All amounts in
“We had a strong quarter, as we executed on a broad range of transactions that highlight the unique strengths and differentiated value of our business,” said Connor Teskey, CEO of Brookfield Renewable. “Our strategy going forward is unchanged. We remain focused on growing our business, while continuing to deliver on our target of 12-15% long-term returns to equity holders, by leveraging our scale and operational expertise to help governments and businesses around the world transition to a greener future."
| Financial Results | |||||||||
| Millions (except per unit or otherwise noted) | Three months ended September 30 |
Nine months ended September 30 |
|||||||
| Unaudited | 2020 | 2019 | 2020 | 2019 | |||||
| Total generation (GWh) | |||||||||
| – Long-term average generation | 13,446 | 12,332 | 43,124 | 40,077 | |||||
| – Actual generation | 12,007 | 11,089 | 39,534 | 40,095 | |||||
| Brookfield Renewable Partner's share (GWh) | |||||||||
| – Long-term average generation | 6,618 | 5,821 | 20,644 | 19,628 | |||||
| – Actual generation | 5,753 | 5,213 | 19,469 | 20,061 | |||||
| Net (loss) income Attributable to Unitholders | $(162) | $(58) | $(184) | $(29) | |||||
| Per LP unit(1) | (0.44) | (0.18) | (0.58) | (0.17) | |||||
| Funds From Operations (FFO)(2) | 157 | 133 | 606 | 590 | |||||
| Per Unit(2)(3) | 0.38 | 0.34 | 1.52 | 1.52 | |||||
| Normalized Funds From Operations (FFO)(2)(4) | 206 | 151 | 659 | 581 | |||||
| Per Unit(2)(3)(4) | 0.50 | 0.39 | 1.65 | 1.49 | |||||
| (1) | For the three and nine months ended September 30, 2020, weighted average LP units totaled 181.7 million and 179.9 million, respectively (2019: 178.9 million and 178.9 million, respectively). |
| (2) | Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”. |
| (3) | Average Units outstanding, adjusted for the special distribution as if it had been completed prior to the periods presented, for the three and nine months ended September 30, 2020 were 416.4 million and 398.3 million, respectively (2019: 389.1 million and 389.0 million, respectively), being inclusive of our LP units, Redeemable/Exchangeable partnership units, exchangeable shares and GP interest. The actual Units outstanding at September 30, 2020 were 430.3 million (2019: 311.2 million). |
| (4) | Normalized FFO assumes long-term average generation in all segments except the |
Brookfield Renewable reported FFO of
Highlights
- We agreed on transactions to invest
~$900 million (~$250 million net to BEP) of equity; - We completed the special distribution of Brookfield Renewable Corporation which has led to increased demand and enhanced liquidity for our securities; and
- Our liquidity remains robust at
$3.3 billion and our balance sheet remains in excellent shape – with no material debt maturities over the next five years and, so far this year, we generated$900 million of proceeds ($326 million net to BEP) from asset recycling initiatives.
Update on Growth Initiatives
Recently we executed on a broad range of transactions that highlight the unique strengths and differentiated value of our business. Our largest transaction was completing the merger of TerraForm Power on an all-stock basis. The transaction was immediately cash accretive, expands our wind and solar business in
We also closed the acquisition of a 1,200 MW shovel-ready solar development project in
This week, we announced our intention to launch an offer to privatize Polenergia, a scale renewable business in
And we acquired a portfolio of loans from one of the largest non-bank financial companies in
Finally, we funded the final
Results from Operations
During the third quarter, we generated FFO of
During the quarter, our hydroelectric segment delivered FFO of
Across our hydroelectric portfolio, we continue to focus on securing contracts that value the uniqueness of our fleet as a generator of dispatchable carbon free electricity and ancillary services. Subsequent to quarter-end, we agreed to supply 100% renewable energy to one of the first planned industrial-scale green hydrogen production plants in
Our wind and solar segments continue to generate stable revenues and benefit from the diversification of our fleet and highly contracted cash flows with long duration power purchase agreements. During the quarter, these segments generated a combined
Finally, we continued to advance our global development activities, including progressing almost 2,700 megawatts of construction diversified across distributed- and utility-scale solar, wind, storage, and hydro in 8 different countries. We are also progressing approximately 1,110 megawatts of advanced-stage projects through final permitting and contracting. In total, we expect these projects to contribute approximately
Balance Sheet and Liquidity
Our financial position continues to be in excellent shape. We have approximately
During the quarter, we continued to take advantage of the low interest environment and executed on
We continued to execute on our capital recycling program of monetizing mature, de-risked assets. During the quarter, we closed the sale of the final project in our South African portfolio. Since acquiring these assets as part of a broader global transaction in 2017, we have returned almost
Stock Split
Brookfield Renewable announced today that the Board of Directors of BEP has approved a three-for-two unit split of BEP’s outstanding units. The split will be implemented by way of a subdivision whereby unitholders will receive an additional one-half of a unit for each unit held (i.e. one additional unit for every two units held).
In conjunction with BEP’s unit split, the Board of Directors of Brookfield Renewable Corporation ("BEPC") has approved a concurrent three-for-two share split of BEPC’s outstanding shares. The BEPC split will also be implemented by way of a subdivision whereby shareholders will receive an additional one-half of a share for each share held.
On December 11, 2020, the additional units/shares required to give effect to the unit/share splits will be issued to holders of record at the close of business on December 7, 2020. Any fractional units/shares to be issued to registered holders as a result of the unit/share splits will be rounded up to the nearest whole unit/share. Brookfield Renewable's preferred units will not be affected by the unit/share splits.
As a result of the three-for-two unit/share splits, BEP and BEPC will adjust their distribution/dividend following the effective date to reflect the additional number of units/shares that will be outstanding. The unit/share splits will not dilute holders’ equity and will not be taxable in
BEP’s units and BEPC’s shares will begin trading with “due bills” on the Toronto Stock Exchange (“TSX”) and New York Stock Exchange (“NYSE”) at the opening of business on Friday, December 4, 2020 (one trading day before the record date) until Friday, December 11, 2020 (the payment date), inclusively. During such period, anyone who purchases units or shares on the TSX and/or NYSE will receive the entitlement to be issued additional units or shares pursuant to the stock splits. The units and shares will commence trading on an “ex-dividend” (post-split) basis on the TSX and NYSE at the opening of business on Monday, December 14, 2020, as of which date purchases of units and shares will no longer have an attaching entitlement to additional units and shares issued pursuant to the unit/share splits.
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
Brookfield Renewable Partners maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of BEP units who are residents in
Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on our website at www.bep.brookfield.com.
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 Partners L.P. and Brookfield Renewable Corporation are the flagship listed renewable power issuers of Brookfield Asset Management, a leading global alternative asset manager with approximately
Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the
| Contact information: | |
| Media: | Investors: |
| Claire Holland | Robin Kooyman |
| 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 2020 Third Quarter Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Renewable’s website at www.bep.brookfield.com.
The conference call can be accessed via webcast on November 4, 2020 at 9:00 a.m. Eastern Time at https://edge.media-server.com/mmc/p/zdqvh5w7 or via teleconference at 1-866-688-9430 toll free in
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
| UNAUDITED (MILLIONS) |
September 30 | December 31 | ||
| 2020 | 2019 | |||
| Assets | As adjusted(1) | |||
| Cash and cash equivalents | $482 | $352 | ||
| Trade receivables and other financial assets | 1,725 | 1,541 | ||
| Equity-accounted investments | 916 | 937 | ||
| Property, plant and equipment, at fair value | 38,939 | 41,055 | ||
| Goodwill | 871 | 949 | ||
| Deferred income tax and other assets | 1,190 | 1,362 | ||
| Total Assets | $44,123 | $46,196 | ||
| Liabilities | ||||
| Corporate borrowings | $2,419 | $2,100 | ||
| Borrowings which have recourse only to assets they finance | 15,134 | 15,200 | ||
| Accounts payable and other liabilities | 4,277 | 3,561 | ||
| Deferred income tax liabilities | 4,474 | 4,855 | ||
| Equity | ||||
| Non-controlling interests: | ||||
| Participating non-controlling interests – in operating subsidiaries | $8,758 | $11,086 | ||
| General partnership interest held by |
46 | 68 | ||
| Participating non-controlling interests – Redeemable/Exchangeable units held by |
2,245 | 3,317 | ||
| Class A shares of Brookfield Renewable Corporation | 1,988 | — | ||
| Preferred equity | 581 | 597 | ||
| Preferred limited partners' equity | 1,028 | 833 | ||
| Limited partners' equity | 3,173 | 17,819 | 4,579 | 20,480 |
| Total Liabilities and Equity | $44,123 | $46,196 | ||
| (1) | As adjusted to reflect the historical financial statements of TerraForm Power Inc. acquired on July 31, 2020. |
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| UNAUDITED | Three months ended September 30 | Nine months ended September 30 | ||
| (MILLIONS, EXCEPT PER UNIT INFORMATION) | 2020 | 2019 | 2020 | 2019 |
| As adjusted(1) | As adjusted(1) | |||
| Revenues | $867 | $897 | $2,858 | $3,006 |
| Other income | 12 | 38 | 51 | 77 |
| Direct operating costs | (281) | (303) | (917) | (937) |
| Management service costs | (65) | (36) | (151) | (91) |
| Interest expense | (233) | (236) | (733) | (746) |
| Share of (loss) earnings from equity-accounted investments | (5) | 7 | (4) | 21 |
| Foreign exchange and financial instrument gain (loss) | 38 | (24) | 12 | (75) |
| Depreciation | (369) | (318) | (1,030) | (924) |
| Other | (110) | (58) | (125) | (107) |
| Income tax expense | ||||
| Current | (13) | (10) | (29) | (50) |
| Deferred | 40 | 25 | 28 | (4) |
| 27 | 15 | (1) | (54) | |
| Net income (loss) | $(119) | $(18) | $(40) | $170 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests: | ||||
| Participating non-controlling interests – in operating subsidiaries | $23 | $22 | $85 | $147 |
| General partnership interest held by |
15 | 11 | 46 | 36 |
| Participating non-controlling interests – Redeemable/Exchangeable units held by |
(67) | (30) | (89) | (28) |
| Class A shares of Brookfield Renewable Corporation | (18) | — | (18) | — |
| Preferred equity | 6 | 6 | 19 | 19 |
| Preferred limited partners' equity | 14 | 12 | 40 | 33 |
| Limited partners' equity | (92) | (39) | (123) | (37) |
| $(119) | $(18) | $(40) | $170 | |
| Basic and diluted (loss) earnings per LP unit | $(0.44) | $(0.18) | $(0.58) | $(0.17) |
| (1) | As adjusted to reflect the historical financial statements of TerraForm Power Inc. acquired on July 31, 2020. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| UNAUDITED | Three months ended September 30 | Nine months ended September 30 | ||
| (MILLIONS) | 2020 | 2019 | 2020 | 2019 |
| Operating activities | As adjusted(1) | As adjusted(1) | ||
| Net income | $(119) | $(18) | $(40) | $170 |
| Adjustments for the following non-cash items: | ||||
| Depreciation | 369 | 318 | 1,030 | 924 |
| Unrealized foreign exchange and financial instrument loss (gain) | (34) | 22 | (15) | 73 |
| Share of earnings from equity-accounted investments | 5 | (7) | 4 | (21) |
| Deferred income tax expense | (41) | (25) | (28) | 4 |
| Other non-cash items | 85 | 40 | 140 | 141 |
| Net change in working capital | (81) | 40 | (74) | 14 |
| 184 | 370 | 1,017 | 1,305 | |
| Financing activities | ||||
| Net corporate borrowings | 16 | 449 | 266 | 449 |
| Commercial paper and corporate credit facilities, net | 239 | 12 | 80 | (709) |
| Non-recourse borrowings, net | 8 | 544 | 1 | 647 |
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 62 | 35 | 68 | 292 |
| Issuance of preferred limited partnership units | — | — | 195 | 126 |
| Issuance of Units, net | (21) | — | (21) | — |
| Distributions paid: | ||||
| To participating non-controlling interests - in operating subsidiaries | (86) | (154) | (426) | (613) |
| To preferred shareholders & limited partners' unitholders | (21) | (17) | (57) | (50) |
| To unitholders of Brookfield Renewable or BRELP | (202) | (171) | (567) | (513) |
| Borrowings from related party, net | — | (322) | — | — |
| (5) | 376 | (461) | (371) | |
| Investing activities | ||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | (787) | (105) | (813) |
| Investment in property, plant and equipment | (113) | (62) | (257) | (150) |
| Disposal of subsidiaries, associates and other securities, net | 21 | 77 | 35 | 68 |
| Restricted cash and other | (91) | (43) | (78) | 4 |
| (183) | (815) | (405) | (891) | |
| Foreign exchange gain (loss) on cash | — | (9) | (10) | (9) |
| Cash and cash equivalents | ||||
| Increase (decrease) | (4) | (78) | 141 | 34 |
| Net change in cash classified within assets held for sale | (3) | (2) | (11) | (9) |
| Balance, beginning of period | 489 | 526 | 352 | 421 |
| Balance, end of period | $482 | $446 | $482 | $446 |
| (1) | As adjusted to reflect the historical financial statements of TerraForm Power Inc. acquired on July 31, 2020. |
PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30
The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended September 30:
| (GWh) | (MILLIONS) | ||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | Net Income (Loss) | ||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
| Hydroelectric | |||||||||||||||||||||||||
| 2,151 | 2,277 | 2,441 | 2,443 | $160 | $161 | $101 | $95 | $66 | $55 | $(17) | $1 | ||||||||||||||
| 663 | 734 | 1,011 | 1,009 | 36 | 50 | 32 | 53 | 24 | 46 | 4 | 22 | ||||||||||||||
| 792 | 721 | 843 | 853 | 49 | 56 | 32 | 34 | 23 | 24 | 15 | 19 | ||||||||||||||
| 3,606 | 3,732 | 4,295 | 4,305 | 245 | 267 | 165 | 182 | 113 | 125 | 2 | 42 | ||||||||||||||
| Wind | |||||||||||||||||||||||||
| 832 | 579 | 1,008 | 713 | 57 | 46 | 45 | 32 | 24 | 16 | (23) | (28) | ||||||||||||||
| 209 | 185 | 217 | 198 | 27 | 21 | 19 | 15 | 13 | 10 | (20) | (9) | ||||||||||||||
| 199 | 201 | 208 | 215 | 10 | 11 | 9 | 9 | 7 | 7 | 5 | (1) | ||||||||||||||
| 105 | 93 | 121 | 97 | 7 | 8 | 6 | 7 | 6 | 5 | 4 | — | ||||||||||||||
| 1,345 | 1,058 | 1,554 | 1,223 | 101 | 86 | 79 | 63 | 50 | 38 | (34) | (38) | ||||||||||||||
| Solar | 666 | 279 | 769 | 293 | 120 | 56 | 104 | 49 | 76 | 36 | 6 | 12 | |||||||||||||
| Storage & Other | 136 | 144 | — | — | 16 | 21 | 6 | 9 | 2 | 6 | (4) | (1) | |||||||||||||
| Corporate | — | — | — | — | — | — | 17 | (2) | (84) | (72) | (132) | (73) | |||||||||||||
| Total | 5,753 | 5,213 | 6,618 | 5,821 | $482 | $430 | $371 | $301 | $157 | $133 | $(162) | $(58) | |||||||||||||
PROPORTIONATE RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30
The following chart reflects the generation and summary financial figures on a proportionate basis for the nine months ended September 30:
| (GWh) | (MILLIONS) | |||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | Net Income (Loss) | |||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Hydroelectric | ||||||||||||||||||||||||
| 9,349 | 10,260 | 9,254 | 9,326 | $642 | $700 | $472 | $501 | $367 | $375 | $68 | $146 | |||||||||||||
| 2,814 | 2,347 | 2,997 | 2,520 | 136 | 173 | 114 | 144 | 94 | 119 | 37 | 55 | |||||||||||||
| 2,033 | 2,890 | 2,511 | 2,987 | 154 | 174 | 93 | 107 | 67 | 75 | 47 | 56 | |||||||||||||
| 14,196 | 15,497 | 14,762 | 14,833 | 932 | 1,047 | 679 | 752 | 528 | 569 | 152 | 257 | |||||||||||||
| Wind | ||||||||||||||||||||||||
| 2,428 | 2,190 | 2,890 | 2,622 | 173 | 167 | 138 | 120 | 85 | 67 | (40) | (59) | |||||||||||||
| 570 | 663 | 645 | 729 | 64 | 71 | 45 | 50 | 34 | 38 | (40) | (18) | |||||||||||||
| 409 | 454 | 502 | 475 | 21 | 27 | 18 | 20 | 13 | 14 | 1 | 3 | |||||||||||||
| 305 | 184 | 339 | 186 | 20 | 13 | 17 | 10 | 13 | 8 | 5 | 2 | |||||||||||||
| 3,712 | 3,491 | 4,376 | 4,012 | 278 | 278 | 218 | 200 | 145 | 127 | (74) | (72) | |||||||||||||
| Solar | 1,282 | 765 | 1,506 | 783 | 230 | 145 | 199 | 123 | 133 | 83 | 2 | 11 | ||||||||||||
| Storage & Other | 279 | 308 | — | — | 53 | 66 | 26 | 30 | 17 | 20 | (5) | 2 | ||||||||||||
| Corporate | — | — | — | — | — | — | 36 | (9) | (217) | (209) | (259 | ) | (227) | |||||||||||
| Total | 19,469 | 20,061 | 20,644 | 19,628 | $1,493 | $1,536 | $1,158 | $1,096 | $606 | $590 | $(184) | $(29) | ||||||||||||
| Normalized long-term average generation adjustment | 34 | (9) | ||||||||||||||||||||||
| Normalized foreign exchange adjustment | 19 | — | ||||||||||||||||||||||
| Normalized FFO | $659 | $581 | ||||||||||||||||||||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income attributable to Unitholders is reconciled to Funds From Operations and reconciled to Proportionate Adjusted EBITDA for the three and nine months ended September 30:
| Three months ended September 30 | Nine months ended September 30 | |||
| (MILLIONS) | 2020 | 2019 | 2020 | 2019 |
| Net income attributable to: | As adjusted(1) | As adjusted(1) | ||
| Limited partners' equity | $(92) | $(39) | $(123) | $(37) |
| General partnership interest in a holding subsidiary held by |
15 | 11 | 46 | 36 |
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by |
(67) | (30) | (89) | (28) |
| Class A shares of Brookfield Renewable Corporation | (18) | — | (18) | — |
| Net income attributable to Unitholders | $(162) | $(58) | $(184) | $(29) |
| Adjusted for proportionate share of: | ||||
| Depreciation | 210 | 160 | 540 | 477 |
| Foreign exchange and financial instruments loss (gain) | 33 | 9 | 68 | 44 |
| Deferred income tax recovery | (39) | (25) | (30) | (7) |
| Other | 115 | 47 | 212 | 105 |
| Funds From Operations | $157 | $133 | $606 | $590 |
| Distributions attributable to: | ||||
| Preferred limited partners' equity | 14 | 12 | 40 | 33 |
| Preferred equity | 6 | 6 | 19 | 19 |
| Current income taxes | 6 | 6 | 14 | 26 |
| Interest expense | 129 | 113 | 347 | 350 |
| Management service costs | 59 | 31 | 132 | 78 |
| Proportionate Adjusted EBITDA | 371 | 301 | 1,158 | 1,096 |
| Attributable to non-controlling interests | 240 | 348 | 887 | 1,101 |
| Consolidated Adjusted EBITDA | $611 | $649 | $2,045 | $2,197 |
| (1) | As adjusted to reflect the historical financial statements of TerraForm Power Inc. acquired on July 31, 2020. |
The following table reconciles the per unit non-IFRS financial metrics to the most directly comparable IFRS measures. Basic earnings per LP unit is reconciled to FFO per unit, for the three and nine months ended September 30:
| Three months ended September 30 | Nine months ended September 30 | |||
| 2020 | 2019 | 2020 | 2019 | |
| As adjusted(1) | As adjusted(1) | |||
| Net income (loss) per LP unit(2) | $(0.44) | $(0.18) | $(0.58) | $(0.17) |
| Depreciation | 0.50 | 0.42 | 1.36 | 1.23 |
| Foreign exchange and financial instruments loss | 0.08 | 0.02 | 0.17 | 0.11 |
| Deferred income tax recovery | (0.09) | (0.06) | (0.08) | (0.02) |
| Other | 0.33 | 0.14 | 0.65 | 0.37 |
| Funds From Operations per Unit(3) | $0.38 | $0.34 | $1.52 | $1.52 |
| Normalized long-term average generation adjustment | 0.10 | 0.05 | 0.08 | (0.03) |
| Normalized foreign exchange adjustment | 0.02 | — | 0.05 | — |
| Normalized Funds From Operations per Unit | $0.50 | $0.39 | $1.65 | $1.49 |
| (1) | As adjusted to reflect the historical financial statements of TerraForm Power Inc. acquired on July 31, 2020. |
| (2) | Average LP units outstanding for the three and nine months ended September 30, 2020 were 181.7 million and 179.9 million, respectively (2019: 178.9 million and 178.9 million). Net (loss) income per LP unit has been adjusted to reflect the dilutive impact of the special distribution. |
| (3) | Average units, adjusted for the special distribution as if it had been completed prior to the periods presented, for the three months and nine months ended September 30, 2020 were 416.4 million and 178.9 million, respectively (2019: 389.1 million and 389.0 million), being inclusive of LP units, Redeemable/Exchangeable partnership units, GP interest, and exchangeable shares. |
THIRD QUARTER 2020 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 Shares of BEPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of Brookfield Renewable Partners L.P. ("BEP" or the "Partnership") (NYSE, BEP; TSX: BEP.UN). We believe economic equivalence is achieved through identical dividends and distributions on the Shares and BEP's Limited Partnership units ("LP units") and each Share being exchangeable at the option of the holder for one BEP unit at any time. Given the economic equivalence, we expect that the market price of the Shares will be significantly impacted by the market price of BEP's LP units and the combined business performance of our company and BEP as a whole. In addition to carefully considering the disclosures made in this news release in its entirety, shareholders are strongly encouraged to carefully review BEP's continuous disclosure filings are available electronically on EDGAR on the SEC's website at www.sec.gov or on SEDAR at www.sedar.com.
| Financial Results | ||||
| Millions (except, otherwise noted) | Three months ended September 30 | Nine months ended September 30 | ||
| Unaudited | 2020 | 2019 | 2020 | 2019 |
| Proportionate Generation (GWh) | 3,275 | 3,122 | 11,607 | 12,336 |
| Net (loss) income attributable to Brookfield Renewable | $(1,295) | $3 | $(1,222) | $128 |
| Funds From Operations (FFO)(1) | $64 | $84 | $317 | $383 |
| (1) | Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”. |
Brookfield Renewable Corporation reported FFO of
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
| UNAUDITED (MILLIONS) |
September 30 | December 31 | ||
| 2020 | 2019 | |||
| Assets | As adjusted(1) | |||
| Cash and cash equivalents | $377 | $304 | ||
| Trade receivables and other financial assets | 1,227 | 1,118 | ||
| Equity-accounted investments | 345 | 360 | ||
| Property, plant and equipment, at fair value | 31,170 | 32,647 | ||
| Goodwill | 871 | 949 | ||
| Deferred income tax and other assets | 353 | 379 | ||
| Total Assets | $34,343 | $35,757 | ||
| Liabilities | ||||
| Exchangeable and class B shares | $6,032 | — | ||
| Borrowings which have recourse only to assets they finance | 12,012 | 11,958 | ||
| Accounts payable and other liabilities | 3,296 | 2,335 | ||
| Deferred income tax liabilities | 3,287 | 3,590 | ||
| Equity | ||||
| Non-controlling interests: | ||||
| Participating non-controlling interests – in operating subsidiaries | $8,212 | $10,258 | ||
| Participating non-controlling interests – in a holding subsidiary held by Brookfield Renewable | 209 | 268 | ||
| Brookfield Renewable | 1,295 | 9,716 | 7,348 | 17,874 |
| Total Liabilities and Equity | $34,343 | $35,757 | ||
| (1) | As adjusted to reflect the historical financial statements of the combined |
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| UNAUDITED | Three months ended September 30 | Nine months ended September 30 | ||
| (MILLIONS) | 2020 | 2019 | 2020 | 2019 |
| As adjusted(1) | As adjusted(1) | |||
| Revenues | $724 | $736 | $2,341 | $2,445 |
| Other income | 5 | 32 | 29 | 56 |
| Direct operating costs | (238) | (259) | (781) | (785) |
| Management service costs | (41) | (28) | (106) | (72) |
| Interest expense | (230) | (164) | (587) | (516) |
| Share of (loss) earnings from equity-accounted investments | (4) | 3 | (3) | 9 |
| Foreign exchange and financial instrument gain (loss) | 17 | (13) | 11 | (22) |
| Depreciation | (293) | (247) | (806) | (710) |
| Other | (79) | (26) | (64) | (70) |
| Remeasurement of exchangeable and class B shares | (1,163) | — | (1,163) | — |
| Income tax expense | ||||
| Current | (12) | (12) | (26) | (48) |
| Deferred | 17 | 9 | (32) | (33) |
| 5 | (3) | (58) | (81) | |
| Net income (loss) | $(1,297) | $31 | $(1,187) | $254 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests: | ||||
| Participating non-controlling interests – in operating subsidiaries | $— | $27 | $31 | $118 |
| Participating non-controlling interests – in a holding subsidiary held by Brookfield Renewable | (2) | 1 | 4 | 8 |
| Brookfield Renewable | (1,295) | 3 | (1,222) | 128 |
| $(1,297) | $31 | $(1,187) | $254 | |
| (1) | As adjusted to reflect the historical financial statements of the combined |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| UNAUDITED (MILLIONS) |
Three months ended September 30 | Nine months ended September 30 | ||
| 2020 | 2019 | 2020 | 2019 | |
| Operating activities | As adjusted(1) | As adjusted(1) | ||
| Net income | $(1,297) | $31 | $(1,187) | $254 |
| Adjustments for the following non-cash items: | ||||
| Depreciation | 293 | 247 | 806 | 710 |
| Unrealized foreign exchange and financial instruments loss (gain) | (19) | 13 | (14) | 20 |
| Share of earnings from equity-accounted investments | 4 | (3) | 3 | (9) |
| Deferred income tax expense | (17) | (9) | 32 | 33 |
| Other non-cash items | 61 | 10 | 48 | 32 |
| Remeasurement of exchangeable and class B shares | 1,163 | — | 1,163 | — |
| Net change in working capital | (47) | 7 | 20 | 107 |
| 141 | 296 | 871 | 1,147 | |
| Financing activities | ||||
| Non-recourse borrowings, net | 35 | 635 | 112 | 663 |
| Capital contributions from participating non-controlling interests | 17 | — | 29 | — |
| Capital contributions from Brookfield Renewable | 2 | 13 | 102 | 13 |
| Issuance of exchangeable shares, net | (21) | — | (21) | — |
| Distributions paid and return of capital: | ||||
| To participating non-controlling interests | (79) | (124) | (365) | (487) |
| To Brookfield Renewable | — | (82) | (236) | (267) |
| Borrowings from related party, net | 77 | 47 | 19 | (129) |
| 31 | 489 | (360) | (207) | |
| Investing activities | ||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | (732) | (105) | (732) |
| Investment in property, plant and equipment | (91) | (46) | (198) | (122) |
| Disposal of subsidiaries, associates and other securities, net | — | — | 11 | — |
| Restricted cash and other | (117) | (58) | (143) | (33) |
| (208) | (836) | (435) | (887) | |
| Foreign exchange gain (loss) on cash | 7 | (6) | (3) | (6) |
| Cash and cash equivalents | ||||
| Increase (decrease) | (29) | (57) | 73 | 47 |
| Balance, beginning of period | 406 | 446 | 304 | 342 |
| Balance, end of period | $377 | $389 | $377 | $389 |
| (1) | As adjusted to reflect the historical financial statements of the combined |
The following table reconciles net income (loss) attributable to Brookfield Renewable to Funds From Operations for the three and nine months ended September 30:
| Three months ended September 30 | Nine months ended September 30 | |||
| (MILLIONS) | 2020 | 2019 | 2020 | 2019 |
| As adjusted(1) | As adjusted(1) | |||
| Net income (loss) attributable to Brookfield Renewable | $(1,295) | $3 | $(1,222) | $128 |
| Adjusted for proportionate share of: | ||||
| Depreciation | 102 | 76 | 247 | 227 |
| Other | 28 | 5 | 63 | 28 |
| Dividends on class A exchangeable shares | 66 | — | 66 | — |
| Remeasurement of exchangeable and class B shares | 1,163 | — | 1,163 | — |
| Funds From Operations | $64 | $84 | 317 | 383 |
| (1) | As adjusted to reflect the historical financial statements of the combined |
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 Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per Unit used by other entities. We believe that Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO 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 Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO 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 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 nine months ended September 30, 2020. Normalized FFO assumes long-term average generation in all segments except the
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.
Source: Brookfield Renewable Partners L.P.
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