Brookfield Renewable Partners L.P. (TSX: BEP.UN)(NYSE: BEP) ("Brookfield Renewable") today reported an increase in quarterly distributions and financial results for the three and 12 months ended December 31, 2016.
"In 2016 we achieved a 20% total return for shareholders, deployed approximately
"We are also pleased to announce that the board has declared an increase in our dividend. In light of the significant potential growth ahead of us, we are increasing the dividend by 5% this year and will assess our dividend rate throughout the year based on the success of some of our near-term growth initiatives," added Mr. Shah.
Financial Results
---------------------------------------------------------------------------- For the periods ended December31 US$ millions (except per unit or otherwise noted) Three Months Ended Twelve Months Ended Unaudited 2016 2015 2016 2015 ---------------------------------------------------------------------------- Generation (GWh) - Total 8,728 6,117 34,071 23,332 - Brookfield Renewable's share 4,734 4,553 20,222 17,662 Funds From Operations (FFO)(1)$ 54 $ 88 $ 419 $ 467 Per LP Unit(1)(2)$ 0.18 $ 0.32 $ 1.45 $ 1.69 Normalized FFO(1)(3)$ 116 $ 100 $ 527 $ 468 Per LP Unit(1)(2)(3)$ 0.39 $ 0.36 $ 1.83 $ 1.70 ---------------------------------------------------------------------------- (1) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non- IFRS Measures". (2) For the three months and year ended December 31, 2016, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 299.1 million and 288.7 million, respectively (2015: 275.5 million and 275.6 million). (3) Normalized FFO assumes long-term average generation and uses 2015 average foreign currency rates for the respective periods.
Recent Highlights
-- We continue to integrate the 3,000 megawatt Colombian hydroelectric
portfolio ("Isagen") acquired last year, and have initiated the process
to delist the company from the Colombian stock exchange.
-- Assets added in 2016 are expected to contribute an additional $30
million to 2017 FFO on an annualized basis relative to 2016 results.
-- We have 300 megawatts of in-construction and advanced development
projects underway which are expected to contribute $45-50 million of FFO
to results upon completion. Subsequent to quarter end, we commissioned a
25 megawatt hydroelectric facility and a 55 megawatt biomass portfolio
in Brazil . We continue to advance the construction, on scope, schedule
and budget, of 128 megawatts of hydroelectric and wind development
projects in Brazil and Ireland .
-- Our liquidity position at quarter-end remained strong at approximately
$1.2 billion . During the quarter we completed $770 million of financings
associated with hydro and wind portfolios in North and South America .
Review of Operations
The hydroelectric portfolio generated 29,644 GWh in 2016, below the long-term average of 35,094 GWh and an increase of 11,015 GWh compared to the prior year. In
The wind portfolio generated 3,958 GWh in 2016, below the long term average of 4,429 GWh and consistent with prior year generation of 3,950 GWh. Our facilities continue to perform at high reliability and availability rates. Generation was driven by the wind resource in our various geographies with increased generation in
Adjusted EBITDA in fiscal 2016 was
Adjusted EBITDA for the fourth quarter was
The tables below summarize generation by segment and region:
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Generation (GWh)(1) Variance of Results
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For the three months ended Actual Actual LTA Actual Actual vs.
December 31 2016 2015 2016 vs. LTA Prior Year
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Hydroelectric
North America 3,258 3,564 4,309 (1,051) (306)
Colombia(2) 3,634 - 3,888 (254) 3,634
Brazil 624 1,240 1,073 (449) (616)
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7,516 4,804 9,270 (1,754) 2,712
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Wind
North America 495 535 562 (67) (40)
Europe 376 479 458 (82) (103)
Brazil 177 125 198 (21) 52
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1,048 1,139 1,218 (170) (91)
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Other 164 174 120 44 (10)
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Total(3) 8,728 6,117 10,608 (1,880) 2,611
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Generation (GWh)(1) Variance of Results
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Actual Actual LTA Actual Actual vs.
For the year ended December 31 2016 2015 2016 vs. LTA Prior Year
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Hydroelectric
North America 15,252 14,938 17,345 (2,093) 314
Colombia(2) 10,600 - 13,221 (2,621) 10,600
Brazil 3,792 3,691 4,528 (736) 101
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29,644 18,629 35,094 (5,450) 11,015
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Wind
North America 1,876 1,952 2,310 (434) (76)
Europe 1,443 1,551 1,531 (88) (108)
Brazil 639 447 588 51 192
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3,958 3,950 4,429 (471) 8
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Other 469 753 425 44 (284)
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Total generation(3) 34,071 23,332 39,948 (5,877) 10,739
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(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
(3) Includes 100% of generation for assets we manage.
Distribution Increase and Declaration
The next quarterly distribution in the amount of
The regular 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 its 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 and wind facilities in
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with
Please note that Brookfield Renewable's previous audited annual and unaudited quarterly reports have been filed on SEDAR and can also be found in the investors section of its website at https://bep.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable's 2016 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 2, 2017 at 9:00 a.m. Eastern Time at https://bep.brookfield.com or via teleconference at 1-800-319-4610 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, Adjusted Funds From Operations, Funds From Operations per LP Unit, Normalized Funds From Operations and Normalized Funds From Operations per LP Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, Funds From Operations per LP Unit, Normalized Funds From Operations and Normalized Funds From Operations per LP Unit used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. Neither Adjusted EBITDA, Funds From Operations, Adjusted Funds from Operations, Adjusted Funds From Operations per LP Unit, Normalized Funds From Operations nor Normalized Funds From Operations per LP 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.
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.
FINANCIAL REVIEW FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016
The following table reflects Adjusted EBITDA, Funds From Operations and Adjusted Funds From Operations for the three and twelve months ended December 31:
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Three Months Ended Twelve Months Ended
(MILLIONS, EXCEPT AS NOTED) 2016 2015 2016 2015
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Revenues $ 571 $ 392 $ 2,452 $ 1,628
Other income 9 6 64 81
Share of cash earnings from equity-
accounted investments 1 2 9 20
Direct operating costs (258) (142) (1,038) (552)
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Adjusted EBITDA(1) 323 258 1,487 1,177
Management service costs (16) (10) (62) (48)
Interest expense - borrowings (159) (103) (606) (429)
Current income tax expense (24) (1) (44) (18)
Distributions to preferred limited
partners (4) (1) (15) (1)
Cash portion of non-controlling
interests
Participating non-controlling
interests - in operating
subsidiaries (60) (48) (316) (184)
Preferred equity (6) (7) (25) (30)
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Funds From Operations(1) 54 88 419 467
Adjusted sustaining capital
expenditures(2) (17) (15) (67) (60)
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Adjusted Funds From Operations(1) 37 73 352 407
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(1) Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS
Measures".
(2) Based on long-term sustaining capital expenditure plans.
GENERATION AND FINANCIAL REVIEW ON A PROPORTIONATE BASIS BY SEGMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2016
The following table reflects the actual and long-term average generation for the three months ended December 31 on a proportionate basis:
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Variance of Results
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Actual LTA Actual Actual vs.
Generation(1) Generation(1) vs. LTA Prior Year
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GENERATION (GWh) 2016 2015 2016 2015 2016 2015
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Hydroelectric
North America 2,633 2,740 3,227 3,125 (594) (385) (107)
Colombia(2) 925 - 989 - (64) - 925
Brazil 451 1,044 891 864 (440) 180 (593)
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4,009 3,784 5,107 3,989 (1,098) (205) 225
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Wind
North America 404 433 454 453 (50) (20) (29)
Europe 149 190 181 175 (32) 15 (41)
Brazil 74 52 82 61 (8) (9) 22
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627 675 717 689 (90) (14) (48)
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Other 98 94 63 81 35 13 4
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Total 4,734 4,553 5,887 4,759 (1,153) (206) 181
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(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
The following table reflects Adjusted EBITDA and Funds From Operations on a proportionate and consolidated basis for the three months ended December 31:
Brookfield Renewable's Share
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Hydroelectric Wind
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North North
($ MILLIONS) America Colombia(1) Brazil America Europe Brazil
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Revenues 161 56 45 38 14 5
Other income - - 3 - - -
Share of cash
earnings from
equity-accounted
investments - - 1 - - -
Direct operating
costs (70) (28) (18) (9) (6) (1)
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Adjusted EBITDA(3) 91 28 31 29 8 4
Management service
costs - - - - - -
Interest expense -
borrowings (44) (10) (5) (10) (5) (2)
Current income
taxes - (5) (2) - - -
Distributions to
preferred limited
partners - - - - - -
Cash portion of
non-controlling
interests
Participating
non-controlling
interests - in
operating
subsidiaries - - - - - -
Preferred equity - - - - - -
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Funds From
Operations(3) 47 13 24 19 3 2
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Brookfield Renewable's Share
------------------------------
Other (2) Corporate Total
Non-
controlling
($ MILLIONS) interests 2016 2015
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Revenues 4 1 324 247 571 392
Other income - 1 4 5 9 6
Share of cash
earnings from
equity-accounted
investments - - 1 - 1 2
Direct operating
costs (3) (8) (143) (115) (258) (142)
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Adjusted EBITDA(3) 1 (6) 186 137 323 258
Management service
costs - (16) (16) - (16) (10)
Interest expense -
borrowings - (23) (99) (60) (159) (103)
Current income
taxes - - (7) (17) (24) (1)
Distributions to
preferred limited
partners - (4) (4) - (4) (1)
Cash portion of
non-controlling
interests
Participating
non-controlling
interests - in
operating
subsidiaries - - - (60) (60) (48)
Preferred equity - (6) (6) - (6) (7)
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Funds From
Operations(3) 1 (55) 54 - 54 88
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(1) Includes generation from both hydroelectric and Co-gen facilities.
(2) Other includes North America Co-gen and Brazil biomass.
(3) Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS
Measures".
GENERATION AND FINANCIAL REVIEW ON A PROPORTIONATE BASIS BY SEGMENTS FOR THE YEAR ENDED DECEMBER 31, 2016
The following table reflects the actual and long-term average generation for the year ended December 31 on a proportionate basis:
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Variance of Results
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Actual LTA Actual Actual vs.
Generation(1) Generation(1) vs. LTA Prior Year
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GENERATION (GWh) 2016 2015 2016 2015 2016 2015
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Hydroelectric
North America 12,165 11,773 13,250 12,998 (1,085) (1,225) 392
Colombia(2) 2,420 - 2,994 - (574) - 2,420
Brazil 3,078 3,158 3,760 3,447 (682) (289) (80)
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17,663 14,931 20,004 16,445 (2,341) (1,514) 2,732
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Wind
North America 1,421 1,437 1,780 1,778 (359) (341) (16)
Europe 571 615 605 591 (34) 24 (44)
Brazil 266 186 245 184 21 2 80
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2,258 2,238 2,630 2,553 (372) (315) 20
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Other 301 493 264 319 37 174 (192)
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Total 20,222 17,662 22,898 19,317 (2,676) (1,655) 2,560
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(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
The following table reflects Adjusted EBITDA and Funds From Operations on a proportionate and consolidated basis for the year ended December 31, 2016:
Brookfield Renewable's Share
---------------------------------------------------------
Hydroelectric Wind
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North North
($ MILLIONS) America Colombia(1) Brazil America Europe Brazil
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Revenues 814 192 183 151 55 17
Other income 24 3 13 - - -
Share of cash
earnings from
equity-accounted
investments 6 - 3 - - -
Direct operating
costs (294) (107) (71) (36) (23) (4)
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Adjusted EBITDA(3) 550 88 128 115 32 13
Management service
costs - - - - - -
Interest expense -
borrowings (176) (36) (24) (41) (14) (7)
Current income
taxes (4) (6) (9) - - -
Distributions to
preferred limited
partners - - - - - -
Cash portion of
non-controlling
interests
Participating
non-controlling
interests - in
operating
subsidiaries - - - - - -
Preferred equity - - - - - -
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Funds From
Operations(3) 370 46 95 74 18 6
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Brookfield Renewable's
Share
----------------------------
Other (2) Corporate Total
Non-
controlling
($ MILLIONS) interests 2016 2015
----------------------------------------------------------------------------
Revenues 31 1 1,444 1,008 2,452 1,628
Other income (1) 8 47 17 64 81
Share of cash
earnings from
equity-accounted
investments - - 9 - 9 20
Direct operating
costs (11) (24) (570) (468) (1,038) (552)
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Adjusted EBITDA(3) 19 (15) 930 557 1,487 1,177
Management service
costs - (62) (62) - (62) (48)
Interest expense -
borrowings (1) (91) (390) (216) (606) (429)
Current income
taxes - - (19) (25) (44) (18)
Distributions to
preferred limited
partners - (15) (15) - (15) (1)
Cash portion of
non-controlling
interests
Participating
non-controlling
interests - in
operating
subsidiaries - - - (316) (316) (184)
Preferred equity - (25) (25) - (25) (30)
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Funds From
Operations(3) 18 (208) 419 - 419 467
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(1) Includes generation from both hydroelectric and Co-gen facilities.
(2) Other includes North America Co-gen and Brazil biomass.
(3) Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS
Measures".
Contacts: Brookfield Renewable Partners L.P. Zev Korman Senior Vice President, Investor Relations (416) 359-1955 [email protected]
Source: Brookfield Renewable Partners L.P.
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