All amounts in
BROOKFIELD, News,
“2021 was another strong year for our business as we achieved our highest ever FFO per unit, deployed capital in-line with our target and continued to expand our development activities with over 15,000 megawatts of capacity under construction or in late-stage development and an overall global development pipeline of 62,000 megawatts,” said
Financial Results | |||||||||||||
UNAUDITED FOR THE PERIODS ENDED |
Three Months Ended | Years Ended | |||||||||||
(US $ millions, except per unit amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||
Select Financial Information | |||||||||||||
Net loss attributable to Unitholders | $ | (57 | ) | $ | (120 | ) | $ | (368 | ) | $ | (304 | ) | |
Per LP unit(1) | (0.12 | ) | (0.22 | ) | (0.69 | ) | (0.61 | ) | |||||
Funds From Operations (FFO)(2) | 214 | 201 | 934 | 807 | |||||||||
Per Unit(2)(3) | 0.33 | 0.31 | 1.45 | 1.32 | |||||||||
Normalized Funds From Operations (FFO)(2)(4) | 263 | 242 | 1,091 | 882 | |||||||||
Per Unit(2)(3)(4) | 0.41 | 0.37 | 1.69 | 1.45 | |||||||||
Operational Information | |||||||||||||
Total generation (GWh) | |||||||||||||
– Long-term average generation | 14,946 | 14,333 | 58,913 | 57,457 | |||||||||
– Actual generation | 14,585 | 13,247 | 56,629 | 52,782 | |||||||||
Brookfield Renewable Partner's share (GWh) | |||||||||||||
– Long-term average generation | 7,197 | 7,354 | 29,852 | 27,998 | |||||||||
– Actual generation | 6,637 | 6,583 | 27,150 | 26,052 |
Brookfield Renewable reported FFO of
Other Highlights for 2021 Include:
Spotlight On Hydros
We continue to believe hydropower is the premier renewable technology due to its perpetual nature and dispatchability. And while the asset classes of wind and solar are certainly growing faster, the benefits of hydro are rapidly increasing in today’s market environment. As decarbonization continues to drive additional demand for carbon-free baseload generation, our scale hydroelectric portfolio will continue to be a meaningful differentiator for our business and positions us as a partner of choice to support governments and companies in achieving their carbon reduction goals. Further, the dispatchable or embedded storage benefits of hydro are becoming increasingly beneficial as more intermittent renewables are added to the grid. Recently, we executed on several initiatives that highlight the unique and valuable nature of our hydroelectric business.
In December, we signed a 40-year power purchase agreement at our 265-megawatt Lievre facilities in
In the fourth quarter, we also completed an investment grade upfinancing at our pumped hydro storage business in the
Finally, we continue to leverage our hydroelectric fleet to provide 24/7 green power solutions to our customers. During the quarter, we signed a 15-year power purchase agreement with a large manufacturer, alongside a retail supply agreement to serve the entirety of their load requirements in the
We continue to see select opportunities for growth in hydroelectric generation, especially for large and experienced operators like us. Recently, our Colombian business acquired one of the largest privately held generation portfolios in
Update On Growth Initiatives
Since our last update, we agreed to invest approximately
In
In the
We continued to execute on our growth plans for distributed generation in the fourth quarter. With leading capabilities in
In
Finally, we achieved a record level of development over 2021. We commissioned approximately 1,000 megawatts of new capacity and finished the year with almost 15,000 megawatts of construction and advanced-stage projects. These projects are diversified across distributed- and utility-scale solar, wind, storage, hydro and green hydrogen in 14 different countries. In total, we expect these projects to contribute almost
Results From Operations
In 2021, we generated FFO of
During the year, our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Our energy transition segment generated
Balance Sheet And Liquidity
Our financial position remains robust, with approximately
During 2021, we continued to take advantage of the low interest environment. We executed on
We also continue to use opportunistic capital recycling as an important lever to drive value and fund growth. During the year, we executed on agreements to sell over 1,600 megawatts, generating proceeds of
Distribution Declaration And Increase
The next quarterly distribution in the amount of
In conjunction with
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
Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its LP Units who are resident in
Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its 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 approximately
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
Contact information: | |
Media: | Investors: |
Senior Vice President – Corporate Communications | Senior Vice President – Investor Relations |
(212) 618-3469 | (416) 649-8172 |
[email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s fourth quarter and full-year 2021 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) |
2021 | 2020 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 764 | $ | 431 | ||||
Trade receivables and other financial assets(5) | 2,301 | 1,661 | ||||||
Equity-accounted investments | 1,107 | 971 | ||||||
Property, plant and equipment, at fair value | 49,432 | 44,590 | ||||||
966 | 970 | |||||||
Deferred income tax and other assets(6) | 1,297 | 1,099 | ||||||
Total Assets | $ | 55,867 | $ | 49,722 | ||||
Liabilities | ||||||||
Corporate borrowings | $ | 2,149 | $ | 2,135 | ||||
Borrowings which have recourse only to assets they finance(7) | 19,380 | 15,947 | ||||||
Accounts payable and other liabilities(8) | 4,127 | 4,358 | ||||||
Deferred income tax liabilities | 6,215 | 5,515 | ||||||
Equity | ||||||||
Non-controlling interests | ||||||||
Participating non-controlling interests - in operating subsidiaries | $ | 12,303 | $ | 11,100 | ||||
General partnership interest in a holding subsidiary held by Brookfield | 59 | 56 | ||||||
Participating non-controlling interests - in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,894 | 2,721 | ||||||
BEPC exchangeable shares | 2,562 | 2,408 | ||||||
Preferred equity | 613 | 609 | ||||||
Perpetual subordinated notes | 592 | — | ||||||
Preferred limited partners' equity | 881 | 1,028 | ||||||
Limited partners' equity | 4,092 | 23,996 | 3,845 | 21,767 | ||||
Total Liabilities and Equity | $ | 55,867 | $ | 49,722 |
Consolidated Statements of Income (Loss) | |||||||||||||
For the three months ended |
For the twelve months ended |
||||||||||||
UNAUDITED (MILLIONS, EXCEPT AS NOTED) |
2021 | 2020 | 2021 | 2020 | |||||||||
Revenues | $ | 1,091 | $ | 952 | $ | 4,096 | $ | 3,810 | |||||
Other income | 15 | 77 | 304 | 128 | |||||||||
Direct operating costs(9) | (375 | ) | (357 | ) | (1,365 | ) | (1,274 | ) | |||||
Management service costs | (64 | ) | (84 | ) | (288 | ) | (235 | ) | |||||
Interest expense | (255 | ) | (243 | ) | (981 | ) | (976 | ) | |||||
Share of earnings from equity-accounted investments | 19 | 31 | 22 | 27 | |||||||||
Foreign exchange and financial instrument gain (loss) | (54 | ) | 115 | (32 | ) | 127 | |||||||
Depreciation | (381 | ) | (337 | ) | (1,501 | ) | (1,367 | ) | |||||
Other | (77 | ) | (307 | ) | (307 | ) | (432 | ) | |||||
Income tax (expense) recovery | |||||||||||||
Current | 17 | (37 | ) | (43 | ) | (66 | ) | ||||||
Deferred | 97 | 185 | 29 | 213 | |||||||||
114 | 148 | (14 | ) | 147 | |||||||||
Net income (loss) | $ | 33 | $ | (5 | ) | $ | (66 | ) | $ | (45 | ) | ||
Net loss attributable to preferred equity, preferred limited partners’ equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries |
(90 | ) | (115 | ) | (302 | ) | (259 | ) | |||||
Net income (loss) attributable to Unitholders | $ | (57 | ) | $ | (120 | ) | $ | (368 | ) | $ | (304 | ) | |
Basic and diluted (loss) earnings per LP unit | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.69 | ) | $ | (0.61 | ) |
Consolidated Statements of Cash Flows | |||||||||||||||||
For the three months ended |
For the twelve months ended |
||||||||||||||||
UNAUDITED (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 33 | $ | (5 | ) | $ | (66 | ) | $ | (45 | ) | ||||||
Adjustments for the following non-cash items: | |||||||||||||||||
Depreciation | 381 | 337 | 1,501 | 1,367 | |||||||||||||
Unrealized foreign exchange and financial instrument loss (gain) | 100 | (119 | ) | 122 | (134 | ) | |||||||||||
Share of earnings from equity-accounted investments | (19 | ) | (31 | ) | (22 | ) | (27 | ) | |||||||||
Deferred income tax expense | (97 | ) | (185 | ) | (29 | ) | (213 | ) | |||||||||
Other non-cash items | (26 | ) | 248 | (136 | ) | 388 | |||||||||||
372 | 245 | 1,370 | 1,336 | ||||||||||||||
Net change in working capital and other(10) | (110 | ) | 34 | (636 | ) | (40 | ) | ||||||||||
262 | 279 | 734 | 1,296 | ||||||||||||||
Financing activities | |||||||||||||||||
Net corporate borrowings | — | — | — | 266 | |||||||||||||
Corporate credit facilities, net | (150 | ) | — | — | (299 | ) | |||||||||||
Non-recourse borrowings, commercial paper, and related party borrowings, net | 1,273 | (260 | ) | 2,769 | 120 | ||||||||||||
Capital contributions from participating non-controlling interests - in operating subsidiaries, net | 31 | 357 | 689 | 367 | |||||||||||||
Issuance of Perpetual Subordinated Notes, Preferred LP Units and related costs, net | 252 | (23 | ) | 439 | 151 | ||||||||||||
Distributions paid: | |||||||||||||||||
To participating non-controlling interests – in operating subsidiaries, preferred shareholders, preferred limited partners unitholders, and perpetual subordinate notes |
(255 | ) | (203 | ) | (900 | ) | (628 | ) | |||||||||
To unitholders of Brookfield Renewable or BRELP and shareholders of Brookfield Renewable Corporation |
(212 | ) | (202 | ) | (854 | ) | (769 | ) | |||||||||
939 | (331 | ) | 2,143 | (792 | ) | ||||||||||||
Investing activities | |||||||||||||||||
Acquisitions net of cash and cash equivalents in acquired entity | — | — | (1,426 | ) | (105 | ) | |||||||||||
Investment in property, plant and equipment | (1,136 | ) | (190 | ) | (1,967 | ) | (447 | ) | |||||||||
Disposal of subsidiaries, associates and other securities, net | 103 | 23 | 936 | 58 | |||||||||||||
Restricted cash and other | 80 | 146 | (46 | ) | 68 | ||||||||||||
(953 | ) | (21 | ) | (2,503 | ) | (426 | ) | ||||||||||
Foreign exchange gain (loss) on cash | (20 | ) | 23 | (36 | ) | 13 | |||||||||||
Cash and cash equivalents | |||||||||||||||||
Increase (decrease) | $ | 228 | $ | (50 | ) | $ | 338 | $ | 91 | ||||||||
Net change in cash classified within assets held for sale | (1 | ) | (1 | ) | (5 | ) | (12 | ) | |||||||||
Balance, beginning of period | 537 | 482 | 431 | 352 | |||||||||||||
Balance, end of period | $ | 764 | $ | 431 | $ | 764 | $ | 431 |
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 | FFO | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Hydroelectric | |||||||||||||||||||||||||||
2,559 | 2,514 | 2,913 | 2,912 | $ | 237 | $ | 182 | $ | 151 | $ | 105 | $ | 115 | $ | 68 | ||||||||||||
810 | 849 | 1,007 | 1,007 | 38 | 39 | 26 | 63 | 18 | 58 | ||||||||||||||||||
1,100 | 966 | 1,004 | 977 | 64 | 57 | 42 | 38 | 40 | 23 | ||||||||||||||||||
4,469 | 4,329 | 4,924 | 4,896 | 339 | 278 | 219 | 206 | 173 | 149 | ||||||||||||||||||
Wind | |||||||||||||||||||||||||||
1,044 | 1,132 | 1,195 | 1,349 | 98 | 90 | 53 | 58 | 36 | 38 | ||||||||||||||||||
262 | 339 | 251 | 357 | 35 | 41 | 36 | 51 | 30 | 45 | ||||||||||||||||||
128 | 141 | 168 | 169 | 5 | 6 | 4 | 6 | 4 | 4 | ||||||||||||||||||
121 | 123 | 113 | 104 | 8 | 8 | 7 | 8 | 4 | 5 | ||||||||||||||||||
1,555 | 1,735 | 1,727 | 1,979 | 146 | 145 | 100 | 123 | 74 | 92 | ||||||||||||||||||
Solar | 356 | 304 | 381 | 338 | 68 | 77 | 67 | 84 | 41 | 51 | |||||||||||||||||
Energy transition(11) | 257 | 215 | 165 | 141 | 79 | 54 | 52 | 38 | 37 | 26 | |||||||||||||||||
Corporate | — | — | — | — | — | — | (7 | ) | 5 | (111 | ) | (117 | ) | ||||||||||||||
Total | 6,637 | 6,583 | 7,197 | 7,354 | $ | 632 | $ | 554 | $ | 431 | $ | 456 | $ | 214 | $ | 201 |
PROPORTIONATE RESULTS FOR THE YEAR 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 | FFO | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Hydroelectric | ||||||||||||||||||||||||||
10,470 | 11,863 | 12,167 | 12,166 | $ | 804 | $ | 824 | $ | 528 | $ | 562 | $ | 380 | $ | 420 | |||||||||||
3,626 | 3,663 | 4,004 | 4,004 | 169 | 175 | 155 | 177 | 131 | 152 | |||||||||||||||||
3,950 | 2,999 | 3,555 | 3,488 | 224 | 211 | 159 | 131 | 128 | 90 | |||||||||||||||||
18,046 | 18,525 | 19,726 | 19,658 | 1,197 | 1,210 | 842 | 870 | 639 | 662 | |||||||||||||||||
Wind | ||||||||||||||||||||||||||
4,009 | 3,560 | 5,051 | 4,239 | 370 | 263 | 277 | 196 | 200 | 123 | |||||||||||||||||
1,029 | 908 | 1,077 | 1,002 | 125 | 105 | 187 | 96 | 164 | 79 | |||||||||||||||||
589 | 552 | 670 | 671 | 29 | 27 | 23 | 24 | 17 | 17 | |||||||||||||||||
469 | 428 | 451 | 443 | 32 | 28 | 24 | 25 | 15 | 18 | |||||||||||||||||
6,096 | 5,448 | 7,249 | 6,355 | 556 | 423 | 511 | 341 | 396 | 237 | |||||||||||||||||
Solar | 1,777 | 1,284 | 2,016 | 1,510 | 348 | 245 | 298 | 232 | 185 | 139 | ||||||||||||||||
Energy transition(12) | 1,231 | 795 | 861 | 475 | 314 | 169 | 214 | 130 | 162 | 103 | ||||||||||||||||
Corporate | — | — | — | — | — | — | 11 | 41 | (448 | ) | (334 | ) | ||||||||||||||
Total | 27,150 | 26,052 | 29,852 | 27,998 | $ | 2,415 | $ | 2,047 | $ | 1,876 | $ | 1,614 | $ | 934 | $ | 807 |
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the three months ended
Attributable to Unitholders | ||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Solar | Energy transition |
Corporate | Total | ||||||||||||
Net income (loss) | $ | 182 | $ | (57 | ) | $ | (30 | ) | $ | 7 | $ | (69 | ) | $ | 33 | |||
Add back or deduct the following: | ||||||||||||||||||
Depreciation | 140 | 155 | 65 | 21 | — | 381 | ||||||||||||
Deferred income tax expense (recovery) | (9 | ) | (25 | ) | (23 | ) | (8 | ) | (32 | ) | (97 | ) | ||||||
Foreign exchange and financial instrument loss (gain) | 14 | 28 | 11 | 4 | (3 | ) | 54 | |||||||||||
Other(13) | (3 | ) | 29 | 39 | 43 | 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(14) | (198 | ) | (92 | ) | (48 | ) | (24 | ) | — | (362 | ) | |||||||
Adjusted EBITDA | $ | 219 | $ | 100 | $ | 67 | $ | 52 | $ | (7 | ) | $ | 431 |
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the three months ended
Attributable to Unitholders | ||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Solar | Energy transition |
Corporate | Total | ||||||||||||
Net income (loss) | $ | 151 | $ | 67 | $ | 35 | $ | 23 | $ | (281 | ) | $ | (5 | ) | ||||
Add back or deduct the following: | ||||||||||||||||||
Depreciation | 136 | 135 | 48 | 17 | 1 | 337 | ||||||||||||
Deferred income tax expense (recovery) | (44 | ) | (37 | ) | (20 | ) | (14 | ) | (70 | ) | (185 | ) | ||||||
Foreign exchange and financial instrument loss (gain) | (15 | ) | (28 | ) | (71 | ) | 10 | (11 | ) | (115 | ) | |||||||
Other(13) | 3 | (16 | ) | 73 | (4 | ) | 258 | 314 | ||||||||||
Management service costs | — | — | — | — | 84 | 84 | ||||||||||||
Interest expense | 100 | 56 | 54 | 9 | 24 | 243 | ||||||||||||
Current income tax expense (recovery) | 32 | 4 | 1 | — | — | 37 | ||||||||||||
Amount attributable to equity accounted investments and non-controlling interests(14) | (157 | ) | (58 | ) | (36 | ) | (3 | ) | — | (254 | ) | |||||||
Adjusted EBITDA | $ | 206 | $ | 123 | $ | 84 | $ | 38 | $ | 5 | $ | 456 |
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 | Solar | Energy transition |
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) | 124 | (37 | ) | (34 | ) | (9 | ) | (73 | ) | (29 | ) | |||||||
Foreign exchange and financial instrument loss (gain) | 47 | 40 | (23 | ) | 4 | (36 | ) | 32 | ||||||||||
Other(13) | 46 | 151 | 92 | 55 | 109 | 453 | ||||||||||||
Management service costs | — | — | — | — | 288 | 288 | ||||||||||||
Interest expense | 407 | 247 | 187 | 48 | 92 | 981 | ||||||||||||
Current income tax expense (recovery) | 25 | 13 | 5 | — | — | 43 | ||||||||||||
Amount attributable to equity accounted investments and non-controlling interests(14) | (661 | ) | (412 | ) | (198 | ) | (42 | ) | (14 | ) | (1,327 | ) | ||||||
Adjusted EBITDA | $ | 842 | $ | 511 | $ | 298 | $ | 214 | $ | 11 | $ | 1,876 |
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 | Solar | Energy transition |
Corporate | Total | ||||||||||||
Net income (loss) | $ | 475 | $ | (57 | ) | $ | (27 | ) | $ | 64 | $ | (500 | ) | $ | (45 | ) | ||
Add back or deduct the following: | ||||||||||||||||||
Depreciation | 513 | 547 | 227 | 75 | 5 | 1,367 | ||||||||||||
Deferred income tax expense (recovery) | (31 | ) | (52 | ) | (26 | ) | (8 | ) | (96 | ) | (213 | ) | ||||||
Foreign exchange and financial instrument loss (gain) | (29 | ) | (70 | ) | (16 | ) | 5 | (17 | ) | (127 | ) | |||||||
Other(13) | 74 | 82 | 129 | 45 | 318 | 648 | ||||||||||||
Management service costs | — | — | — | — | 235 | 235 | ||||||||||||
Interest expense | 400 | 251 | 201 | 30 | 94 | 976 | ||||||||||||
Current income tax expense (recovery) | 55 | 8 | 1 | — | 2 | 66 | ||||||||||||
Amount attributable to equity accounted investments and non-controlling interests(14) | (587 | ) | (368 | ) | (257 | ) | (81 | ) | — | (1,293 | ) | |||||||
Adjusted EBITDA | $ | 870 | $ | 341 | $ | 232 | $ | 130 | $ | 41 | $ | 1,614 |
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 and twelve months ended
For the three months ended |
For the twelve months ended |
||||||||||||||
UNAUDITED (MILLIONS) |
2021 | 2020 | 2021 | 2020 | |||||||||||
Net income (loss) | $ | 33 | $ | (5 | ) | $ | (66 | ) | $ | (45 | ) | ||||
Add back or deduct the following: | |||||||||||||||
Depreciation | 381 | 337 | 1,501 | 1,367 | |||||||||||
Deferred income tax expense (recovery) | (97 | ) | (185 | ) | (29 | ) | (213 | ) | |||||||
Foreign exchange and unrealized financial instruments gain (loss) | 54 | (115 | ) | 32 | 32 | (127 | ) | ||||||||
Other(13) | 120 | 314 | 453 | 648 | |||||||||||
Amount attributable to equity accounted investment and non-controlling interest(15) | (277 | ) | (145 | ) | (957 | ) | (823 | ) | |||||||
Funds From Operations | $ | 214 | $ | 201 | $ | 934 | $ | 807 | |||||||
Normalized long-term average generation adjustment | 43 | 41 | 161 | 75 | |||||||||||
Normalized foreign currency adjustment | 6 | — | (4 | ) | — | ||||||||||
Normalized Funds From Operations | $ | 263 | $ | 242 | $ | 1,091 | $ | 882 |
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 per Unit, for the three and twelve months ended
For the three months ended |
For the twelve months ended |
||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
Net income (loss) per LP unit(1) | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.69 | ) | $ | (0.61 | ) | |
Adjust for the proportionate share of | |||||||||||||
Depreciation | 0.33 | 0.33 | 1.43 | 1.24 | |||||||||
Foreign exchange and financial instruments loss (gain) | 0.10 | — | 0.20 | 0.06 | |||||||||
Deferred income tax recovery and other | 0.02 | 0.20 | 0.51 | 0.63 | |||||||||
Funds From Operations per Unit(3) | $ | 0.33 | $ | 0.31 | $ | 1.45 | $ | 1.32 | |||||
Normalized long-term average generation adjustment | 0.07 | 0.06 | 0.25 | 0.13 | |||||||||
Normalized foreign exchange adjustment | 0.01 | — | (0.01 | ) | — | ||||||||
Normalized Funds From Operations per Unit(3) | $ | 0.41 | $ | 0.37 | $ | 1.69 | $ | 1.45 |
BROOKFIELD RENEWABLE CORPORATION REPORTS
FOURTH QUARTER AND FULL-YEAR 2021 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
Financial Results | |||||||||||
UNAUDITED FOR THE PERIODS ENDED |
Three Months Ended | Years Ended | |||||||||
(US $ millions, except per unit amounts) | 2021 | 2020 | 2021 | 2020 | |||||||
Select Financial Information | |||||||||||
Net income (loss) attributable to the partnership | $ | 130 | $ | (1,516 | ) | $ | 946 | $ | (2,738 | ) | |
Funds From Operations (FFO)(2) | $ | 137 | $ | 85 | $ | 554 | $ | 402 | |||
Operational Information | |||||||||||
Proportionate Generation (GWh) | 4,279 | 3,971 | 17,606 | 15,578 |
BEPC reported FFO of
Consolidated Statements of Financial Position | ||||||||
As of | ||||||||
UNAUDITED (MILLIONS) |
||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 410 | $ | 355 | ||||
Trade receivables and other financial assets(5) | 1,956 | 1,297 | ||||||
Equity-accounted investments | 455 | 372 | ||||||
Property, plant and equipment, at fair value | 37,915 | 36,097 | ||||||
849 | 970 | |||||||
Deferred income tax and other assets(16) | 401 | 382 | ||||||
Total Assets | $ | 41,986 | $ | 39,473 | ||||
Liabilities | ||||||||
Borrowings which have recourse only to assets they finance(7) | $ | 13,512 | $ | 12,822 | ||||
Accounts payable and other liabilities(17) | 3,066 | 3,296 | ||||||
Deferred income tax liabilities | 5,020 | 4,200 | ||||||
BEPC exchangeable and class B shares | 6,163 | 7,430 | ||||||
Equity | ||||||||
Non-controlling interests: | ||||||||
Participating non-controlling interests – in operating subsidiaries | $ | 10,297 | $ | 10,290 | ||||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 261 | 258 | ||||||
The partnership | 3,667 | 14,225 | 1,177 | 11,725 | ||||
Total Liabilities and Equity | $ | 41,986 | $ | 39,473 |
Consolidated Statements of Income (Loss) | ||||||||||||||
UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Revenues | $ | 905 | $ | 746 | $ | 3,367 | $ | 3,087 | ||||||
Other income | 12 | 70 | 60 | 99 | ||||||||||
Direct operating costs(9) | (344 | ) | (280 | ) | (1,185 | ) | (1,061 | ) | ||||||
Management service costs | (28 | ) | (46 | ) | (175 | ) | (152 | ) | ||||||
Interest expense | (229 | ) | (229 | ) | (900 | ) | (816 | ) | ||||||
Share of (loss) earnings from equity-accounted investments | — | (1 | ) | 2 | (4 | ) | ||||||||
Foreign exchange and financial instrument gain (loss) | (82 | ) | 63 | (27 | ) | 74 | ||||||||
Depreciation | (281 | ) | (259 | ) | (1,115 | ) | (1,065 | ) | ||||||
Other | (56 | ) | (429 | ) | (277 | ) | (493 | ) | ||||||
Remeasurement of BEPC exchangeable and class B shares | 193 | (1,398 | ) | 1,267 | (2,561 | ) | ||||||||
Income tax (expense) recovery | ||||||||||||||
Current | 20 | (35 | ) | (31 | ) | (61 | ) | |||||||
Deferred | 70 | 166 | (56 | ) | 134 | |||||||||
90 | 131 | (87 | ) | 73 | ||||||||||
Net income (loss) | $ | 180 | $ | (1,632 | ) | $ | 930 | $ | (2,819 | ) | ||||
Net income (loss) attributable to: | ||||||||||||||
Non-controlling interests: | ||||||||||||||
Participating non-controlling interests – in operating subsidiaries | $ | 46 | $ | (123 | ) | $ | (23 | ) | $ | (92 | ) | |||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 4 | 7 | 7 | 11 | ||||||||||
The partnership | 130 | (1,516 | ) | 946 | (2,738 | ) | ||||||||
$ | 180 | $ | (1,632 | ) | $ | 930 | $ | (2,819 | ) |
Consolidated Statements of Cash Flows | |||||||||||||
UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
|||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
Operating activities | |||||||||||||
Net income | $ | 180 | $ | (1,632 | ) | $ | 930 | $ | (2,819 | ) | |||
Adjustments for the following non-cash items: | |||||||||||||
Depreciation | 281 | 259 | 1,115 | 1,065 | |||||||||
Unrealized foreign exchange and financial instruments loss (gain) | 126 | (64 | ) | 102 | (78 | ) | |||||||
Share of earnings from equity-accounted investments | — | 1 | (2 | ) | 4 | ||||||||
Deferred income tax expense | (70 | ) | (166 | ) | 56 | (134 | ) | ||||||
Other non-cash items | 59 | 361 | 109 | 409 | |||||||||
Remeasurement of exchangeable and class B shares | (193 | ) | 1,398 | (1,267 | ) | 2,561 | |||||||
383 | 157 | 1,043 | 1,008 | ||||||||||
Net change in working capital and other(10) | (153 | ) | (36 | ) | (648 | ) | (16 | ) | |||||
230 | 121 | 395 | 992 | ||||||||||
Financing activities | |||||||||||||
Non-recourse borrowings and related party borrowings, net | 654 | (163 | ) | 1,469 | (32 | ) | |||||||
Capital contributions from participating non-controlling interests | 23 | 300 | 65 | 329 | |||||||||
Capital contributions from the partnership | — | — | — | 102 | |||||||||
Return of capital to participating non-controlling interests | — | (80 | ) | (181 | ) | (82 | ) | ||||||
Issuance of exchangeable shares, net | — | (23 | ) | — | (44 | ) | |||||||
Distributions paid and return of capital: | |||||||||||||
To participating non-controlling interests | (184 | ) | (150 | ) | (675 | ) | (513 | ) | |||||
To the partnership | — | 1 | — | (235 | ) | ||||||||
493 | (115 | ) | 678 | (475 | ) | ||||||||
Investing activities | |||||||||||||
Acquisitions net of cash and cash equivalents in acquired entity | — | — | (12 | ) | (105 | ) | |||||||
Investment in property, plant and equipment | (791 | ) | (175 | ) | (1,354 | ) | (373 | ) | |||||
Disposal of subsidiaries, associates and other securities, net | — | 6 | 376 | 17 | |||||||||
Restricted cash and other | 84 | 126 | 6 | (17 | ) | ||||||||
(707 | ) | (43 | ) | (984 | ) | (478 | ) | ||||||
Foreign exchange gain (loss) on cash | (19 | ) | 15 | (34 | ) | 12 | |||||||
Cash and cash equivalents | |||||||||||||
Increase (decrease) | $ | (3 | ) | $ | (22 | ) | $ | 55 | $ | 51 | |||
Balance, beginning of period | 413 | 377 | 355 | 304 | |||||||||
Balance, end of period | $ | 410 | $ | 355 | $ | 410 | $ | 355 |
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles net income (loss) to Funds From Operations for the three and twelve months ended
For the three months ended |
For the twelve months ended |
||||||||||||
UNAUDITED (MILLIONS) |
2021 | 2020 | 2021 | 2020 | |||||||||
Net income (loss) | $ | 180 | $ | (1,632 | ) | $ | 930 | $ | (2,819 | ) | |||
Add back or deduct the following: | |||||||||||||
Depreciation | 281 | 259 | 1,115 | 1,065 | |||||||||
Foreign exchange and financial instruments loss (gain) | 82 | (63 | ) | 27 | (74 | ) | |||||||
Deferred income tax expense (recovery) | (70 | ) | (166 | ) | 56 | (134 | ) | ||||||
Other(18) | 92 | 429 | 423 | 517 | |||||||||
Dividends on BEPC exchangeable shares(19) | 53 | 50 | 209 | 116 | |||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | (193 | ) | 1,398 | (1,267 | ) | 2,561 | |||||||
Amount attributable to equity accounted investments and non-controlling interests(20) | (288 | ) | (190 | ) | (939 | ) | (830 | ) | |||||
Funds From Operations | $ | 137 | $ | 85 | $ | 554 | $ | 402 |
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 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.
No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release 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 Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per Unit used by other entities. We believe that Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Three Months Ended December 31” and “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 Form 20-F. Normalized FFO assumes long-term average generation in all segments except the
References to Brookfield Renewable are to
Endnotes
(1) For the three and twelve 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 2021 Annual Report.
(3) Average Units outstanding for the three and twelve months ended
(4) Normalized FFO assumes long-term average generation in all segments except the
(5) Balance includes restricted cash, trades receivables and other current assets, financial instrument assets, and due from related parties.
(6) Balance includes deferred income tax assets, assets held for sale, intangible assets, and other long-term assets.
(7) Balance includes current and non-current portion of non-recourse borrowings on the consolidated statement of financial position.
(8) Balance includes accounts payable and accrued liabilities, financial instrument liabilities, due to related parties, provisions, liabilities directly associated with asset held for sale and other long-term liabilities.
(9) Direct operating costs exclude depreciation expense disclosed below.
(10) Balance includes dividends received from equity accounted investments and changes due to or from related parties.
(11) Actual generation includes 90 GWh (2020: 98 GWh) from facilities that do not have a corresponding LTA.
(12) Actual generation includes 442 GWh (2020: 375 GWh) from facilities that do not have a corresponding LTA.
(13) Refer to Note 9 - Other in the Audited Consolidated Financial Statements for more details on the Other balance, and includes 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.
(14) 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) 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.
(16) Balance includes deferred income tax assets, intangible assets, and other long-term assets.
(17) Balance includes accounts payable and accrued liabilities, financial instrument liabilities, due to related parties, provisions, and other long-term liabilities.
(18) Refer to Note 8 - Other in the Audited Consolidated Financial Statements for more details on the other balance, and includes 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.
(19) Balance is included within interest expense on the consolidated statements of income (loss).
(20) 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.
(21) Any references to capital refer to Brookfield's cash deployed, excluding any debt financing.
(22) Available liquidity of
(23) Incremental FFO attributable to the Lievre PPA of
(24) 12-15% target returns are calculated as annualized cash return on investment.
Source: