“We continue to make good progress in advancing our strategic priorities with a focus on delivering 12% to 15% long-term returns to our unitholders,” said Sachin Shah, CEO of Brookfield Renewable. “During the quarter, we executed many operational improvements, invested new capital into a number of transactions, and added a global solar development business as another growth area for us. All the while, we continue to strengthen our balance sheet and access diverse sources of capital.”
| Financial Results | |||||||||||||
| For the period ended June 30 | |||||||||||||
| Millions (except per unit or otherwise noted) | Three months ended Jun 30 | Six months ended Jun 30 | |||||||||||
| Unaudited | 2019 | 2018 | 2019 | 2018 | |||||||||
| Total generation (GWh) | |||||||||||||
| – Actual generation | 14,881 | 13,122 | 29,006 | 26,002 | |||||||||
| – Long-term average generation | 14,252 | 13,521 | 27,745 | 26,373 | |||||||||
| Brookfield Renewable's share | |||||||||||||
| – Actual generation | 7,602 | 6,455 | 14,848 | 13,149 | |||||||||
| – Long-term average generation | 7,109 | 6,935 | 13,807 | 13,286 | |||||||||
| Funds From Operations (FFO)(1) | $ | 230 | $ | 172 | $ | 457 | $ | 365 | |||||
| Per Unit(1)(2) | 0.74 | 0.55 | 1.47 | 1.17 | |||||||||
| Net Income Attributable to Unitholders | 17 | (2 | ) | 60 | 6 | ||||||||
| Per Unit(2) | 0.05 | (0.01 | ) | 0.19 | 0.02 | ||||||||
(1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(2) For the three and six months ended June 30, 2019, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 311.2 million and 311.1 million, respectively (2018: 312.8 million and 312.7 millions).
Brookfield Renewable reported Net Income for the three months ended June 30, 2019 of
Highlights
- Generated FFO per unit of
$0.74 , a 35% increase over the prior year; - Announced our investment into a joint venture of a global solar developer with over 6,500 megawatts of utility-scale photovoltaic solar for approximately
$500 million (approximately$125 million net to BEP) which we expect to close in the fourth quarter; - Closed the acquisition of 210 megawatts of operating wind in
India ; - Closed the first
C$350 million tranche of ourC$750 million investment into anAlberta renewables portfolio; - Through TerraForm Power, announced the acquisition of a 322 megawatt distributed generation portfolio in the
U.S. , nearly doubling our distributed generation footprint and providing significant opportunities to drive incremental cash flow growth through operational and commercial synergies; - Ended the quarter with over
$2.5 billion of available liquidity and raised approximately$275 million in incremental liquidity with the closing of the sale of certain of ourSouth Africa facilities, as well as strategic up-financings and other liquidity initiatives; - Reduced our FFO payout ratio on an annualized basis to approximately 85%.
Transaction Update
Subsequent to quarter-end we announced, together with our institutional partners, that we will be forming a 50-50 joint venture to own one of the largest solar developers globally with an experienced management team, best-in-class contracting capabilities, and a proven track record of developing assets at premium returns. The portfolio comprises approximately 275 megawatts of operating solar, 1,410 megawatts of solar under construction and a broader 4,800 megawatt development pipeline which should provide significant growth optionality over the long-term.
Over the next five years, the plan is for the business to develop 500 to 800 megawatts of new solar capacity annually. This growth will complement our existing pipeline of development projects that includes over 600 megawatts of advanced stage wind, hydro and solar projects, and approximately 130 megawatts of assets under construction. We expect to close the investment in the fourth quarter of 2019.
Additionally, subsequent to the quarter-end, through TerraForm Power, we announced that we entered into an agreement to acquire, for approximately
We continued to execute on our capital recycling program during the quarter, completing the sale of four of the six projects in our
Operations
During the second quarter, we generated FFO of
In the second quarter, our hydroelectric segment generated FFO of
Our wind and solar segments generated a combined
Our storage and other operations segment performed well, generating
Balance Sheet and Liquidity
We ended the quarter with over
During the quarter, we extended the term of debt in our Colombian subsidiary to approximately 10 years by issuing
Outlook
We wish to extend our appreciation and best wishes to our Directors, John Van Egmond and Lars Josefsson, both of whom are retiring from our Board of Directors. John and Lars have served on our Board since 2011 and 2012, respectively, and we thank them for their strong support and advice during this time.
Looking ahead, we continue to focus on executing our key priorities, including maintaining a robust balance sheet and access to diverse sources of capital, enhancing cash flows from our existing business and assessing acquisition opportunities.
As always, we remain focused on delivering to our unitholders long-term total returns of 12% to 15% on a per unit basis. We thank you for your continued support and we look forward to updating you on our progress in that regard.
Distribution Declaration
The next quarterly distribution in the amount of
The quarterly dividends on Brookfield Renewable’s preferred shares and preferred LP units have also been declared.
Distribution Currency Option
The quarterly distributions payable on the Partnership’s LP Units are declared in
Registered unitholders resident in
Distribution Reinvestment Plan
Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its LP Units who are resident in
Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on our website at https://bep.brookfield.com.
Brookfield Renewable Partners
Brookfield Renewable Partners 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: |
| Claire Holland | Divya Biyani |
| Vice President - Communications | Director – Investor Relations |
| (416) 369-8236 | (416) 369-2616 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s 2019 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 July 31, 2019 at 9:00 a.m. Eastern Time at https://edge.media-server.com/mmc/p/h96zsxxz or via teleconference at 1-866-688-9430 toll free in
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.
Cautionary Statement Regarding Use of Non-IFRS Measures
This news release contains references to Adjusted EBITDA, 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 Adjusted EBITDA, 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 Adjusted EBITDA, FFO or FFO per Unit should be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS.For a reconciliation of Adjusted EBITDA, FFO and FFO per Unit to the most directly comparable IFRS measure, please see “– Reconciliation of non-IFRS measures” below and “PART 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures” included in our Management’s Discussion and Analysis for the three and six months ended June 30, 2019.
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| UNAUDITED | Three months ended Jun 30 | Six months ended Jun 30 | |||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2019 | 2018 | 2019 | 2018 | |||||||||
| Revenues | $ | 787 | $ | 735 | $ | 1,612 | $ | 1,528 | |||||
| Other income | 17 | 10 | 25 | 19 | |||||||||
| Direct operating costs | (252 | ) | (247 | ) | (506 | ) | (503 | ) | |||||
| Management service costs | (23 | ) | (21 | ) | (44 | ) | (42 | ) | |||||
| Interest expense – borrowings | (178 | ) | (178 | ) | (351 | ) | (358 | ) | |||||
| Share of earning from equity-accounted investments | — | 6 | 32 | 6 | |||||||||
| Foreign exchange and unrealized financial instrument loss | (12 | ) | (33 | ) | (30 | ) | (25 | ) | |||||
| Depreciation | (200 | ) | (206 | ) | (400 | ) | (419 | ) | |||||
| Other | (1 | ) | (10 | ) | (3 | ) | (54 | ) | |||||
| Income tax expense | |||||||||||||
| Current | (15 | ) | (7 | ) | (39 | ) | (14 | ) | |||||
| Deferred | (14 | ) | (4 | ) | (34 | ) | (13 | ) | |||||
| (29 | ) | (11 | ) | (73 | ) | (27 | ) | ||||||
| Net income | $ | 109 | $ | 45 | $ | 262 | $ | 125 | |||||
| Net income attributable to: | |||||||||||||
| Non-controlling interests | |||||||||||||
| Participating non-controlling interests - in operating subsidiaries | $ | 74 | $ | 31 | $ | 168 | $ | 87 | |||||
| General partnership interest in a holding subsidiary held by | 1 | — | 1 | — | |||||||||
| Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by | 7 | (1 | ) | 25 | 2 | ||||||||
| Preferred equity | 7 | 6 | 13 | 13 | |||||||||
| Preferred limited partners' equity | 11 | 10 | 21 | 19 | |||||||||
| Limited partners' equity | 9 | (1 | ) | 34 | 4 | ||||||||
| $ | 109 | $ | 45 | $ | 262 | $ | 125 | ||||||
| Basic and diluted (loss) earnings per LP Unit | $ | 0.05 | $ | (0.01 | ) | $ | 0.19 | $ | 0.02 | ||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
| UNAUDITED | Jun 30 | Dec 31 | ||||
| (MILLIONS) | 2019 | 2018 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 322 | $ | 173 | ||
| Trade receivables and other financial assets | 1,094 | 992 | ||||
| Equity-accounted investments | 1,576 | 1,569 | ||||
| Property, plant and equipment, at fair value | 29,317 | 29,025 | ||||
| Goodwill | 839 | 828 | ||||
| Deferred income tax and other assets | 1,258 | 1,516 | ||||
| Total Assets | $ | 34,406 | $ | 34,103 | ||
| Liabilities | ||||||
| Corporate borrowings | $ | 1,674 | $ | 2,328 | ||
| Non-recourse borrowings | 8,840 | 8,390 | ||||
| Accounts payable and other financial liabilities | 1,091 | 772 | ||||
| Deferred income tax liabilities | 4,266 | 4,140 | ||||
| Other liabilities | 1,285 | 1,267 | ||||
| Equity | ||||||
| Non-controlling interests | ||||||
| Participating non-controlling interests - in operating subsidiaries | 8,226 | 8,129 | ||||
| General partnership interest in a holding subsidiary held by | 65 | 66 | ||||
| Participating non-controlling interests - in a holding subsidiary – Redeemable/Exchangeable units held by | 3,166 | 3,252 | ||||
| Preferred equity | 591 | 568 | ||||
| Preferred limited partners' equity | 833 | 707 | ||||
| Limited partners' equity | 4,369 | 4,484 | ||||
| Total Equity | 17,250 | 17,206 | ||||
| Total Liabilities and Equity | $ | 34,406 | $ | 34,103 | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
| UNAUDITED | Three months ended Jun 30 | Six months ended Jun 30 | |||||||||||
| (MILLIONS) | 2019 | 2018 | 2019 | 2018 | |||||||||
| Operating activities | |||||||||||||
| Net income | $ | 109 | $ | 45 | $ | 262 | $ | 125 | |||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 200 | 206 | 400 | 419 | |||||||||
| Unrealized foreign exchange and financial instrument loss | 11 | 33 | 31 | 25 | |||||||||
| Share of earnings from equity-accounted investments | — | (6 | ) | (32 | ) | (6 | ) | ||||||
| Deferred income tax expense | 14 | 4 | 34 | 13 | |||||||||
| Other non-cash items | 33 | 9 | 50 | 24 | |||||||||
| Net change in working capital | 1 | (28 | ) | (6 | ) | (37 | ) | ||||||
| 368 | 263 | 739 | 563 | ||||||||||
| Financing activities | |||||||||||||
| Corporate credit facilities, net | (26 | ) | 173 | (721 | ) | 180 | |||||||
| Non-recourse borrowings, net | 279 | 1 | 279 | (450 | ) | ||||||||
| Capital contributions from participating non-controlling interests - in operating subsidiaries | 10 | — | 257 | 4 | |||||||||
| Issuance of preferred limited partnership units | — | — | 126 | 196 | |||||||||
| Repurchase of LP Units | — | (8 | ) | (1 | ) | (8 | ) | ||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (262 | ) | (181 | ) | (396 | ) | (357 | ) | |||||
| To preferred shareholders | (7 | ) | (6 | ) | (13 | ) | (13 | ) | |||||
| To preferred limited partners' unitholders | (11 | ) | (10 | ) | (20 | ) | (18 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (171 | ) | (161 | ) | (342 | ) | (321 | ) | |||||
| Borrowings from related party, net | (33 | ) | 200 | 322 | 200 | ||||||||
| (221 | ) | 8 | (509 | ) | (587 | ) | |||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (26 | ) | — | (26 | ) | (12 | ) | ||||||
| Investment in property, plant and equipment | (34 | ) | (42 | ) | (63 | ) | (94 | ) | |||||
| (Investment in) disposal of subsidiaries, associates and other securities | (1 | ) | (433 | ) | 4 | (395 | ) | ||||||
| Restricted cash and other | 66 | 49 | 11 | (29 | ) | ||||||||
| 5 | (426 | ) | (74 | ) | (530 | ) | |||||||
| Foreign exchange gain (loss) on cash | 1 | (12 | ) | 1 | (8 | ) | |||||||
| Cash and cash equivalents | |||||||||||||
| Increase (decrease) | 153 | (167 | ) | 157 | (562 | ) | |||||||
| Net change in cash classified within assets held for sale | (8 | ) | — | (8 | ) | — | |||||||
| Balance, beginning of period | 177 | 404 | 173 | 799 | |||||||||
| Balance, end of period | $ | 322 | $ | 237 | $ | 322 | $ | 237 | |||||
PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED JUNE 30
The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended June 30:
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||||||||||||||||
| 4,134 | 3,413 | 3,583 | 3,822 | $ | 275 | $ | 228 | $ | 211 | $ | 165 | $ | 168 | $ | 123 | $ | 79 | $ | 56 | |||||||||||||||||||||||
| 1,066 | 902 | 998 | 978 | 58 | 63 | 42 | 44 | 33 | 37 | 16 | 2 | |||||||||||||||||||||||||||||||
| 861 | 872 | 869 | 844 | 56 | 53 | 35 | 31 | 25 | 21 | 17 | 18 | |||||||||||||||||||||||||||||||
| 6,061 | 5,187 | 5,450 | 5,644 | 389 | 344 | 288 | 240 | 226 | 181 | 112 | 76 | |||||||||||||||||||||||||||||||
| Wind | ||||||||||||||||||||||||||||||||||||||||||
| 761 | 663 | 949 | 791 | 58 | 54 | 40 | 38 | 23 | 24 | (22 | ) | (6 | ) | |||||||||||||||||||||||||||||
| 204 | 107 | 223 | 133 | 22 | 12 | 15 | 7 | 11 | 3 | (11 | ) | (2 | ) | |||||||||||||||||||||||||||||
| 147 | 159 | 141 | 146 | 9 | 10 | 6 | 8 | 4 | 6 | 4 | (5 | ) | ||||||||||||||||||||||||||||||
| 52 | 37 | 51 | 42 | 3 | 3 | 2 | 2 | 1 | 1 | 2 | (3 | ) | ||||||||||||||||||||||||||||||
| 1,164 | 966 | 1,364 | 1,112 | 92 | 79 | 63 | 55 | 39 | 34 | (27 | ) | (16 | ) | |||||||||||||||||||||||||||||
| Solar | 287 | 175 | 295 | 179 | 51 | 30 | 42 | 25 | 27 | 16 | 4 | 2 | ||||||||||||||||||||||||||||||
| Storage & Other | 90 | 127 | — | — | 21 | 20 | 10 | 10 | 7 | 7 | 1 | 1 | ||||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | (3 | ) | (6 | ) | (69 | ) | (66 | ) | (73 | ) | (65 | ) | ||||||||||||||||||||||||
| Total | 7,602 | 6,455 | 7,109 | 6,935 | $ | 553 | $ | 473 | $ | 400 | $ | 324 | $ | 230 | $ | 172 | $ | 17 | $ | (2 | ) | |||||||||||||||||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and FFO and provides a reconciliation to net income (loss) attributable to Unitholders for the three months ended June 30, 2019:
| Attributable to Unitholders | Contribution from equity accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Solar | Storage & Other | Corporate | Total | |||||||||||||||||||||
| Revenues | $ | 389 | $ | 92 | $ | 51 | $ | 21 | $ | — | $ | 553 | $ | (98 | ) | $ | 332 | $ | 787 | ||||||||
| Other income | 10 | 1 | 1 | — | 2 | 14 | (2 | ) | 5 | 17 | |||||||||||||||||
| Direct operating costs | (111 | ) | (30 | ) | (10 | ) | (11 | ) | (5 | ) | (167 | ) | 27 | (112 | ) | (252 | ) | ||||||||||
| Share of Adjusted EBITDA from equity accounted investments | — | — | — | — | — | — | 73 | 5 | 78 | ||||||||||||||||||
| Adjusted EBITDA | 288 | 63 | 42 | 10 | (3 | ) | 400 | — | 230 | ||||||||||||||||||
| Management service costs | — | — | — | — | (23 | ) | (23 | ) | — | — | (23 | ) | |||||||||||||||
| Interest expense - borrowings | (53 | ) | (23 | ) | (15 | ) | (3 | ) | (25 | ) | (119 | ) | 26 | (85 | ) | (178 | ) | ||||||||||
| Current income taxes | (9 | ) | (1 | ) | — | — | — | (10 | ) | — | (5 | ) | (15 | ) | |||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||
| Preferred limited partners equity | — | — | — | — | (11 | ) | (11 | ) | — | — | (11 | ) | |||||||||||||||
| Preferred equity | — | — | — | — | (7 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||||
| Share of interest and cash taxes from equity accounted investments | — | — | — | — | — | — | (26 | ) | (5 | ) | (31 | ) | |||||||||||||||
| Share of FFO attributable to non-controlling interests | — | — | — | — | — | — | — | (135 | ) | (135 | ) | ||||||||||||||||
| FFO | 226 | 39 | 27 | 7 | (69 | ) | 230 | — | — | ||||||||||||||||||
| Depreciation | (83 | ) | (58 | ) | (15 | ) | (6 | ) | (1 | ) | (163 | ) | 36 | (73 | ) | (200 | ) | ||||||||||
| Foreign exchange and unrealized financial instrument loss | 4 | (9 | ) | 4 | — | (12 | ) | (13 | ) | 4 | (3 | ) | (12 | ) | |||||||||||||
| Deferred income tax expense | (24 | ) | 2 | — | — | 12 | (10 | ) | (1 | ) | (3 | ) | (14 | ) | |||||||||||||
| Other | (11 | ) | (1 | ) | (12 | ) | — | (3 | ) | (27 | ) | 8 | 18 | (1 | ) | ||||||||||||
| Share of earnings from equity accounted investments | — | — | — | — | — | — | (47 | ) | — | (47 | ) | ||||||||||||||||
| Net loss attributable to non-controlling interests | — | — | — | — | — | — | — | 61 | 61 | ||||||||||||||||||
| Net income (loss) attributable to Unitholders(2) | $ | 112 | $ | (27 | ) | $ | 4 | $ | 1 | $ | (73 | ) | $ | 17 | $ | — | $ | — | $ | 17 | |||||||
(1) Share of earning from equity-accounted investments of $nil million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of
(2) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
The following table reflects Adjusted EBITDA and FFO and provides a reconciliation to net income (loss) attributable to Unitholders for the three months ended June 30, 2018:
| Attributable to Unitholders | Contribution from equity accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Solar | Storage & Other | Corporate | Total | |||||||||||||||||||||
| Revenues | $ | 344 | $ | 79 | $ | 30 | $ | 20 | $ | — | $ | 473 | $ | (58 | ) | $ | 320 | $ | 735 | ||||||||
| Other income | 6 | 1 | 1 | — | — | 8 | (2 | ) | 4 | 10 | |||||||||||||||||
| Direct operating costs | (110 | ) | (25 | ) | (6 | ) | (10 | ) | (6 | ) | (157 | ) | 19 | (109 | ) | (247 | ) | ||||||||||
| Share of Adjusted EBITDA from equity accounted investments | — | — | — | — | — | — | 41 | 4 | 45 | ||||||||||||||||||
| Adjusted EBITDA | 240 | 55 | 25 | 10 | (6 | ) | 324 | — | 219 | ||||||||||||||||||
| Management service costs | — | — | — | — | (21 | ) | (21 | ) | — | — | (21 | ) | |||||||||||||||
| Interest expense - borrowings | (55 | ) | (20 | ) | (9 | ) | (3 | ) | (23 | ) | (110 | ) | 16 | (84 | ) | (178 | ) | ||||||||||
| Current income taxes | (4 | ) | (1 | ) | — | — | — | (5 | ) | 1 | (3 | ) | (7 | ) | |||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||
| Preferred limited partners equity | — | — | — | — | (10 | ) | (10 | ) | — | — | (10 | ) | |||||||||||||||
| Preferred equity | — | — | — | — | (6 | ) | (6 | ) | — | — | (6 | ) | |||||||||||||||
| Share of interest and cash taxes from equity accounted investments | — | — | — | — | — | — | (17 | ) | (4 | ) | (21 | ) | |||||||||||||||
| Share of FFO attributable to non-controlling interests | — | — | — | — | — | — | — | (128 | ) | (128 | ) | ||||||||||||||||
| FFO | 181 | 34 | 16 | 7 | (66 | ) | 172 | — | — | ||||||||||||||||||
| Depreciation | (94 | ) | (42 | ) | (7 | ) | (6 | ) | — | (149 | ) | 17 | (74 | ) | (206 | ) | |||||||||||
| Foreign exchange and unrealized financial instrument loss | 2 | (2 | ) | (4 | ) | — | 5 | 1 | (6 | ) | (28 | ) | (33 | ) | |||||||||||||
| Deferred income tax expense | (3 | ) | 2 | 1 | — | 4 | 4 | (3 | ) | (5 | ) | (4 | ) | ||||||||||||||
| Other | (10 | ) | (8 | ) | (4 | ) | — | (8 | ) | (30 | ) | 10 | 10 | (10 | ) | ||||||||||||
| Share of earnings from equity accounted investments | — | — | — | — | — | — | (18 | ) | — | (18 | ) | ||||||||||||||||
| Net loss attributable to non-controlling interests | — | — | — | — | — | — | — | 97 | 97 | ||||||||||||||||||
| Net income (loss) attributable to Unitholders(2) | $ | 76 | $ | (16 | ) | $ | 2 | $ | 1 | $ | (65 | ) | $ | (2 | ) | $ | — | $ | — | $ | (2 | ) | |||||
(1) Share of earnings from equity-accounted investments of
(2) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
The following table reconciles net income attributable to Unitholders and earnings per unit, the most directly comparable IFRS measures, to FFO, and FFO per unit,both non-IFRS financial metrics for the three months ended June 30:
| Per unit | |||||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2019 | 2018 | 2019 | 2018 | |||||||||
| Net income attributable to: | |||||||||||||
| Limited partners' equity | $ | 9 | $ | (1 | ) | $ | 0.05 | $ | (0.01 | ) | |||
| General partnership interest in a holding subsidiary held by | 1 | — | — | — | |||||||||
| Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by | 7 | (1 | ) | — | — | ||||||||
| Net income attributable to Unitholders | $ | 17 | $ | (2 | ) | $ | 0.05 | $ | (0.01 | ) | |||
| Adjusted for proportionate share of: | |||||||||||||
| Depreciation | 164 | 149 | 0.54 | 0.48 | |||||||||
| Foreign exchange and unrealized financial instruments loss (gain) | 13 | (1 | ) | 0.04 | — | ||||||||
| Deferred income tax (recovery) expense | 10 | (4 | ) | 0.03 | (0.01 | ) | |||||||
| Other | 26 | 30 | 0.08 | 0.09 | |||||||||
| FFO | $ | 230 | $ | 172 | $ | 0.74 | $ | 0.55 | |||||
| Weighted average units outstanding(1) | 311.2 | 312.8 | |||||||||||
(1) Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.
PROPORTIONATE RESULTS FOR THE SIX MONTHS ENDED JUNE 30
The following chart reflects the generation and summary financial figures on a proportionate basis for the six months ended June 30:
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||||||||||||||||||
| Actual| Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | Net Income (Loss) | |||||||||||||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||||||||||||||||
| 7,983 | 7,178 | 6,883 | 7,261 | $ | 539 | $ | 489 | $ | 406 | $ | 356 | $ | 320 | $ | 269 | $ | 146 | $ | 133 | |||||||||||||||||||||||
| 2,156 | 1,940 | 1,978 | 1,935 | 123 | 132 | 91 | 95 | 73 | 78 | 33 | 3 | |||||||||||||||||||||||||||||||
| 1,626 | 1,640 | 1,667 | 1,688 | 118 | 106 | 73 | 62 | 51 | 42 | 37 | 30 | |||||||||||||||||||||||||||||||
| 11,765 | 10,758 | 10,528 | 10,884 | 780 | 727 | 570 | 513 | 444 | 389 | 216 | 166 | |||||||||||||||||||||||||||||||
| Wind | ||||||||||||||||||||||||||||||||||||||||||
| 1,611 | 1,308 | 1,909 | 1,488 | 121 | 108 | 88 | 79 | 52 | 50 | (18 | ) | (12 | ) | |||||||||||||||||||||||||||||
| 478 | 272 | 531 | 288 | 50 | 29 | 35 | 18 | 28 | 11 | — | (3 | ) | ||||||||||||||||||||||||||||||
| 253 | 262 | 260 | 264 | 16 | 18 | 11 | 13 | 6 | 9 | 1 | (6 | ) | ||||||||||||||||||||||||||||||
| 91 | 69 | 89 | 76 | 5 | 5 | 3 | 3 | 2 | 1 | 1 | (4 | ) | ||||||||||||||||||||||||||||||
| 2,433 | 1,911 | 2,789 | 2,116 | 192 | 160 | 137 | 113 | 88 | 71 | (16 | ) | (25 | ) | |||||||||||||||||||||||||||||
| Solar | 486 | 290 | 490 | 286 | 89 | 48 | 74 | 41 | 45 | 26 | 13 | — | ||||||||||||||||||||||||||||||
| Storage & Other | 164 | 190 | — | — | 45 | 37 | 21 | 19 | 14 | 12 | 1 | (11 | ) | |||||||||||||||||||||||||||||
| Corporate | — | — | — | — | — | — | (7 | ) | (11 | ) | (134 | ) | (133 | ) | (154 | ) | (124 | ) | ||||||||||||||||||||||||
| Total | 14,848 | 13,149 | 13,807 | 13,286 | $ | 1,106 | $ | 972 | $ | 795 | $ | 675 | $ | 457 | $ | 365 | $ | 60 | $ | 6 | ||||||||||||||||||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and FFO and provides a reconciliation to net income (loss) attributable to Unitholders for the six months ended June 30, 2019:
| Attributable to Unitholders | Contribution from equity accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Solar | Storage & Other | Corporate | Total | |||||||||||||||||||||
| Revenues | $ | 780 | $ | 192 | $ | 89 | $ | 45 | $ | — | $ | 1,106 | $ | (189 | ) | $ | 695 | $ | 1,612 | ||||||||
| Other income | 12 | 3 | 2 | — | 4 | 21 | (6 | ) | 10 | 25 | |||||||||||||||||
| Direct operating costs | (222 | ) | (58 | ) | (17 | ) | (24 | ) | (11 | ) | (332 | ) | 56 | (230 | ) | (506 | ) | ||||||||||
| Share of Adjusted EBITDA from equity accounted investments | — | — | — | — | — | — | 139 | 12 | 151 | ||||||||||||||||||
| Adjusted EBITDA | 570 | 137 | 74 | 21 | (7 | ) | 795 | — | 487 | ||||||||||||||||||
| Management service costs | — | — | — | — | (44 | ) | (44 | ) | — | — | (44 | ) | |||||||||||||||
| Interest expense - borrowings | (108 | ) | (47 | ) | (29 | ) | (7 | ) | (49 | ) | (240 | ) | 50 | (161 | ) | (351 | ) | ||||||||||
| Current income taxes | (18 | ) | (2 | ) | — | — | — | (20 | ) | 1 | (20 | ) | (39 | ) | |||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||
| Preferred limited partners equity | — | — | — | — | (21 | ) | (21 | ) | — | — | (21 | ) | |||||||||||||||
| Preferred equity | — | — | — | — | (13 | ) | (13 | ) | — | — | (13 | ) | |||||||||||||||
| Share of interest and cash taxes from equity accounted investments | — | — | — | — | — | — | (51 | ) | (9 | ) | (60 | ) | |||||||||||||||
| Share of FFO attributable to non-controlling interests | — | — | — | — | — | — | — | (297 | ) | (297 | ) | ||||||||||||||||
| FFO | 444 | 88 | 45 | 14 | (134 | ) | 457 | — | — | ||||||||||||||||||
| Depreciation | (165 | ) | (113 | ) | (28 | ) | (12 | ) | (2 | ) | (320 | ) | 69 | (149 | ) | (400 | ) | ||||||||||
| Foreign exchange and unrealized financial instrument loss | 5 | (11 | ) | 4 | (1 | ) | (28 | ) | (31 | ) | 5 | (4 | ) | (30 | ) | ||||||||||||
| Deferred income tax expense | (42 | ) | 22 | 16 | — | 18 | 14 | (36 | ) | (12 | ) | (34 | ) | ||||||||||||||
| Other | (26 | ) | (2 | ) | (24 | ) | — | (8 | ) | (60 | ) | 21 | 36 | (3 | ) | ||||||||||||
| Share of earnings from equity accounted investments | — | — | — | — | — | — | (59 | ) | — | (59 | ) | ||||||||||||||||
| Net loss attributable to non-controlling interests | — | — | — | — | — | — | — | 129 | 129 | ||||||||||||||||||
| Net income (loss) attributable to Unitholders(2) | $ | 216 | $ | (16 | ) | $ | 13 | $ | 1 | $ | (154 | ) | $ | 60 | $ | — | $ | — | $ | 60 | |||||||
(1) Share of earnings from equity-accounted investments of
(2) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
The following table reflects Adjusted EBITDA and FFO and provides a reconciliation to net income (loss) attributable to Unitholders for the six months ended June 30, 2018:
| Attributable to Unitholders | Contribution from equity accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Solar | Storage & Other | Corporate | Total | |||||||||||||||||||||
| Revenues | $ | 727 | $ | 160 | $ | 48 | $ | 37 | $ | — | $ | 972 | $ | (97 | ) | $ | 653 | $ | 1,528 | ||||||||
| Other income | 8 | 2 | 3 | — | 1 | 14 | (4 | ) | 9 | 19 | |||||||||||||||||
| Direct operating costs | (222 | ) | (49 | ) | (10 | ) | (18 | ) | (12 | ) | (311 | ) | 32 | (224 | ) | (503 | ) | ||||||||||
| Share of Adjusted EBITDA from equity accounted investments | — | — | — | — | — | — | 69 | 12 | 81 | ||||||||||||||||||
| Adjusted EBITDA | 513 | 113 | 41 | 19 | (11 | ) | 675 | — | 450 | ||||||||||||||||||
| Management service costs | — | — | — | — | (42 | ) | (42 | ) | — | — | (42 | ) | |||||||||||||||
| Interest expense - borrowings | (116 | ) | (40 | ) | (15 | ) | (7 | ) | (48 | ) | (226 | ) | 25 | (157 | ) | (358 | ) | ||||||||||
| Current income taxes | (8 | ) | (2 | ) | — | — | — | (10 | ) | 1 | (5 | ) | (14 | ) | |||||||||||||
| Distributions attributable to | |||||||||||||||||||||||||||
| Preferred limited partners equity | — | — | — | — | (19 | ) | (19 | ) | — | — | (19 | ) | |||||||||||||||
| Preferred equity | — | — | — | — | (13 | ) | (13 | ) | — | — | (13 | ) | |||||||||||||||
| Share of interest and cash taxes from equity accounted investments | — | — | — | — | — | — | (26 | ) | (10 | ) | (36 | ) | |||||||||||||||
| Share of FFO attributable to non-controlling interests | — | — | — | — | — | — | — | (278 | ) | (278 | ) | ||||||||||||||||
| FFO | 389 | 71 | 26 | 12 | (133 | ) | 365 | — | — | ||||||||||||||||||
| Depreciation | (194 | ) | (81 | ) | (13 | ) | (12 | ) | — | (300 | ) | 29 | (148 | ) | (419 | ) | |||||||||||
| Foreign exchange and unrealized financial instrument loss | 1 | (1 | ) | (3 | ) | (2 | ) | 13 | 8 | (6 | ) | (27 | ) | (25 | ) | ||||||||||||
| Deferred income tax expense | (8 | ) | (4 | ) | — | — | 9 | (3 | ) | (1 | ) | (9 | ) | (13 | ) | ||||||||||||
| Other | (22 | ) | (10 | ) | (10 | ) | (9 | ) | (13 | ) | (64 | ) | 17 | (7 | ) | (54 | ) | ||||||||||
| Share of earnings from equity accounted investments | — | — | — | — | — | — | (39 | ) | — | (39 | ) | ||||||||||||||||
| Net loss attributable to non-controlling interests | — | — | — | — | — | — | — | 191 | 191 | ||||||||||||||||||
| Net income (loss) attributable to Unitholders(2) | $ | 166 | $ | (25 | ) | $ | — | $ | (11 | ) | $ | (124 | ) | $ | 6 | $ | — | $ | — | $ | 6 | ||||||
(1) Share of earnings from equity-accounted investments of
(2) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
The following table reconciles net income attributable to Unitholders and earnings per unit, the most directly comparable IFRS measures, to FFO, and FFO per unit,both non-IFRS financial metrics for the six months ended June 30:
| Per unit | |||||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2019 | 2018 | 2019 | 2018 | |||||||||
| Net income attributable to: | |||||||||||||
| Limited partners' equity | $ | 34 | $ | 4 | $ | 0.19 | $ | 0.02 | |||||
| General partnership interest in a holding subsidiary held by | 1 | — | — | — | |||||||||
| Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by | 25 | 2 | — | — | |||||||||
| Net income attributable to Unitholders | $ | 60 | $ | 6 | $ | 0.19 | $ | 0.02 | |||||
| Adjusted for proportionate share of: | |||||||||||||
| Depreciation | 321 | 300 | 1.03 | 0.96 | |||||||||
| Foreign exchange and unrealized financial instruments loss (gain) | 31 | (8 | ) | 0.10 | (0.02 | ) | |||||||
| Deferred income tax (recovery) expense | (14 | ) | 3 | (0.04 | ) | 0.01 | |||||||
| Other | 59 | 64 | 0.19 | 0.20 | |||||||||
| FFO | $ | 457 | $ | 365 | $ | 1.47 | $ | 1.17 | |||||
| Weighted average units outstanding(1) | 311.1 | 312.7 | |||||||||||
(1) Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.
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