Brookfield Infrastructure Partners L.P. (Brookfield Infrastructure,
BIP, or the Partnership) (NYSE: BIP; TSX: BIP.UN) today announced
its results for the third quarter ended September 30, 2024.
"Brookfield Infrastructure continues to deliver
solid results while achieving its strategic objectives, including
successfully reaching our $2 billion capital recycling target for
the year,” said Sam Pollock, Chief Executive Officer of Brookfield
Infrastructure Partners. “With interest rates coming down, we are
in a new market environment with increased deal flow, creating a
significant investment pipeline that is also benefiting from growth
in sectors related to AI and associated energy demands.”
| |
For the three months ended September 30 |
|
For the nine months ended September 30 |
|
US$ millions (except per unit amounts), unaudited1 |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Net (loss) income2 |
$ |
(52 |
) |
|
$ |
104 |
|
$ |
126 |
|
|
$ |
505 |
|
– per unit3 |
$ |
(0.18 |
) |
|
$ |
0.03 |
|
$ |
(0.18 |
) |
|
$ |
0.34 |
| FFO4 |
$ |
599 |
|
|
$ |
560 |
|
$ |
1,822 |
|
|
$ |
1,666 |
|
– per unit5 |
$ |
0.76 |
|
|
$ |
0.73 |
|
$ |
2.31 |
|
|
$ |
2.16 |
Brookfield Infrastructure reported a net loss of
$52 million for the three-month period ended September 30, 2024
compared to net income of $104 million in the prior year. Strong
growth within our businesses was more than offset by mark to market
losses on our corporate hedging activities and commodities
contracts, both of which contributed gains in the prior period.
Funds from operations (FFO) for the third
quarter was $599 million, which is 7% above the comparable period.
On a per unit basis, FFO was $0.76, which represents a 4% increase
after considering the increased share count associated with the
privatization of the global intermodal logistics operation last
September. We experienced strong contributions from the new
investments completed last year, as well as the initial
contribution from three accretive tuck-in acquisitions that closed
this year. Results also benefited from organic growth at the
midpoint of our target range, capturing annual rate increases from
inflation indexation, stronger transportation volumes and the
commissioning of over $1 billion from our capital backlog. This
result was partially offset by the impact of higher borrowing costs
and foreign exchange, most notably the depreciation of the
Brazilian real. When normalizing only for the impacts of foreign
exchange, FFO per unit growth was 10%, which is in-line with our
target and better reflects the current operational performance of
our businesses.
Segment Performance
The following table presents FFO by segment:
| |
For the three months ended September 30 |
|
For the nine months ended September 30 |
|
US$ millions, unaudited1 |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
FFO by segment |
|
|
|
|
|
|
|
|
Utilities |
$ |
188 |
|
|
$ |
229 |
|
|
$ |
558 |
|
|
$ |
661 |
|
|
Transport |
|
308 |
|
|
|
205 |
|
|
|
929 |
|
|
|
596 |
|
|
Midstream |
|
147 |
|
|
|
163 |
|
|
|
460 |
|
|
|
522 |
|
|
Data |
|
85 |
|
|
|
66 |
|
|
|
231 |
|
|
|
208 |
|
|
Corporate |
|
(129 |
) |
|
|
(103 |
) |
|
|
(356 |
) |
|
|
(321 |
) |
|
FFO4 |
$ |
599 |
|
|
$ |
560 |
|
|
$ |
1,822 |
|
|
$ |
1,666 |
|
The utilities segment generated FFO of $188
million, an increase of 9% on a comparable basis. In total, the
amount was higher last year as we sold our interest in an
Australian regulated utility business and completed a
recapitalization at our Brazilian regulated gas transmission
business in the first quarter. Organic growth for the segment was
driven by the continued benefit of inflation indexation and the
commissioning of over $450 million of capital into the rate base
over the last twelve months.
FFO for the transport segment was $308 million,
which represented a 50% increase over the same period in the prior
year. The increase is primarily attributable to the acquisition of
our global intermodal logistics operation that closed at the end of
the third quarter last year and an incremental 10% stake in our
Brazilian integrated rail and logistics operation that was
completed this year. The remaining businesses performed well, with
strong volumes across our networks and average rate increases of 7%
across our rail networks and 5% across our toll road portfolio.
Our midstream segment generated FFO of $147
million, compared to $163 million in the same period last year. The
decline is primarily attributable to capital recycling activities
completed last year at our U.S. gas pipeline and higher interest
costs across the portfolio from new financing initiatives. The
underlying businesses are performing well in the current
environment following continued demand for long-term services
supported by robust customer activity levels across our critical
midstream assets, particularly at our North American gas storage
business.
FFO from the data segment was $85 million,
representing a 29% increase over the same period last year. The
step change is attributable to strong underlying performance and
several new investments completed over the last twelve months. The
most impactful was the tuck-in acquisition of a portfolio of retail
colocation data centers completed in the first quarter. Our global
data center platform continues to execute its development plans to
drive growth, with an additional 70 MW commissioned during the
quarter bringing our total installed data center capacity to over
900 MW.
Update on Strategic Initiatives
On September 12th we closed the tuck-in
acquisition of 76,000 telecom tower sites in India. We are now the
largest telecom tower operator in India and second largest
globally, with over 250,000 tower sites. This acquisition is highly
complementary to our existing operations, increasing and
diversifying our tenancies from the country’s second and third
largest mobile network operators, while offering significant
operating synergies. The scale and benefits of the combined
platform were all achieved at a value-based entry point below 6x
EBITDA. Our total equity commitment was $140 million, and we expect
the business to generate a strong going-in FFO yield. Concurrent
with the acquisition we completed a rebranding of the business, to
Altius, which brings together the three acquisitions we have made
in the Indian telecommunications space.
During the quarter we secured approximately $600
million of capital recycling proceeds, for a total of approximately
$2 billion for the year, successfully achieving our capital
recycling target. We agreed on terms to sell our Mexican regulated
natural gas transmission business for net proceeds of approximately
$500 million ($125 million net to BIP), crystallizing an IRR of 22%
and a multiple of capital of 2.2x. The business is mature and
derisked, having achieved its value creation plan, most recently
securing an average regulatory tariff increase of over 25% that was
effective June 1, 2023. The sale is expected to close in the first
quarter of 2025, subject to satisfying customary closing
conditions.
We also completed the recapitalization of our
North American gas storage platform, raising $1.25 billion that
enabled a $770 million distribution ($305 million net to BIP) in
advance of a sale process. This financing alone returned more
capital than we had initially invested and increased the
investment’s realized multiple of capital to 2.5x. This is an
extremely attractive result, given we still own a business that
generates approximately $330 million in annual EBITDA. The
remaining sale proceeds secured during the quarter were generated
from the sale of several financial assets. We remain on track to
close the sale of our fiber platform within our French Telecom
Infrastructure business in the fourth quarter, generating $100
million in proceeds and an IRR of 17%.
Distribution and Dividend Declaration
The Board of Directors of BIP declared a
quarterly distribution in the amount of $0.405 per unit, payable on
December 31, 2024 to unitholders of record as at the close of
business on November 29, 2024. This distribution represents a 6%
increase compared to the prior year. The regular quarterly
dividends on the Cumulative Class A Preferred Limited Partnership
Units, Series 1, Series 3, Series 9, Series 11, Series 13 and
Series 14 have also been declared, as well as the capital gains
dividend for BIP Investment Corporation Senior Preferred Shares,
Series 1, which will also be payable on December 31, 2024, subject
to the results of the special meeting of holders on November 27,
2024. In conjunction with the Partnership’s distribution
declaration, the Board of Directors of BIPC has declared an
equivalent quarterly dividend of $0.405 per share, also payable on
December 31, 2024 to shareholders of record as at the close of
business on November 29, 2024.
Conference Call and Quarterly Earnings
Details
Investors, analysts and other interested parties
can access Brookfield Infrastructure’s Third Quarter 2024 Results,
as well as Letter to Unitholders and Supplemental Information,
under the Investor Relations section at
https://bip.brookfield.com.
To participate in the Conference Call today at
9:00am EST, please pre-register at
https://register.vevent.com/register/BId0571f9a865e44d2bbf9e77964270a30.
Upon registering, you will be emailed a dial-in number and unique
PIN. The Conference Call will also be Webcast live at
https://edge.media-server.com/mmc/p/qgby5rtc.
Additional Information
The Board has reviewed and approved this news
release, including the summarized unaudited financial information
contained herein.
About Brookfield
Infrastructure
Brookfield Infrastructure is a leading global
infrastructure company that owns and operates high-quality,
long-life assets in the utilities, transport, midstream and data
sectors across the Americas, Asia Pacific and Europe. We are
focused on assets that have contracted and regulated revenues that
generate predictable and stable cash flows. Investors can access
its portfolio either through Brookfield Infrastructure Partners
L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership,
or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a
Canadian corporation. Further information is available at
https://bip.brookfield.com.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with over $1 trillion of assets
under management. For more information, go to
https://www.brookfield.com.
Contact Information
| Media: |
Investors: |
| Simon Maine |
Stephen Fukuda |
| Managing Director |
Senior Vice President |
| Corporate Communications |
Corporate Development &
Investor Relations |
| Tel: +44 739 890 9278 |
Tel: +1 416 956 5129 |
| Email:
simon.maine@brookfield.com |
Email:
stephen.fukuda@brookfield.com |
Cautionary Statement Regarding
Forward-looking Statements
This news release may contain forward-looking
information within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of
applicable securities laws. The words “will”, “target”, “future”,
“growth”, “expect”, “believe”, “may”, 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 may include
statements regarding expansion of Brookfield Infrastructure’s
business, the likelihood and timing of successfully completing the
transactions referred to in this news release, statements with
respect to our assets tending to appreciate in value over time, the
future performance of acquired businesses and growth initiatives,
the commissioning of our capital backlog, the pursuit of projects
in our pipeline, the level of distribution growth over the next
several years and our expectations regarding returns to our
unitholders as a result of such growth. Although Brookfield
Infrastructure believes that these forward-looking statements and
information are based upon reasonable assumptions and expectations,
the reader 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 Infrastructure are
subject to a number of known and unknown risks and uncertainties.
Factors that could cause actual results of Brookfield
Infrastructure to differ materially from those contemplated or
implied by the statements in this news release include general
economic conditions in the jurisdictions in which we operate and
elsewhere which may impact the markets for our products and
services, the ability to achieve growth within Brookfield
Infrastructure’s businesses and in particular completion on time
and on budget of various large capital projects, which themselves
depend on access to capital and continuing favorable commodity
prices, and our ability to achieve the milestones necessary to
deliver the targeted returns to our unitholders, the impact of
market conditions on our businesses, the fact that success of
Brookfield Infrastructure is dependent on market demand for an
infrastructure company, which is unknown, the availability of
equity and debt financing for Brookfield Infrastructure, the impact
of health pandemics on our business and operations, the ability to
effectively complete transactions in the competitive infrastructure
space (including the ability to complete announced and potential
transactions that may be subject to conditions precedent, and the
inability to reach final agreement with counterparties to
transactions referred to in this press release as being currently
pursued, given that there can be no assurance that any such
transaction will be agreed to or completed) and to integrate
acquisitions into existing operations, the future performance of
these acquisitions, changes in technology which have the potential
to disrupt the business and industries in which we invest, the
market conditions of key commodities, the price, supply or demand
for which can have a significant impact upon the financial and
operating performance of our business and other risks and factors
described in the documents filed by Brookfield Infrastructure with
the securities regulators in Canada and the United States including
under “Risk Factors” in Brookfield Infrastructure’s most recent
Annual Report on Form 20-F and other risks and factors that are
described therein. Except as required by law, Brookfield
Infrastructure undertakes no obligation to publicly update or
revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise. References
to Brookfield Infrastructure are to the Partnership together with
its subsidiaries and operating entities. Brookfield
Infrastructure’s results include limited partnership units held by
public unitholders, redeemable partnership units, general
partnership units, Exchange LP units, BIPC exchangeable LP units
and BIPC exchangeable shares.
Any statements contained herein with respect to
tax consequences are of a general nature only and are not intended
to be, nor should they be construed to be, legal or tax advice to
any person, and no representation with respect to tax consequences
is made. Unitholders and shareholders are urged to consult their
tax advisors with respect to their particular circumstances.
References to Brookfield Infrastructure are to
the Partnership together with its subsidiaries and operating
entities. Brookfield Infrastructure’s results include limited
partnership units held by public unitholders, redeemable
partnership units, general partnership units, Exchange LP units,
BIPC exchangeable LP units and BIPC exchangeable shares.
References to the Partnership are to Brookfield
Infrastructure Partners L.P.
- Please
refer to page 11 for results of Brookfield Infrastructure
Corporation.
-
Includes net income attributable to limited partners, the general
partner, and non-controlling interests ‒ Redeemable Partnership
Units held by Brookfield, Exchange LP units, BIPC exchangeable LP
units and BIPC exchangeable shares.
-
Average number of limited partnership units outstanding on a time
weighted average basis for the three and nine-month periods ended
September 30, 2024 was 461.7 million and
461.5 million, respectively (2023: 458.8 million and
458.6 million).
-
We define FFO as net income excluding the impact of depreciation
and amortization, deferred income taxes, mark-to-market gains
(losses) and other income (expenses) that are not related to the
revenue earning activities and are not normal, recurring cash
operating expenses necessary for business operations. FFO includes
balances attributable to the Partnership generated by investments
in associates and joint ventures accounted for using the equity
method and excludes amounts attributable to non-controlling
interests based on the economic interests held by non-controlling
interests in consolidated subsidiaries. We believe that FFO, when
viewed in conjunction with our IFRS results, provides a more
complete understanding of factors and trends affecting our
underlying operations. FFO is a measure of operating performance
that is not calculated in accordance with, and does not have any
standardized meaning prescribed by IFRS as issued by the
International Accounting Standards Board. FFO is therefore unlikely
to be comparable to similar measures presented by other issuers. A
reconciliation of net income to FFO is available on page 9 of this
release. Readers are encouraged to consider both measures in
assessing our company’s results.
-
Average number of partnership units outstanding on a fully diluted
time weighted average basis for the three and nine-month periods
ended September 30, 2024 was 792.2 million and
792.1 million, respectively (2023: 772.1 million and
771.7 million).
|
Brookfield Infrastructure Partners
L.P.Consolidated Statements of Financial
Position |
| |
As of |
| US$
millions, unaudited |
Sept. 30, 2024 |
|
Dec. 31, 2023 |
|
|
|
|
|
| Assets |
|
|
|
|
Cash and cash equivalents |
$ |
1,602 |
|
$ |
1,857 |
| Financial assets |
|
280 |
|
|
787 |
| Property, plant and equipment
and investment properties |
|
58,035 |
|
|
52,879 |
| Intangible assets and
goodwill |
|
29,426 |
|
|
30,333 |
| Investments in associates and
joint ventures |
|
5,642 |
|
|
5,402 |
|
Deferred income taxes and other |
|
10,259 |
|
|
9,526 |
|
Total assets |
$ |
105,244 |
|
$ |
100,784 |
|
|
|
|
|
| Liabilities and
partnership capital |
|
|
|
| Corporate borrowings |
$ |
5,156 |
|
$ |
4,911 |
| Non-recourse borrowings |
|
47,622 |
|
|
40,904 |
| Financial liabilities |
|
3,237 |
|
|
2,875 |
| Deferred income taxes and
other |
|
19,722 |
|
|
18,078 |
| |
|
|
|
| Partnership
capital |
|
|
|
| Limited partners |
|
4,641 |
|
|
5,321 |
| General partner |
|
26 |
|
|
28 |
| Non-controlling interest
attributable to: |
|
|
|
|
Redeemable partnership units held by Brookfield |
|
1,903 |
|
|
2,190 |
|
Exchangeable units/shares1 |
|
1,400 |
|
|
1,605 |
|
Perpetual subordinated notes |
|
293 |
|
|
293 |
|
Interest of others in operating subsidiaries |
|
20,326 |
|
|
23,661 |
|
Preferred unitholders |
|
918 |
|
|
918 |
|
Total partnership capital |
|
29,507 |
|
|
34,016 |
|
Total liabilities and partnership capital |
$ |
105,244 |
|
$ |
100,784 |
- Includes
non-controlling interest attributable to BIPC exchangeable shares,
BIPC exchangeable LP units and Exchange LP units.
|
Brookfield Infrastructure Partners L.P.Consolidated
Statements of Operating Results |
| |
For the three monthsended September 30 |
|
For the nine monthsended September 30 |
|
US$ millions, except per unit information, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
5,270 |
|
|
$ |
4,487 |
|
|
$ |
15,595 |
|
|
$ |
12,961 |
|
| Direct operating costs |
|
(3,897 |
) |
|
|
(3,384 |
) |
|
|
(11,685 |
) |
|
|
(9,893 |
) |
| General
and administrative expense |
|
(113 |
) |
|
|
(100 |
) |
|
|
(302 |
) |
|
|
(312 |
) |
|
|
|
1,260 |
|
|
|
1,003 |
|
|
|
3,608 |
|
|
|
2,756 |
|
| Interest expense |
|
(873 |
) |
|
|
(640 |
) |
|
|
(2,493 |
) |
|
|
(1,775 |
) |
| Share of earnings from
associates and joint ventures |
|
56 |
|
|
|
96 |
|
|
|
192 |
|
|
|
472 |
|
| Mark-to-market (losses)
gains |
|
(23 |
) |
|
|
34 |
|
|
|
(61 |
) |
|
|
27 |
|
| Other
(expense) income |
|
(107 |
) |
|
|
(99 |
) |
|
|
158 |
|
|
|
101 |
|
|
Income before income tax |
|
313 |
|
|
|
394 |
|
|
|
1,404 |
|
|
|
1,581 |
|
| Income tax (expense)
recovery |
|
|
|
|
|
|
|
|
Current |
|
(135 |
) |
|
|
(142 |
) |
|
|
(429 |
) |
|
|
(418 |
) |
|
Deferred |
|
56 |
|
|
|
4 |
|
|
|
257 |
|
|
|
9 |
|
|
Net income |
|
234 |
|
|
|
256 |
|
|
|
1,232 |
|
|
$ |
1,172 |
|
|
Non-controlling interest of others in operating subsidiaries |
|
(286 |
) |
|
|
(152 |
) |
|
|
(1,106 |
) |
|
|
(667 |
) |
|
Net (loss) income attributable to partnership |
$ |
(52 |
) |
|
$ |
104 |
|
|
$ |
126 |
|
|
$ |
505 |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
Limited partners |
$ |
(73 |
) |
|
$ |
23 |
|
|
$ |
(55 |
) |
|
$ |
184 |
|
|
General partner |
|
73 |
|
|
|
66 |
|
|
|
220 |
|
|
|
198 |
|
|
Non-controlling interest |
|
|
|
|
|
|
|
|
Redeemable partnership units held by Brookfield |
|
(30 |
) |
|
|
10 |
|
|
|
(23 |
) |
|
|
76 |
|
|
Exchangeable units/shares1 |
|
(22 |
) |
|
|
5 |
|
|
|
(16 |
) |
|
|
47 |
|
|
Basic and diluted (losses) gains per unit attributable to: |
|
|
|
|
|
|
|
|
Limited partners2 |
$ |
(0.18 |
) |
|
$ |
0.03 |
|
|
$ |
(0.18 |
) |
|
$ |
0.34 |
|
- Includes
non-controlling interest attributable to BIPC exchangeable shares,
BIPC exchangeable LP units and Exchange LP units.
- Average number of
limited partnership units outstanding on a time weighted average
basis for the three and nine-month periods ended September 30,
2024 was 461.7 million and 461.5 million, respectively (2023:
458.8 million and 458.6 million).
|
Brookfield Infrastructure Partners L.P. Consolidated
Statements of Cash Flows |
| |
For the three monthsended September 30 |
|
For the nine monthsended September 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
|
| Net income |
$ |
234 |
|
|
$ |
256 |
|
|
$ |
1,232 |
|
|
$ |
1,172 |
|
| Adjusted for the following
items: |
|
|
|
|
|
|
|
|
Earnings from investments in associates and joint ventures, net of
distributions received |
|
22 |
|
|
|
30 |
|
|
|
24 |
|
|
|
191 |
|
|
Depreciation and amortization expense |
|
854 |
|
|
|
669 |
|
|
|
2,672 |
|
|
|
1,946 |
|
|
Mark-to-market, provisions and other |
|
92 |
|
|
|
156 |
|
|
|
(192 |
) |
|
|
48 |
|
|
Deferred income tax recovery |
|
(56 |
) |
|
|
(4 |
) |
|
|
(257 |
) |
|
|
(9 |
) |
| Change
in non-cash working capital, net |
|
48 |
|
|
|
(7 |
) |
|
|
(387 |
) |
|
|
(761 |
) |
|
Cash from operating activities |
|
1,194 |
|
|
|
1,100 |
|
|
|
3,092 |
|
|
|
2,587 |
|
|
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
| Net (investments in)
proceeds from: |
|
|
|
|
|
|
|
|
Operating assets |
|
(1,673 |
) |
|
|
(5,970 |
) |
|
|
(2,304 |
) |
|
|
(10,145 |
) |
|
Associates |
|
— |
|
|
|
435 |
|
|
|
(350 |
) |
|
|
405 |
|
|
Long-lived assets |
|
(865 |
) |
|
|
(616 |
) |
|
|
(3,210 |
) |
|
|
(1,612 |
) |
|
Financial assets |
|
246 |
|
|
|
69 |
|
|
|
363 |
|
|
|
245 |
|
| Net settlements of foreign
exchange contracts |
|
(13 |
) |
|
|
2 |
|
|
|
(22 |
) |
|
|
2 |
|
| Other
investing activities |
|
(4 |
) |
|
|
(54 |
) |
|
|
(132 |
) |
|
|
(722 |
) |
|
Cash used by investing activities |
|
(2,309 |
) |
|
|
(6,134 |
) |
|
|
(5,655 |
) |
|
|
(11,827 |
) |
|
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
| Distributions to limited and
general partners |
|
(411 |
) |
|
|
(377 |
) |
|
|
(1,233 |
) |
|
|
(1,130 |
) |
| Net borrowings: |
|
|
|
|
|
|
|
|
Corporate |
|
37 |
|
|
|
652 |
|
|
|
299 |
|
|
|
1,610 |
|
|
Subsidiary |
|
2,251 |
|
|
|
777 |
|
|
|
7,209 |
|
|
|
3,323 |
|
| Partnership units issued |
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
10 |
|
| Net capital provided (to) by
non-controlling interest |
|
(141 |
) |
|
|
4,514 |
|
|
|
(2,915 |
) |
|
|
6,758 |
|
| Lease
liability repaid and other |
|
(369 |
) |
|
|
(545 |
) |
|
|
(1,018 |
) |
|
|
(1,326 |
) |
|
Cash from financing activities |
|
1,370 |
|
|
|
5,023 |
|
|
|
2,351 |
|
|
|
9,245 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Change during the period |
$ |
255 |
|
|
$ |
(11 |
) |
|
$ |
(212 |
) |
|
$ |
5 |
|
|
Cash reclassified as held for sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
Impact of foreign exchange and other on cash |
|
21 |
|
|
|
(62 |
) |
|
|
(43 |
) |
|
|
29 |
|
|
Balance, beginning of period |
|
1,326 |
|
|
|
1,380 |
|
|
|
1,857 |
|
|
|
1,279 |
|
|
Balance, end of period |
$ |
1,602 |
|
|
$ |
1,307 |
|
|
$ |
1,602 |
|
|
$ |
1,307 |
|
|
Brookfield Infrastructure Partners
L.P.Reconciliation of Net Income to Funds from
Operations |
| |
For the three monthsended September 30 |
|
For the nine monthsended September 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
234 |
|
|
$ |
256 |
|
|
$ |
1,232 |
|
|
$ |
1,172 |
|
|
Add back or deduct the following: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
854 |
|
|
|
669 |
|
|
|
2,672 |
|
|
|
1,946 |
|
|
Share of earnings from investments in associates and joint
ventures |
|
(56 |
) |
|
|
(96 |
) |
|
|
(192 |
) |
|
|
(472 |
) |
|
FFO contribution from investments in associates and joint
ventures1 |
|
238 |
|
|
|
225 |
|
|
|
708 |
|
|
|
709 |
|
|
Deferred tax recovery |
|
(56 |
) |
|
|
(4 |
) |
|
|
(257 |
) |
|
|
(9 |
) |
|
Mark-to-market losses (gains) |
|
23 |
|
|
|
(34 |
) |
|
|
61 |
|
|
|
(27 |
) |
|
Other expense2 |
|
200 |
|
|
|
194 |
|
|
|
100 |
|
|
|
142 |
|
|
Consolidated Funds from Operations |
$ |
1,437 |
|
|
$ |
1,210 |
|
|
$ |
4,324 |
|
|
$ |
3,461 |
|
|
FFO attributable to non-controlling interests3 |
|
(838 |
) |
|
|
(650 |
) |
|
|
(2,502 |
) |
|
|
(1,795 |
) |
|
FFO |
$ |
599 |
|
|
$ |
560 |
|
|
$ |
1,822 |
|
|
$ |
1,666 |
|
- FFO
contribution from investments in associates and joint ventures
correspond to the FFO attributable to the partnership that are
generated by its investments in associates and joint ventures
accounted for using the equity method.
- Other expense
corresponds to amounts that are not related to the revenue earning
activities and are not normal, recurring cash operating expenses
necessary for business operations. Other income/expenses excluded
from FFO primarily includes gains on acquisitions and dispositions
of subsidiaries, associates and joint ventures, gains or losses
relating to foreign currency translation reclassified from
accumulated comprehensive income to other expense, acquisition
costs, gains/losses on remeasurement of borrowings, amortization of
deferred financing costs, fair value remeasurement gains/losses,
accretion expenses on deferred consideration or asset retirement
obligations, impairment losses, and gains or losses on debt
extinguishment.
- Amounts
attributable to non-controlling interests are calculated based on
the economic ownership interests held by non-controlling interests
in consolidated subsidiaries. By adjusting FFO attributable to
non-controlling interests, our partnership is able to remove the
portion of FFO earned at non-wholly owned subsidiaries that are not
attributable to our partnership.
|
Brookfield Infrastructure Partners L.P.Statements of Funds
from Operations per Unit |
| |
For the three monthsended September 30 |
|
For the nine monthsended September 30 |
|
US$, unaudited |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
| (Losses) earnings per limited
partnership unit1 |
$ |
(0.18 |
) |
|
$ |
0.03 |
|
$ |
(0.18 |
) |
|
$ |
0.34 |
| Add back or deduct the
following: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
0.52 |
|
|
|
0.46 |
|
|
1.58 |
|
|
|
1.36 |
|
Deferred taxes and other items |
|
0.42 |
|
|
|
0.24 |
|
|
0.91 |
|
|
|
0.46 |
|
FFO per unit2 |
$ |
0.76 |
|
|
$ |
0.73 |
|
$ |
2.31 |
|
|
$ |
2.16 |
- Average
number of limited partnership units outstanding on a time weighted
average basis for the three and nine-month periods ended
September 30, 2024 was 461.7 million and 461.5 million,
respectively (2023: 458.8 million and
458.6 million).
- Average
number of partnership units outstanding on a fully diluted time
weighted average basis for the three and nine-month periods ended
September 30, 2024 was 792.2 million and
792.1 million, respectively (2023: 772.1 million and
771.7 million).
Notes:
The Statements of Funds from Operations per unit
above are prepared on a basis that is consistent with the
Partnership’s Supplemental Information and differs from net income
per limited partnership unit as presented in Brookfield
Infrastructure’s Consolidated Statements of Operating Results on
page 7 of this release, which is prepared in accordance with IFRS.
Management uses FFO per unit as a key measure to evaluate operating
performance. Readers are encouraged to consider both measures in
assessing Brookfield Infrastructure’s results.
Brookfield Infrastructure Corporation
Reports Third Quarter 2024 Results
The Board of Directors of Brookfield
Infrastructure Corporation (“BIPC” or our “company”) (NYSE, TSX:
BIPC) today declared a quarterly dividend in the amount of $0.405
per class A exchangeable subordinate voting share of BIPC (a
“Share”), payable on December 31, 2024 to shareholders of
record as at the close of business on November 29, 2024. This
dividend is identical in amount per Share and has identical record
and payment dates to the quarterly distribution announced today by
Brookfield Infrastructure Partners L.P. (“BIP” or the
“Partnership”) on its units.
The previously announced proposed reorganization
of BIPC, which is expected to be completed in December 2024, will
not impact the payment of this dividend on December 31, 2024 to
BIPC shareholders of record as at the close of business on November
29, 2024. After completion of the reorganization, it is expected
that quarterly dividends will be declared and paid on the new
shares held by BIPC shareholders at the same time as quarterly
distributions are declared and paid to unitholders.
The Shares of BIPC are structured with the
intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Infrastructure Partnership
L.P. (“BIP” or the “Partnership”) (NYSE: BIP; TSX: BIP.UN). We
believe economic equivalence is achieved through identical
dividends and distributions on the Shares and BIP’s units and each
Share being exchangeable at the option of the holder for one BIP
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 BIP’s units and the combined business
performance of our company and BIP as a whole. In addition to
carefully considering the disclosure made in this news release in
its entirety, shareholders are strongly encouraged to carefully
review BIP’s letter to unitholders, supplemental information and
its other continuous disclosure filings. BIP’s letter to
unitholders and supplemental information are available at
https://bip.brookfield.com. Copies of the Partnership’s continuous
disclosure filings are available electronically on EDGAR on the
SEC’s website at https://sec.gov or on SEDAR+ at
https://sedarplus.ca.
Results
The net income of BIPC is captured in the
Partnership’s financial statements and results.
BIPC reported a net loss of $808 million
for the three-month period ended September 30, 2024, compared
to net income of $1,009 million in the prior year. After
removing the impact of the revaluation on our own Shares that are
classified as liabilities under IFRS and the impact of foreign
exchange on loans with BIP denominated in Canadian dollars,
underlying earnings were 66% higher than the prior year. Current
period results benefited from the acquisition of our global
intermodal logistics operation, Triton, that closed at the end of
September in the prior year, and capital commissioned into rate
base at our U.K. regulated distribution business. These benefits
were partially offset by higher financing costs at our businesses,
as a result of incremental borrowings. Additionally, offsetting
results was an increase in dividends paid on our exchangeable
shares, which are classified as interest expense, due to the 6%
increase in our quarterly dividend compared to the prior year and
approximately 21 million exchangeable shares issued in connection
with our acquisition of Triton.
Cautionary Statement Regarding
Forward-looking Statements
This news release may contain forward-looking
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 “believe”, “expect”, “will” 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 impact of the market price
of BIP’s units and the combined business performance of our company
and BIP as a whole on the market price of the Shares. Although
Brookfield Infrastructure believes that these forward-looking
statements and information are based upon reasonable assumptions
and expectations, the reader 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 Infrastructure are subject to a number of known and
unknown risks and uncertainties. Factors that could cause actual
results of Brookfield Infrastructure to differ materially from
those contemplated or implied by the statements in this news
release include general economic conditions in the jurisdictions in
which we operate and elsewhere which may impact the markets for our
products and services, the ability to achieve growth within
Brookfield Infrastructure’s businesses and in particular completion
on time and on budget of various large capital projects, which
themselves depend on access to capital and continuing favorable
commodity prices, and our ability to achieve the milestones
necessary to deliver the targeted returns to our unitholders, the
impact of market conditions on our businesses, the fact that
success of Brookfield Infrastructure is dependent on market demand
for an infrastructure company, which is unknown, the availability
of equity and debt financing for Brookfield Infrastructure, the
impact of health pandemics on our business and operations, the
ability to effectively complete transactions in the competitive
infrastructure space (including the ability to complete announced
and potential transactions that may be subject to conditions
precedent, and the inability to reach final agreement with
counterparties to transactions being currently pursued, given that
there can be no assurance that any such transaction will be agreed
to or completed) and to integrate acquisitions into existing
operations, the future performance of these acquisitions, changes
in technology which have the potential to disrupt the business and
industries in which we invest, the market conditions of key
commodities, the price, supply or demand for which can have a
significant impact upon the financial and operating performance of
our business and other risks and factors described in the documents
filed by BIPC with the securities regulators in Canada and the
United States including “Risk Factors” in BIPC’s most recent Annual
Report on Form 20-F and other risks and factors that are described
therein. Except as required by law, Brookfield Infrastructure
Corporation undertakes no obligation to publicly update or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise.
|
Brookfield Infrastructure
CorporationConsolidated Statements of Financial
Position |
| |
As of |
| US$
millions, unaudited |
Sept. 30, 2024 |
|
|
Dec. 31, 2023 |
|
|
|
|
|
|
| Assets |
|
|
|
|
Cash and cash equivalents |
$ |
245 |
|
|
$ |
539 |
|
| Due from Brookfield
Infrastructure |
|
1,766 |
|
|
|
1,288 |
|
| Property, plant and
equipment |
|
14,643 |
|
|
|
14,151 |
|
| Intangible assets |
|
3,306 |
|
|
|
3,699 |
|
| Goodwill |
|
1,670 |
|
|
|
1,726 |
|
|
Deferred tax asset and other |
|
2,501 |
|
|
|
2,506 |
|
|
Total assets |
$ |
24,131 |
|
|
$ |
23,909 |
|
|
|
|
|
|
| Liabilities and
equity |
|
|
|
| Accounts payable and
other |
$ |
1,182 |
|
|
$ |
1,099 |
|
| Loans payable to Brookfield
Infrastructure |
|
100 |
|
|
|
26 |
|
| Exchangeable and class B
shares |
|
4,626 |
|
|
|
4,153 |
|
| Non-recourse borrowings |
|
13,336 |
|
|
|
12,028 |
|
| Financial liabilities |
|
36 |
|
|
|
75 |
|
| Deferred tax liabilities and
other |
|
2,374 |
|
|
|
2,460 |
|
| |
|
|
|
| Equity |
|
|
|
| Equity in net assets
attributable to the Partnership |
|
(764 |
) |
|
|
(399 |
) |
|
Non-controlling interest |
|
3,241 |
|
|
|
4,467 |
|
|
Total equity |
|
2,477 |
|
|
|
4,068 |
|
|
Total liabilities and equity |
$ |
24,131 |
|
|
$ |
23,909 |
|
|
Brookfield Infrastructure CorporationConsolidated
Statements of Operating Results |
| |
For the three months ended September 30 |
|
For the nine months ended September 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
912 |
|
|
$ |
551 |
|
|
$ |
2,722 |
|
|
$ |
1,586 |
|
| Direct operating costs |
|
(339 |
) |
|
|
(146 |
) |
|
|
(1,007 |
) |
|
|
(442 |
) |
| General
and administrative expenses |
|
(21 |
) |
|
|
(16 |
) |
|
|
(56 |
) |
|
|
(49 |
) |
|
|
|
552 |
|
|
|
389 |
|
|
|
1,659 |
|
|
|
1,095 |
|
| |
|
|
|
|
|
|
|
| Interest expense |
|
(269 |
) |
|
|
(162 |
) |
|
|
(767 |
) |
|
|
(476 |
) |
| Share of losses from
investments in associates |
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
|
(20 |
) |
| Remeasurement of exchangeable
and class B shares |
|
(1,003 |
) |
|
|
917 |
|
|
|
(468 |
) |
|
|
309 |
|
|
Mark-to-market and other |
|
(3 |
) |
|
|
(16 |
) |
|
|
(109 |
) |
|
|
22 |
|
|
(Loss) income before income tax |
|
(723 |
) |
|
|
1,104 |
|
|
|
315 |
|
|
|
930 |
|
| Income tax expense |
|
|
|
|
|
|
|
|
Current |
|
(80 |
) |
|
|
(93 |
) |
|
|
(275 |
) |
|
|
(262 |
) |
|
Deferred |
|
(5 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
Net (loss) income |
$ |
(808 |
) |
|
$ |
1,009 |
|
|
$ |
32 |
|
|
$ |
660 |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
Partnership |
$ |
(977 |
) |
|
$ |
913 |
|
|
$ |
(458 |
) |
|
$ |
338 |
|
|
Non-controlling interest |
|
169 |
|
|
|
96 |
|
|
|
490 |
|
|
|
322 |
|
|
Brookfield Infrastructure CorporationConsolidated
Statements of Cash Flows |
| |
For the three monthsended September 30 |
|
For the nine monthsended September 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
|
| Net (loss) income |
$ |
(808 |
) |
|
$ |
1,009 |
|
|
$ |
32 |
|
|
$ |
660 |
|
| Adjusted for the following
items: |
|
|
|
|
|
|
|
|
Earnings from investments in associates, net of distributions
received |
|
— |
|
|
|
24 |
|
|
|
— |
|
|
|
23 |
|
|
Depreciation and amortization expense |
|
194 |
|
|
|
59 |
|
|
|
580 |
|
|
|
171 |
|
|
Mark-to-market and other |
|
14 |
|
|
|
37 |
|
|
|
93 |
|
|
|
32 |
|
|
Remeasurement of exchangeable and class B shares |
|
1,003 |
|
|
|
(917 |
) |
|
|
468 |
|
|
|
(309 |
) |
|
Deferred income tax expense |
|
5 |
|
|
|
2 |
|
|
|
8 |
|
|
|
8 |
|
| Change
in non-cash working capital, net |
|
56 |
|
|
|
(20 |
) |
|
|
72 |
|
|
|
(136 |
) |
|
Cash from operating activities |
|
464 |
|
|
|
194 |
|
|
|
1,253 |
|
|
|
449 |
|
|
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
| Disposal of associates |
|
— |
|
|
|
435 |
|
|
|
— |
|
|
|
435 |
|
| Purchase of long-lived assets,
net of disposals |
|
(354 |
) |
|
|
(122 |
) |
|
|
(755 |
) |
|
|
(381 |
) |
| Acquisition of
subsidiaries |
|
— |
|
|
|
(3,086 |
) |
|
|
— |
|
|
|
(3,086 |
) |
| Other
investing activities |
|
19 |
|
|
|
(53 |
) |
|
|
106 |
|
|
|
(57 |
) |
|
Cash used by investing activities |
|
(335 |
) |
|
|
(2,826 |
) |
|
|
(649 |
) |
|
|
(3,089 |
) |
|
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
| Net capital provided (to) by
non-controlling interest |
|
(281 |
) |
|
|
2,629 |
|
|
|
(1,821 |
) |
|
|
2,466 |
|
| Net (repayments)
borrowings |
|
(70 |
) |
|
|
(118 |
) |
|
|
946 |
|
|
|
(60 |
) |
| Other
financing activities |
|
— |
|
|
|
16 |
|
|
|
18 |
|
|
|
16 |
|
|
Cash (used by) from financing activities |
|
(351 |
) |
|
|
2,527 |
|
|
|
(857 |
) |
|
|
2,422 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Change during the period |
$ |
(222 |
) |
|
$ |
(105 |
) |
|
$ |
(253 |
) |
|
$ |
(218 |
) |
|
Impact of foreign exchange on cash |
|
1 |
|
|
|
(10 |
) |
|
|
(41 |
) |
|
|
14 |
|
|
Balance, beginning of period |
|
466 |
|
|
|
356 |
|
|
|
539 |
|
|
|
445 |
|
|
Balance, end of period |
$ |
245 |
|
|
$ |
241 |
|
|
$ |
245 |
|
|
$ |
241 |
|