All amounts in
BROOKFIELD, News,
“We had an excellent start to the year delivering solid double digit FFO growth year-over-year. We also continued our elevated level of growth activity, as we commissioned approximately 700 megawatts of capacity, maintained our path to deliver approximately 5,000 megawatts this year, and signed transactions for over
| For the three months ended |
||||||
| US$ millions (except per unit amounts), unaudited | 2023 | 2022 | ||||
| Net loss attributable to Unitholders | $ | (32 | ) | $ | (78 | ) |
| - per LP unit(1) | (0.09 | ) | (0.16 | ) | ||
| Funds From Operations (FFO)(2) | 275 | 243 | ||||
| - per Unit(2)(3) | 0.43 | 0.38 | ||||
Brookfield Renewable reported FFO of
Overview
We had an excellent start to the year with strong financial performance, representing the progression to higher run-rate earnings as our investments in new generation and commercial initiatives come online. We were also successful in our growth activities, signing transactions for almost
Additional highlights:
- Advanced key commercial priorities including signing contracts to deliver an incremental 2,500 gigawatt hours per year of generation with current and new customers while further diversifying future revenues for our business;
- Continued to advance development activities, commissioning approximately 700 megawatts of capacity in the quarter and are on track to commission approximately 5,000 megawatts of capacity in 2023, which we expect to contribute an additional
$70 million of FFO net to Brookfield Renewable. We also progressed the other approximately 19,000 megawatts of projects in our advanced stage pipeline, maintaining our targeted commissioning dates; and - Completed or advancing asset recycling initiatives which in aggregate will contribute approximately
$4 billion of proceeds (~$1.5 billion net to Brookfield Renewable) when completed and maintained robust financial capacity with almost$4 billion of available liquidity, no material near-term maturities, and limited floating interest rate exposure.
Growth Initiatives
To date this year we have committed to invest almost
The investment environment for renewables and decarbonization assets remains highly compelling. Demand for clean energy from corporates, an increasing focus on energy security, and government supported electrification and decarbonization targets continue to be key trends accelerating investment.
Through our acquisition of Origin’s Energy Markets business, in which we expect to invest up to
Brookfield’s success in attracting co-investor capital has been critical in allowing us to further diversify our business and take on larger-scale investments with less competition. As an example, in our recently announced investment in Westinghouse, we have received exceptional interest from our institutional partners, validating our investment thesis and the high-quality nature of the business. Due to the significant interest, we expect Brookfield Renewable’s investment in the business to be approximately
With Brookfield’s first transition fund nearly fully committed, we are preparing to participate in the second Fund. Based on the positive feedback received to date, we are optimistic that the second fund will both broaden the number of institutional partnerships as well as provide a larger pool of capital to invest alongside. While beneficial in all instances, our continued and increasing access to meaningful partner capital is particularly advantageous in the current environment and positions us to execute scale transactions at very attractive risk-adjusted returns.
As an example of this, during the quarter, with our institutional partners we agreed to acquire the 50% of X-Elio that we currently do not own for
X-Elio is a fully integrated global solar development platform with 1,200 megawatts of operating and in construction assets, 1,500 megawatts of late-stage development projects, and an additional approximately 12,000 megawatt development pipeline with at least land and/or grid connection secured. Since our initial investment in 2019, we have evolved X-Elio into a self-funding business, progressing over
We also made significant progress in growing our business in
Operating Results
We generated FFO of
During the quarter, our hydroelectric segment delivered FFO of
Our wind and solar segment generated a combined
Our distributed energy and sustainable solutions segment generated
Our renewable power development pipeline is now 126,000 megawatts with approximately 5,000 megawatts of new capacity on track for commissioning this year. Once completed this will add approximately
Our Financial Position Remains Strong
Our balance sheet is in an excellent position and our available liquidity remains robust at almost
We are also advancing non-recourse financing initiatives and our asset recycling programs which will generate additional capital to fund our growth. Despite persistent inflation and higher interest rates, we continue to see strong demand for renewable energy assets globally and we are seeing strong interest across our capital recycling processes.
So far this year, we have generated over
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, utility-scale solar and storage facilities in
Brookfield Renewable is the flagship listed renewable power company of Brookfield Corporation, a leading global alternative asset manager with over
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
| Contact information: | |
| Media: | Investors: |
| Managing Director – Communications | Vice President – Investor Relations |
| +44 (0)7398 909 278 | (416-649-8196) |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s First Quarter 2023 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) |
||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,140 | $ | 998 | ||||
| Trade receivables and other financial assets(5) | 4,048 | 3,747 | ||||||
| Equity-accounted investments | 1,603 | 1,392 | ||||||
| Property, plant and equipment, at fair value | 54,977 | 54,283 | ||||||
| 3,029 | 3,691 | |||||||
| Total Assets | $ | 64,797 | $ | 64,111 | ||||
| Liabilities | ||||||||
| Corporate borrowings(7) | $ | 2,779 | $ | 2,548 | ||||
| Borrowings which have recourse only to assets they finance(8) | 22,409 | 22,302 | ||||||
| Accounts payable and other liabilities(9) | 6,082 | 6,468 | ||||||
| Deferred income tax liabilities | 6,615 | 6,507 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 15,526 | $ | 14,755 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 58 | 59 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,848 | 2,892 | ||||||
| BEPC exchangeable shares | 2,522 | 2,561 | ||||||
| Preferred equity | 573 | 571 | ||||||
| Perpetual subordinated notes | 592 | 592 | ||||||
| Preferred limited partners' equity | 760 | 760 | ||||||
| Limited partners' equity | 4,033 | 26,912 | 4,096 | 26,286 | ||||
| Total Liabilities and Equity | $ | 64,797 | $ | 64,111 | ||||
| Consolidated Statements of Operating Results | ||||||
| UNAUDITED | For the three months ended |
|||||
| (MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | ||||
| Revenues | $ | 1,331 | $ | 1,136 | ||
| Other income | 26 | 71 | ||||
| Direct operating costs(10) | (401 | ) | (350 | ) | ||
| Management service costs | (57 | ) | (76 | ) | ||
| Interest expense | (394 | ) | (266 | ) | ||
| Share of earnings from equity-accounted investments | 33 | 19 | ||||
| Foreign exchange and financial instrument (loss) gain | 133 | (37 | ) | |||
| Depreciation | (429 | ) | (401 | ) | ||
| Other | (41 | ) | (47 | ) | ||
| Income tax recovery (expense) | ||||||
| Current | (43 | ) | (42 | ) | ||
| Deferred | 19 | 26 | ||||
| Net income | $ | 177 | $ | 33 | ||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (209 | ) | $ | (111 | ) |
| Net loss attributable to Unitholders | (32 | ) | (78 | ) | ||
| Basic and diluted loss per LP unit | $ | (0.09 | ) | $ | (0.16 | ) |
| Consolidated Statements of Cash Flows | ||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
|||||
| 2023 | 2022 | |||||
| Operating activities | ||||||
| Net income | $ | 177 | $ | 33 | ||
| Adjustments for the following non-cash items: | ||||||
| Depreciation | 429 | 401 | ||||
| Unrealized foreign exchange and financial instrument loss (gain) | (130 | ) | 50 | |||
| Share of earnings from equity-accounted investments | (33 | ) | (19 | ) | ||
| Deferred income tax recovery | (19 | ) | (26 | ) | ||
| Other non-cash items | 37 | — | ||||
| 461 | 439 | |||||
| Net change in working capital and other(11) | 202 | (136 | ) | |||
| 663 | 303 | |||||
| Financing activities | ||||||
| Net corporate borrowings | 293 | — | ||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | (262 | ) | 1,274 | |||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 994 | 106 | ||||
| Redemption of equity instruments, net and related costs | — | (49 | ) | |||
| Distributions paid: | ||||||
| To participating non-controlling interests - in operating subsidiaries | (142 | ) | (191 | ) | ||
| To unitholders of Brookfield Renewable or BRELP | (243 | ) | (230 | ) | ||
| 640 | 910 | |||||
| Investing activities | ||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (81 | ) | (780 | ) | ||
| Investment in property, plant and equipment | (572 | ) | (452 | ) | ||
| Disposal (purchase) of associates and other assets | (539 | ) | 39 | |||
| Restricted cash and other | 16 | (10 | ) | |||
| (1,176 | ) | (1,203 | ) | |||
| Foreign exchange gain (loss) on cash | 14 | (1 | ) | |||
| Cash and cash equivalents | ||||||
| Decrease (increase) | 141 | 9 | ||||
| Net change in cash classified within assets held for sale | 1 | 1 | ||||
| Balance, beginning of period | 998 | 900 | ||||
| Balance, end of period | $ | 1,140 | $ | 910 | ||
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 | |||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
| Hydroelectric | |||||||||||||||||||||||||||
| 3,576 | 3,144 | 3,237 | 3,237 | $ | 335 | $ | 236 | $ | 230 | $ | 141 | $ | 158 | $ | 94 | ||||||||||||
| 1,207 | 1,081 | 1,008 | 988 | 61 | 48 | 45 | 53 | 38 | 45 | ||||||||||||||||||
| 1,010 | 972 | 853 | 865 | 66 | 73 | 48 | 53 | 23 | 35 | ||||||||||||||||||
| 5,793 | 5,197 | 5,098 | 5,090 | 462 | 357 | 323 | 247 | 219 | 174 | ||||||||||||||||||
| Wind | |||||||||||||||||||||||||||
| 1,130 | 1,147 | 1,379 | 1,193 | 85 | 86 | 61 | 60 | 43 | 44 | ||||||||||||||||||
| 253 | 244 | 277 | 277 | 40 | 51 | 32 | 46 | 26 | 41 | ||||||||||||||||||
| 133 | 101 | 133 | 126 | 8 | 6 | 6 | 4 | 5 | 3 | ||||||||||||||||||
| 175 | 134 | 223 | 133 | 10 | 9 | 9 | 7 | 5 | 4 | ||||||||||||||||||
| 1,691 | 1,626 | 2,012 | 1,729 | 143 | 152 | 108 | 117 | 79 | 92 | ||||||||||||||||||
| Utility-scale solar | 486 | 354 | 571 | 423 | 88 | 81 | 69 | 90 | 40 | 64 | |||||||||||||||||
| Distributed energy & sustainable solutions(12) | 270 | 248 | 193 | 172 | 79 | 59 | 56 | 48 | 43 | 37 | |||||||||||||||||
| Corporate | — | — | — | — | — | — | 3 | (3 | ) | (106 | ) | (124 | ) | ||||||||||||||
| Total | 8,240 | 7,425 | 7,874 | 7,414 | $ | 772 | $ | 649 | $ | 559 | $ | 499 | $ | 275 | $ | 243 | |||||||||||
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) | $ | 238 | $ | 46 | $ | (46 | ) | $ | 34 | $ | (95 | ) | $ | 177 | ||||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 154 | 155 | 83 | 37 | — | 429 | ||||||||||||
| Deferred income tax expense (recovery) | 25 | 1 | (1 | ) | (14 | ) | (30 | ) | (19 | ) | ||||||||
| Foreign exchange and financial instrument loss (gain) | (94 | ) | (40 | ) | 2 | (9 | ) | 8 | (133 | ) | ||||||||
| Other(13) | 25 | 5 | 12 | 3 | 16 | 61 | ||||||||||||
| Management service costs | — | — | — | — | 57 | 57 | ||||||||||||
| Interest expense | 183 | 67 | 66 | 28 | 50 | 394 | ||||||||||||
| Current income tax expense | 34 | 4 | 5 | — | — | 43 | ||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(14) | (242 | ) | (130 | ) | (52 | ) | (23 | ) | (3 | ) | (450 | ) | ||||||
| Adjusted EBITDA | $ | 323 | $ | 108 | $ | 69 | $ | 56 | $ | 3 | $ | 559 | ||||||
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) | $ | 86 | $ | (14 | ) | $ | 8 | $ | 37 | $ | (84 | ) | $ | 33 | ||||
| Add back or deduct the following: | ||||||||||||||||||
| Depreciation | 157 | 148 | 66 | 30 | — | 401 | ||||||||||||
| Deferred income tax expense (recovery) | (6 | ) | 11 | (11 | ) | (3 | ) | (17 | ) | (26 | ) | |||||||
| Foreign exchange and financial instrument loss (gain) | 60 | (4 | ) | 7 | (7 | ) | (19 | ) | 37 | |||||||||
| Other(13) | 8 | 23 | 21 | 7 | 17 | 76 | ||||||||||||
| Management service costs | — | — | — | — | 76 | 76 | ||||||||||||
| Interest expense | 124 | 62 | 40 | 16 | 24 | 266 | ||||||||||||
| Current income tax expense | 37 | 4 | 1 | — | — | 42 | ||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(14) | (219 | ) | (113 | ) | (42 | ) | (32 | ) | — | (406 | ) | |||||||
| Adjusted EBITDA | $ | 247 | $ | 117 | $ | 90 | $ | 48 | $ | (3 | ) | $ | 499 | |||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income is reconciled to Funds From Operations:
| UNAUDITED (MILLIONS) |
For the three months ended |
||||||
| 2023 | 2022 | ||||||
| Net income | $ | 177 | $ | 33 | |||
| Add back or deduct the following: | |||||||
| Depreciation | 429 | 401 | |||||
| Deferred income tax recovery | (19 | ) | (26 | ) | |||
| Foreign exchange and financial instruments gain (loss) | (133 | ) | 37 | ||||
| Other(15) | 61 | 76 | |||||
| Amount attributable to equity accounted investment and non-controlling interest(16) | (240 | ) | (278 | ) | |||
| Funds From Operations | $ | 275 | $ | 243 | |||
The following table reconciles the per Unit non-IFRS financial metrics to the most directly comparable IFRS measures. Net income per LP unit is reconciled to Funds From Operations:
| For the three months ended |
||||||
| 2023 | 2022 | |||||
| Net income (loss) per LP unit(1) | $ | (0.09 | ) | $ | (0.16 | ) |
| Adjust for the proportionate share of | ||||||
| Depreciation | 0.37 | 0.38 | ||||
| Deferred income tax recovery and other | 0.19 | 0.12 | ||||
| Foreign exchange and financial instruments loss (gain) | (0.04 | ) | 0.04 | |||
| Funds From Operations per Unit(3) | $ | 0.43 | $ | 0.38 | ||
BROOKFIELD RENEWABLE CORPORATION REPORTS
FIRST 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 |
||||||
| US$ millions (except per unit amounts), unaudited | 2023 | 2022 | ||||
| Select Financial Information | ||||||
| Net loss attributable to the partnership | $ | (1,065 | ) | $ | (976 | ) |
| Funds From Operations (FFO)(2) | 202 | 153 | ||||
BEPC reported FFO of
| Consolidated Statements of Financial Position | ||||||||
| As of | ||||||||
| UNAUDITED (MILLIONS) |
||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 657 | $ | 642 | ||||
| Trade receivables and other financial assets(5) | 2,628 | 2,567 | ||||||
| Equity-accounted investments | 561 | 451 | ||||||
| Property, plant and equipment, at fair value | 38,264 | 37,828 | ||||||
| 1,140 | 1,800 | |||||||
| Total Assets | $ | 43,250 | $ | 43,288 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(8) | $ | 13,925 | $ | 13,715 | ||||
| Accounts payable and other liabilities(9) | 2,779 | 3,122 | ||||||
| Deferred income tax liabilities | 5,408 | 5,263 | ||||||
| BEPC exchangeable and class B shares | 5,427 | 4,364 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 10,512 | $ | 10,680 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 279 | 271 | ||||||
| The partnership | 4,920 | 15,711 | 5,873 | 16,824 | ||||
| Total Liabilities and Equity | $ | 43,250 | $ | 43,288 | ||||
| Consolidated Statements of Income (Loss) | |||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
||||||
| 2023 | 2022 | ||||||
| Revenues | $ | 1,066 | $ | 929 | |||
| Other income | 13 | 64 | |||||
| Direct operating costs(10) | (304 | ) | (291 | ) | |||
| Management service costs | (36 | ) | (52 | ) | |||
| Interest expense | (306 | ) | (228 | ) | |||
| Share of (loss) earnings from equity-accounted investments | 3 | (2 | ) | ||||
| Foreign exchange and financial instrument gain (loss) | 110 | (33 | ) | ||||
| Depreciation | (306 | ) | (296 | ) | |||
| Other | (34 | ) | (26 | ) | |||
| Remeasurement of BEPC exchangeable and class B shares | (1,063 | ) | (909 | ) | |||
| Income tax (expense) recovery | |||||||
| Current | (38 | ) | (38 | ) | |||
| Deferred | (25 | ) | — | ||||
| (63 | ) | (38 | ) | ||||
| Net income | $ | (920 | ) | $ | (882 | ) | |
| Net income (loss) attributable to: | |||||||
| Non-controlling interests: | |||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 143 | $ | 90 | |||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 2 | 4 | |||||
| The partnership | (1,065 | ) | (976 | ) | |||
| $ | (920 | ) | $ | (882 | ) | ||
| Consolidated Statements of Cash Flows | ||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
|||||
| 2023 | 2022 | |||||
| Operating activities | ||||||
| Net loss | $ | (920 | ) | $ | (882 | ) |
| Adjustments for the following non-cash items: | ||||||
| Depreciation | 306 | 296 | ||||
| Unrealized foreign exchange and financial instruments loss (gain) | (108 | ) | 55 | |||
| Share of earnings from equity-accounted investments | (2 | ) | 2 | |||
| Deferred income tax recovery | 25 | — | ||||
| Other non-cash items | 24 | (12 | ) | |||
| Remeasurement of exchangeable and class B shares | 1,063 | 909 | ||||
| 388 | 368 | |||||
| Net change in working capital and other(11) | 204 | (116 | ) | |||
| 592 | 252 | |||||
| Financing activities | ||||||
| Non-recourse borrowings and related party borrowings, net | (281 | ) | 190 | |||
| Capital contributions from participating non-controlling interests | 52 | 61 | ||||
| Distributions paid and return of capital: | ||||||
| To participating non-controlling interests | (133 | ) | (165 | ) | ||
| (362 | ) | 86 | ||||
| Investing activities | ||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (81 | ) | — | |||
| Investment in property, plant and equipment | (162 | ) | (168 | ) | ||
| Disposal of subsidiaries, associates and other securities, net | 3 | — | ||||
| Restricted cash and other | 13 | (2 | ) | |||
| (227 | ) | (170 | ) | |||
| Foreign exchange gain (loss) on cash | 12 | 1 | ||||
| Cash and cash equivalents | ||||||
| Increase (decrease) | 15 | 169 | ||||
| Balance, beginning of period | 642 | 525 | ||||
| Balance, end of period | $ | 657 | $ | 694 | ||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income (loss) to Funds From Operations:
| For the three months ended |
||||||
| UNAUDITED (MILLIONS) |
2023 | 2022 | ||||
| Net loss | $ | (920 | ) | $ | (882 | ) |
| Add back or deduct the following: | ||||||
| Depreciation | 306 | 296 | ||||
| Foreign exchange and financial instruments loss (gain) | (110 | ) | 33 | |||
| Deferred income tax expense (recovery) | 25 | — | ||||
| Other(17) | 44 | 50 | ||||
| Dividends on BEPC exchangeable shares(18) | 58 | 55 | ||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | 1,063 | 909 | ||||
| Amount attributable to equity accounted investments and non-controlling interests(19) | (264 | ) | (308 | ) | ||
| Funds From Operations | $ | 202 | $ | 153 | ||
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 months ended
(2) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(3) Average Units outstanding for the three months ended
(4) Normalized FFO assumes long-term average generation in all segments and uses 2022 foreign currency rates. For the three months ended
(5) Balance includes restricted cash, trades receivables and other current assets, financial instrument assets, and due from related parties.
(6) Balance includes goodwill, deferred income tax assets, assets held for sale, intangible assets, and other long-term assets.
(7) Balance includes current and non-current portion of corporate borrowings.
(8) Balance includes current and non-current portion of non-recourse borrowings on the consolidated statement of financial position.
(9) 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.
(10) Direct operating costs exclude depreciation expense disclosed below.
(11) Balance includes change in working capital, dividends received from equity accounted investments and changes due to or from related parties.
(12) Actual generation includes 121 GWh (2022:105 GWh) from facilities that do not have a corresponding LTA.
(13) 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.
(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) 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 over
(22) 12-15% target returns are calculated as annualized cash return on investment.
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