All amounts in
BROOKFIELD, News,
“2022 was another successful year, continuing our track record of double-digit average annual FFO growth for more than a decade and executing on our growth initiatives, increasing our renewable power presence in all our core markets and expanding into transition investments”, said
| For the three months ended |
For the twelve months ended |
|||||||||||
| US$ millions (except per unit amounts), unaudited | 2022 | 2021 | 2022 | 2021 | ||||||||
| Net loss attributable to Unitholders | $ | (82 | ) | $ | (57 | ) | $ | (295 | ) | $ | (368 | ) |
| – per LP unit(1) | (0.16 | ) | (0.12 | ) | (0.60 | ) | (0.69 | ) | ||||
| Funds From Operations (FFO)(2) | 225 | 214 | 1,005 | 934 | ||||||||
| – per Unit(2)(3) | 0.35 | 0.33 | 1.56 | 1.45 | ||||||||
Brookfield Renewable reported FFO of
Other highlights include
- Advanced key commercial priorities including securing contracts for over 11,000 gigawatt hours per year of generation, continuing our approach of partnering on a global basis with the largest corporate purchasers of green power.
- Continued to accelerate our development activities, commissioning approximately 3,500 megawatts of new projects that are expected to contribute
$45 million of FFO annually on a run-rate basis. We also continue to execute on our 19,000-megawatt under construction and advanced stage pipeline, which, along with our sustainable solutions pipeline, is expected to contribute approximately$235 million of FFO annually to Brookfield Renewable once commissioned. - Closed or agreed to invest up to
$12 billion ($2.8 billion net to Brookfield Renewable) of capital across multiple transactions and regions. - Maintained our strong balance sheet and executed approximately
$10 billion of financings, generating$2 billion ($1.2 billion net to Brookfield Renewable) in proceeds from upfinancings and bolstering our liquidity, which stands at$3.7 billion , while continuing to minimize our exposure to floating interest rates or near-term maturities. - Completed or are advancing up to $4.6 billion (approximately
$1.6 billion net to Brookfield Renewable) of asset recycling activities.
A Record Year for Growth
2022 has been our strongest year for growth to date. We closed or agreed to invest up to
The investment environment for renewables remains highly compelling. Corporate clean energy demand, low-cost energy profile, electrification, and energy independence continue to be key trends accelerating renewable deployment. Our disciplined approach to investing, long-dated history of owning and operating clean energy assets, and access to large-scale capital put us in a leadership position. Our track record demonstrates that we are uniquely capable of capturing some of the most attractive scale opportunities and we expect to be able to replicate this strategy looking forward.
In renewable development, we agreed to invest up to
Since this time last year, our global renewable power development pipeline has nearly doubled to almost 110,000 megawatts today. Included in this project pipeline are 19,000 megawatts which are advanced stage and construction-ready. This represents meaningful value in the ground and will contribute significant cash flows once completed. Additionally, our global, technologically diversified fleet means we are a partner of choice for multinational corporations seeking large-scale, low carbon energy solutions.
We also formed a strategic partnership with Cameco to acquire Westinghouse, one of the world’s largest nuclear services businesses. We believe that nuclear power and hydroelectricity are the only forms of clean, dispatchable, baseload power generation and will be a key enabler of the rapid growth of intermittent solar and wind. As the leading original equipment manufacturer and provider of essential products and services to half the global nuclear power generation fleet, Westinghouse is a critical player in the energy transition. We expect total equity invested to be
Lastly, we entered a number of new high growth transition asset classes that are complementary to our core renewable assets, including carbon capture and storage, recycling, and renewable natural gas (“RNG”), through small upfront investments with experienced partners, that are structured with downside protection, discretion over future investment and significant potential upside returns on our capital. This includes an investment in California Bioenergy, a leading
Our Access to Capital Has Become Increasingly Valuable
We have said for many years that the strength of our balance sheet and our ability to invest alongside large-scale institutional capital represents a significant competitive advantage.
Throughout our history, we have prioritized capitalizing the business with a strong investment grade balance sheet, utilizing long duration non-recourse debt, and maintaining high levels of liquidity. We have operated this way for many years, ensuring that we maintain a low risk financial profile and focusing on financial strength and flexibility. We recognize that this can often be overlooked as part of investors' risk-reward equation, in particular during expansionary periods. However, we believe it is critical to our long-term success, and over time, contributes meaningfully to the compounding of our cash flows and the total returns delivered by our units.
Furthermore, our structure of investing alongside Brookfield’s private funds provides access to scale, long-term institutional capital, allowing us to target sizable deals where there is often limited competition. Combined with our platform capabilities, this allows us to execute some of the largest and most attractive decarbonization opportunities, positioning us to generate strong risk-adjusted returns.
Investor appetite for the energy transition remains very strong. We have seen significant institutional demand to invest alongside experienced owners, operators, and investors like us. The success of Brookfield’s first
In today’s market, where access to capital is limited for some market participants, this becomes an even more meaningful competitive advantage. Institutional capital supports our ability to invest in great businesses and achieve strong results that maximize long-term returns for our investors. The scale of our transition fund, and the institutional relationships and capital it brings, is another meaningful step change in our funding strategy that we will continue to employ as we grow our business.
Operating Results
Our underlying business continues to perform very well. During the year, we generated FFO of over
Our business is backed by high-quality cash flows, in large part from our perpetual hydro portfolio, which has become an increasingly valuable source of clean, baseload power as more intermittent renewables come online. With over 5,000-gigawatt hours of generation available for re-contracting across our portfolio over the next five years, and the positive pricing environment for our hydro portfolio, we have significant capacity across our fleet to execute on accretive contracts that we expect to contribute additional FFO and generate a low-cost funding source for our growth.
Our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
We have also increased the scale of our development activities, almost doubling our renewable power pipeline from 62,000 megawatts last year to almost 110,000 megawatts today. In 2022 alone, we commissioned approximately 3,500 megawatts of capacity, including completing our 850-megawatt Shepherds Flat wind repowering project on time and on budget.
Furthermore, we have strong visibility into our near-term development pipeline, with almost 5,000 megawatts of projects representing significant dollars in the ground that we expect to build out in the next year and for which we have secured substantially all required funding. Additionally, over 14,000 megawatts of our remaining advanced-stage development projects have been materially de-risked. Together with our sustainable solutions pipeline, these projects are expected to contribute approximately
Balance Sheet and Liquidity
Our financial position remains excellent, and our available liquidity is robust, providing significant flexibility to fund our growth. We are resilient to rising interest rates globally, with over 90% of our borrowings being project-level non-recourse debt, with an average remaining term of 12 years, no material near-term maturities in the next five years, and only 3% exposure to floating rate debt.
Despite market volatility, our access to deep and varied pools of capital continues to be differentiated. We have approximately
We are also accelerating our capital recycling activities, which are both an accretive funding lever and a critical part of our full-cycle investment strategy. We expect to imminently close the fifth and final tranche of the sale of our 630-megawatt solar portfolio in
Distribution Declaration
The next quarterly distribution in the amount of
In conjunction with the Partnership’s distribution declaration, the Board of Directors of BEPC has declared an equivalent quarterly dividend of
The quarterly dividends on BEP's preferred shares and preferred LP units have also been declared.
Distribution Currency Option
The quarterly distributions payable on the BEP units and BEPC shares are declared in
Registered unitholders who are residents in
Distribution Reinvestment Plan
Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on our website at www.bep.brookfield.com.
Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, utility-scale 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 approximately
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
| Contact information: | |
| Media: | Investors: |
| Managing Director – Communications | Director – Investor Relations |
| +44 (0)7398 909 278 | (416) 649-8172 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s Fourth Quarter 2022 Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Renewable’s website at https://bep.brookfield.com.
The conference call can be accessed via webcast on
| Consolidated Statements of Financial Position | ||||||||
| As of |
||||||||
| UNAUDITED (MILLIONS) |
2022 | 2021 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 998 | $ | 900 | ||||
| Trade receivables and other financial assets(4) | 3,747 | 2,193 | ||||||
| Equity-accounted investments | 1,392 | 1,107 | ||||||
| Property, plant and equipment, at fair value | 54,283 | 49,432 | ||||||
| 3,665 | 2,235 | |||||||
| Total Assets | $ | 64,085 | $ | 55,867 | ||||
| Liabilities | ||||||||
| Corporate borrowings | $ | 2,548 | $ | 2,149 | ||||
| Borrowings which have recourse only to assets they finance(6) | 22,624 | 19,380 | ||||||
| Accounts payable and other liabilities(7) | 6,120 | 4,127 | ||||||
| Deferred income tax liabilities | 6,507 | 6,215 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 14,755 | $ | 12,303 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 59 | 59 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,892 | 2,894 | ||||||
| BEPC exchangeable shares | 2,561 | 2,562 | ||||||
| Preferred equity | 571 | 613 | ||||||
| Perpetual subordinated notes | 592 | 592 | ||||||
| Preferred limited partners' equity | 760 | 881 | ||||||
| Limited partners' equity | 4,096 | 26,286 | 4,092 | 23,996 | ||||
| Total Liabilities and Equity | $ | 64,085 | $ | 55,867 | ||||
| Consolidated Statements of Operating Results | |||||||||||||
| UNAUDITED | For the three months ended |
For the twelve months ended |
|||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenues | $ | 1,196 | $ | 1,091 | $ | 4,711 | $ | 4,096 | |||||
| Other income | 29 | 15 | 136 | 304 | |||||||||
| Direct operating costs(8) | (374 | ) | (375 | ) | (1,434 | ) | (1,365 | ) | |||||
| Management service costs | (44 | ) | (64 | ) | (243 | ) | (288 | ) | |||||
| Interest expense | (351 | ) | (255 | ) | (1,224 | ) | (981 | ) | |||||
| Share of earnings (loss) from equity-accounted investments | 36 | 19 | 96 | 22 | |||||||||
| Foreign exchange and financial instrument (loss) gain | (25 | ) | (54 | ) | (128 | ) | (32 | ) | |||||
| Depreciation | (408 | ) | (381 | ) | (1,583 | ) | (1,501 | ) | |||||
| Other | (71 | ) | (77 | ) | (195 | ) | (307 | ) | |||||
| Income tax recovery (expense) | |||||||||||||
| Current | (42 | ) | 17 | (148 | ) | (43 | ) | ||||||
| Deferred | 114 | 97 | 150 | 29 | |||||||||
| Net income (loss) | $ | 60 | $ | 33 | $ | 138 | $ | (66 | ) | ||||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (142 | ) | $ | (90 | ) | $ | (433 | ) | $ | (302 | ) | |
| Net loss attributable to Unitholders | $ | (82 | ) | $ | (57 | ) | $ | (295 | ) | $ | (368 | ) | |
| Basic and diluted loss per LP unit | $ | (0.16 | ) | $ | (0.12 | ) | $ | (0.60 | ) | $ | (0.69 | ) | |
| Consolidated Statements of Cash | |||||||||||||
| For the three months ended |
For the twelve months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2022 | 2021 | 2022 | 2021 | |||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | 60 | $ | 33 | $ | 138 | $ | (66 | ) | ||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 408 | 381 | 1,583 | 1,501 | |||||||||
| Unrealized foreign exchange and financial instrument loss | 31 | 100 | 253 | 122 | |||||||||
| Share of (earnings) loss from equity-accounted investments | (36 | ) | (19 | ) | (96 | ) | (22 | ) | |||||
| Deferred income tax recovery | (114 | ) | (97 | ) | (150 | ) | (29 | ) | |||||
| Other non-cash items | 39 | (26 | ) | 107 | (136 | ) | |||||||
| 388 | 372 | 1,835 | 1,370 | ||||||||||
| Net change in working capital and other(9) | (110 | ) | (110 | ) | (123 | ) | (636 | ) | |||||
| 278 | 262 | 1,712 | 734 | ||||||||||
| Financing activities | |||||||||||||
| Net corporate borrowings | 296 | — | 296 | — | |||||||||
| Corporate credit facilities, net | (200 | ) | (150 | ) | — | — | |||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 365 | 1,273 | 3,828 | 2,769 | |||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 1,450 | 31 | 1,788 | 689 | |||||||||
| Issuance of Perpetual Subordinated Notes, Preferred LP Units and related costs, net | — | 252 | (137 | ) | 439 | ||||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (263 | ) | (255 | ) | (1,372 | ) | (900 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (229 | ) | (212 | ) | (915 | ) | (854 | ) | |||||
| 1,419 | 939 | 3,488 | 2,143 | ||||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (1,071 | ) | — | (2,452 | ) | (1,426 | ) | ||||||
| Investment in property, plant and equipment | (712 | ) | (1,136 | ) | (2,190 | ) | (1,967 | ) | |||||
| Disposal (purchase) of associates and other assets | (416 | ) | 102 | (518 | ) | 935 | |||||||
| Restricted cash and other | 56 | (19 | ) | 94 | (86 | ) | |||||||
| (2,143 | ) | (1,053 | ) | (5,066 | ) | (2,544 | ) | ||||||
| Foreign exchange gain (loss) on cash | 20 | (20 | ) | (28 | ) | (35 | ) | ||||||
| Cash and cash equivalents | |||||||||||||
| Decrease (increase) | (127 | ) | 128 | 106 | 298 | ||||||||
| Net change in cash classified within assets held for sale | (8 | ) | (1 | ) | (8 | ) | (5 | ) | |||||
| Balance, beginning of period | 1,133 | 773 | 900 | 607 | |||||||||
| Balance, end of period | $ | 998 | $ | 900 | $ | 998 | $ | 900 | |||||
PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended
| (GWh) | (MILLIONS) | ||||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA(2) | FFO | |||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| Hydroelectric | |||||||||||||||||||||||||||
| 2,427 | 2,559 | 2,910 | 2,913 | $ | 219 | $ | 262 | $ | 131 | $ | 164 | $ | 87 | $ | 123 | ||||||||||||
| 960 | 810 | 1,020 | 1,007 | 55 | 38 | 40 | 26 | 38 | 18 | ||||||||||||||||||
| 1,222 | 1,100 | 1,064 | 1,004 | 68 | 64 | 58 | 42 | 33 | 40 | ||||||||||||||||||
| 4,609 | 4,469 | 4,994 | 4,924 | 342 | 364 | 229 | 232 | 158 | 181 | ||||||||||||||||||
| Wind | |||||||||||||||||||||||||||
| 1,005 | 1,044 | 1,300 | 1,195 | 91 | 83 | 79 | 53 | 62 | 36 | ||||||||||||||||||
| 234 | 262 | 262 | 251 | 32 | 35 | 31 | 36 | 25 | 30 | ||||||||||||||||||
| 141 | 128 | 166 | 168 | 8 | 5 | 5 | 4 | 5 | 4 | ||||||||||||||||||
| 159 | 121 | 201 | 113 | 12 | 8 | 9 | 7 | 5 | 4 | ||||||||||||||||||
| 1,539 | 1,555 | 1,929 | 1,727 | 143 | 131 | 124 | 100 | 97 | 74 | ||||||||||||||||||
| Utility-scale solar | 418 | 356 | 551 | 381 | 77 | 68 | 54 | 67 | 29 | 41 | |||||||||||||||||
| Distributed energy & sustainable solutions(10) | 260 | 257 | 181 | 165 | 83 | 54 | 50 | 39 | 36 | 29 | |||||||||||||||||
| Corporate | — | — | — | — | — | — | 4 | (7 | ) | (95 | ) | (111 | ) | ||||||||||||||
| Total | 6,826 | 6,637 | 7,655 | 7,197 | $ | 645 | $ | 617 | $ | 461 | $ | 431 | $ | 225 | $ | 214 | |||||||||||
PROPORTIONATE RESULTS FOR THE TWELVE MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the twelve months ended
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA(2) | FFO | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||
| 11,285 | 10,470 | 12,161 | 12,167 | $ | 964 | $ | 876 | $ | 603 | $ | 569 | $ | 412 | $ | 409 | |||||||||||
| 3,828 | 3,626 | 4,060 | 4,004 | 197 | 169 | 167 | 155 | 138 | 131 | |||||||||||||||||
| 4,411 | 3,950 | 3,802 | 3,555 | 273 | 224 | 201 | 159 | 117 | 128 | |||||||||||||||||
| 19,524 | 18,046 | 20,023 | 19,726 | 1,434 | 1,269 | 971 | 883 | 667 | 668 | |||||||||||||||||
| Wind | ||||||||||||||||||||||||||
| 3,932 | 4,009 | 4,564 | 5,051 | 332 | 370 | 239 | 277 | 172 | 200 | |||||||||||||||||
| 867 | 1,029 | 944 | 1,077 | 134 | 125 | 133 | 187 | 114 | 164 | |||||||||||||||||
| 565 | 589 | 669 | 670 | 31 | 29 | 24 | 23 | 19 | 17 | |||||||||||||||||
| 595 | 469 | 627 | 451 | 41 | 32 | 34 | 24 | 21 | 15 | |||||||||||||||||
| 5,959 | 6,096 | 6,804 | 7,249 | 538 | 556 | 430 | 511 | 326 | 396 | |||||||||||||||||
| Utility-scale solar | 1,882 | 1,777 | 2,410 | 2,016 | 374 | 348 | 362 | 298 | 253 | 185 | ||||||||||||||||
| Distributed energy & sustainable solutions(11) | 1,304 | 1,231 | 889 | 861 | 290 | 242 | 197 | 173 | 154 | 133 | ||||||||||||||||
| Corporate | — | — | — | — | — | — | 42 | 11 | (395 | ) | (448 | ) | ||||||||||||||
| Total | 28,669 | 27,150 | 30,126 | 29,852 | $ | 2,636 | $ | 2,415 | $ | 2,002 | $ | 1,876 | $ | 1,005 | $ | 934 | ||||||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| Attributable to Unitholders | ||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & sustainable solutions |
Corporate | Total | ||||||||||||
| Net income (loss) | $ | 161 | $ | 31 | $ | (90 | ) | $ | 37 | $ | (79 | ) | $ | 60 | ||||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 152 | 135 | 88 | 32 | 1 | 408 | ||||||||||||
| Deferred income tax recovery | (52 | ) | (6 | ) | (26 | ) | (6 | ) | (24 | ) | (114 | ) | ||||||
| Foreign exchange and financial instrument loss (gain) | (17 | ) | (14 | ) | 70 | (39 | ) | 25 | 25 | |||||||||
| Other(12) | 57 | 39 | 7 | 60 | 5 | 168 | ||||||||||||
| Management service costs | — | — | — | — | 44 | 44 | ||||||||||||
| Interest expense | 166 | 66 | 62 | 25 | 32 | 351 | ||||||||||||
| Current income tax expense | 31 | 8 | 2 | 1 | — | 42 | ||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (269 | ) | (135 | ) | (59 | ) | (60 | ) | — | (523 | ) | |||||||
| Adjusted EBITDA | $ | 229 | $ | 124 | $ | 54 | $ | 50 | $ | 4 | $ | 461 | ||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| Attributable to Unitholders | ||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
District energy & sustainable solutions |
Corporate | Total | ||||||||||||
| Net income (loss) | $ | 187 | $ | (57 | ) | $ | (30 | ) | $ | 3 | $ | (70 | ) | $ | 33 | |||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 140 | 155 | 65 | 21 | — | 381 | ||||||||||||
| Deferred income tax recovery | (11 | ) | (25 | ) | (23 | ) | (7 | ) | (31 | ) | (97 | ) | ||||||
| Foreign exchange and financial instrument loss (gain) | 14 | 28 | 11 | 4 | (3 | ) | 54 | |||||||||||
| Other(12) | (2 | ) | 29 | 39 | 42 | 12 | 120 | |||||||||||
| Management service costs | — | — | — | — | 64 | 64 | ||||||||||||
| Interest expense | 113 | 59 | 53 | 9 | 21 | 255 | ||||||||||||
| Current income tax expense (recovery) | (20 | ) | 3 | — | — | — | (17 | ) | ||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (189 | ) | (92 | ) | (48 | ) | (33 | ) | — | (362 | ) | |||||||
| Adjusted EBITDA | $ | 232 | $ | 100 | $ | 67 | $ | 39 | $ | (7 | ) | $ | 431 | |||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the twelve months ended
| Attributable to Unitholders | ||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & sustainable solutions |
Corporate | Total | ||||||||||||
| Net income (loss) | $ | 359 | $ | 7 | $ | (56 | ) | $ | 124 | $ | (296 | ) | $ | 138 | ||||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 613 | 552 | 291 | 124 | 3 | 1,583 | ||||||||||||
| Deferred income tax expense (recovery) | (66 | ) | 35 | (35 | ) | (4 | ) | (80 | ) | (150 | ) | |||||||
| Foreign exchange and financial instrument loss (gain) | 183 | (77 | ) | 80 | (47 | ) | (11 | ) | 128 | |||||||||
| Other(12) | 65 | 113 | 109 | 77 | 98 | 462 | ||||||||||||
| Management service costs | — | — | — | — | 243 | 243 | ||||||||||||
| Interest expense | 586 | 254 | 195 | 80 | 109 | 1,224 | ||||||||||||
| Current income tax expense | 123 | 16 | 7 | 2 | — | 148 | ||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (892 | ) | (470 | ) | (229 | ) | (159 | ) | (24 | ) | (1,774 | ) | ||||||
| Adjusted EBITDA | $ | 971 | $ | 430 | $ | 362 | $ | 197 | $ | 42 | $ | 2,002 | ||||||
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the twelve months ended
| Attributable to Unitholders | ||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
District energy & sustainable solutions |
Corporate | Total | ||||||||||||
| Net income (loss) | $ | 309 | $ | (88 | ) | $ | 6 | $ | 64 | $ | (357 | ) | $ | (66 | ) | |||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 545 | 597 | 263 | 94 | 2 | 1,501 | ||||||||||||
| Deferred income tax expense (recovery) | 123 | (37 | ) | (34 | ) | (8 | ) | (73 | ) | (29 | ) | |||||||
| Foreign exchange and financial instrument loss (gain) | 47 | 40 | (23 | ) | 4 | (36 | ) | 32 | ||||||||||
| Other(12) | 49 | 151 | 92 | 52 | 108 | 452 | ||||||||||||
| Management service costs | — | — | — | — | 288 | 288 | ||||||||||||
| Interest expense | 407 | 247 | 187 | 48 | 92 | 981 | ||||||||||||
| Current income tax expense | 25 | 13 | 5 | — | — | 43 | ||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (622 | ) | (412 | ) | (198 | ) | (81 | ) | (13 | ) | (1,326 | ) | ||||||
| Adjusted EBITDA | $ | 883 | $ | 511 | $ | 298 | $ | 173 | $ | 11 | $ | 1,876 | ||||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income (loss) is reconciled to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||||
| UNAUDITED (MILLIONS) |
2022 | 2021 | 2022 | 2021 | |||||||||||
| Net income (loss) | $ | 60 | $ | 33 | $ | 138 | $ | (66 | ) | ||||||
| Add back or deduct the following: | |||||||||||||||
| Depreciation | 408 | 381 | 1,583 | 1,501 | |||||||||||
| Deferred income tax recovery | (114 | ) | (97 | ) | (150 | ) | (29 | ) | |||||||
| Foreign exchange and financial instruments gain (loss) | 25 | 54 | 128 | 32 | |||||||||||
| Other(15) | 168 | 120 | 462 | 452 | |||||||||||
| Amount attributable to equity accounted investment and non-controlling interest(16) | (322 | ) | (277 | ) | (1,156 | ) | (956 | ) | |||||||
| Funds From Operations | $ | 225 | $ | 214 | $ | 1,005 | $ | 934 | |||||||
The following table reconciles the per Unit non-IFRS financial metrics to the most directly comparable IFRS measures. Net income (loss) per LP unit is reconciled to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net loss per LP unit(1) | $ | (0.16 | ) | $ | (0.12 | ) | $ | (0.60 | ) | $ | (0.69 | ) | |
| Adjust for the proportionate share of | |||||||||||||
| Depreciation | 0.34 | 0.33 | 1.45 | 1.43 | |||||||||
| Deferred income tax recovery and other | 0.10 | 0.10 | 0.29 | 0.20 | |||||||||
| Foreign exchange and financial instruments loss | 0.07 | 0.02 | 0.42 | 0.51 | |||||||||
| Funds From Operations per Unit(3) | $ | 0.35 | $ | 0.33 | $ | 1.56 | $ | 1.45 | |||||
BROOKFIELD RENEWABLE CORPORATION REPORTS
FOURTH QUARTER RESULTS
All amounts in
The Board of Directors of
The BEPC exchangeable shares are structured with the intention of being economically equivalent to the non-voting limited partnership units of
| For the three months ended |
For the twelve months ended |
|||||||||
| US$ millions (except per unit amounts), unaudited | 2022 | 2021 | 2022 | 2021 | ||||||
| Select Financial Information | ||||||||||
| Net income attributable to the partnership | $ | 953 | $ | 130 | $ | 1,503 | $ | 946 | ||
| Funds From Operations (FFO)(2) | 139 | 137 | 612 | 554 | ||||||
BEPC reported FFO of
| Consolidated Statements of Financial Position | ||||||||
| As of |
||||||||
| UNAUDITED (MILLIONS) |
2022 | 2021 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 642 | $ | 525 | ||||
| Trade receivables and other financial assets(4) | 2,567 | 1,869 | ||||||
| Equity-accounted investments | 451 | 455 | ||||||
| Property, plant and equipment, at fair value | 37,828 | 37,915 | ||||||
| 1,800 | 1,222 | |||||||
| Total Assets | $ | 43,288 | $ | 41,986 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(6) | $ | 13,815 | $ | 13,512 | ||||
| Accounts payable and other liabilities(7) | 3,022 | 3,066 | ||||||
| Deferred income tax liabilities | 5,263 | 5,020 | ||||||
| BEPC exchangeable and class B shares | 4,364 | 6,163 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 10,680 | $ | 10,297 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 271 | 261 | ||||||
| The partnership | 5,873 | 16,824 | 3,667 | 14,225 | ||||
| Total Liabilities and Equity | $ | 43,288 | $ | 41,986 | ||||
| Consolidated Statements of Income | ||||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
| Revenues | $ | 956 | $ | 905 | $ | 3,778 | $ | 3,367 | ||||||
| Other income | 14 | 12 | 93 | 60 | ||||||||||
| Direct operating costs(8) | (294 | ) | (344 | ) | (1,174 | ) | (1,185 | ) | ||||||
| Management service costs | (37 | ) | (28 | ) | (169 | ) | (175 | ) | ||||||
| Interest expense | (285 | ) | (229 | ) | (1,032 | ) | (900 | ) | ||||||
| Share of earnings from equity-accounted investments | 5 | — | 6 | 2 | ||||||||||
| Foreign exchange and financial instrument gain (loss) | 29 | (82 | ) | (69 | ) | (27 | ) | |||||||
| Depreciation | (309 | ) | (281 | ) | (1,179 | ) | (1,115 | ) | ||||||
| Other | (32 | ) | (56 | ) | (86 | ) | (277 | ) | ||||||
| Remeasurement of BEPC exchangeable and class B shares | 1,026 | 193 | 1,800 | 1,267 | ||||||||||
| Income tax (expense) recovery | ||||||||||||||
| Current | (35 | ) | 20 | (133 | ) | (31 | ) | |||||||
| Deferred | 40 | 70 | 15 | (56 | ) | |||||||||
| Net income | $ | 1,078 | $ | 180 | $ | 1,850 | $ | 930 | ||||||
| Net income attributable to: | ||||||||||||||
| Non-controlling interests: | ||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 121 | $ | 46 | $ | 336 | $ | (23 | ) | |||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 4 | 4 | 11 | 7 | ||||||||||
| The partnership | 953 | 130 | 1,503 | 946 | ||||||||||
| $ | 1,078 | $ | 180 | $ | 1,850 | $ | 930 | |||||||
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
|||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Operating activities | |||||||||||||
| Net income | $ | 1,078 | $ | 180 | $ | 1,850 | $ | 930 | |||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 309 | 281 | 1,179 | 1,115 | |||||||||
| Unrealized foreign exchange and financial instruments loss (gain) | (21 | ) | 126 | 191 | 102 | ||||||||
| Share of earnings from equity-accounted investments | (5 | ) | — | (6 | ) | (2 | ) | ||||||
| Deferred income tax expense | (40 | ) | (70 | ) | (15 | ) | 56 | ||||||
| Other non-cash items | (8 | ) | 59 | 2 | 109 | ||||||||
| Remeasurement of exchangeable and class B shares | (1,026 | ) | (193 | ) | (1,800 | ) | (1,267 | ) | |||||
| 287 | 383 | 1,401 | 1,043 | ||||||||||
| Net change in working capital and other(9) | 132 | (153 | ) | (117 | ) | (648 | ) | ||||||
| 419 | 230 | 1,284 | 395 | ||||||||||
| Financing activities | |||||||||||||
| Non-recourse borrowings and related party borrowings, net | (219 | ) | 654 | 647 | 1,469 | ||||||||
| Capital contributions from participating non-controlling interests | 85 | 23 | 369 | 65 | |||||||||
| Return of capital to participating non-controlling interests | — | — | (54 | ) | (181 | ) | |||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests | (228 | ) | (184 | ) | (1,286 | ) | (675 | ) | |||||
| To the partnership | (78 | ) | — | (78 | ) | — | |||||||
| (440 | ) | 493 | (402 | ) | 678 | ||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | — | (48 | ) | (12 | ) | |||||||
| Investment in property, plant and equipment | (223 | ) | (791 | ) | (847 | ) | (1,354 | ) | |||||
| Disposal of subsidiaries, associates and other securities, net | — | — | 92 | 376 | |||||||||
| Restricted cash and other | 53 | (15 | ) | 65 | (37 | ) | |||||||
| (170 | ) | (806 | ) | (738 | ) | (1,027 | ) | ||||||
| Foreign exchange gain (loss) on cash | 19 | (18 | ) | (19 | ) | (33 | ) | ||||||
| Cash and cash equivalents | |||||||||||||
| Increase (decrease) | (172 | ) | (101 | ) | 125 | 13 | |||||||
| Net change in cash classified within assets held for sale | (8 | ) | — | (8 | ) | — | |||||||
| Balance, beginning of period | 822 | 626 | 525 | 512 | |||||||||
| Balance, end of period | $ | 642 | $ | 525 | $ | 642 | $ | 525 | |||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2022 | 2021 | 2022 | 2021 | |||||||||
| Net income | $ | 1,078 | $ | 180 | $ | 1,850 | $ | 930 | |||||
| Add back or deduct the following: | |||||||||||||
| Depreciation | 309 | 281 | 1,179 | 1,115 | |||||||||
| Foreign exchange and financial instruments (gain) loss | (29 | ) | 82 | 69 | 27 | ||||||||
| Deferred income tax (recovery) expense | (40 | ) | (70 | ) | (15 | ) | 56 | ||||||
| Other(17) | 64 | 92 | 238 | 423 | |||||||||
| Dividends on BEPC exchangeable shares(18) | 55 | 53 | 220 | 209 | |||||||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | (1,026 | ) | (193 | ) | (1,800 | ) | (1,267 | ) | |||||
| Amount attributable to equity accounted investments and non-controlling interests(19) | (272 | ) | (288 | ) | (1,129 | ) | (939 | ) | |||||
| Funds From Operations | $ | 139 | $ | 137 | $ | 612 | $ | 554 | |||||
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
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 letter to unitholders 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.
No securities regulatory authority has either approved or disapproved of the contents of this letter to unitholders. This letter to unitholders is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Statement Regarding Use of Non-IFRS Measures
This news release contains references to FFO and FFO per Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, FFO and FFO per Unit used by other entities. We believe that FFO and FFO 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 FFO and FFO 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 FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Year Ended December 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our audited Q4 2022 annual report. For a reconciliation of FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Year Ended December 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our audited Q4 2022 annual report.
References to Brookfield Renewable are to
Endnotes
| (1) | For the three and twelve months ended months ended |
| (2) | Refer to "Reconciliation of non-IFRS Measure" and “Cautionary Statement Regarding Use of Non-IFRS Measures” in this document, as well as "Part 9 - Presentation to Stakeholders and Performance Measurement" in the Management's Discussion and Analysis in the 2022 Annual Report. |
| (3) | Average Units outstanding for the for the three and twelve months ended months ended |
| (4) | Balance includes restricted cash, trades receivables and other current assets, financial instrument assets, and due from related parties. |
| (5) | Balance includes goodwill, deferred income tax assets, assets held for sale, intangible assets, and other long-term assets. |
| (6) | Balance includes current and non-current portion of non-recourse borrowings on the consolidated statement of financial position. |
| (7) | Balance includes accounts payable and accrued liabilities, financial instrument liabilities, due to related parties, provisions, liabilities directly associated with assets held for sale and other long-term liabilities. |
| (8) | Direct operating costs exclude depreciation expense disclosed below. |
| (9) | Balance includes dividends received from equity accounted investments and changes due to or from related parties. |
| (10) | Actual generation includes 123 GWh (2021:90 GWh) from facilities that do not have a corresponding LTA. |
| (11) | Actual generation includes 524 GWh (2021:442 GWh) from facilities that do not have a corresponding LTA. |
| (12) | Other 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 balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and Brookfield Renewable’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included within Adjusted EBITDA. |
| (13) | Amount attributable to equity accounted investments corresponds to the Adjusted EBITDA to Brookfield Renewable that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Adjusted EBITDA attributable to non-controlling interest, our partnership is able to remove the portion of Adjusted EBITDA earned at non-wholly owned subsidiaries that are not attributable to our partnership. |
| (15) | Other 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 balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and Brookfield Renewable’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included in Funds From Operations. |
| (16) | Amount attributable to equity accounted investments corresponds to the Funds From Operations that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Funds From Operations attributable to non-controlling interest, our partnership is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our partnership. |
| (17) | Other 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 balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and the company’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included in Funds From Operations. |
| (18) | Balance is included within interest expense on the consolidated statements of income (loss). |
| (19) | Amount attributable to equity accounted investments corresponds to the Funds From Operations that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Funds From Operations attributable to non-controlling interest, our company is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our company. |
| (20) | Any references to capital refer to Brookfield's cash deployed, excluding any debt financing. |
| (21) | Available liquidity of approximately 3.7 billion refers to "Part 5 - Liquidity and Capital Resources" in the Management Discussion and Analysis in the 2022 annual report. |
| (22) | 12-15% target returns are calculated as annualized cash return on investment. |
Source:
| Title | Document |
|---|---|
English |