All amounts in US dollars unless otherwise indicated
“In 2017, we delivered strong results to our unitholders, deployed
“In light of our results, and with the strong growth ahead of us, 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 | 2017 | 2016 | 2017 | 2016 | ||||
| Total generation (GWh) | ||||||||
| - Actual generation | 11,913 | 8,728 | 43,385 | 34,071 | ||||
| - Long-term average generation | 12,198 | 10,319 | 42,334 | 38,982 | ||||
| Brookfield Renewable's share | ||||||||
| - Actual generation | 5,890 | 4,734 | 23,968 | 20,222 | ||||
| - Long-term average generation | 6,030 | 5,739 | 23,251 | 22,362 | ||||
| Proportionate Adjusted EBITDA(1) | $ | 295 | $ | 189 | $ | 1,142 | $ | 942 |
| Funds From Operations (FFO)(1) | $ | 143 | $ | 54 | $ | 581 | $ | 419 |
| Per Unit(1)(2) | $ | 0.46 | $ | 0.18 | $ | 1.90 | $ | 1.45 |
(1) Non-IFRS measure. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(2) For the three months and year ended December 31, 2017, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 312.6 million and 305.8 million, respectively (2016: 299.1 million and 288.7 million).
Brookfield Renewable reported proportionate Adjusted EBITDA and FFO of
Proportionate adjusted EBITDA and FFO for the three months ended December 31, 2017 were
Appointment of Wyatt Hartley as Chief Financial Officer
The Board of Brookfield Renewable is pleased to announce the appointment of Wyatt Hartley as Chief Financial Officer, effective immediately. Mr. Hartley, a CPA, joined Brookfield Asset Management in 2010 where he held a series of senior finance positions. Previously, he served as Chief Financial Officer of Brookfield Infrastructure Group’s American operations, and Chief Financial Officer of Acadian Timber Corp, before joining Brookfield Renewable in 2017 as Senior Vice President, Finance.
Mr. Hartley succeeds Nicholas Goodman, who is assuming the role of Group Treasurer for Brookfield Asset Management, and Brookfield Renewable will therefore continue to benefit from his advice and counsel.
Highlights from the Year
We delivered a total return to shareholders of approximately 25%, and FFO per unit growth of 31% in 2017. Highlights from the year include:
- Deploying approximately
$625 million of equity from our balance sheet in new transactions and developments, in line with our targets - Commissioned 75 megawatts of new capacity, while progressing an additional 248 megawatts of construction and advanced stage projects that are expected to enter commercial operations in the next four years
- Added scale solar, wind, storage and distributed generation assets to our portfolio in our core markets in
North America , while making small investments inIndia andChina , establishing an operating presence in these markets to support future growth - Maintained robust liquidity, ending the year with in excess of
$1.5 billion of available capital, through accessing multiple sources of liquidity and monetizing select mature assets for value
Operating and Financial Results
Our revenues continue to be largely contracted across the business, with approximately 90% of generation contracted and an average power purchase agreement term of over 15 years. During the year, our hydro assets reported
Our wind facilities delivered
Our solar portfolio now consists of over 1,000 megawatts of utility-scale solar and 400 megawatts of distributed solar generation. The vast majority of these assets are located in
We also own and operate interests in three pumped storage facilities in the
Transaction Updates
In the fourth quarter, we and our institutional partners closed the acquisitions of 51% of TerraForm Power and 100% of Terraform Global, which were previously controlled by SunEdison. Combined, these two transactions added 3,600 megawatts of long duration, contracted solar and wind assets to our portfolio. The assets are fully operational and virtually all recently build. The average portfolio age is approximately 5 years. The assets are located primarily in our core markets of
Since our acquisition, we have taken meaningful strides to both strengthen TerraForm Power’s balance sheet and grow the business. Subsequent to close of our transaction TerraForm Power executed a broad refinancing plan by purchasing and re-issuing
Since closing the acquisition of TerraForm Global, we have begun the process of integrating the assets into our existing operations in
Liquidity
Our liquidity position at year end exceeds
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 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
For more information, please contact:
Media:
Claire Holland
(416) 369-8236
[email protected]
Investors:
Divya Biyani
(416) 369-2616
[email protected]
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s 2017 Year End and Fourth Quarter 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 7, 2018 at 9:00 a.m. Eastern Time at https://event.on24.com/wcc/r/1585372/4CD577F90661FF12C75B0218A47A8F09 or via teleconference at 1-866-521-4909 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 (FFO), Adjusted 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, Adjusted Funds From Operations and Funds From Operations per 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 nor 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.
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.
GENERATION AND FINANCIAL REVIEW ON PROPORTIONATE INFORMATION 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(1) | Funds From Operations(1) | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||
| Hydroelectric | |||||||||||||||||||
| 3,076 | 2,589 | 3,143 | 3,142 | $ | 217 | $ | 162 | $ | 144 | $ | 91 | $ | 100 | $ | 47 | ||||
| 978 | 924 | 935 | 989 | 51 | 56 | 26 | 28 | 14 | 13 | ||||||||||
| 867 | 451 | 978 | 891 | 64 | 46 | 43 | 33 | 33 | 26 | ||||||||||
| 4,921 | 3,964 | 5,056 | 5,022 | 332 | 264 | 213 | 152 | 147 | 86 | ||||||||||
| Wind | |||||||||||||||||||
| 648 | 404 | 693 | 454 | 53 | 38 | 37 | 29 | 22 | 19 | ||||||||||
| 128 | 149 | 146 | 181 | 12 | 15 | 7 | 8 | 6 | 3 | ||||||||||
| 74 | 74 | 82 | 82 | 7 | 5 | 6 | 4 | 5 | 2 | ||||||||||
| 850 | 627 | 921 | 717 | 72 | 58 | 50 | 41 | 33 | 24 | ||||||||||
| Solar, Storage & Other | 119 | 143 | 53 | - | 26 | 10 | 22 | 2 | 14 | (1 | ) | ||||||||
| Corporate | - | - | - | - | - | 1 | 10 | (6 | ) | (51 | ) | (55 | ) | ||||||
| Total | 5,890 | 4,734 | 6,030 | 5,739 | $ | 430 | $ | 333 | $ | 295 | $ | 189 | $ | 143 | $ | 54 | |||
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
GENERATION AND FINANCIAL REVIEW ON PROPORTIONATE INFORMATION 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(1) | Funds From Operations(1) | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||
| Hydroelectric | ||||||||||||||||||||
| 13,942 | 11,960 | 13,059 | 12,977 | $ | 945 | $ | 819 | $ | 665 | $ | 548 | $ | 486 | $ | 367 | |||||
| 3,426 | 3,078 | 3,874 | 3,761 | 243 | 187 | 178 | 130 | 148 | 97 | |||||||||||
| 3,683 | 2,419 | 3,488 | 2,994 | 191 | 182 | 99 | 88 | 52 | 46 | |||||||||||
| 21,051 | 17,457 | 20,421 | 19,732 | 1,379 | 1,188 | 942 | 766 | 686 | 510 | |||||||||||
| Wind | ||||||||||||||||||||
| 1,765 | 1,421 | 2,019 | 1,780 | 161 | 151 | 119 | 115 | 74 | 74 | |||||||||||
| 490 | 571 | 513 | 605 | 46 | 56 | 26 | 32 | 15 | 18 | |||||||||||
| 278 | 266 | 245 | 245 | 26 | 17 | 22 | 13 | 16 | 6 | |||||||||||
| 2,533 | 2,258 | 2,777 | 2,630 | 233 | 224 | 167 | 160 | 105 | 98 | |||||||||||
| Solar, Storage & Other | 384 | 507 | 53 | - | 67 | 58 | 39 | 31 | 21 | 19 | ||||||||||
| Corporate | - | - | - | - | - | 1 | (6 | ) | (15 | ) | (231 | ) | (208 | ) | ||||||
| Total | 23,968 | 20,222 | 23,251 | 22,362 | $ | 1,679 | $ | 1,471 | $ | 1,142 | $ | 942 | $ | 581 | $ | 419 | ||||
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
The following table reflects information on a proportionate basis for the three months ended December 31, 2017:
| Contribution | |||||||||||||||||||||||||||||||||||||
| Attributable to Unitholders | from | Attributable | |||||||||||||||||||||||||||||||||||
| Hydroelectric | Wind | Solar, | Corporate | Total | equity | to non- | |||||||||||||||||||||||||||||||
| North | North | Storage and | accounted | controlling | |||||||||||||||||||||||||||||||||
| ($ MILLIONS) | America | America | Other | investments | interests | Total | |||||||||||||||||||||||||||||||
| Revenues | 217 | 51 | 64 | 53 | 12 | 7 | 26 | - | 430 | (39 | ) | 266 | 657 | ||||||||||||||||||||||||
| Other income | - | - | 2 | - | - | - | 6 | 18 | 26 | (10 | ) | 6 | 22 | ||||||||||||||||||||||||
| Direct operating costs | (73 | ) | (25 | ) | (23 | ) | (16 | ) | (5 | ) | (1 | ) | (10 | ) | (8 | ) | (161 | ) | 13 | (114 | ) | (262 | ) | ||||||||||||||
| Share of Adjusted EBITDA from equity accounted investments | - | - | - | - | - | - | - | - | - | 36 | - | 36 | |||||||||||||||||||||||||
| Adjusted EBITDA | 144 | 26 | 43 | 37 | 7 | 6 | 22 | 10 | 295 | - | 158 | 453 | |||||||||||||||||||||||||
| Management service costs | - | - | - | - | - | - | - | (24 | ) | (24 | ) | - | - | (24 | ) | ||||||||||||||||||||||
| Interest expense - borrowings | (44 | ) | (10 | ) | (6 | ) | (15 | ) | (1 | ) | (1 | ) | (8 | ) | (23 | ) | (108 | ) | 12 | (59 | ) | (155 | ) | ||||||||||||||
| Current income taxes | - | (2 | ) | (4 | ) | - | - | - | - | - | (6 | ) | - | (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 | - | - | - | - | - | - | - | - | - | (12 | ) | - | (12 | ) | |||||||||||||||||||||||
| Share of Funds From Operations attributable to non-controlling interests | - | - | - | - | - | - | - | - | - | - | (93 | ) | (93 | ) | |||||||||||||||||||||||
| Funds From Operations | 100 | 14 | 33 | 22 | 6 | 5 | 14 | (51 | ) | 143 | - | - | 143 | ||||||||||||||||||||||||
The following table reflects information on a proportionate basis for the three months ended December 31, 2016:
| Contribution | |||||||||||||||||||||||||||||||||||||
| Attributable to Unitholders | from | Attributable | |||||||||||||||||||||||||||||||||||
| Hydroelectric | Wind | Storage | Corporate | Total | equity | to non- | |||||||||||||||||||||||||||||||
| North | North | and | accounted | controlling | |||||||||||||||||||||||||||||||||
| ($ MILLIONS) | America | America | Other | investments | interests | Total | |||||||||||||||||||||||||||||||
| Revenues | 162 | 56 | 46 | 38 | 15 | 5 | 10 | 1 | 333 | (9 | ) | 247 | 571 | ||||||||||||||||||||||||
| Other income | - | - | 3 | - | - | - | - | 1 | 4 | - | 5 | 9 | |||||||||||||||||||||||||
| Direct operating costs | (71 | ) | (28 | ) | (16 | ) | (9 | ) | (7 | ) | (1 | ) | (8 | ) | (8 | ) | (148 | ) | 5 | (115 | ) | (258 | ) | ||||||||||||||
| Share of Adjusted EBITDA from equity accounted investments | - | - | - | - | - | - | - | - | - | 4 | - | 4 | |||||||||||||||||||||||||
| Adjusted EBITDA | 91 | 28 | 33 | 29 | 8 | 4 | 2 | (6 | ) | 189 | - | 137 | 326 | ||||||||||||||||||||||||
| Management service costs | - | - | - | - | - | - | - | (16 | ) | (16 | ) | - | - | (16 | ) | ||||||||||||||||||||||
| Interest expense - borrowings | (44 | ) | (10 | ) | (5 | ) | (10 | ) | (5 | ) | (2 | ) | (3 | ) | (23 | ) | (102 | ) | 3 | (60 | ) | (159 | ) | ||||||||||||||
| Current income taxes | - | (5 | ) | (2 | ) | - | - | - | - | - | (7 | ) | - | (17 | ) | (24 | ) | ||||||||||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | - | - | - | (4 | ) | (4 | ) | - | - | (4 | ) | ||||||||||||||||||||||
| Preferred equity | - | - | - | - | - | - | - | (6 | ) | (6 | ) | - | - | (6 | ) | ||||||||||||||||||||||
| Share of interest and cash taxes from equity accounted investments | - | - | - | - | - | - | - | - | - | (3 | ) | - | (3 | ) | |||||||||||||||||||||||
| Share of Funds From Operations attributable to non-controlling interests | - | - | - | - | - | - | - | - | - | - | (60 | ) | (60 | ) | |||||||||||||||||||||||
| Funds From Operations | 47 | 13 | 26 | 19 | 3 | 2 | (1 | ) | (55 | ) | 54 | - | - | 54 | |||||||||||||||||||||||
The following table reflects information on a proportionate basis for the year ended December 31, 2017:
| Contribution | |||||||||||||||||||||||||||||||||||||
| Attributable to Unitholders | from | Attributable | |||||||||||||||||||||||||||||||||||
| Hydroelectric | Wind | Solar, | Corporate | Total | equity | to non- | |||||||||||||||||||||||||||||||
| North | North | Storage and | accounted | controlling | |||||||||||||||||||||||||||||||||
| ($ MILLIONS) | America | America | Other | investments | interests | Total | |||||||||||||||||||||||||||||||
| Revenues | 945 | 191 | 243 | 161 | 46 | 26 | 67 | - | 1,679 | (74 | ) | 1,020 | 2,625 | ||||||||||||||||||||||||
| Other income | 1 | 2 | 12 | - | - | - | 6 | 19 | 40 | (11 | ) | 18 | 47 | ||||||||||||||||||||||||
| Direct operating costs | (281 | ) | (94 | ) | (77 | ) | (42 | ) | (20 | ) | (4 | ) | (34 | ) | (25 | ) | (577 | ) | 28 | (429 | ) | (978 | ) | ||||||||||||||
| Share of Adjusted EBITDA from equity accounted investments | - | - | - | - | - | - | - | - | - | 57 | - | 57 | |||||||||||||||||||||||||
| Adjusted EBITDA | 665 | 99 | 178 | 119 | 26 | 22 | 39 | (6 | ) | 1,142 | - | 609 | 1,751 | ||||||||||||||||||||||||
| Management service costs | - | - | - | - | - | - | - | (82 | ) | (82 | ) | - | - | (82 | ) | ||||||||||||||||||||||
| Interest expense - borrowings | (180 | ) | (42 | ) | (18 | ) | (45 | ) | (10 | ) | (6 | ) | (17 | ) | (89 | ) | (407 | ) | 21 | (246 | ) | (632 | ) | ||||||||||||||
| Current income taxes | 1 | (5 | ) | (12 | ) | - | (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 | 486 | 52 | 148 | 74 | 15 | 16 | 21 | (231 | ) | 581 | - | - | 581 | ||||||||||||||||||||||||
| Adjusted sustaining capital expenditures(1) | - | - | - | - | - | - | - | - | (68 | ) | - | - | (68 | ) | |||||||||||||||||||||||
| Adjusted Funds From Operations | 486 | 52 | 148 | 74 | 15 | 16 | 21 | (231 | ) | 513 | - | - | 513 | ||||||||||||||||||||||||
(1) Based on long-term sustaining capital expenditure plans.
The following table reflects information on a proportionate basis for the year ended December 31, 2016:
| Contribution | |||||||||||||||||||||||||||||||||||||
| Attributable to Unitholders | from | Attributable | |||||||||||||||||||||||||||||||||||
| Hydroelectric | Wind | Storage | Corporate | Total | equity | to non- | |||||||||||||||||||||||||||||||
| North | North | and | accounted | controlling | |||||||||||||||||||||||||||||||||
| ($ MILLIONS) | America | America | Other | investments | interests | Total | |||||||||||||||||||||||||||||||
| Revenues | 819 | 182 | 187 | 151 | 56 | 17 | 58 | 1 | 1,471 | (37 | ) | 1,018 | 2,452 | ||||||||||||||||||||||||
| Other income | 24 | 3 | 13 | - | - | - | (1 | ) | 8 | 47 | - | 17 | 64 | ||||||||||||||||||||||||
| Direct operating costs | (295 | ) | (97 | ) | (70 | ) | (36 | ) | (24 | ) | (4 | ) | (26 | ) | (24 | ) | (576 | ) | 16 | (478 | ) | (1,038 | ) | ||||||||||||||
| Share of Adjusted EBITDA from equity accounted investments | - | - | - | - | - | - | - | - | - | 21 | - | 21 | |||||||||||||||||||||||||
| Adjusted EBITDA | 548 | 88 | 130 | 115 | 32 | 13 | 31 | (15 | ) | 942 | - | 557 | 1,499 | ||||||||||||||||||||||||
| Management service costs | - | - | - | - | - | - | - | (62 | ) | (62 | ) | - | - | (62 | ) | ||||||||||||||||||||||
| Interest expense - borrowings | (177 | ) | (36 | ) | (24 | ) | (41 | ) | (14 | ) | (7 | ) | (12 | ) | (91 | ) | (402 | ) | 12 | (216 | ) | (606 | ) | ||||||||||||||
| Current income taxes | (4 | ) | (6 | ) | (9 | ) | - | - | - | - | - | (19 | ) | - | (25 | ) | (44 | ) | |||||||||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||||||||||||
| Preferred limited partners equity | - | - | - | - | - | - | - | (15 | ) | (15 | ) | - | - | (15 | ) | ||||||||||||||||||||||
| Preferred equity | - | - | - | - | - | - | - | (25 | ) | (25 | ) | - | - | (25 | ) | ||||||||||||||||||||||
| Share of interest and cash taxes from equity accounted investments | - | - | - | - | - | - | - | - | - | (12 | ) | - | (12 | ) | |||||||||||||||||||||||
| Share of Funds From Operations attributable to non-controlling interests | - | - | - | - | - | - | - | - | - | - | (316 | ) | (316 | ) | |||||||||||||||||||||||
| Funds From Operations | 367 | 46 | 97 | 74 | 18 | 6 | 19 | (208 | ) | 419 | - | - | 419 | ||||||||||||||||||||||||
| Adjusted sustaining capital expenditures(1) | - | - | - | - | - | - | - | - | (67 | ) | - | - | (67 | ) | |||||||||||||||||||||||
| Adjusted Funds From Operations | 367 | 46 | 97 | 74 | 18 | 6 | 19 | (208 | ) | 352 | - | - | 352 | ||||||||||||||||||||||||
(1) Based on long-term sustaining capital expenditure plans.
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