capital. 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, the
growth of our portfolio and our inability to realize the expected
benefits of our transactions or acquisitions; weather conditions
and other factors which may impact generation levels at facilities;
adverse outcomes with respect to outstanding, pending or future
litigation; 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 BEP
and in the Form 20-F of BEPC and other risks and factors that are
described therein.
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 FFO,
FFO per Unit and Normalized FFO per Unit, which are not generally
accepted accounting measures under IFRS and therefore may differ
from definitions of FFO, FFO per Unit and Normalized FFO per Unit
used by other entities. We believe that FFO, FFO per Unit 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 FFO, FFO per Unit 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 the non-IFRS financial measures to the most
comparable IFRS financial measures, see “Part 4 – Financial
Performance Review on Proportionate Information – Reconciliation of
non-IFRS measures” in our interim report for the period ended June
30, 2021. Normalized FFO assumes long-term average generation in
all segments except the Brazil and Colombia hydroelectric segments
and uses 2020 foreign currency rates.
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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