“We had a strong quarter, as we delivered solid financial results and executed on a number of key strategic initiatives including securing a 25-year contract-for-difference to support almost 1.5 gigawatts of offshore wind, initiated one of the largest onshore wind repowerings in the world, and entered a strategic collaboration with the world's largest corporate buyer of renewable power,” said
| Financial Results | ||||||||||||||||
| Millions (except per unit or otherwise noted) | For the three months ended |
For the six months ended |
||||||||||||||
| Unaudited | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Total generation (GWh) | ||||||||||||||||
| – Long-term average generation | 16,092 | 15,527 | 30,191 | 29,678 | ||||||||||||
| – Actual generation | 14,683 | 13,264 | 28,511 | 27,528 | ||||||||||||
| Brookfield Renewable Partner's share (GWh) | ||||||||||||||||
| – Long-term average generation | 8,356 | 7,309 | 15,958 | 14,026 | ||||||||||||
| – Actual generation | 7,013 | 6,552 | 14,388 | 13,716 | ||||||||||||
| Net loss attributable to Unitholders | $ | (63 | ) | $ | (42 | ) | $ | (196 | ) | $ | (22 | ) | ||||
| Per LP unit(1) | (0.13 | ) | (0.11 | ) | (0.37 | ) | (0.10 | ) | ||||||||
| Funds From Operations (FFO)(2) | 268 | 232 | 510 | 449 | ||||||||||||
| Per Unit(2)(3) | 0.42 | 0.40 | 0.79 | 0.77 | ||||||||||||
| Normalized Funds From Operations (FFO)(2)(4) | 340 | 251 | 597 | 443 | ||||||||||||
| Per Unit(2)(3)(4) | 0.53 | 0.43 | 0.92 | 0.76 | ||||||||||||
| (1) | For the three and six months ended |
|
| (2) | Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”. | |
| (3) | Average Units outstanding for the three and six months ended |
|
| (4) | Normalized FFO assumes long-term average generation in all segments except the |
Brookfield Renewable reported FFO of
Highlights
- Generated FFO of
$268 million , or$0.42 per unit, a 23% increase on a normalized per unit basis over the same period in the prior year as our assets continue to perform well with high levels of asset availability, and we benefit from growth from new acquisitions and development assets coming online;
- We signed 28 agreements for approximately 800 GWh of renewable generation with corporate off-takers across all major industries. Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend;
- Progressed approximately 7,500 megawatts of development projects through construction and advanced stage permitting. We also added approximately 4,000 megawatts to our global development pipeline, which is now approximately 31,000 megawatts;
- Invested or agreed to invest approximately
$1.9 billion (approximately$500 million net to Brookfield Renewable) of equity across a range of transactions year-to-date;
- Our balance sheet remains robust with almost
$3.3 billion of available liquidity and no meaningful near-term maturities; and
- Raised approximately
$1.3 billion (over$650 million net to Brookfield Renewable) from asset recycling and strategic upfinancing activities this year.
Update on Growth Initiatives
As more capital continues to flow into renewable energy and decarbonization solutions, our approach to growth will continue to favor opportunities that allow us to utilize our strengths – investing for value and leveraging our operating capabilities to drive cashflow growth. We recently executed several agreements and transactions that highlight this approach.
In June, we commenced the repowering of the fully contracted 845-megawatt Shepherds Flat wind project, which we acquired earlier this year. Shepherds Flat, located in
This repowering is an example of how we capitalize on our competitive advantages in the current market environment. By the time we complete the repowering by the end of 2022, it is expected that 320 turbines will have been retrofitted with almost 130 meter rotors and other technologically advanced equipment, as we continue to deliver power and receive revenues under the power purchase agreement. Doing so requires the combination of our operating capabilities as well as our position as one of the leading renewable power platforms in the world. We are leveraging our existing relationships with equipment suppliers, financing partners, and power offtakes to largely de-risk this project.
With an estimated 200 gigawatts of global wind capacity reaching 15 years of age within the next five years, the global market for repowerings is large – Shepherds Flat is by no means the only opportunity – and is only one segment where we continue to grow our business at attractive returns. Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other facilities, both across our existing portfolio as well as those we acquire, to deliver attractive returns for our investors.
This quarter, we signed a strategic collaboration agreement with Amazon to develop new renewable energy projects supported by power purchase agreements and to work together on additional green energy opportunities in the future. This agreement, with the world’s largest corporate buyer of renewable power, will leverage our deep operating capabilities and local teams in
We also agreed with Trane Technologies, a global climate innovator, to jointly pursue and offer decarbonization-as-a-service for commercial, industrial, and public sector customers, comprising energy efficient retrofits and upgrades of building energy infrastructure along with captive distributed solar, energy storage and other power generation across
At our Polish renewable business, we made significant progress on our development activities. We secured a 25-year contract to support the buildout of almost 1.5 gigawatts of offshore projects at a very attractive price, escalating with inflation, with no basis or curtailment risk. As we have stated previously, we believe these are the most attractive contract structures available in the global offshore sector. We are now focused on executing construction activities, with the goal of delivering the facilities starting in 2025. In addition, we are on track to deliver our 200-megawatt under construction onshore wind portfolio by next year and are advancing opportunities to grow our onshore wind and solar footprint in the country. To fund these growth activities, shareholders have agreed to the capital increase required over the next two years, providing the framework for us to invest an additional €150 million (approximately
In
Alongside Apple’s
In
Brookfield Renewable Corporation (BEPC)
It has been 12 months since we spun out our corporate entity, Brookfield Renewable Corporation (BEPC). In that time, it has achieved many of the goals we set at launch including welcoming almost 250 new institutional investors and the addition to many indices including the Russell 1000, the MSCI Canada and the S&P Global Clean Energy Index. We were able to offer BEPC shares as consideration in the privatization of TerraForm Power and expanded the public float since launch by approximately 300%. We are pleased with the positive market reception. Looking forward, we expect that BEPC will continue to offer investors an additional way to access our globally leading portfolio of renewable and decarbonization assets, broadening our investor base and enhancing the liquidity of our securities.
Results from Operations
During the second quarter, we generated FFO of
During the quarter, 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 continues to be strong. We have approximately
During the quarter, we continued to take advantage of the low interest rate environment and executed on approximately
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 over
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
| Contact information: | |
| Media: | Investors: |
| Senior Vice President - Communications | Senior Vice President - Investor Relations |
| (416) 369-8236 | (416) 649-8172 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s 2021 Second Quarter 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 | $ | 530 | $ | 431 | ||||||||
| Trade receivables and other financial assets | 2,015 | 1,661 | ||||||||||
| Equity-accounted investments | 979 | 971 | ||||||||||
| Property, plant and equipment, at fair value | 44,646 | 44,590 | ||||||||||
| 998 | 970 | |||||||||||
| Deferred income tax and other assets | 1,953 | 1,099 | ||||||||||
| Total Assets | $ | 51,121 | $ | 49,722 | ||||||||
| Liabilities | ||||||||||||
| Corporate borrowings | $ | 2,191 | $ | 2,135 | ||||||||
| Borrowings which have recourse only to assets they finance | 17,186 | 15,947 | ||||||||||
| Accounts payable and other liabilities | 4,864 | 4,358 | ||||||||||
| Deferred income tax liabilities | 5,149 | 5,515 | ||||||||||
| Equity | ||||||||||||
| Non-controlling interests | ||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 11,644 | $ | 11,100 | ||||||||
| General partnership interest in a holding subsidiary held by |
50 | 56 | ||||||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by |
2,439 | 2,721 | ||||||||||
| BEPC exchangeable shares | 2,159 | 2,408 | ||||||||||
| Preferred equity | 624 | 609 | ||||||||||
| Perpetual subordinated notes | 340 | — | ||||||||||
| Preferred limited partners' equity | 1,028 | 1,028 | ||||||||||
| Limited partners' equity | 3,447 | 21,731 | 3,845 | 21,767 | ||||||||
| Total Liabilities and Equity | $ | 51,121 | $ | 49,722 | ||||||||
| Consolidated Statements of Operating Results | |||||||||||||||||
| UNAUDITED | For the three months ended |
For the six months ended |
|||||||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | 1,019 | $ | 942 | $ | 2,039 | $ | 1,991 | |||||||||
| Other income | 178 | 24 | 205 | 39 | |||||||||||||
| Direct operating costs | (307 | ) | (310 | ) | (698 | ) | (636 | ) | |||||||||
| Management service costs | (72 | ) | (46 | ) | (153 | ) | (86 | ) | |||||||||
| Interest expense | (246 | ) | (261 | ) | (479 | ) | (500 | ) | |||||||||
| Share of earnings (losses) from equity-accounted investments | 2 | (1 | ) | 7 | 1 | ||||||||||||
| Foreign exchange and financial instrument gain (loss) | (47 | ) | (46 | ) | 1 | (26 | ) | ||||||||||
| Depreciation | (379 | ) | (324 | ) | (747 | ) | (661 | ) | |||||||||
| Other | (36 | ) | (3 | ) | (135 | ) | (15 | ) | |||||||||
| Income tax recovery (expense) | |||||||||||||||||
| Current | (22 | ) | 4 | (38 | ) | (16 | ) | ||||||||||
| Deferred | 20 | 11 | 53 | (12 | ) | ||||||||||||
| Net income (loss) | $ | 110 | $ | (10 | ) | $ | 55 | $ | 79 | ||||||||
| Net loss attributable to preferred equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (173 | ) | $ | (32 | ) | (251 | ) | (101 | ) | |||||||
| Net loss attributable to Unitholders | (63 | ) | (42 | ) | $ | (196 | ) | $ | (22 | ) | |||||||
| Basic and diluted loss per LP unit | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.10 | ) | |||||
| Consolidated Statements of Cash Flows | |||||||||||||||||
| For the three months ended |
For the six months ended |
||||||||||||||||
| UNAUDITED (MILLIONS) |
2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating activities | |||||||||||||||||
| Net income (loss) | $ | 110 | $ | (10 | ) | $ | 55 | $ | 79 | ||||||||
| Adjustments for the following non-cash items: | |||||||||||||||||
| Depreciation | 379 | 324 | 747 | 661 | |||||||||||||
| Unrealized foreign exchange and financial instrument loss | 58 | 45 | 31 | 25 | |||||||||||||
| Share of loss (earnings) from equity-accounted investments | (2 | ) | 1 | (7 | ) | (1 | ) | ||||||||||
| Deferred income tax expense (recovery) | (20 | ) | (11 | ) | (53 | ) | 12 | ||||||||||
| Other non-cash items | (134 | ) | 26 | (120 | ) | 41 | |||||||||||
| Net change in working capital and other | (391 | ) | (1 | ) | (302 | ) | 16 | ||||||||||
| — | 374 | 351 | 833 | ||||||||||||||
| Financing activities | |||||||||||||||||
| Net corporate borrowings | — | 250 | — | 250 | |||||||||||||
| Commercial paper and corporate credit facilities, net | — | (197 | ) | (3 | ) | (159 | ) | ||||||||||
| Non-recourse borrowings, net | 236 | 4 | 910 | (7 | ) | ||||||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | (19 | ) | (59 | ) | 795 | (50 | ) | ||||||||||
| Issuance of perpetual subordinated notes | 340 | — | 340 | 195 | |||||||||||||
| Distributions paid: | |||||||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (262 | ) | (150 | ) | (380 | ) | (284 | ) | |||||||||
| To preferred shareholders & limited partners' unitholders | (21 | ) | (18 | ) | (42 | ) | (36 | ) | |||||||||
| To unitholders of Brookfield Renewable or BRELP | (213 | ) | (183 | ) | (429 | ) | (365 | ) | |||||||||
| Borrowings from related party, net | (25 | ) | — | 220 | — | ||||||||||||
| 36 | (353 | ) | 1,411 | (456 | ) | ||||||||||||
| Investing activities | |||||||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | 2 | 1 | (1,426 | ) | (105 | ) | |||||||||||
| Investment in property, plant and equipment | (244 | ) | (79 | ) | (533 | ) | (144 | ) | |||||||||
| Disposal of subsidiaries, associates and other securities, net | 396 | (67 | ) | 398 | 14 | ||||||||||||
| Restricted cash and other | (28 | ) | 64 | (78 | ) | 14 | |||||||||||
| 126 | (81 | ) | (1,639 | ) | (221 | ) | |||||||||||
| Foreign exchange gain (loss) on cash | 5 | 4 | (6 | ) | (11 | ) | |||||||||||
| Cash and cash equivalents | |||||||||||||||||
| Increase (decrease) | 167 | (56 | ) | 117 | 145 | ||||||||||||
| Net change in cash classified within assets held for sale | 5 | (4 | ) | (18 | ) | (8 | ) | ||||||||||
| Balance, beginning of period | 358 | 549 | 431 | 352 | |||||||||||||
| Balance, end of period | $ | 530 | $ | 489 | $ | 530 | $ | 489 | |||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||
| 2,450 | 3,476 | 3,580 | 3,580 | $ | 190 | $ | 217 | $ | 128 | $ | 165 | $ | 90 | $ | 137 | $ | (16 | ) | $ | 7 | |||||||||||||||||||||||
| 1,112 | 924 | 998 | 998 | 45 | 39 | 33 | 35 | 31 | 29 | 4 | 9 | ||||||||||||||||||||||||||||||||
| 972 | 532 | 887 | 870 | 51 | 45 | 42 | 25 | 33 | 19 | 20 | 11 | ||||||||||||||||||||||||||||||||
| 4,534 | 4,932 | 5,465 | 5,448 | 286 | 301 | 203 | 225 | 154 | 185 | 8 | 27 | ||||||||||||||||||||||||||||||||
| Wind | |||||||||||||||||||||||||||||||||||||||||||
| 1,061 | 765 | 1,446 | 938 | 86 | 56 | 79 | 45 | 54 | 31 | (32 | ) | (7 | ) | ||||||||||||||||||||||||||||||
| 228 | 140 | 272 | 175 | 29 | 15 | 67 | 13 | 63 | 11 | 31 | (9 | ) | |||||||||||||||||||||||||||||||
| 141 | 142 | 168 | 168 | 7 | 7 | 6 | 6 | 4 | 5 | — | — | ||||||||||||||||||||||||||||||||
| 129 | 110 | 117 | 118 | 9 | 7 | 6 | 6 | 4 | 4 | 1 | 2 | ||||||||||||||||||||||||||||||||
| 1,559 | 1,157 | 2,003 | 1,399 | 131 | 85 | 158 | 70 | 125 | 51 | — | (14 | ) | |||||||||||||||||||||||||||||||
| Solar | 538 | 285 | 620 | 366 | 102 | 44 | 81 | 45 | 53 | 29 | 13 | (10 | ) | ||||||||||||||||||||||||||||||
| Energy transition(1) | 382 | 178 | 268 | 96 | 78 | 36 | 58 | 34 | 44 | 27 | 10 | 10 | |||||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | 10 | 22 | (108 | ) | (60 | ) | (94 | ) | (55 | ) | |||||||||||||||||||||||||||
| Total | 7,013 | 6,552 | 8,356 | 7,309 | $ | 597 | $ | 466 | $ | 510 | $ | 396 | $ | 268 | $ | 232 | $ | (63 | ) | $ | (42 | ) | |||||||||||||||||||||
(1) Actual generation includes 123 GWh (2020: 86 GWh) from facilities that do not have a corresponding LTA.
PROPORTIONATE RESULTS FOR THE SIX MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the six 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 | |||||||||||||||||||||||||||||||||||||||||||
| 5,578 | 7,198 | 6,813 | 6,813 | $ | 395 | $ | 482 | $ | 269 | $ | 362 | $ | 194 | $ | 292 | $ | (12 | ) | $ | 82 | |||||||||||||||||||||||
| 2,264 | 2,151 | 1,986 | 1,986 | 97 | 100 | 81 | 82 | 70 | 70 | 27 | 34 | ||||||||||||||||||||||||||||||||
| 1,805 | 1,241 | 1,693 | 1,668 | 106 | 105 | 77 | 61 | 60 | 44 | 42 | 34 | ||||||||||||||||||||||||||||||||
| 9,647 | 10,590 | 10,492 | 10,467 | 598 | 687 | 427 | 505 | 324 | 406 | 57 | 150 | ||||||||||||||||||||||||||||||||
| Wind | |||||||||||||||||||||||||||||||||||||||||||
| 2,168 | 1,596 | 2,881 | 1,882 | 208 | 116 | 160 | 93 | 116 | 61 | (56 | ) | (17 | ) | ||||||||||||||||||||||||||||||
| 599 | 360 | 652 | 428 | 72 | 37 | 134 | 26 | 123 | 21 | 41 | (20 | ) | |||||||||||||||||||||||||||||||
| 267 | 212 | 294 | 294 | 14 | 11 | 10 | 9 | 6 | 6 | (2 | ) | (4 | ) | ||||||||||||||||||||||||||||||
| 241 | 200 | 217 | 218 | 16 | 13 | 12 | 11 | 8 | 7 | 2 | 1 | ||||||||||||||||||||||||||||||||
| 3,275 | 2,368 | 4,044 | 2,822 | 310 | 177 | 316 | 139 | 253 | 95 | (15 | ) | (40 | ) | ||||||||||||||||||||||||||||||
| Solar | 865 | 468 | 984 | 580 | 179 | 78 | 140 | 69 | 83 | 37 | (9 | ) | (24 | ) | |||||||||||||||||||||||||||||
| Energy transition(1) | 601 | 290 | 438 | 157 | 148 | 69 | 104 | 55 | 77 | 44 | 17 | 19 | |||||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | 12 | 19 | (227 | ) | (133 | ) | (246 | ) | (127 | ) | |||||||||||||||||||||||||||
| Total | 14,388 | 13,716 | 15,958 | 14,026 | $ | 1,235 | $ | 1,011 | $ | 999 | $ | 787 | $ | 510 | $ | 449 | $ | (196 | ) | $ | (22 | ) | |||||||||||||||||||||
(1) Actual generation includes 195 GWh (2020: 142 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 six months ended
| For the three months ended |
For the six months ended |
||||||||||||||||
| UNAUDITED (MILLIONS) |
2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net income (loss) attributable to: | |||||||||||||||||
| Limited partners' equity | $ | (35 | ) | $ | (33 | ) | $ | (101 | ) | $ | (31 | ) | |||||
| General partnership interest in a holding subsidiary held by |
19 | 15 | 39 | 31 | |||||||||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by |
(25 | ) | (24 | ) | (71 | ) | (22 | ) | |||||||||
| Class A shares of Brookfield Renewable Corporation | (22 | ) | — | (63 | ) | — | |||||||||||
| Net income (loss) attributable to Unitholders | $ | (63 | ) | $ | (42 | ) | $ | (196 | ) | $ | (22 | ) | |||||
| Adjusted for proportionate share of: | |||||||||||||||||
| Depreciation | 246 | 160 | 483 | 330 | |||||||||||||
| Foreign exchange and financial instruments gain | 67 | 36 | 67 | 35 | |||||||||||||
| Deferred income tax expense (recovery) | (24 | ) | 3 | (59 | ) | 9 | |||||||||||
| Other | 42 | 75 | 215 | 97 | |||||||||||||
| Funds From Operations | $ | 268 | $ | 232 | $ | 510 | $ | 449 | |||||||||
| Normalized long-term average generation adjustment | 85 | 19 | 97 | (6 | ) | ||||||||||||
| Normalized foreign currency adjustment | (13 | ) | — | (10 | ) | — | |||||||||||
| Normalized Funds From Operations | $ | 340 | $ | 251 | $ | 597 | $ | 443 | |||||||||
| Normalized Funds From Operations Adjustments | (72 | ) | (19 | ) | (87 | ) | 6 | ||||||||||
| Distributions attributable to: | |||||||||||||||||
| Preferred limited partners' equity | 15 | 14 | 29 | 26 | |||||||||||||
| Preferred equity | 6 | 6 | 13 | 13 | |||||||||||||
| Perpetual subordinated notes | 3 | — | 3 | — | |||||||||||||
| Current income taxes | 8 | (1 | ) | 14 | 8 | ||||||||||||
| Interest expense | 138 | 105 | 277 | 218 | |||||||||||||
| Management service costs | 72 | 40 | 153 | 73 | |||||||||||||
| Proportionate Adjusted EBITDA | 510 | 396 | 999 | 787 | |||||||||||||
| Attributable to non-controlling interests | 417 | 277 | 614 | 647 | |||||||||||||
| Consolidated Adjusted EBITDA | $ | 927 | $ | 673 | $ | 1,613 | $ | 1,434 | |||||||||
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 six months ended
| For the three months ended |
For the six months ended |
||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Basic income (loss) per LP unit(1) | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.10 | ) | |||||
| Depreciation | 0.38 | 0.27 | 0.75 | 0.57 | |||||||||||||
| Foreign exchange and financial instruments loss (gain) | 0.10 | 0.06 | 0.10 | 0.06 | |||||||||||||
| Deferred income tax recovery (expense) | (0.04 | ) | 0.01 | (0.09 | ) | 0.02 | |||||||||||
| Other | 0.11 | 0.17 | 0.40 | 0.22 | |||||||||||||
| Funds From Operations per Unit(2) | $ | 0.42 | $ | 0.40 | $ | 0.79 | $ | 0.77 | |||||||||
| Normalized long-term average generation adjustment | 0.13 | 0.03 | 0.15 | (0.01 | ) | ||||||||||||
| Normalized foreign exchange adjustment | (0.02 | ) | — | (0.02 | ) | — | |||||||||||
| Normalized Funds From Operations per Unit | $ | 0.53 | $ | 0.43 | $ | 0.92 | $ | 0.76 | |||||||||
| 1. | ||
| 2. | Average Units for the three and six months ended |
SECOND QUARTER 2021 RESULTS
All amounts in
The Board of Directors of Brookfield Renewable Corporation ("BEPC" or our "company") (NYSE, TSX: BEPC) today has declared a quarterly dividend 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 |
Six months ended |
|||||||||||
| Unaudited | 2021 | 2020 | 2021 | 2020 | |||||||||
| Proportionate Generation (GWh) | 4,588 | 3,692 | 9,291 | 8,332 | |||||||||
| Net income (loss) attributable to the partnership | $ | 611 | $ | 11 | $ | 602 | $ | 73 | |||||
| Funds From Operations (FFO)(1) | $ | 139 | $ | 105 | $ | 265 | $ | 253 | |||||
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
BEPC reported FFO of
| BROOKFIELD RENEWABLE CORPORATION | ||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||
| UNAUDITED | ||||||||||||
| (MILLIONS) | 2021 | 2020 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 396 | $ | 355 | ||||||||
| Trade receivables and other financial assets | 1,659 | 1,297 | ||||||||||
| Equity-accounted investments | 374 | 372 | ||||||||||
| Property, plant and equipment, at fair value | 34,248 | 36,097 | ||||||||||
| 896 | 970 | |||||||||||
| Deferred income tax and other assets | 1,232 | 382 | ||||||||||
| Total Assets | $ | 38,805 | $ | 39,473 | ||||||||
| Liabilities and Equity | ||||||||||||
| Borrowings which have recourse only to assets they finance | $ | 12,908 | $ | 12,822 | ||||||||
| Accounts payable and other liabilities | 3,825 | 3,296 | ||||||||||
| Deferred income tax liabilities | 3,986 | 4,200 | ||||||||||
| BEPC exchangeable and class B shares | 6,642 | 7,430 | ||||||||||
| Non-controlling interests | ||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 9,627 | $ | 10,290 | ||||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 258 | 258 | ||||||||||
| The partnership | 1,559 | 11,444 | 1,177 | 11,725 | ||||||||
| Total Liabilities and Equity | $ | 38,805 | $ | 39,473 | ||||||||
| BROOKFIELD RENEWABLE CORPORATION | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| UNAUDITED | Three months ended |
Six months ended |
|||||||||||||||
| (MILLIONS) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | $ | 817 | $ | 764 | $ | 1,656 | $ | 1,617 | |||||||||
| Other income | 5 | 14 | 19 | 24 | |||||||||||||
| Direct operating costs | (249 | ) | (264 | ) | (587 | ) | (543 | ) | |||||||||
| Management service costs | (47 | ) | (36 | ) | (102 | ) | (65 | ) | |||||||||
| Interest expense | (220 | ) | (189 | ) | (440 | ) | (357 | ) | |||||||||
| Share of earnings (loss) from equity-accounted investments | (1 | ) | — | 1 | 1 | ||||||||||||
| Foreign exchange and financial instrument gain | (18 | ) | (41 | ) | 16 | (6 | ) | ||||||||||
| Depreciation | (275 | ) | (254 | ) | (565 | ) | (513 | ) | |||||||||
| Other | (31 | ) | 24 | (177 | ) | 15 | |||||||||||
| Remeasurement of BEPC exchangeable and class B shares | 694 | — | 788 | — | |||||||||||||
| Income tax expense | |||||||||||||||||
| Current | (18 | ) | 5 | (31 | ) | (14 | ) | ||||||||||
| Deferred | 2 | (8 | ) | 19 | (49 | ) | |||||||||||
| Net income | $ | 659 | $ | 15 | $ | 597 | $ | 110 | |||||||||
| Net income (loss) attributable to: | |||||||||||||||||
| Non-controlling interests: | |||||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 46 | $ | 2 | $ | (10 | ) | $ | 31 | ||||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 2 | 2 | 5 | 6 | |||||||||||||
| The partnership | 611 | 11 | 602 | 73 | |||||||||||||
| $ | 659 | $ | 15 | $ | 597 | $ | 110 | ||||||||||
| BROOKFIELD RENEWABLE CORPORATION | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| UNAUDITED (MILLIONS) |
Three months ended |
Six months ended |
|||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Operating activities | |||||||||||||||||
| Net income (loss) | $ | 659 | $ | 15 | $ | 597 | $ | 110 | |||||||||
| Adjustments for the following non-cash items: | |||||||||||||||||
| Depreciation | 275 | 254 | 565 | 513 | |||||||||||||
| Unrealized foreign exchange and financial instruments gain | 20 | 40 | 3 | 5 | |||||||||||||
| Share of earnings from equity-accounted investments | 1 | — | (1 | ) | (1 | ) | |||||||||||
| Deferred income tax expense | (2 | ) | 8 | (19 | ) | 49 | |||||||||||
| Other non-cash items | 5 | (3 | ) | 55 | (13 | ) | |||||||||||
| Remeasurement of BEPC exchangeable and class B shares | (694 | ) | — | (788 | ) | — | |||||||||||
| Net change in working capital | (369 | ) | 49 | (225 | ) | 67 | |||||||||||
| (105 | ) | 363 | 187 | 730 | |||||||||||||
| Financing activities | |||||||||||||||||
| Non-recourse borrowings, net | 450 | (51 | ) | 449 | 77 | ||||||||||||
| Capital contributions from participating non-controlling interests | 11 | 7 | 38 | 12 | |||||||||||||
| Capital contributions from the Partnership | — | 50 | — | 100 | |||||||||||||
| Distributions paid and return of capital: | |||||||||||||||||
| To participating non-controlling interests | (154 | ) | (147 | ) | (290 | ) | (286 | ) | |||||||||
| To the Partnership | — | (136 | ) | — | (236 | ) | |||||||||||
| Borrowings from related party, net | 115 | (29 | ) | 168 | (58 | ) | |||||||||||
| 422 | (306 | ) | 365 | (391 | ) | ||||||||||||
| Investing activities | |||||||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (12 | ) | — | (12 | ) | (105 | ) | ||||||||||
| Investment in property, plant and equipment | (166 | ) | (74 | ) | (405 | ) | (107 | ) | |||||||||
| Disposal of subsidiaries, associates and other securities, net | — | 11 | — | 11 | |||||||||||||
| Investment in financial assets and other | (34 | ) | 4 | (72 | ) | (26 | ) | ||||||||||
| (212 | ) | (59 | ) | (489 | ) | (227 | ) | ||||||||||
| Foreign exchange gain (loss) on cash | 4 | 2 | (6 | ) | (10 | ) | |||||||||||
| Cash and cash equivalents | |||||||||||||||||
| Increase (decrease) | 109 | — | 57 | 102 | |||||||||||||
| Net change in cash classified within assets held for sale | (11 | ) | — | (16 | ) | — | |||||||||||
| Balance, beginning of period | 298 | 406 | 355 | 304 | |||||||||||||
| Balance, end of period | $ | 396 | $ | 406 | $ | 396 | $ | 406 | |||||||||
The following table reconciles net income (loss) attributable to Brookfield Renewable to Funds From Operations for the three and six months ended
| Three months ended |
Six months ended |
|||||||||||||||
| (MILLIONS) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) attributable to the partnership | $ | 611 | $ | 11 | $ | 602 | $ | 73 | ||||||||
| Adjusted for proportionate share of: | ||||||||||||||||
| Depreciation | 122 | 70 | 248 | 145 | ||||||||||||
| Other | 48 | 24 | 99 | 35 | ||||||||||||
| Dividends on BEPC class A exchangeable shares | 52 | — | 104 | — | ||||||||||||
| Remeasurement of BEPC exchangeable and class B shares | (694 | ) | — | (788 | ) | — | ||||||||||
| Funds From Operations | $ | 139 | $ | 105 | $ | 265 | $ | 253 | ||||||||
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
Source:
| Title | Document |
|---|---|
English |
|
Français |