Feb 06, 2014
Acquires 33% interest with institutional partners in 417 MW Safe Harbor hydro facility
Distribution increased from $1.45 to $1.55 per share on annual basis
February 6, 2014 – Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN; NYSE: BEP) (“Brookfield Renewable”) today announced strong results for the fourth quarter and twelve months ended December 31, 2013, including an increase in quarterly distributions and the acquisition of an interest in one of the largest hydroelectric generation facilities in the northeastern United States.
“Our strong results in 2013 reflect the success of our growth initiatives and our unique ability to add value to our portfolio through our operating platforms, all of which will continue to drive value in 2014 and beyond,” said Richard Legault, President and CEO. “Today’s announcement of the acquisition of additional hydro capacity in the northeastern United States further demonstrates our ability to acquire renewable power assets on a value basis. Accordingly, we are pleased to begin the new year with a distribution increase that exceeds our target and reflects the strength of the business and its prospects.”
Financial Results
| Unaudited, US$ millions (except per unit amounts) |
||||||||||
|
Three months ended
December 31
|
12 months ended December 31 |
|||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||
| Generation (GWh) | ||||||||||
| - Total | 5,268 | 4,053 | 22,222 | 15,942 | ||||||
| - Brookfield Renewable's share | 4,475 | 3,660 | 18,927 | 14,376 | ||||||
| Revenues |
$ | 393 | $ | 317 | $ | 1,706 | $ | 1,309 | ||
| Adjusted EBITDA (1) |
$ | 272 | $ | 195 | $ | 1,208 | $ | 852 | ||
| Funds from operations (FFO)(1) | $ | 137 | $ | 74 | $ | 594 | $ | 347 | ||
| FFO per unit(1)(2) | $ | 0.52 | $ | 0.28 | $ | 2.24 | $ | 1.31 | ||
(2) For the three and 12 months ended December 31, 2013 weighted average LP units, Redeemable/Exchangeable units and General partnership units totaled 265.3 million (2012: 265.2 million).
Review of Operations
Total generation was 5,268 GWh for the three months ended December 31, 2013, an increase of 1,215 GWh compared to the same period in the prior year. The hydroelectric portfolio generated 4,550 GWh which was in line with the long-term average and 1,225 GWh higher year-over-year, and reflected the strong performance of new assets and a return to more normal generation levels from unusually dry conditions in the same period last year. Recent acquisitions and assets reaching commercial operations within the last year resulted in generation increasing by 655 GWh. Reservoir levels on a portfolio basis are in line with long-term average conditions for this time of year.
The wind portfolio generated 503 GWh, below the long-term average of 617 GWh and 20 GWh higher than the prior year as a result of new facilities acquired in the western United States.
For the fourth quarter, Adjusted EBITDA was $272 million as compared to $195 million in Q4 2012. Funds from operations were $137 million or $0.52 per unit as compared with $74 million or $0.28 per unit in the prior year.
For the full year 2013, generation of 22,222 was 6,280 GWh and 386 GWh higher than the prior year and the long-term average, respectively. Adjusted EBITDA was $1,208 million as compared with $852 million in 2012. Funds from operations were $594 million or $2.24 per unit as compared with $347 million or $1.31 per unit in 2012.
The tables below summarize generation by segment and region:
| Generation (GWh)(1) |
Variance of Results | |||||
| For the three months ended December 31 | Actual 2013 | Actual 2012 | LTA 2013 | Actual vs. LTA | Actual vs. Prior Year |
|
| Hydroelectric generation | ||||||
| United States | 2,226 | 1,447 | 2,450 | (224) | 779 | |
| Canada | 1,401 | 954 | 1,171 | 230 | 447 | |
| Brazil(2) | 923 | 924 | 923 | - | (1) | |
| 4,550 | 3,325 | 4,544 | 6 | 1,225 | ||
| Wind Energy | ||||||
| United States | 175 | 158 | 274 | (99) | 17 | |
| Canada |
328 | 325 | 343 | (15) | 3 | |
| 503 | 483 | 617 | (114) | 20 | ||
| Other | 215 | 245 | 219 | (4) | (30) | |
| Total generation(3) | 5,268 | 4,053 | 5,380 | (112) | 1,215 | |
(2) In Brazil, assured generation levels are used as a proxy for long-term average..
(3) Includes 100% of generation from equity-accounted investments.
| Generation (GWh)(1) |
Variance of Results | |||||
| For the 12 months ended December 31 | Actual 2013 | Actual 2012 | LTA 2013 | Actual vs. LTA | Actual vs. Prior Year |
|
| Hydroelectric generation | ||||||
| United States | 10,082 | 5,913 | 9,681 | 401 | 4,169 | |
| Canada | 5,494 | 3,953 | 5,062 | 432 | 1,541 | |
| Brazil(2) | 3,656 | 3,470 | 3,656 | - | 186 | |
| 19,232 | 13,336 | 18,399 | 833 | 5,896 | ||
| Wind Energy | ||||||
| United States | 1,145 | 619 | 1,341 | (196) | 526 | |
| Canada |
1,075 | 1,090 | 1,197 | (122) | (15) | |
| 2,220 | 1,709 | 2,538 | (318) | 511 | ||
| Other | 770 | 897 | 899 | (129) | (127) | |
| Total generation(3) | 22,222 | 15,942 | 21,836 | 386 | 6,280 | |
(2) In Brazil, assured generation levels are used as a proxy for long-term average.
(3) Includes 100% of generation from equity-accounted investments.
Hydro Acquisition
Brookfield Renewable and its institutional partners have entered into an agreement to acquire, from an affiliate of LS Power, its 33% economic and 50% voting interest in the 417 MW Safe Harbor hydroelectric facility on the Susquehanna River in Pennsylvania. Safe Harbor generates an average of 1,100 GWh annually and possesses storage capabilities supporting daily peaking. It is one of the largest conventional hydroelectric facilities in PJM, a market which offers multiple revenue streams including energy, capacity, ancillaries and renewable energy credits.
Total purchase price for the transaction is $289 million subject to customary working capital adjustment, and will be funded through available liquidity and capital from Brookfield Renewable and its institutional partners. The transaction is subject to customary closing conditions and regulatory approvals and is expected to be completed in the first quarter of 2014.
Recent Highlights
- In December 2013, Brookfield Renewable was identified as part of a consortium that was named the preferred bidder in connection with the purchase of state-owned Bord Gáis Energy in Ireland. Bord Gáis’ energy business includes a wind portfolio with an operating capacity expected to exceed 500 MW by 2015. Brookfield Renewable continues to work with its consortium partners and the Government of Ireland on an exclusive basis to finalize terms of the sale. It is expected that the sale agreement, when concluded, would lead to a formal completion in the first half of 2014 once all regulatory and merger approvals are received.
- In January 2014, Brookfield Renewable and its institutional partners completed the acquisition of a previously announced 85 MW of hydroelectric generation, including a 70 MW portfolio in Maine and the remaining 50% interest in a 30 MW facility in California.
- Construction of the 45 MW Kokish River hydro project in western Canada is nearing completion and commissioning of the facility is expected to take place as scheduled in the second quarter of 2014.
- Liquidity at year end was approximately $1.2 billion, providing the financial resources and flexibility to fund ongoing growth initiatives. During 2013, approximately $3 billion of refinancing activity was completed which has lowered borrowing costs while extending maturities.
The Board of Directors has approved an increase in the quarterly distribution to $0.3875 or $1.55 per LP unit on an annualized basis. This represents a level nearly 20% higher than at Brookfield Renewable’s launch in November 2011 and an increase of 7% from the existing level of $1.45 per unit.
The Board of Directors has declared a quarterly distribution in the amount of $0.2583 per unit, payable on March 31, 2014 to unitholders of record as at the close of business on February 28, 2014. This amount reflects the distribution increase and is pro-rated for the two-month period in connection with the change in quarterly record and payment dates that was announced in November 2013. The Board of Directors anticipates that the next quarterly dividend of $0.3875 per unit will be paid on June 30, 2014 to shareholders of record at May 31, 2014.
This distribution is consistent with Brookfield Renewable’s policy of targeting a long-term, sustainable distribution in the range of 60-70% of FFO and which increases on average by 3% to 5% annually.
The regular quarterly dividends on the Brookfield Renewable Power Preferred Equity Inc. preferred shares have also been declared.
Introduction of Distribution Currency Option
The quarterly distributions payable on L.P. Units of Brookfield Renewable Energy Partners are declared in U.S. dollars. Registered and beneficial shareholders who are r
| Title | Document |
|---|---|
| Download this Press Release |