“We continued to execute on our strategic priorities, strengthening our investment grade balance sheet and enhancing our global investment capabilities during the year. This allowed us to generate 14% per unit FFO growth in 2018 for unitholders,” said Sachin Shah, CEO of Brookfield Renewable. “Looking ahead, we believe our combination of operational depth and financial strength positions us well to deliver long-term, stable returns for unitholders.”
“In light of our recent growth, strong balance sheet and access to capital, we are pleased to announce that our board has declared a 5% increase to the quarterly distribution, bringing our annual payout to
| Financial Results | ||||||||
| For the periods ended December 31 | ||||||||
| US$ millions (except per unit or otherwise noted) | Three Months Ended | Twelve Months Ended | ||||||
| Unaudited | 2018 | 2017 | 2018 | 2017 | ||||
| Total generation (GWh) | ||||||||
| - Actual generation | 14,445 | 11,913 | 52,056 | 43,385 | ||||
| - Long-term average generation | 13,485 | 12,198 | 51,971 | 42,334 | ||||
| Brookfield Renewable's share | ||||||||
| - Actual generation | 7,052 | 5,890 | 25,753 | 23,968 | ||||
| - Long-term average generation | 6,602 | 6,030 | 25,844 | 23,251 | ||||
| Funds From Operations (FFO)(1) | $ | 206 | $ | 143 | $ | 676 | $ | 581 |
| Per Unit(1)(2) | $ | 0.66 | $ | 0.46 | $ | 2.16 | $ | 1.90 |
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(2) For the three and twelve months ended December 31, 2018, weighted average LP Units, Redeemable/Exchangeable partnership units and GP units totaled 312.2 million and 312.6 million, respectively (2017: 312.6 million and 305.8 million).
Brookfield Renewable reported Funds from Operations of
Brookfield Renewable 2018 Highlights
- FFO increased 14% on a per unit basis over the prior year, as all of our businesses performed in line with expectations
- Executed on cost reduction initiatives in the
U.S. andColombia . This should improve margins by approximately$20 million annually in the future - Enhanced our operating teams in the
U.S ,Europe ,India andChina over the year to support our longer-term plans in these markets - Commissioned 60 megawatts of new wind and hydro development, advanced over 350 megawatts of development in our pipeline and maintained our opportunistic approach to development which minimizes funding obligations and ongoing costs
- Invested
$550 million into growth initiatives during the year, including acquisitions, development and unit buy backs - Capitalized on market volatility and repurchased approximately 2 million units at an average
$27 per unit - Executed on our asset recycling strategy, selling a partial interest in mature assets and exiting non-core markets
- Extended all near-term debt maturities during the year, increasing the average duration of our debt to 10 years. We now have no material debt maturities until 2023
- Maintained an investment grade balance sheet, increased available liquidity (which should exceed
$2.2 billion once signed asset sales and the announced sale of an additional interest in our portfolio of select Canadian hydroelectric assets are closed), and improved our distribution payout ratio to 95% of FFO on an actual basis and 90% of FFO on an annualized basis
Operating and Financial Results
During the year our focus was on integrating recently-acquired assets and enhancing our operational depth. At TerraForm Power, post the acquisition and sponsorship by
We have one of the largest hydroelectric businesses in the world which we have doubled in size and expanded across multiple geographies over the last 5 years. These assets contributed
Operationally, we continue to lengthen the term of our power purchase contracts in
Our wind assets delivered
Our solar, storage and other operations contributed
Balance Sheet and Liquidity:
We currently have no material debt maturities over the next four years and our overall debt duration exceeds 10 years. We have limited exposure to rising rates, with only 7% of our debt in
Post completion of recently announced asset sales we will have
Distribution Declaration
The next quarterly distribution in the amount of
The quarterly dividends on Brookfield Renewable’s preferred shares and preferred LP units have also been declared.
Distribution Currency Option
The quarterly distributions payable on the Partnership’s LP Units are declared in
Registered unitholders resident in
Distribution Reinvestment Plan
Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its LP Units who are resident in
Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on our website at https://bep.brookfield.com.
Brookfield Renewable Partners
Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with over
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
| Contact information: | |
| Media: | Investors: |
| Claire Holland | Divya Biyani |
| Vice President - Communications | Manager – Investor Relations |
| (416) 369-8236 | (416) 369-2616 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s 2018 Year End and Fourth Quarter Results as well as the Letter to Shareholders and Supplemental Information on Brookfield Renewable’s website at https://bep.brookfield.com.
The conference call can be accessed via webcast on February 8, 2019 at 9:00 a.m. Eastern Time at https://edge.media-server.com/m6/p/gfs6sjuf or via teleconference at 1-866-688-9430 toll free in
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
We caution that 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. For further information on these known and unknown risks, please see “Risk Factors” included in our Form 20-F.
Cautionary Statement Regarding Use of Non-IFRS Measures
This news release contains references to Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit used by other entities. We believe that Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. None of Adjusted EBITDA, Funds From Operations or Funds From Operations per Unit should be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS.For a reconciliation of Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit to the most directly comparable IFRS measure, please see “Financial Performance Review on Proportionate Information – Reconciliation of Non-IFRS Measures” included in our Form 20-F.
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise
_________________________________________________
PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31
The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended December 31:
| (GWh) | (MILLIONS) | ||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | Funds From Operations | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||
| Hydroelectric | |||||||||||||||||||
| 3,604 | 3,076 | 3,065 | 3,143 | $ | 238 | $ | 219 | $ | 164 | $ | 145 | $ | 121 | $ | 100 | ||||
| 902 | 867 | 996 | 978 | 59 | 65 | 40 | 43 | 33 | 33 | ||||||||||
| 982 | 978 | 935 | 935 | 56 | 51 | 35 | 26 | 24 | 14 | ||||||||||
| 5,488 | 4,921 | 4,996 | 5,056 | 353 | 335 | 239 | 214 | 178 | 147 | ||||||||||
| Wind | |||||||||||||||||||
| 808 | 648 | 924 | 693 | 61 | 52 | 48 | 36 | 29 | 22 | ||||||||||
| 264 | 128 | 268 | 146 | 27 | 11 | 30 | 7 | 25 | 6 | ||||||||||
| 153 | 74 | 200 | 82 | 9 | 7 | 7 | 7 | 4 | 5 | ||||||||||
| 43 | - | 36 | - | 3 | - | 2 | - | 2 | - | ||||||||||
| 1,268 | 850 | 1,428 | 921 | 100 | 70 | 87 | 50 | 60 | 33 | ||||||||||
| Solar | 184 | 56 | 178 | 53 | 40 | 8 | 30 | 6 | 15 | 2 | |||||||||
| Storage & Other | 112 | 63 | - | - | 23 | 17 | 16 | 16 | 9 | 12 | |||||||||
| Corporate | - | - | - | - | - | - | (1 | ) | 10 | (56 | ) | (51 | ) | ||||||
| Total | 7,052 | 5,890 | 6,602 | 6,030 | $ | 516 | $ | 430 | $ | 371 | $ | 296 | $ | 206 | $ | 143 | |||
The following table reflects Adjusted EBITDA and Funds From Operations for the three months ended December 31, 2018:
| Contribution | ||||||||||||||||||
| Attributable to Unitholders | from | Attributable | ||||||||||||||||
| Hydroelectric | Wind | Solar | Storage | Corporate | Total | equity | to non- | |||||||||||
| and | accounted | controlling | ||||||||||||||||
| ($ MILLIONS) | Other | investments | interests | Total | ||||||||||||||
| Revenues | 353 | 100 | 40 | 23 | - | 516 | (89 | ) | 353 | 780 | ||||||||
| Other income | 11 | 11 | 1 | - | 5 | 28 | (2 | ) | (2 | ) | 24 | |||||||
| Direct operating costs | (125 | ) | (24 | ) | (11 | ) | (7 | ) | (6 | ) | (173 | ) | 23 | (126 | ) | (276 | ) | |
| Share of Adjusted EBITDA from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | - | 68 | 8 | 76 | |||||||||
| Adjusted EBITDA | 239 | 87 | 30 | 16 | (1 | ) | 371 | - | 233 | |||||||||
| Management service costs | - | - | - | - | (16 | ) | (16 | ) | - | - | (16 | ) | ||||||
| Interest expense - borrowings | (58 | ) | (28 | ) | (15 | ) | (7 | ) | (24 | ) | (132 | ) | 28 | (67 | ) | (171 | ) | |
| Current income taxes | (3 | ) | 1 | - | - | - | (2 | ) | - | (8 | ) | (10 | ) | |||||
| Distributions attributable to | ||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | (9 | ) | (9 | ) | - | - | (9 | ) | ||||||
| Preferred equity | - | - | - | - | (6 | ) | (6 | ) | - | - | (6 | ) | ||||||
| Share of interest and cash taxes from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | - | (28 | ) | (3 | ) | (31 | ) | ||||||
| Share of Funds From Operations | ||||||||||||||||||
| attributable to non-controlling interests | - | - | - | - | - | - | - | (155 | ) | (155 | ) | |||||||
| Funds From Operations | 178 | 60 | 15 | 9 | (56 | ) | 206 | - | - | |||||||||
The following table reflects Adjusted EBITDA and Funds From Operations for the three months ended December 31, 2017:
| Attributable to Unitholders | Contribution | Attributable | ||||||||||||||||
| Hydroelectric | Wind | Solar | Storage | Corporate | Total | from equity | to non- | |||||||||||
| and | accounted | controlling | ||||||||||||||||
| ($ MILLIONS) | Other | investments | interests | Total | ||||||||||||||
| Revenues | 335 | 70 | 8 | 17 | - | 430 | (39 | ) | 266 | 657 | ||||||||
| Other income | 2 | - | - | 6 | 18 | 26 | (11 | ) | 7 | 22 | ||||||||
| Direct operating costs | (123 | ) | (20 | ) | (2 | ) | (7 | ) | (8 | ) | (160 | ) | 13 | (115 | ) | (262 | ) | |
| Share of Adjusted EBITDA from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | 37 | - | 37 | ||||||||||
| Adjusted EBITDA | 214 | 50 | 6 | 16 | 10 | 296 | - | 158 | ||||||||||
| Management service costs | - | - | - | - | (24 | ) | (24 | ) | - | - | (24 | ) | ||||||
| Interest expense - borrowings | (61 | ) | (17 | ) | (3 | ) | (4 | ) | (23 | ) | (108 | ) | 12 | (59 | ) | (155 | ) | |
| Current income taxes | (6 | ) | - | (1 | ) | - | - | (7 | ) | 1 | (6 | ) | (12 | ) | ||||
| Distributions attributable to | ||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | (7 | ) | (7 | ) | - | - | (7 | ) | ||||||
| Preferred equity | - | - | - | - | (7 | ) | (7 | ) | - | - | (7 | ) | ||||||
| Share of interest and cash taxes from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | - | (13 | ) | - | (13 | ) | |||||||
| Share of Funds From Operations | ||||||||||||||||||
| attributable to non-controlling interests | - | - | - | - | - | - | - | (93 | ) | (93 | ) | |||||||
| Funds From Operations | 147 | 33 | 2 | 12 | (51 | ) | 143 | - | - | |||||||||
PROPORTIONATE RESULTS FOR THE YEAR ENDED DECEMBER 31
The following chart reflects the generation and summary financial figures on a proportionate basis for the year ended December 31:
| (GWh) | (MILLIONS) | |||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | Funds From Operations | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||
| Hydroelectric | ||||||||||||||||||||
| 13,308 | 13,942 | 12,980 | 13,059 | $ | 893 | $ | 945 | $ | 619 | $ | 665 | $ | 443 | $ | 486 | |||||
| 3,633 | 3,426 | 3,927 | 3,874 | 244 | 243 | 173 | 178 | 142 | 148 | |||||||||||
| 3,364 | 3,683 | 3,482 | 3,488 | 216 | 191 | 126 | 99 | 86 | 52 | |||||||||||
| 20,305 | 21,051 | 20,389 | 20,421 | 1,353 | 1,379 | 918 | 942 | 671 | 686 | |||||||||||
| Wind | ||||||||||||||||||||
| 2,713 | 1,765 | 3,108 | 2,019 | 219 | 161 | 157 | 119 | 93 | 74 | |||||||||||
| 677 | 490 | 764 | 513 | 73 | 46 | 57 | 26 | 38 | 15 | |||||||||||
| 626 | 278 | 706 | 245 | 42 | 26 | 33 | 22 | 24 | 16 | |||||||||||
| 160 | - | 153 | - | 12 | - | 8 | - | 5 | - | |||||||||||
| 4,176 | 2,533 | 4,731 | 2,777 | 346 | 233 | 255 | 167 | 160 | 105 | |||||||||||
| Solar | 753 | 56 | 724 | 53 | 146 | 8 | 117 | 6 | 72 | 2 | ||||||||||
| Storage & Other | 519 | 328 | - | - | 85 | 59 | 49 | 33 | 32 | 19 | ||||||||||
| Corporate | - | - | - | - | - | - | (16 | ) | (6 | ) | (259 | ) | (231 | ) | ||||||
| Total | 25,753 | 23,968 | 25,844 | 23,251 | $ | 1,930 | $ | 1,679 | $ | 1,323 | $ | 1,142 | $ | 676 | $ | 581 | ||||
The following table reflects Adjusted EBITDA and Funds From Operations for the year ended December 31, 2018:
| Contribution | ||||||||||||||||||
| Attributable to Unitholders | from | Attributable | ||||||||||||||||
| Hydroelectric | Wind | Solar | Storage | Corporate | Total | equity | to non- | |||||||||||
| and | accounted | controlling | ||||||||||||||||
| ($ MILLIONS) | Other | investments | interests | Total | ||||||||||||||
| Revenues | 1,353 | 346 | 146 | 85 | - | 1,930 | (286 | ) | 1,338 | 2,982 | ||||||||
| Other income | 21 | 13 | 5 | - | 7 | 46 | (7 | ) | 11 | 50 | ||||||||
| Direct operating costs | (456 | ) | (104 | ) | (34 | ) | (36 | ) | (23 | ) | (653 | ) | 86 | (469 | ) | (1,036 | ) | |
| Share of Adjusted EBITDA from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | - | 207 | 20 | 227 | |||||||||
| Adjusted EBITDA | 918 | 255 | 117 | 49 | (16 | ) | 1,323 | - | 900 | |||||||||
| Management service costs | - | - | - | - | (80 | ) | (80 | ) | - | - | (80 | ) | ||||||
| Interest expense - borrowings | (232 | ) | (93 | ) | (45 | ) | (17 | ) | (99 | ) | (486 | ) | 82 | (301 | ) | (705 | ) | |
| Current income taxes | (15 | ) | (2 | ) | - | - | - | (17 | ) | 3 | (16 | ) | (30 | ) | ||||
| Distributions attributable to | ||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | (38 | ) | (38 | ) | - | - | (38 | ) | ||||||
| Preferred equity | - | - | - | - | (26 | ) | (26 | ) | - | - | (26 | ) | ||||||
| Share of interest and cash taxes from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | - | (85 | ) | (12 | ) | (97 | ) | ||||||
| Share of Funds From Operations | ||||||||||||||||||
| attributable to non-controlling interests | - | - | - | - | - | - | - | (571 | ) | (571 | ) | |||||||
| Funds From Operations | 671 | 160 | 72 | 32 | (259 | ) | 676 | - | - | |||||||||
The following table reflects Adjusted EBITDA and Funds From Operations for the year ended December 31, 2017:
| Contribution | ||||||||||||||||||
| Attributable to Unitholders | from | Attributable | ||||||||||||||||
| Hydroelectric | Wind | Solar | Storage | Corporate | Total | equity | to non- | |||||||||||
| and | accounted | controlling | ||||||||||||||||
| ($ MILLIONS) | Other | investments | interests | Total | ||||||||||||||
| Revenues | 1,379 | 233 | 8 | 59 | - | 1,679 | (74 | ) | 1,020 | 2,625 | ||||||||
| Other income | 15 | - | - | 6 | 19 | 40 | (11 | ) | 18 | 47 | ||||||||
| Direct operating costs | (452 | ) | (66 | ) | (2 | ) | (32 | ) | (25 | ) | (577 | ) | 28 | (429 | ) | (978 | ) | |
| Share of Adjusted EBITDA from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | 57 | - | 57 | ||||||||||
| Adjusted EBITDA | 942 | 167 | 6 | 33 | (6 | ) | 1,142 | - | 609 | |||||||||
| Management service costs | - | - | - | - | (82 | ) | (82 | ) | - | - | (82 | ) | ||||||
| Interest expense - borrowings | (240 | ) | (61 | ) | (3 | ) | (14 | ) | (89 | ) | (407 | ) | 21 | (246 | ) | (632 | ) | |
| Current income taxes | (16 | ) | (1 | ) | (1 | ) | - | - | (18 | ) | 1 | (22 | ) | (39 | ) | |||
| Distributions attributable to | ||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | (28 | ) | (28 | ) | - | - | (28 | ) | ||||||
| Preferred equity | - | - | - | - | (26 | ) | (26 | ) | - | - | (26 | ) | ||||||
| Share of interest and cash taxes from | ||||||||||||||||||
| equity accounted investments | - | - | - | - | - | (22 | ) | - | (22 | ) | ||||||||
| Share of Funds From Operations | ||||||||||||||||||
| attributable to non-controlling interests | - | - | - | - | - | - | (341 | ) | (341 | ) | ||||||||
| Funds From Operations | 686 | 105 | 2 | 19 | (231 | ) | 581 | - | - | |||||||||
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