Brookfield Renewable Partners L.P. (TSX: BEP.UN)(NYSE: BEP) ("Brookfield Renewable") today reported financial results for the three months ended March 31, 2017.
"Our results for the quarter reflect strong generation, an ongoing focus on operations, and recent acquisitions," said Sachin Shah, CEO of Brookfield Renewable. "We continue to make significant progress on our growth strategy and remain well positioned to meet our objectives for capital deployment and long-term cash flow growth on a per-unit basis."
Financial Results ---------------------------------------------------------------------------- For the periods ended March31 US$ millions (except per unit or otherwise noted) Unaudited 2017 2016 ---------------------------------------------------------------------------- Generation (GWh) - Total 10,484 9,029 - Brookfield Renewable's share 6,161 5,896 Net income $ 27 $ 79 Per LP Unit(1)$ 0.05 $ 0.16 Funds From Operations (FFO)(2)$ 166 $ 187 Per LP Unit(1)(2)$ 0.55 $ 0.68 Normalized FFO(2)(3)$ 136 $ 113 Per LP Unit(1)(2)(3)$ 0.45 $ 0.41 ---------------------------------------------------------------------------- (1) For the three months ended March 31, 2017, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 299.2 million (2016: 275.5 million). (2) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non- IFRS Measures". (3) Normalized FFO assumes long-term average generation inNorth America and uses 2016 average foreign currency rates for the respective periods.
Operating Results
Adjusted EBITDA for the three months ended March 31, 2017 was
Funds From Operations was
Net income for the three months ended March 31, 2017 was
Performance was driven by generation which was in line with averages for our fleet. Strong inflows in
In
Our European operations continue to meet expectations and deliver an attractive mix of new growth, project development and capital recycling opportunities. During the quarter, we completed the implementation of a new wind monitoring system which is enabling us to better manage our assets to capture incremental energy and reduce downtime. We also continue to build on recent contracting successes and are advancing discussions with a number of large multinationals to supply them with clean energy from our wind assets. In early March, we completed the sale of two wind farms in
In
In
Growth and Development
During the quarter, we announced that together with our institutional partners, we reached agreements to acquire 100% of the outstanding shares of Terraform Global and a controlling 51% interest in TerraForm Power. Our share of the total equity investment is approximately
In aggregate, the TerraForm companies own approximately 3,600 megawatts of high-quality, predominantly contracted renewable assets with a majority of their cash flows in
We also continue to deliver organic growth with 15-20% returns on equity by developing and commercializing renewable power projects across our portfolio. In
Our development and construction efforts are advancing on scope, schedule and budget. In
Liquidity
Our liquidity position at quarter-end remained strong at approximately
Distribution Increase and Declaration
The next quarterly distribution in the amount of
The regular 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 and wind facilities in
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with
Please note that Brookfield Renewable's previous audited annual and unaudited quarterly reports have been filed on SEDAR and can also be found in the shareholders section of our website at https://bep.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable's 2017 First Quarter Results as well as the Letter to Shareholders and Supplemental Information on Brookfield Renewable's website at https://bep.brookfield.com.
The conference call can be accessed via webcast on May 3, 2017 at 9:00 a.m. Eastern Time at https://bep.brookfield.com or via teleconference at 1-800-319-4610 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
We caution that 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. For further information on these known and unknown risks, please see "Risk Factors" included in our Form 20-F.
Cautionary Statement Regarding Use of Non-IFRS Measures
This news release contains references to Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, Funds From Operations per LP Unit, Normalized Funds From Operations and Normalized Funds From Operations per LP Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, Funds From Operations per LP Unit, Normalized Funds From Operations and Normalized Funds From Operations per LP Unit used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. Neither Adjusted EBITDA, Funds From Operations, Adjusted Funds from Operations, Adjusted Funds From Operations per LP Unit, Normalized Funds From Operations nor Normalized Funds From Operations per LP 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.
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 FINANCIAL POSITION
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UNAUDITED Mar 31 Dec 31
(MILLIONS) 2017 2016
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Assets
Current assets
Cash and cash equivalents $ 336 $ 223
Restricted cash 161 121
Trade receivables and other current assets 435 454
Financial instrument assets 39 55
Due from related parties 59 54
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1,030 907
Financial instrument assets 166 145
Equity-accounted investments 205 206
Property, plant and equipment, at fair value 25,152 25,257
Goodwill 934 896
Deferred income tax assets 150 150
Other long-term assets 191 176
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$ 27,828 $ 27,737
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Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 510 $ 467
Financial instrument liabilities 120 156
Due to related parties 87 76
Current portion of long-term debt 1,016 1,034
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1,733 1,733
Financial instrument liabilities 68 72
Long-term debt and credit facilities 9,003 9,148
Deferred income tax liabilities 3,845 3,802
Other long-term liabilities 306 310
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14,955 15,065
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Equity
Non-controlling interests
Participating non-controlling interests - in
operating subsidiaries 5,627 5,589
General partnership interest in a holding
subsidiary held by Brookfield 55 55
Participating non-controlling interests - in a
holding subsidiary
- Redeemable/Exchangeable units held by
Brookfield 2,666 2,680
Preferred equity 581 576
Preferred limited partners' equity 511 324
Limited partners' equity 3,433 3,448
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12,873 12,672
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$ 27,828 $ 27,737
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CONSOLIDATED STATEMENTS OF INCOME
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UNAUDITED
FOR THE THREE MONTHS ENDED MARCH 31
(MILLIONS, EXCEPT AS NOTED) 2017 2016
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Revenues $ 677 $ 674
Other income 8 22
Direct operating costs (233) (243)
Management service costs (16) (15)
Interest expense - borrowings (163) (127)
Share of (loss) earnings from equity-accounted
investments (3) 1
Unrealized financial instruments loss (20) -
Depreciation (200) (179)
Other (2) (12)
Income tax expense
Current (16) (7)
Deferred (5) (35)
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(21) (42)
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Net income $ 27 $ 79
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Net income attributable to:
Non-controlling interests
Participating non-controlling interests - in
operating subsidiaries $ (1) $ 27
General partnership interest in a holding
subsidiary held by Brookfield - -
Participating non-controlling interests - in a
holding subsidiary - Redeemable/Exchangeable
units held by Brookfield 7 20
Preferred equity 6 6
Preferred limited partners' equity 6 3
Limited partners' equity 9 23
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$ 27 $ 79
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Basic and diluted earnings per LP Unit $ 0.05 $ 0.16
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CONSOLIDATED STATEMENTS OF CASH FLOWS
----------------------------------------------------------------------------
UNAUDITED
FOR THE THREE MONTHS ENDED MARCH 31
(MILLIONS) 2017 2016
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Operating activities
Net income $ 27 $ 79
Adjustments for the following non-cash items:
Depreciation 200 179
Unrealized financial instrument loss 20 -
Share of loss (earnings) from equity accounted
investments 3 (1)
Deferred income tax expense 5 35
Other non-cash items 1 (16)
Changes in due to or from related parties (5) (6)
Net change in working capital balances 49 (45)
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300 225
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Financing activities
Long-term debt - borrowings 147 1,278
Long-term debt - repayments (255) (108)
Capital contributions from participating non-
controlling interests - in operating
subsidiaries 38 1,403
Return of capital to participating non-
controlling interests - in operating
subsidiaries (36) -
Acquisition of Isagen from non-controlling
interests (5) -
Issuance of preferred limited partnership units 187 -
Distributions paid:
To participating non-controlling interests -
in operating subsidiaries (99) (15)
To preferred shareholders (6) (6)
To preferred limited partners' unitholders (5) (1)
To unitholders of Brookfield Renewable or
BRELP (144) (126)
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(178) 2,425
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Investing activities
Acquisitions - (2,019)
Cash and cash equivalents in acquired entity - 117
Investment in:
Sustaining capital expenditures (18) (13)
Development and construction of renewable
power
generating assets (49) (45)
Proceeds from disposal of assets 150 -
Investment in securities (12) (17)
Restricted cash and other (85) (495)
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(14) (2,472)
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Foreign exchange gain on cash 5 19
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Cash and cash equivalents
Increase 113 197
Balance, beginning of period 223 63
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Balance, end of period $ 336 $ 260
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Supplemental cash flow information:
Interest paid $ 117 $ 77
Interest received $ 8 $ 9
Income taxes paid $ 16 $ 16
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Review of operations
The table below summarizes actual and long-term generation by segments:
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Generation (GWh)(1) Variance of Results
----------------------------------------------------------------------------
For the three
months ended
March 31 Actual Actual LTA Actual vs. Actual vs.
2017 2016 2017 LTA Prior Year
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Hydroelectric
North America
United States 3,422 3,522 3,552 (130) (100)
Canada 1,500 1,730 1,228 272 (230)
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4,922 5,252 4,780 142 (330)
Colombia(2) 3,426 1,625 3,508 (82) 1,801
Brazil 1,057 1,026 1,139 (82) 31
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9,405 7,903 9,427 (22) 1,502
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Wind
North America
United States 173 220 251 (78) (47)
Canada 311 301 324 (13) 10
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484 521 575 (91) (37)
Europe 432 471 428 4 (39)
Brazil 139 113 81 58 26
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1,055 1,105 1,084 (29) (50)
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Other 24 21 28 (4) 3
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Total(3) 10,484 9,029 10,539 (55) 1,455
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(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation date
and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
(3) Includes 100% of generation from equity-accounted investments.
The overall hydroelectric portfolio performed in line with long-term average with a strong contribution from
Generation at our wind facilities remained in line with or above long-term average across the portfolio with the exception of
The following table reflects Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, and provides a reconciliation to net income and cash flows from operating activities for the three months ended March 31:
---------------------------------------------------------------------------- (MILLIONS, EXCEPT AS NOTED) 2017 2016 ---------------------------------------------------------------------------- Net income $ 27 $ 79 Management service costs 16 15 Share of non-cash loss from equity-accounted investments 4 1 Unrealized financial instruments loss 20 - Depreciation 200 179 Other 2 12 Income tax expense Current 16 7 Deferred 5 35 Interest expense - borrowings 163 127 ---------------------------------------------------------------------------- Adjusted EBITDA(1)$ 453 $ 455 ---------------------------------------------------------------------------- Cash flows from operating activities$ 300 $ 225 Net changes in working capital balances (49) 45 Changes in due to or from related parties 5 6 Other expenses 1 28 Share of cash-earnings from equity-accounted investments 1 2 Distributions to preferred limited partners (6) (3) Cash portion of non-controlling interests (86) (116) ---------------------------- Funds From Operations(1) 166 187 ---------------------------------------------------------------------------- Adjusted sustaining capital expenditures(2) (17) (16) ---------------------------------------------------------------------------- Adjusted Funds From Operations(1)$ 149 $ 171 ---------------------------------------------------------------------------- Net income attributable to LP Units, Redeemable/Exchangeable partnership units, and GP interest $ 16 $ 43 ---------------------------------------------------------------------------- Basic and diluted earnings per LP Units, Redeemable/Exchangeable partnership units, and GP interest(3)$ 0.05 $ 0.16 ---------------------------------------------------------------------------- Average FX rates to USD ---------------------------------------------------------------------------- C$ 1.321.37 EUR 0.940.91 R$ 3.143.91 GBP 0.810.70 COP 2,921 3,237 ---------------------------------------------------------------------------- (1) Non-IFRS measures. Refer to "Cautionary Statement Regarding Use of Non- IFRS Measures". (2) Based on long-term sustaining capital expenditure plans. (3) Weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest outstanding during the period totaled 299.2 million (2016: 275.5 million).
GENERATION AND FINANCIAL REVIEW ON A PROPORTIONATE BASIS BY SEGMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2017
The following table reflects the actual and long-term average generation for the three months ended March 31 on a proportionate basis:
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Actual Generation(1) LTA Generation(1)
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GENERATION (GWh) 2017 2016 2017 2016
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Hydroelectric
North America
United States 2,325 2,429 2,299 2,198
Canada 1,487 1,711 1,214 1,217
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3,812 4,140 3,513 3,415
Colombia(2) 826 255 846 354
Brazil 871 845 950 981
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5,509 5,240 5,309 4,750
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Wind
North America
United States 87 102 128 128
Canada 311 301 324 324
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398 403 452 452
Europe 172 186 169 178
Brazil 58 47 33 34
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628 636 654 664
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Other 24 20 29 55
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Total 6,161 5,896 5,992 5,469
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Variance of Results
-------------------------------------------------------------------
Actual vs.
Actual vs. LTA Prior Year
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GENERATION (GWh) 2017 2016
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Hydroelectric
North America
United States 26 231 (104)
Canada 273 494 (224)
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299 725 (328)
Colombia(2) (20) (99) 571
Brazil (79) (136) 26
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200 490 269
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Wind
North America
United States (41) (26) (15)
Canada (13) (23) 10
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(54) (49) (5)
Europe 3 8 (14)
Brazil 25 13 11
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(26) (28) (8)
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Other (5) (35) 4
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Total 169 427 265
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(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation date
and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
The following table reflects Adjusted EBITDA and Funds From Operations on a proportionate and consolidated basis for the three months ended March 31:
Brookfield Renewable's Share
------------------------------------------------------------
Hydroelectric Wind
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North North
($ MILLIONS) America Colombia(1) Brazil America Europe Brazil
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Revenues 255 47 51 39 15 4
Other income - 1 3 - - -
Share of cash
earnings from
equity-
accounted
investments - - 1 - - -
Direct operating
costs (61) (24) (13) (8) (4) (1)
------------------------------------------------------------
Adjusted
EBITDA(3) 194 24 42 31 11 3
Management
service costs - - - - - -
Interest expense
- borrowings (45) (12) (6) (10) (4) (1)
Current income
taxes (1) (2) (3) - - -
Distributions to
preferred
limited
partners - - - - - -
Cash portion of
non-controlling
interests
Participating
non-
controlling
interests -
in operating
subsidiaries - - - - - -
Preferred
equity - - - - - -
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Funds From
Operations(3) 148 10 33 21 7 2
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------------------------------
Other (2) Corporate Total
Non-
controlling
($ MILLIONS) interests 2017
---------------------------------------------------------------------
Revenues 5 - 416 261 677
Other income - - 4 4 8
Share of cash
earnings from
equity-
accounted
investments - - 1 - 1
Direct operating
costs (5) (6) (122) (111) (233)
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Adjusted
EBITDA(3) - (6) 299 154 453
Management
service costs - (16) (16) - (16)
Interest expense
- borrowings - (21) (99) (64) (163)
Current income
taxes - - (6) (10) (16)
Distributions to
preferred
limited
partners - (6) (6) - (6)
Cash portion of
non-controlling
interests
Participating
non-
controlling
interests -
in operating
subsidiaries - - - (80) (80)
Preferred
equity - (6) (6) - (6)
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Funds From
Operations(3) - (55) 166 - 166
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(1) Includes generation from both hydroelectric and Co-gen facilities.
(2) Other includes North America Co-gen and Brazil biomass.
(3) Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS
Measures".
Contacts: Zev Korman Senior Vice President, Investor Relations (416) 359-1955 [email protected]
Source: Brookfield Renewable Partners L.P.
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