All amounts in
BROOKFIELD, NEWS,
“We had another strong quarter, building on our momentum to start to the year with operating results and growth initiatives that position us to deliver our target 10%+ FFO per unit growth target for 2024. We were successful deploying significant capital into opportunities that further enhance the market-leading reach and scale of our business. Our investments focused on adding leading platforms in attractive markets with scale operating businesses and development pipelines that complement our current operations and further diversify our cash flows,” said
| For the three months ended |
For the six months ended |
|||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income (loss) attributable to Unitholders | $ | (154 | ) | $ | (39 | ) | $ | (274 | ) | $ | (71 | ) |
| – per LP unit(1) | (0.28 | ) | (0.10 | ) | (0.51 | ) | (0.20 | ) | ||||
| Funds From Operations (FFO)(2) | 339 | 312 | 635 | 587 | ||||||||
| – per Unit(2)(3) | 0.51 | 0.48 | 0.96 | 0.91 | ||||||||
Brookfield Renewable reported FFO of
Key highlights:
- Deployed, or committed to deploy
$8.6 billion of capital ($970 million net to Brookfield Renewable) across multiple investments globally. - Advanced commercial priorities securing contracts to deliver an incremental 2,700-gigawatt hours per year of generation, of which ~90% of development was contracted with corporate customers, building on the success of our recently announced partnership with Microsoft to deliver over 10,500 megawatts of renewable capacity between 2026 and 2030.
- Commissioned ~1,400 megawatts of new renewable energy capacity in the quarter and continue to expect to bring on ~7,000 megawatts this year.
- Executed asset sales generating over
$400 million in proceeds (~$250 million net to Brookfield Renewable) or two times our invested capital, and advanced initiatives that are expected to generate approximately$3 billion of total proceeds ($1.3 billion net to Brookfield Renewable) this year. - Strong balance sheet with
$4.4 billion of available liquidity providing significant flexibility to continue investing in growth and development.
Growing Where the Demand is
During the quarter, we successfully invested in businesses with established operating portfolios and development pipelines in attractive markets, where demand for clean power is growing. Further, our growth activities this quarter enabled us to expand into some new high value renewables markets, where broader Brookfield has been a prominent and successful investor for years.
Along with our institutional partners we signed an agreement to acquire ~53% of the outstanding shares of publicly-listed Neoen. Neoen is a leading global renewable platform with best-in class management and market leading positions in each of
Neoen’s three core markets represent some of the fastest growing markets for renewables, with strong corporate demand and high barriers to entry. The addition of Neoen to our portfolio immediately makes us a top player in each of these very attractive markets, where we can supplement Neoen’s local capabilities with our commercial, procurement and operating expertise. With our combined capabilities and access to capital, we intend to support the company, with a view to increasing Neoen’s development activities, to meet increasing demand for renewable energy.
In addition, the transaction will enable us to enhance on our ability to serve the needs of the largest corporate customers globally. In particular the mega-cap technology players have increasingly large requirements given their growing investment in data center development to support cloud and AI technologies. We are continuing to differentiate ourselves with our large operating fleet and expansive development pipeline, which now stands at over 230,000 megawatts, of which approximately 65,000 megawatts has advanced stage land, interconnection and permitting status in core renewable markets. This large, advanced pipeline and our credibility in delivering projects continues to enhance our position as the partner of choice for the largest buyers of clean power.
After regulatory approvals, which are expected in the fourth quarter of this year, we will launch a tender offer for the remaining shares of Neoen. Our offer to acquire 100% of the outstanding shares of the company is for
Along with our institutional partners, we acquired Leap Green, a leading wind focused commercial and industrial renewable business in
We made our first investment in
Delivering Competitive Energy Solutions
Over the past two decades, solar and wind have gone from a negligible source of global electricity production to over thirteen percent of total supply and have also become the most cost competitive sources of power globally. New build solar and wind now cost less than running existing fossil fuel plants in most markets.
We are seeing a similar scenario play out with batteries, where costs have declined 85% in the past decade and 60% in the past six years. Batteries are benefiting from economies of scale with the growth of the electric vehicle market, from incremental demand for capacity and grid stabilizing services, and by enabling increased penetration of low-cost renewables by providing a power solution for customers when the sun is not shining, or the wind is not blowing. As a result, the cost curve for batteries is now declining at a steeper pace than traditional renewables.
With lower capital costs, higher potential revenues and increasing demand for this type of solution from customers, we are focused on deploying capital into battery energy storage solutions in select markets. This quarter, we were awarded twenty-year capacity contracts for 400 megawatts of battery storage from the grid operator in
We also began construction on 220 megawatts of battery storage capacity in
Including our pumped storage assets, which are benefitting from the same demand drivers as batteries, we will have 5,000 megawatts of operating and under construction storage capacity. Alongside our hydro assets which have significant reservoir capacity, these assets are increasingly critical to enabling the deployment of low-cost 24-7 renewable power solutions that meet customers’ needs and represent a significant competitive advantage for our business.
Operating Results
We generated FFO of
Our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Our distributed energy, storage, and sustainable solutions segments generated a combined
We continued to grow and advance our development pipeline which now stands at 200,000 megawatts with 65,000 megawatts at the advanced stage. We expect to commission approximately 7,000 megawatts of new capacity this year, which when completed will add approximately
Balance Sheet & Liquidity
Our balance sheet is very strong and we have
During the quarter we took advantage of tightening spreads by executing
In July, we opportunistically issued
We continue to see opportunities to monetize de-risked operating assets at attractive returns. In the quarter, we executed on asset sales generating over
We are well positioned to continue to rotate capital in this market, with both a large pipeline of development projects that we are de-risking and bringing into operation, as well as an expansive global portfolio of operating assets which we have acquired, de-risked, or developed over the years.
We have been advancing several additional sales processes at very attractive returns and expect to generate 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 platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities in
Investors can access the portfolio either through
Brookfield Renewable is the flagship listed renewable power and transition 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: |
| 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 Second Quarter 2024 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) |
||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,236 | $ | 1,141 | ||||
| Trade receivables and other financial assets(5) | 4,610 | 5,237 | ||||||
| Equity-accounted investments | 2,530 | 2,546 | ||||||
| Property, plant and equipment, at fair value and |
63,714 | 65,949 | ||||||
| Deferred income tax and other assets(6) | 1,709 | 1,255 | ||||||
| Total Assets | $ | 73,799 | $ | 76,128 | ||||
| Liabilities | ||||||||
| Corporate borrowings(7) | $ | 3,896 | $ | 2,833 | ||||
| Borrowings which have recourse only to assets they finance(8) | 25,857 | 26,869 | ||||||
| Accounts payable and other liabilities(9) | 9,207 | 9,273 | ||||||
| Deferred income tax liabilities | 6,858 | 7,174 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 18,099 | $ | 18,863 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 48 | 55 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,330 | 2,684 | ||||||
| BEPC exchangeable shares | 2,152 | 2,479 | ||||||
| Preferred equity | 565 | 583 | ||||||
| Perpetual subordinated notes | 738 | 592 | ||||||
| Preferred limited partners' equity | 634 | 760 | ||||||
| Limited partners' equity | 3,415 | 27,981 | 3,963 | 29,979 | ||||
| Total Liabilities and Equity | $ | 73,799 | $ | 76,128 | ||||
| Consolidated Statements of Operating Results | |||||||||||||
| UNAUDITED (MILLIONS, EXCEPT AS NOTED) |
For the three months ended |
For the six months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues | $ | 1,482 | $ | 1,205 | $ | 2,974 | $ | 2,536 | |||||
| Other income | 62 | 61 | 96 | 87 | |||||||||
| Direct operating costs(10) | (618 | ) | (425 | ) | (1,252 | ) | (826 | ) | |||||
| Management service costs | (53 | ) | (55 | ) | (98 | ) | (112 | ) | |||||
| Interest expense | (489 | ) | (402 | ) | (965 | ) | (796 | ) | |||||
| Share of earnings (loss) from equity-accounted investments | (25 | ) | 13 | (58 | ) | 46 | |||||||
| Foreign exchange and financial instrument gain | 116 | 172 | 236 | 318 | |||||||||
| Depreciation | (517 | ) | (458 | ) | (1,019 | ) | (887 | ) | |||||
| Other | (27 | ) | 59 | (39 | ) | 5 | |||||||
| Income tax recovery (expense) | |||||||||||||
| Current | (16 | ) | (37 | ) | (44 | ) | (80 | ) | |||||
| Deferred | (3 | ) | 18 | 11 | 37 | ||||||||
| Net income (loss) | $ | (88 | ) | $ | 151 | $ | (158 | ) | $ | 328 | |||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (66 | ) | $ | (190 | ) | $ | (116 | ) | $ | (399 | ) | |
| Net loss attributable to Unitholders | (154 | ) | (39 | ) | (274 | ) | (71 | ) | |||||
| Basic and diluted loss per LP unit | $ | (0.28 | ) | $ | (0.10 | ) | $ | (0.51 | ) | $ | (0.20 | ) | |
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the six months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | (88 | ) | $ | 151 | $ | (158 | ) | $ | 328 | |||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 517 | 458 | 1,019 | 887 | |||||||||
| Unrealized foreign exchange and financial instrument gain | (122 | ) | (144 | ) | (239 | ) | (274 | ) | |||||
| Share of (earnings) loss from equity-accounted investments | 25 | (13 | ) | 58 | (46 | ) | |||||||
| Deferred income tax expense (recovery) | 3 | (18 | ) | (11 | ) | (37 | ) | ||||||
| Other non-cash items | 37 | (15 | ) | 93 | 22 | ||||||||
| 372 | 419 | 762 | 880 | ||||||||||
| Net change in working capital and other(11) | (141 | ) | (37 | ) | (207 | ) | 165 | ||||||
| 231 | 382 | 555 | 1,045 | ||||||||||
| Financing activities | |||||||||||||
| Net corporate borrowings | — | — | 297 | 293 | |||||||||
| Corporate credit facilities, net | 300 | — | 300 | — | |||||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 765 | (794 | ) | 1,412 | (1,056 | ) | |||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 138 | 587 | 289 | 1,581 | |||||||||
| Issuance of equity instruments, net and related costs | (155 | ) | 630 | (37 | ) | 630 | |||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (269 | ) | (307 | ) | (401 | ) | (449 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (271 | ) | (246 | ) | (531 | ) | (489 | ) | |||||
| 508 | (130 | ) | 1,329 | 510 | |||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | (6 | ) | (11 | ) | (87 | ) | ||||||
| Investment in property, plant and equipment | (820 | ) | (484 | ) | (1,660 | ) | (1,056 | ) | |||||
| Disposal (purchase) of associates and other assets | (50 | ) | 321 | (48 | ) | (218 | ) | ||||||
| Restricted cash and other | (24 | ) | (31 | ) | (10 | ) | (15 | ) | |||||
| (894 | ) | (200 | ) | (1,729 | ) | (1,376 | ) | ||||||
| Foreign exchange gain (loss) on cash | (27 | ) | 16 | (44 | ) | 30 | |||||||
| Cash and cash equivalents | |||||||||||||
| Increase (decrease) | (182 | ) | 68 | 111 | 209 | ||||||||
| Net change in cash classified within assets held for sale | (5 | ) | (6 | ) | (16 | ) | (5 | ) | |||||
| Balance, beginning of period | 1,423 | 1,140 | 1,141 | 998 | |||||||||
| Balance, end of period | $ | 1,236 | $ | 1,202 | $ | 1,236 | $ | 1,202 | |||||
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 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||
| 2,987 | 3,028 | 3,562 | 3,569 | $ | 256 | $ | 274 | $ | 165 | $ | 181 | $ | 97 | $ | 114 | |||||||||||
| 1,029 | 1,062 | 1,020 | 1,020 | 53 | 58 | 35 | 42 | 30 | 36 | |||||||||||||||||
| 670 | 904 | 908 | 907 | 72 | 66 | 31 | 47 | 9 | 21 | |||||||||||||||||
| 4,686 | 4,994 | 5,490 | 5,496 | 381 | 398 | 231 | 270 | 136 | 171 | |||||||||||||||||
| Wind | 2,108 | 1,435 | 2,444 | 1,767 | 154 | 129 | 136 | 132 | 103 | 106 | ||||||||||||||||
| Utility-scale solar | 1,109 | 659 | 1,262 | 842 | 120 | 110 | 117 | 107 | 91 | 77 | ||||||||||||||||
| Distributed energy & storage | 395 | 375 | 326 | 291 | 61 | 68 | 54 | 53 | 44 | 45 | ||||||||||||||||
| Sustainable solutions | — | — | — | — | 114 | 14 | 51 | 11 | 42 | 10 | ||||||||||||||||
| Corporate | — | — | — | — | — | — | 40 | 13 | (77 | ) | (97 | ) | ||||||||||||||
| Total | 8,298 | 7,463 | 9,522 | 8,396 | $ | 830 | $ | 719 | $ | 629 | $ | 586 | $ | 339 | $ | 312 | ||||||||||
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 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||
| 6,608 | 6,604 | 6,796 | 6,806 | $ | 559 | $ | 609 | $ | 371 | $ | 411 | $ | 234 | $ | 272 | |||||||||||
| 2,043 | 2,269 | 2,028 | 2,028 | 112 | 119 | 77 | 87 | 66 | 74 | |||||||||||||||||
| 1,364 | 1,914 | 1,751 | 1,760 | 151 | 132 | 76 | 95 | 29 | 44 | |||||||||||||||||
| 10,015 | 10,787 | 10,575 | 10,594 | 822 | 860 | 524 | 593 | 329 | 390 | |||||||||||||||||
| Wind | 4,236 | 3,112 | 4,944 | 3,765 | 324 | 271 | 257 | 239 | 190 | 184 | ||||||||||||||||
| Utility-scale solar | 1,829 | 1,143 | 2,106 | 1,410 | 213 | 198 | 207 | 176 | 152 | 117 | ||||||||||||||||
| Distributed energy & storage | 679 | 608 | 551 | 484 | 113 | 129 | 97 | 98 | 78 | 78 | ||||||||||||||||
| Sustainable solutions | — | — | — | — | 233 | 33 | 86 | 23 | 75 | 21 | ||||||||||||||||
| Corporate | — | — | — | — | — | — | 33 | 16 | (189 | ) | (203 | ) | ||||||||||||||
| Total | 16,759 | 15,650 | 18,176 | 16,253 | $ | 1,705 | $ | 1,491 | $ | 1,204 | $ | 1,145 | $ | 635 | $ | 587 | ||||||||||
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
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar | Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 6 | $ | 8 | $ | (18 | ) | $ | 17 | $ | 9 | $ | (110 | ) | $ | (88 | ) | ||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 159 | 196 | 128 | 34 | — | — | 517 | ||||||||||||||
| Deferred income tax expense (recovery) | 6 | (1 | ) | 3 | 3 | (1 | ) | (7 | ) | 3 | |||||||||||
| Foreign exchange and financial instrument loss (gain) | (7 | ) | (72 | ) | (2 | ) | (15 | ) | (17 | ) | (3 | ) | (116 | ) | |||||||
| Other(12) | 50 | 43 | 37 | 12 | (18 | ) | 61 | 185 | |||||||||||||
| Management service costs | — | — | — | — | — | 53 | 53 | ||||||||||||||
| Interest expense | 199 | 118 | 79 | 40 | 6 | 47 | 489 | ||||||||||||||
| Current income tax expense | 4 | 10 | 2 | 1 | — | (1 | ) | 16 | |||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (186 | ) | (166 | ) | (112 | ) | (38 | ) | 72 | — | (430 | ) | |||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 231 | $ | 136 | $ | 117 | $ | 54 | $ | 51 | $ | 40 | $ | 629 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar | Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 93 | $ | 59 | $ | 39 | $ | (3 | ) | $ | 48 | $ | (85 | ) | $ | 151 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 163 | 175 | 84 | 28 | 7 | 1 | 458 | ||||||||||||||
| Deferred income tax expense (recovery) | (26 | ) | 9 | 6 | (8 | ) | — | 1 | (18 | ) | |||||||||||
| Foreign exchange and financial instrument loss (gain) | (6 | ) | (75 | ) | (28 | ) | 12 | (53 | ) | (22 | ) | (172 | ) | ||||||||
| Other(12) | (7 | ) | 14 | (11 | ) | 21 | — | 19 | 36 | ||||||||||||
| Management service costs | — | — | — | — | — | 55 | 55 | ||||||||||||||
| Interest expense | 193 | 81 | 67 | 27 | 9 | 25 | 402 | ||||||||||||||
| Current income tax expense | 25 | 6 | 6 | — | — | — | 37 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (165 | ) | (137 | ) | (56 | ) | (24 | ) | — | 19 | (363 | ) | |||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 270 | $ | 132 | $ | 107 | $ | 53 | $ | 11 | $ | 13 | $ | 586 | |||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the six months ended
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar | Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 128 | $ | 17 | $ | (79 | ) | $ | (11 | ) | $ | 3 | $ | (216 | ) | $ | (158 | ) | |||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 320 | 406 | 224 | 65 | 4 | — | 1,019 | ||||||||||||||
| Deferred income tax expense (recovery) | 8 | (7 | ) | 2 | — | (1 | ) | (13 | ) | (11 | ) | ||||||||||
| Foreign exchange and financial instrument loss (gain) | (41 | ) | (147 | ) | 5 | (7 | ) | (40 | ) | (6 | ) | (236 | ) | ||||||||
| Other(12) | 3 | 14 | 16 | (12 | ) | (8 | ) | 77 | 90 | ||||||||||||
| Management service costs | — | — | — | — | — | 98 | 98 | ||||||||||||||
| Interest expense | 397 | 229 | 164 | 72 | 9 | 94 | 965 | ||||||||||||||
| Current income tax expense | 22 | 19 | 2 | 2 | — | (1 | ) | 44 | |||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (313 | ) | (274 | ) | (127 | ) | (12 | ) | 119 | — | (607 | ) | |||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 524 | $ | 257 | $ | 207 | $ | 97 | $ | 86 | $ | 33 | $ | 1,204 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the six months ended
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar | Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 331 | $ | 88 | $ | (9 | ) | $ | 23 | $ | 75 | $ | (180 | ) | $ | 328 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 317 | 325 | 166 | 57 | 21 | 1 | 887 | ||||||||||||||
| Deferred income tax expense (recovery) | (1 | ) | 9 | 5 | (22 | ) | 1 | (29 | ) | (37 | ) | ||||||||||
| Foreign exchange and financial instrument loss (gain) | (100 | ) | (115 | ) | (26 | ) | 2 | (52 | ) | (27 | ) | (318 | ) | ||||||||
| Other(12) | 18 | 19 | 1 | 37 | (13 | ) | 48 | 110 | |||||||||||||
| Management service costs | — | — | — | — | — | 112 | 112 | ||||||||||||||
| Interest expense | 376 | 143 | 132 | 50 | 20 | 75 | 796 | ||||||||||||||
| Current income tax expense | 59 | 10 | 11 | — | — | — | 80 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (407 | ) | (240 | ) | (104 | ) | (49 | ) | (29 | ) | 16 | (813 | ) | ||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 593 | $ | 239 | $ | 176 | $ | 98 | $ | 23 | $ | 16 | $ | 1,145 | |||||||
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 |
For the six months ended |
||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income | $ | (88 | ) | $ | 151 | $ | (158 | ) | $ | 328 | ||
| Add back or deduct the following: | ||||||||||||
| Depreciation | 517 | 458 | 1,019 | 887 | ||||||||
| Deferred income tax expense (recovery) | 3 | (18 | ) | (11 | ) | (37 | ) | |||||
| Foreign exchange and financial instruments gain | (116 | ) | (172 | ) | (236 | ) | (318 | ) | ||||
| Other(14) | 185 | 36 | 90 | 110 | ||||||||
| Amount attributable to equity accounted investment and non-controlling interest(15) | (162 | ) | (143 | ) | (69 | ) | (383 | ) | ||||
| Funds From Operations | $ | 339 | $ | 312 | $ | 635 | $ | 587 | ||||
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 |
For the six months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income (loss) per LP unit(1) | $ | (0.28 | ) | $ | (0.10 | ) | $ | (0.51 | ) | $ | (0.20 | ) |
| Adjust for the proportionate share of | ||||||||||||
| Depreciation | 0.39 | 0.38 | 0.77 | 0.75 | ||||||||
| Deferred income tax recovery and other | 0.45 | 0.28 | 0.81 | 0.50 | ||||||||
| Foreign exchange and financial instruments (gain) | (0.05 | ) | (0.08 | ) | (0.11 | ) | (0.14 | ) | ||||
| Funds From Operations per Unit(3) | $ | 0.51 | $ | 0.48 | $ | 0.96 | $ | 0.91 | ||||
REPORTS SECOND 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 |
For the six months ended |
|||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | ||||||||
| Select Financial Information | ||||||||||||
| Net income (loss) attributable to the partnership | $ | (342 | ) | $ | 291 | $ | 149 | $ | (774 | ) | ||
| Funds From Operations (FFO)(2) | 219 | 195 | 438 | 397 | ||||||||
BEPC reported FFO of
| Consolidated Statements of Financial Position | ||||||||
| As of | ||||||||
| UNAUDITED (MILLIONS) |
||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 614 | $ | 627 | ||||
| Trade receivables and other financial assets(5) | 2,423 | 2,972 | ||||||
| Equity-accounted investments | 637 | 644 | ||||||
| Property, plant and equipment, at fair value and |
38,554 | 44,892 | ||||||
| Deferred income tax and other assets(6) | 385 | 286 | ||||||
| Total Assets | $ | 42,613 | $ | 49,421 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(8) | $ | 14,174 | $ | 16,072 | ||||
| Accounts payable and other liabilities(9) | 3,603 | 5,680 | ||||||
| Deferred income tax liabilities | 5,547 | 5,819 | ||||||
| BEPC exchangeable and class B shares | 4,450 | 4,721 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 9,079 | $ | 11,070 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 232 | 272 | ||||||
| The partnership | 5,528 | 14,839 | 5,787 | 17,129 | ||||
| Total Liabilities and Equity | $ | 42,613 | $ | 49,421 | ||||
| Consolidated Statements of Income (Loss) | ||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the six months ended |
||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues | $ | 989 | $ | 901 | $ | 2,114 | $ | 1,967 | ||||
| Other income | 43 | 39 | 67 | 52 | ||||||||
| Direct operating costs(10) | (419 | ) | (308 | ) | (903 | ) | (612 | ) | ||||
| Management service costs | (22 | ) | (32 | ) | (43 | ) | (68 | ) | ||||
| Interest expense | (341 | ) | (315 | ) | (704 | ) | (621 | ) | ||||
| Share of loss from equity-accounted investments | (7 | ) | (3 | ) | (22 | ) | — | |||||
| Foreign exchange and financial instrument gain (loss) | 37 | (7 | ) | 66 | 108 | |||||||
| Depreciation | (312 | ) | (327 | ) | (657 | ) | (633 | ) | ||||
| Other | (24 | ) | 50 | 2 | 11 | |||||||
| Remeasurement of BEPC exchangeable and class B shares | (277 | ) | 380 | 271 | (683 | ) | ||||||
| Income tax (expense) recovery | ||||||||||||
| Current | (9 | ) | (34 | ) | (29 | ) | (72 | ) | ||||
| Deferred | 3 | 16 | (10 | ) | (9 | ) | ||||||
| Net income (loss) | $ | (339 | ) | $ | 360 | $ | 152 | $ | (560 | ) | ||
| Net income (loss) attributable to: | ||||||||||||
| Non-controlling interests: | ||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 1 | $ | 68 | $ | 2 | $ | 211 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 2 | 1 | 1 | 3 | ||||||||
| The partnership | (342 | ) | 291 | 149 | (774 | ) | ||||||
| $ | (339 | ) | $ | 360 | $ | 152 | $ | (560 | ) | |||
| Consolidated Statements of Cash Flows | ||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the six months ended |
||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Operating activities | ||||||||||||
| Net income (loss) | $ | (339 | ) | $ | 360 | $ | 152 | $ | (560 | ) | ||
| Adjustments for the following non-cash items: | ||||||||||||
| Depreciation | 312 | 327 | 657 | 633 | ||||||||
| Unrealized foreign exchange and financial instruments (gain) loss | (38 | ) | 16 | (66 | ) | (92 | ) | |||||
| Share of loss from equity-accounted investments | 7 | 3 | 22 | — | ||||||||
| Deferred income tax expense | (3 | ) | (16 | ) | 10 | 9 | ||||||
| Other non-cash items | 30 | 5 | 46 | 29 | ||||||||
| Remeasurement of exchangeable and class B shares | 277 | (380 | ) | (271 | ) | 683 | ||||||
| 246 | 315 | 550 | 702 | |||||||||
| Net change in working capital and other(11) | (106 | ) | (62 | ) | (153 | ) | 142 | |||||
| 140 | 253 | 397 | 844 | |||||||||
| Financing activities | ||||||||||||
| Non-recourse borrowings and related party borrowings, net | 99 | (345 | ) | 230 | (626 | ) | ||||||
| Capital contributions from participating non-controlling interests | 43 | 51 | 125 | 103 | ||||||||
| Return of capital to participating non-controlling interests | (36 | ) | — | (36 | ) | — | ||||||
| Issuance of exchangeable shares, net | — | 251 | — | 251 | ||||||||
| Distributions paid and return of capital: | ||||||||||||
| To participating non-controlling interests | (188 | ) | (188 | ) | (264 | ) | (321 | ) | ||||
| (82 | ) | (231 | ) | 55 | (593 | ) | ||||||
| Investing activities | ||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | — | — | (81 | ) | |||||||
| Investment in equity-accounted investments | — | (3 | ) | — | (3 | ) | ||||||
| Investment in property, plant and equipment | (199 | ) | (158 | ) | (476 | ) | (320 | ) | ||||
| Disposal of subsidiaries, associates and other securities, net | 191 | 103 | 78 | 106 | ||||||||
| Restricted cash and other | (43 | ) | (37 | ) | (24 | ) | (24 | ) | ||||
| (51 | ) | (95 | ) | (422 | ) | (322 | ) | |||||
| Foreign exchange gain (loss) on cash | (30 | ) | 14 | (39 | ) | 27 | ||||||
| Cash and cash equivalents | ||||||||||||
| Decrease | (23 | ) | (59 | ) | (9 | ) | (44 | ) | ||||
| Net change in cash classified within assets held for sale | (2 | ) | (3 | ) | (4 | ) | (3 | ) | ||||
| Balance, beginning of period | 639 | 657 | 627 | 642 | ||||||||
| Balance, end of period | 614 | 595 | $ | 614 | $ | 595 | ||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income (loss) to Funds From Operations:
| UNAUDITED (MILLIONS) |
For the three months ended |
For the six months ended |
||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income (loss) | $ | (339 | ) | $ | 360 | $ | 152 | $ | (560 | ) | ||
| Add back or deduct the following: | ||||||||||||
| Depreciation | 312 | 327 | 657 | 633 | ||||||||
| Foreign exchange and financial instruments loss (gain) | (37 | ) | 7 | (66 | ) | (108 | ) | |||||
| Deferred income tax expense | (3 | ) | (16 | ) | 10 | 9 | ||||||
| Other(16) | 59 | 34 | (145 | ) | 85 | |||||||
| Dividends on BEPC exchangeable shares(17) | 64 | 61 | 129 | 119 | ||||||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | 277 | (380 | ) | (271 | ) | 683 | ||||||
| Amount attributable to equity accounted investments and non-controlling interests(18) | (114 | ) | (198 | ) | (28 | ) | (464 | ) | ||||
| Funds From Operations | $ | 219 | $ | 195 | $ | 438 | $ | 397 | ||||
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 – Three Months Ended June 30” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our unaudited Q2 2024 interim report. For a reconciliation of FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Quarter Ended
References to Brookfield Renewable are to
Endnotes
(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 and uses 2023 foreign currency rates. For the three and six 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) 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 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
(13) 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.
(14) 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 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.
(15) Amount attributable to equity accounted investments corresponds to the Funds From Operations that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Funds From Operations attributable to non-controlling interest, our partnership is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our partnership.
(16) 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.
(17) Balance is included within interest expense on the consolidated statements of income (loss).
(18) 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.
(19) Any references to capital refer to Brookfield's cash deployed, excluding any debt financing.
(20) Available liquidity of over
(21) 12-15% target returns are calculated as annualized cash return on investment.
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