All amounts in
BROOKFIELD, News,
“We generated record third quarter FFO, and executed on several growth opportunities that demonstrate the value of our global platform, deploying capital across multiple technologies and jurisdictions, enhancing our position as a leading diversified clean energy business," said
| Financial Results | ||||||||||||||||
| Millions (except per unit or otherwise noted) | For the three months ended | For the nine months ended | ||||||||||||||
| Unaudited | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Total generation (GWh) | ||||||||||||||||
| – Long-term average generation | 13,776 | 13,446 | 43,967 | 43,124 | ||||||||||||
| – Actual generation | 13,533 | 12,007 | 42,044 | 39,535 | ||||||||||||
| Brookfield Renewable Partner's share (GWh) | ||||||||||||||||
| – Long-term average generation | 6,697 | 6,618 | 22,655 | 20,644 | ||||||||||||
| – Actual generation | 6,125 | 5,753 | 20,513 | 19,469 | ||||||||||||
| Net loss attributable to Unitholders | $ | (115 | ) | $ | (162 | ) | $ | (311 | ) | $ | (184 | ) | ||||
| Per LP unit(1) | (0.21 | ) | (0.29 | ) | (0.58 | ) | (0.39 | ) | ||||||||
| Funds From Operations (FFO)(2) | 210 | 157 | 720 | 606 | ||||||||||||
| Per Unit(2)(3) | 0.33 | 0.25 | 1.12 | 1.01 | ||||||||||||
| Normalized Funds From Operations (FFO)(2)(4) | 231 | 197 | 828 | 640 | ||||||||||||
| Per Unit(2)(3)(4) | 0.36 | 0.31 | 1.28 | 1.07 | ||||||||||||
| (1) | For the three and nine months ended | |
| (2) | Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”. | |
| (3) | Average Units outstanding for the three and nine months ended | |
| (4) | Normalized FFO assumes long-term average generation in all segments except the |
Brookfield Renewable reported FFO of
Highlights
- Generated funds from operations (FFO) of
$210 million , or$0.33 per unit, a 32% increase over the same period in the prior year as our assets continue to perform well with high levels of asset availability and new acquisitions; - Agreed 19 power purchase agreements for approximately 1,300 gigawatt hours (GWh) of renewable generation with corporate off-takers across major industries;
- Progressed approximately 8,000 megawatts of development projects through construction and advanced stage permitting. We also added approximately 5,000 megawatts to our global development pipeline, which is now approximately 36,000 megawatts;
- Invested or agreed to invest approximately
$2.4 billion ($600 million net to Brookfield Renewable) of equity across a range of transactions year-to-date; and - Maintained a robust balance sheet with over
$3.3 billion of available liquidity and no meaningful near-term maturities.
Update on Growth Initiatives
We continue to grow our leading distributed generation business both in the
In the
As one of the only globally diversified distributed generation platforms, we believe we are uniquely positioned to leverage our customer relationships and economies of scale on a global basis to maximize each of our regional businesses and continue our current track record of substantial growth.
In addition, we signed an agreement to acquire three late-stage solar development projects in the
We are in the early stages of seeing meaningful growth in emerging technologies. One that we are following very closely is green hydrogen. Green hydrogen plays to the strengths that have defined our business for decades: knowledge of global power markets, clean energy expertise, large scale capital, and best-in-class operating and development capabilities.
Although still in its relative infancy, the potential market for green hydrogen is significant due to its storage capabilities and ability to address harder-to-abate emissions coming from heavy duty and industrial sectors, such as long-haul transport and steel production. And while green hydrogen is not yet economic on a widespread basis, we are increasingly seeing specific opportunities to invest at attractive risk-adjusted returns.
We are currently advancing almost one gigawatt of green hydrogen opportunities, positioning us well to be a first mover so that we can invest in scale as the cost curve continues to come down and the technology is adopted more broadly. In addition to our agreement to fully energize a hydrogen company's planned green hydrogen production plant in
Results from Operations
In the third quarter, we generated FFO of
Globally, we are seeing elevated power prices as economies around the world ramp back up. Our business is well positioned in this environment. Although our portfolio is almost entirely contracted, we have been able to benefit across our hydroelectric and storage business given the ability of these facilities to provide dispatchable carbon-free baseload generation. For instance, in the
In
During the quarter, our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Our energy transition segment generated
Despite widespread challenges to global supply chains, we are making good progress executing on our approximately 7,000 megawatt construction pipeline. In the
Balance Sheet and Liquidity
Our financial position continues to be strong. We have approximately
During the quarter, we continued to take advantage of low interest rates and executed on
Looking forward, we expect to continue to generate meaningful proceeds from these initiatives as the market for de-risked renewables continues to be strong and the positive price environment and increasing demand for clean baseload power has created significant contracting and financing capacity within our hydro fleet. With a robust pipeline of capital deployment opportunities, we remain committed to a growth plan that is not reliant on equity funding.
Distribution Declaration
The next quarterly distribution in the amount 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, 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 Third Quarter 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 | $ | 537 | $ | 431 | |||||||||
| Trade receivables and other financial assets | 2,088 | 1,661 | |||||||||||
| Equity-accounted investments | 952 | 971 | |||||||||||
| Property, plant and equipment, at fair value | 44,031 | 44,590 | |||||||||||
| 977 | 970 | ||||||||||||
| Deferred income tax and other assets | 1,302 | 1,099 | |||||||||||
| Total Assets | $ | 49,887 | $ | 49,722 | |||||||||
| Liabilities | |||||||||||||
| Corporate borrowings | $ | 2,792 | $ | 2,135 | |||||||||
| Borrowings which have recourse only to assets they finance | 17,498 | 15,947 | |||||||||||
| Accounts payable and other liabilities | 3,980 | 4,358 | |||||||||||
| Deferred income tax liabilities | 5,350 | 5,515 | |||||||||||
| Equity | |||||||||||||
| Non-controlling interests | |||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 10,942 | $ | 11,100 | |||||||||
| General partnership interest in a holding subsidiary held by Brookfield | 46 | 56 | |||||||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,257 | 2,721 | |||||||||||
| BEPC exchangeable shares | 1,999 | 2,408 | |||||||||||
| Preferred equity | 610 | 609 | |||||||||||
| Perpetual subordinated notes | 340 | — | |||||||||||
| Preferred limited partners' equity | 881 | 1,028 | |||||||||||
| Limited partners' equity | 3,192 | 20,267 | 3,845 | 21,767 | |||||||||
| Total Liabilities and Equity | $ | 49,887 | $ | 49,722 | |||||||||
| Consolidated Statements of Operating Results | |||||||||||||||||
| UNAUDITED | For the three months ended | For the nine months ended | |||||||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | 966 | $ | 867 | $ | 3,005 | $ | 2,858 | |||||||||
| Other income | 42 | 12 | 247 | 51 | |||||||||||||
| Direct operating costs | (292 | ) | (281 | ) | (990 | ) | (917 | ) | |||||||||
| Management service costs | (71 | ) | (65 | ) | (224 | ) | (151 | ) | |||||||||
| Interest expense | (247 | ) | (233 | ) | (726 | ) | (733 | ) | |||||||||
| Share of earnings (losses) from equity-accounted investments | (4 | ) | (5 | ) | 3 | (4 | ) | ||||||||||
| Foreign exchange and financial instrument gain | 21 | 38 | 22 | 12 | |||||||||||||
| Depreciation | (373 | ) | (369 | ) | (1,120 | ) | (1,030 | ) | |||||||||
| Other | (53 | ) | (110 | ) | (188 | ) | (125 | ) | |||||||||
| Income tax recovery (expense) | |||||||||||||||||
| Current | (22 | ) | (13 | ) | (60 | ) | (29 | ) | |||||||||
| Deferred | (121 | ) | 40 | (68 | ) | 28 | |||||||||||
| Net loss | $ | (154 | ) | $ | (119 | ) | $ | (99 | ) | $ | (40 | ) | |||||
| Net loss attributable to preferred equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | 39 | $ | (43 | ) | $ | (212 | ) | $ | (144 | ) | ||||||
| Net loss attributable to Unitholders | (115 | ) | (162 | ) | (311 | ) | (184 | ) | |||||||||
| Basic and diluted loss per LP unit | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.58 | ) | $ | (0.39 | ) | |||||
| Consolidated Statements of Cash Flows | |||||||||||||||||
| For the three months ended | For the nine months ended | ||||||||||||||||
| UNAUDITED (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating activities | |||||||||||||||||
| Net loss | $ | (154 | ) | $ | (119 | ) | $ | (99 | ) | $ | (40 | ) | |||||
| Adjustments for the following non-cash items: | |||||||||||||||||
| Depreciation | 373 | 369 | 1,120 | 1,030 | |||||||||||||
| Unrealized foreign exchange and financial instrument loss | (9 | ) | (40 | ) | 22 | (15 | ) | ||||||||||
| Share of loss (earnings) from equity-accounted investments | 4 | 5 | (3 | ) | 4 | ||||||||||||
| Deferred income tax expense (recovery) | 121 | (40 | ) | 68 | (28 | ) | |||||||||||
| Other non-cash items | 10 | 99 | (110 | ) | 140 | ||||||||||||
| 345 | 274 | 998 | 1,091 | ||||||||||||||
| Net change in working capital and other | (117 | ) | (90 | ) | (526 | ) | (74 | ) | |||||||||
| 228 | 184 | 472 | 1,017 | ||||||||||||||
| Financing activities | |||||||||||||||||
| Net corporate borrowings | — | 16 | — | 266 | |||||||||||||
| Corporate credit facilities, net | 150 | — | 150 | (299 | ) | ||||||||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 262 | 247 | 1,496 | 380 | |||||||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | (137 | ) | 60 | 658 | 10 | ||||||||||||
| Issuance of equity instruments and related costs | — | (21 | ) | 340 | 174 | ||||||||||||
| Redemption of Preferred LP Units | (153 | ) | — | (153 | ) | — | |||||||||||
| Distributions paid: | |||||||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (223 | ) | (105 | ) | (645 | ) | (425 | ) | |||||||||
| To unitholders of Brookfield Renewable or BRELP | (213 | ) | (202 | ) | (642 | ) | (567 | ) | |||||||||
| (314 | ) | (5 | ) | 1,204 | (461 | ) | |||||||||||
| Investing activities | |||||||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | — | (1,426 | ) | (105 | ) | |||||||||||
| Investment in property, plant and equipment | (298 | ) | (113 | ) | (831 | ) | (257 | ) | |||||||||
| Disposal of subsidiaries, associates and other securities, net | 435 | 21 | 833 | 35 | |||||||||||||
| Restricted cash and other | (48 | ) | (91 | ) | (126 | ) | (78 | ) | |||||||||
| 89 | (183 | ) | (1,550 | ) | (405 | ) | |||||||||||
| Foreign exchange gain (loss) on cash | (10 | ) | — | (16 | ) | (10 | ) | ||||||||||
| Cash and cash equivalents | |||||||||||||||||
| Increase (decrease) | (7 | ) | (4 | ) | 110 | 141 | |||||||||||
| Net change in cash classified within assets held for sale | 14 | (3 | ) | (4 | ) | (11 | ) | ||||||||||
| Balance, beginning of period | 530 | 489 | 431 | 352 | |||||||||||||
| Balance, end of period | $ | 537 | $ | 482 | $ | 537 | $ | 482 | |||||||||
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 | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||||||||||||||||
| 2,333 | 2,151 | 2,441 | 2,441 | $ | 172 | $ | 160 | $ | 108 | $ | 95 | $ | 71 | $ | 60 | $ | 10 | $ | (18 | ) | ||||||||||||||||||||||
| 552 | 663 | 1,011 | 1,011 | 34 | 36 | 48 | 32 | 43 | 24 | 19 | 4 | |||||||||||||||||||||||||||||||
| 1,045 | 792 | 858 | 843 | 54 | 49 | 40 | 32 | 28 | 23 | (19 | ) | 15 | ||||||||||||||||||||||||||||||
| 3,930 | 3,606 | 4,310 | 4,295 | 260 | 245 | 196 | 159 | 142 | 107 | 10 | 1 | |||||||||||||||||||||||||||||||
| Wind | ||||||||||||||||||||||||||||||||||||||||||
| 797 | 832 | 975 | 1,008 | 64 | 57 | 64 | 45 | 48 | 24 | (38 | ) | (23 | ) | |||||||||||||||||||||||||||||
| 168 | 209 | 174 | 217 | 18 | 27 | 17 | 19 | 11 | 13 | (4 | ) | (20 | ) | |||||||||||||||||||||||||||||
| 194 | 199 | 208 | 208 | 10 | 10 | 9 | 9 | 7 | 7 | 2 | 5 | |||||||||||||||||||||||||||||||
| 107 | 105 | 121 | 121 | 8 | 7 | 5 | 6 | 3 | 6 | 1 | 4 | |||||||||||||||||||||||||||||||
| 1,266 | 1,345 | 1,478 | 1,554 | 100 | 101 | 95 | 79 | 69 | 50 | (39 | ) | (34 | ) | |||||||||||||||||||||||||||||
| Solar | 556 | 512 | 651 | 592 | 101 | 90 | 91 | 79 | 61 | 51 | 18 | (3 | ) | |||||||||||||||||||||||||||||
| Energy transition(1) | 373 | 290 | 258 | 177 | 87 | 46 | 58 | 37 | 48 | 33 | 13 | 6 | ||||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | 6 | 17 | (110 | ) | (84 | ) | (117 | ) | (132 | ) | ||||||||||||||||||||||||||
| Total | 6,125 | 5,753 | 6,697 | 6,618 | $ | 548 | $ | 482 | $ | 446 | $ | 371 | $ | 210 | $ | 157 | $ | (115 | ) | $ | (162 | ) | ||||||||||||||||||||
(1) Actual generation includes 157 GWh (2020: 136 GWh) from facilities that do not have a corresponding LTA.
PROPORTIONATE RESULTS FOR THE NINE MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the nine months ended
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||||||||||||||||
| 7,911 | 9,349 | 9,254 | 9,254 | $ | 567 | $ | 642 | $ | 377 | $ | 457 | $ | 265 | $ | 352 | $ | (2 | ) | $ | 64 | ||||||||||||||||||||||
| 2,816 | 2,814 | 2,997 | 2,997 | 131 | 136 | 129 | 114 | 113 | 94 | 46 | 38 | |||||||||||||||||||||||||||||||
| 2,850 | 2,033 | 2,551 | 2,511 | 160 | 154 | 117 | 93 | 88 | 67 | 23 | 49 | |||||||||||||||||||||||||||||||
| 13,577 | 14,196 | 14,802 | 14,762 | 858 | 932 | 623 | 664 | 466 | 513 | 67 | 151 | |||||||||||||||||||||||||||||||
| Wind | ||||||||||||||||||||||||||||||||||||||||||
| 2,965 | 2,428 | 3,856 | 2,890 | 272 | 173 | 224 | 138 | 164 | 85 | (94 | ) | (40 | ) | |||||||||||||||||||||||||||||
| 767 | 569 | 826 | 645 | 90 | 64 | 151 | 45 | 134 | 34 | 37 | (40 | ) | ||||||||||||||||||||||||||||||
| 461 | 411 | 502 | 502 | 24 | 21 | 19 | 18 | 13 | 13 | — | 1 | |||||||||||||||||||||||||||||||
| 348 | 305 | 338 | 339 | 24 | 20 | 17 | 17 | 11 | 13 | 3 | 5 | |||||||||||||||||||||||||||||||
| 4,541 | 3,713 | 5,522 | 4,376 | 410 | 278 | 411 | 218 | 322 | 145 | (54 | ) | (74 | ) | |||||||||||||||||||||||||||||
| Solar | 1,421 | 980 | 1,635 | 1,172 | 280 | 168 | 231 | 148 | 144 | 88 | 9 | (24 | ) | |||||||||||||||||||||||||||||
| Energy transition(1) | 974 | 580 | 696 | 334 | 235 | 115 | 162 | 92 | 125 | 77 | 30 | 22 | ||||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | 18 | 36 | (337 | ) | (217 | ) | (363 | ) | (259 | ) | ||||||||||||||||||||||||||
| Total | 20,513 | 19,469 | 22,655 | 20,644 | $ | 1,783 | $ | 1,493 | $ | 1,445 | $ | 1,158 | $ | 720 | $ | 606 | $ | (311 | ) | $ | (184 | ) | ||||||||||||||||||||
(1) Actual generation includes 352 GWh (2020: 278 GWh) from facilities that do not have a corresponding LTA.
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income attributable to Unitholders is reconciled to Funds From Operations and reconciled to Proportionate Adjusted EBITDA for the three and nine months ended
| For the three months ended | For the nine months ended | ||||||||||||||||
| UNAUDITED (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net income (loss) attributable to: | |||||||||||||||||
| Limited partners' equity | $ | (58 | ) | $ | (92 | ) | $ | (159 | ) | $ | (123 | ) | |||||
| General partnership interest in a holding subsidiary held by Brookfield | 19 | 15 | 58 | 46 | |||||||||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | (40 | ) | (67 | ) | (111 | ) | (89 | ) | |||||||||
| Class A shares of | (36 | ) | (18 | ) | (99 | ) | (18 | ) | |||||||||
| Net income (loss) attributable to Unitholders | $ | (115 | ) | $ | (162 | ) | $ | (311 | ) | $ | (184 | ) | |||||
| Adjusted for proportionate share of: | |||||||||||||||||
| Depreciation | 223 | 210 | 706 | 540 | |||||||||||||
| Foreign exchange and financial instruments gain | (2 | ) | 33 | 65 | 68 | ||||||||||||
| Deferred income tax expense (recovery) | 7 | (39 | ) | (52 | ) | (30 | ) | ||||||||||
| Other | 97 | 115 | 312 | 212 | |||||||||||||
| Funds From Operations | $ | 210 | $ | 157 | $ | 720 | $ | 606 | |||||||||
| Normalized long-term average generation adjustment | 21 | 40 | 118 | 34 | |||||||||||||
| Normalized foreign currency adjustment | — | — | (10 | ) | — | ||||||||||||
| Normalized Funds From Operations | $ | 231 | $ | 197 | $ | 828 | $ | 640 | |||||||||
| Normalized Funds From Operations Adjustments | (21 | ) | (40 | ) | (108 | ) | (34 | ) | |||||||||
| Distributions attributable to: | |||||||||||||||||
| Preferred limited partners' equity | 14 | 14 | 43 | 40 | |||||||||||||
| Preferred equity | 6 | 6 | 19 | 19 | |||||||||||||
| Perpetual subordinated notes | 4 | — | 7 | — | |||||||||||||
| Current income taxes | 11 | 6 | 25 | 14 | |||||||||||||
| Interest expense | 130 | 129 | 407 | 347 | |||||||||||||
| Management service costs | 71 | 59 | 224 | 132 | |||||||||||||
| Proportionate Adjusted EBITDA | 446 | 371 | 1,445 | 1,158 | |||||||||||||
| Attributable to non-controlling interests | 305 | 240 | 919 | 887 | |||||||||||||
| Consolidated Adjusted EBITDA | $ | 751 | $ | 611 | $ | 2,364 | $ | 2,045 | |||||||||
The following table reconciles the per Unit non-IFRS financial metrics to the most directly comparable IFRS measures. Basic income per LP unit is reconciled to FFO per Unit for the three and nine months ended
| For the three months ended | For the nine months ended | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Basic income (loss) per LP unit(1) | $ | (0.21 | ) | $ | (0.29 | ) | $ | (0.58 | ) | $ | (0.39 | ) | |||||
| Depreciation | 0.35 | 0.34 | 1.09 | 0.90 | |||||||||||||
| Foreign exchange and financial instruments loss (gain) | — | 0.05 | 0.10 | 0.11 | |||||||||||||
| Deferred income tax recovery (expense) | 0.01 | (0.06 | ) | (0.08 | ) | (0.05 | ) | ||||||||||
| Other | 0.18 | 0.21 | 0.59 | 0.44 | |||||||||||||
| Funds From Operations per Unit(2) | $ | 0.33 | $ | 0.25 | $ | 1.12 | $ | 1.01 | |||||||||
| Normalized long-term average generation adjustment | 0.03 | 0.06 | 0.18 | 0.06 | |||||||||||||
| Normalized foreign exchange adjustment | — | — | (0.02 | ) | — | ||||||||||||
| Normalized Funds From Operations per Unit | $ | 0.36 | $ | 0.31 | $ | 1.28 | $ | 1.07 | |||||||||
| 1. | ||
| 2. | Average Units for the three and nine months ended |
BROOKFIELD RENEWABLE CORPORATION REPORTS
THIRD QUARTER 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 | |||||||||||||||||
| Millions (except, otherwise noted) | Three months ended | Nine months ended | |||||||||||||||
| Unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Proportionate Generation (GWh) | 4,036 | 3,275 | 13,327 | 11,607 | |||||||||||||
| Net income (loss) attributable to the partnership | $ | 214 | $ | (1,295 | ) | $ | 816 | $ | (1,222 | ) | |||||||
| Funds From Operations (FFO)(1) | $ | 152 | $ | 64 | $ | 417 | $ | 317 | |||||||||
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
BEPC reported FFO of
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||||||
| UNAUDITED (MILLIONS) | |||||||||||||
| 2021 | 2020 | ||||||||||||
| Assets | |||||||||||||
| Cash and cash equivalents | $ | 413 | $ | 355 | |||||||||
| Trade receivables and other financial assets | 1,999 | 1,297 | |||||||||||
| Equity-accounted investments | 372 | 372 | |||||||||||
| Property, plant and equipment, at fair value | 33,660 | 36,097 | |||||||||||
| 877 | 970 | ||||||||||||
| Deferred income tax and other assets | 441 | 382 | |||||||||||
| Total Assets | $ | 37,762 | $ | 39,473 | |||||||||
| Liabilities and Equity | |||||||||||||
| Borrowings which have recourse only to assets they finance | $ | 13,055 | $ | 12,822 | |||||||||
| Accounts payable and other liabilities | 3,198 | 3,296 | |||||||||||
| Deferred income tax liabilities | 4,247 | 4,200 | |||||||||||
| BEPC exchangeable and class B shares | 6,356 | 7,430 | |||||||||||
| Non-controlling interests | |||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 9,114 | $ | 10,290 | |||||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 241 | 258 | |||||||||||
| The partnership | 1,551 | 10,906 | 1,177 | 11,725 | |||||||||
| Total Liabilities and Equity | $ | 37,762 | $ | 39,473 | |||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| UNAUDITED | Three months ended | Nine months ended | |||||||||||||||
| (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | 806 | $ | 724 | $ | 2,462 | $ | 2,341 | |||||||||
| Other income | 29 | 5 | 48 | 29 | |||||||||||||
| Direct operating costs | (254 | ) | (238 | ) | (841 | ) | (781 | ) | |||||||||
| Management service costs | (45 | ) | (41 | ) | (147 | ) | (106 | ) | |||||||||
| Interest expense | (231 | ) | (230 | ) | (671 | ) | (587 | ) | |||||||||
| Share of earnings (loss) from equity-accounted investments | 1 | (4 | ) | 2 | (3 | ) | |||||||||||
| Foreign exchange and financial instrument gain | 39 | 17 | 55 | 11 | |||||||||||||
| Depreciation | (269 | ) | (293 | ) | (834 | ) | (806 | ) | |||||||||
| Other | (44 | ) | (79 | ) | (221 | ) | (64 | ) | |||||||||
| Remeasurement of BEPC exchangeable and class B shares | 286 | (1,163 | ) | 1,074 | (1,163 | ) | |||||||||||
| Income tax expense | |||||||||||||||||
| Current | (20 | ) | (12 | ) | (51 | ) | (26 | ) | |||||||||
| Deferred | (145 | ) | 17 | (126 | ) | (32 | ) | ||||||||||
| Net income (loss) | $ | 153 | $ | (1,297 | ) | $ | 750 | $ | (1,187 | ) | |||||||
| Net income (loss) attributable to: | |||||||||||||||||
| Non-controlling interests: | |||||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | (59 | ) | $ | — | $ | (69 | ) | $ | 31 | |||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | (2 | ) | (2 | ) | 3 | 4 | |||||||||||
| The partnership | 214 | (1,295 | ) | 816 | (1,222 | ) | |||||||||||
| $ | 153 | $ | (1,297 | ) | $ | 750 | $ | (1,187 | ) | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| UNAUDITED (MILLIONS) | Three months ended | Nine months ended | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Operating activities | |||||||||||||||||
| Net income (loss) | $ | 153 | $ | (1,297 | ) | $ | 750 | $ | (1,187 | ) | |||||||
| Adjustments for the following non-cash items: | |||||||||||||||||
| Depreciation | 269 | 293 | 834 | 806 | |||||||||||||
| Unrealized foreign exchange and financial instruments gain | (27 | ) | (19 | ) | (24 | ) | (14 | ) | |||||||||
| Share of earnings from equity-accounted investments | (1 | ) | 4 | (2 | ) | 3 | |||||||||||
| Deferred income tax expense | 145 | (17 | ) | 126 | 32 | ||||||||||||
| Other non-cash items | (5 | ) | 61 | 50 | 48 | ||||||||||||
| Remeasurement of BEPC exchangeable and class B shares | (286 | ) | 1,163 | (1,074 | ) | 1,163 | |||||||||||
| 248 | 188 | 660 | 851 | ||||||||||||||
| Net change in working capital | (163 | ) | (47 | ) | (495 | ) | 20 | ||||||||||
| 85 | 141 | 165 | 871 | ||||||||||||||
| Financing activities | |||||||||||||||||
| Non-recourse and related party borrowings, net | 91 | 112 | 815 | 131 | |||||||||||||
| Capital contributions from participating non-controlling interests | 4 | 17 | 42 | 29 | |||||||||||||
| Capital contributions from the Partnership | — | 2 | — | 102 | |||||||||||||
| Return of capital to non-controlling interests | (181 | ) | — | (181 | ) | — | |||||||||||
| Issuance of exchangeable shares, net | — | (21 | ) | — | (21 | ) | |||||||||||
| Distributions paid and return of capital: | |||||||||||||||||
| To participating non-controlling interests | (201 | ) | (79 | ) | (491 | ) | (365 | ) | |||||||||
| To the Partnership | — | — | — | (236 | ) | ||||||||||||
| (287 | ) | 31 | 185 | (360 | ) | ||||||||||||
| Investing activities | |||||||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | — | (12 | ) | (105 | ) | |||||||||||
| Investment in property, plant and equipment | (158 | ) | (91 | ) | (563 | ) | (198 | ) | |||||||||
| Proceeds from disposal of assets | 376 | — | 376 | 11 | |||||||||||||
| Investment in financial assets and other | (6 | ) | (117 | ) | (78 | ) | (143 | ) | |||||||||
| 212 | (208 | ) | (277 | ) | (435 | ) | |||||||||||
| Foreign exchange gain (loss) on cash | (9 | ) | 7 | (15 | ) | (3 | ) | ||||||||||
| Cash and cash equivalents | |||||||||||||||||
| Increase (decrease) | 1 | (29 | ) | 58 | 73 | ||||||||||||
| Net change in cash classified within assets held for sale | 16 | — | — | — | |||||||||||||
| Balance, beginning of period | 396 | 406 | 355 | 304 | |||||||||||||
| Balance, end of period | $ | 413 | $ | 377 | $ | 413 | $ | 377 | |||||||||
The following table reconciles net income (loss) attributable to Brookfield Renewable to Funds From Operations for the three and nine months ended
| Three months ended | Nine months ended | ||||||||||||||||
| (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net income (loss) attributable to the partnership | $ | 214 | $ | (1,295 | ) | $ | 816 | $ | (1,222 | ) | |||||||
| Adjusted for proportionate share of: | |||||||||||||||||
| Depreciation | 113 | 102 | 361 | 247 | |||||||||||||
| Other | 59 | 28 | 158 | 63 | |||||||||||||
| Dividends on BEPC class A exchangeable shares | 52 | 66 | 156 | 66 | |||||||||||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | (286 | ) | 1,163 | (1,074 | ) | 1,163 | |||||||||||
| Funds From Operations | $ | 152 | $ | 64 | $ | 417 | $ | 317 | |||||||||
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 FFO, FFO per Unit and Normalized FFO per Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of FFO, FFO per Unit and Normalized FFO per Unit used by other entities. We believe that FFO, FFO per Unit 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 FFO, FFO per Unit 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 the non-IFRS financial measures to the most comparable IFRS financial measures, see “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures” in our interim report for the period ended
References to Brookfield Renewable are to
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