All amounts in
BROOKFIELD, News,
“We had a strong start to the year delivering record results and executing on our business plans. We signed a landmark agreement with Microsoft, which expands on our longstanding partnership, to deliver over 10.5 gigawatts of additional renewable energy capacity to enable the growth of their AI powered cloud services business,” said
| For the three months ended |
||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | ||||
| Net income (loss) attributable to Unitholders | $ | (120 | ) | $ | (32 | ) |
| – per LP unit(1) | (0.23 | ) | (0.09 | ) | ||
| Funds From Operations (FFO)(2) | 296 | 275 | ||||
| – per Unit(2)(3) | 0.45 | 0.43 | ||||
Brookfield Renewable reported FFO of
Key highlights:
- Advanced commercial priorities, including securing contracts to deliver an incremental ~5,200 gigawatt hours per year of generation in addition to the announced partnership with Microsoft.
- Continued to progress development activities during the quarter and expect to bring on ~7,000 megawatts of new renewable capacity this year.
- Progressed asset recycling activities that are expected to generate
$3 billion of proceeds ($1.3 billion net to Brookfield Renewable) this year at attractive returns. - Strengthened our balance sheet by executing approximately
$6 billion of financings, ending the quarter with$4.4 billion of available liquidity to deploy into a very attractive investment environment.
We are Positioned as the Leading Clean Power Provider to the Digitalizing Global Economy
As the accelerating global trends of cloud computing, digitalization, and adoption of AI continue to drive significant growth in demand for power, we are fortunate to be a key enabler of one of the most significant growth trends in recent history.
Demand for cloud computing and AI is incentivizing the leading technology companies to scale their investment in these areas, and the key requirements needed to deliver these products are computing power and energy. However, existing energy infrastructure is not enough, meaning sourcing additional sustainable renewable power at scale is on the critical path to growth for these companies.
In May we signed a landmark renewable energy framework agreement with Microsoft, furthering our strategic partnership, where we expect to deliver them over 10,500 megawatts of new renewable energy capacity in the
The first-of-its-kind agreement, which is almost eight times larger than the largest single corporate PPA ever signed, will assist Microsoft’s data center growth and support its investment in AI powered cloud services. The agreement positions us well to deliver over 7,000 megawatts of new capacity annually through the end of the decade.
There are further opportunities to partner with Microsoft, with whom we are already set to deliver almost 1,000 megawatts of projects through 2025. The agreement includes provisions to increase its scope to deliver additional renewable energy capacity within the
The partnership is a testament to our differentiated offering which is characterized by our significant access to capital and credibility to deliver scale clean power solutions from our extensive pipeline of advanced stage projects, which are well positioned from an interconnection and permitting perspective in many key data center markets globally.
While this partnership is a first-of-its-kind, given the significant scale of investment required to meet the increase in energy demand, we believe we are uniquely positioned to be a key enabler of growth for the largest technology players through similar arrangements. Our access to scale capital, sizeable development pipeline, and ability to commission significant capacity concurrently to meet this demand differentiates us as a partner.
We are also uniquely positioned to provide a tailored solution to help address our customers’ needs. Our ability to provide scale 24/7 clean power solutions through the combination of our large portfolio of existing hydro assets, our leading nuclear services business, and other renewable power capacity from across the technology spectrum also distinguishes our offering; this is translating to favorable contracting opportunities.
Operating Results
We generated FFO of
Our hydro assets continue to exhibit strong cash flow resiliency given our diversified asset base, inflation-linked power purchase agreements, and ability to realize strong power prices. Our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Our distributed energy and storage, and sustainable solutions segments generated a combined
Balance Sheet & Liquidity
Our financial position remains strong with
During the quarter we further strengthened our balance sheet executing almost
In January, we issued
The market for the right type of renewable power assets continues to strengthen as the outlook for interest rates has stabilized. Our large and growing portfolio of contracted operating assets with fixed rate non-recourse financing and pipeline of derisked projects are in high demand from lower cost of capital buyers. We are fortunate to have launched a significant pipeline of asset sales into this environment which we are advancing. In aggregate we are targeting to generate
Considering public market conditions and our strong conviction in the intrinsic value of our business, we allocated capital to repurchase our units in the quarter. In the last nine months, we repurchased over 4 million units under our normal course issuer bid. Looking forward, we will continue to allocate capital based on where we are seeing the best risk-adjusted returns and remain confident we will continue to create meaningful value for our investors.
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 First 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 | $ | 1,423 | $ | 1,141 | |||||||
| Trade receivables and other financial assets(5) | 4,184 | 5,237 | |||||||||
| Equity-accounted investments | 2,484 | 2,546 | |||||||||
| Property, plant and equipment, at fair value and |
65,471 | 65,949 | |||||||||
| Deferred income tax and other assets(6) | 1,548 | 1,255 | |||||||||
| Total Assets | $ | 75,110 | $ | 76,128 | |||||||
| Liabilities | |||||||||||
| Corporate borrowings(7) | $ | 3,545 | $ | 2,833 | |||||||
| Borrowings which have recourse only to assets they finance(8) | 25,579 | 26,869 | |||||||||
| Accounts payable and other liabilities(9) | 9,522 | 9,273 | |||||||||
| Deferred income tax liabilities | 7,091 | 7,174 | |||||||||
| Equity | |||||||||||
| Non-controlling interests | |||||||||||
| Participating non-controlling interests – in operating | |||||||||||
| subsidiaries | $ | 18,669 | $ | 18,863 | |||||||
| General partnership interest in a holding subsidiary held by | |||||||||||
| Brookfield | 52 | 55 | |||||||||
| Participating non-controlling interests – in a holding subsidiary – | |||||||||||
| Redeemable/Exchangeable units held by Brookfield | 2,529 | 2,684 | |||||||||
| BEPC exchangeable shares | 2,336 | 2,479 | |||||||||
| Preferred equity | 570 | 583 | |||||||||
| Perpetual subordinated notes | 738 | 592 | |||||||||
| Preferred limited partners' equity | 760 | 760 | |||||||||
| Limited partners' equity | 3,719 | 29,373 | 3,963 | 29,979 | |||||||
| Total Liabilities and Equity | $ | 75,110 | $ | 76,128 | |||||||
| Consolidated Statements of Operating Results | ||||||
| UNAUDITED | For the three months ended |
|||||
| (MILLIONS, EXCEPT AS NOTED) | 2024 | 2023 | ||||
| Revenues | $ | 1,492 | $ | 1,331 | ||
| Other income | 34 | 26 | ||||
| Direct operating costs(10) | (634 | ) | (401 | ) | ||
| Management service costs | (45 | ) | (57 | ) | ||
| Interest expense | (476 | ) | (394 | ) | ||
| Share of earnings from equity-accounted investments | (33 | ) | 33 | |||
| Foreign exchange and financial instrument gain | 120 | 146 | ||||
| Depreciation | (502 | ) | (429 | ) | ||
| Other | (12 | ) | (54 | ) | ||
| Income tax recovery (expense) | ||||||
| Current | (28 | ) | (43 | ) | ||
| Deferred | 14 | 19 | ||||
| Net income (loss) | $ | (70 | ) | $ | 177 | |
| Net income attributable to preferred equity, preferred limited partners' equity, | ||||||
| perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (50 | ) | $ | (209 | ) |
| Net loss attributable to Unitholders | (120 | ) | (32 | ) | ||
| Basic and diluted loss per LP unit | $ | (0.23 | ) | $ | (0.09 | ) |
| Consolidated Statements of Cash Flows | ||||||
| For the three months ended |
||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | ||||
| Operating activities | ||||||
| Net income (loss) | $ | (70 | ) | $ | 177 | |
| Adjustments for the following non-cash items: | ||||||
| Depreciation | 502 | 429 | ||||
| Unrealized foreign exchange and financial instrument gain | (117 | ) | (130 | ) | ||
| Share of (earnings) loss from equity-accounted investments | 33 | (33 | ) | |||
| Deferred income tax expense | (14 | ) | (19 | ) | ||
| Other non-cash items | 56 | 37 | ||||
| 390 | 461 | |||||
| Net change in working capital and other(11) | (66 | ) | 202 | |||
| 324 | 663 | |||||
| Financing activities | ||||||
| Net corporate borrowings | 297 | 293 | ||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 647 | (262 | ) | |||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 151 | 994 | ||||
| Issuance of equity instruments, net and related costs | 118 | — | ||||
| Distributions paid: | ||||||
| To participating non-controlling interests – in operating subsidiaries | (132 | ) | (142 | ) | ||
| To unitholders of Brookfield Renewable or BRELP | (260 | ) | (243 | ) | ||
| 821 | 640 | |||||
| Investing activities | ||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (11 | ) | (81 | ) | ||
| Investment in property, plant and equipment | (840 | ) | (572 | ) | ||
| Disposal (purchase) of associates and other assets | 2 | (539 | ) | |||
| Restricted cash and other | 14 | 16 | ||||
| (835 | ) | (1,176 | ) | |||
| Foreign exchange gain (loss) on cash | (17 | ) | 14 | |||
| Cash and cash equivalents | ||||||
| Increase | 293 | 141 | ||||
| Net change in cash classified within assets held for sale | (11 | ) | 1 | |||
| Balance, beginning of period | 1,141 | 998 | ||||
| Balance, end of period | $ | 1,423 | $ | 1,140 | ||
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 | |||||||||||||||||||||||||||
| 3,621 | 3,576 | 3,234 | 3,237 | $ | 303 | $ | 335 | $ | 206 | $ | 230 | $ | 137 | $ | 158 | ||||||||||||
| 1,014 | 1,207 | 1,008 | 1,008 | 59 | 61 | 42 | 45 | 36 | 38 | ||||||||||||||||||
| 694 | 1,010 | 843 | 853 | 79 | 66 | 45 | 48 | 20 | 23 | ||||||||||||||||||
| 5,329 | 5,793 | 5,085 | 5,098 | 441 | 462 | 293 | 323 | 193 | 219 | ||||||||||||||||||
| Wind | 2,128 | 1,677 | 2,500 | 1,998 | 170 | 142 | 121 | 107 | 87 | 78 | |||||||||||||||||
| Utility-scale solar | 720 | 484 | 844 | 568 | 93 | 88 | 90 | 69 | 61 | 40 | |||||||||||||||||
| Distributed energy & storage | 284 | 233 | 225 | 181 | 52 | 61 | 43 | 45 | 34 | 33 | |||||||||||||||||
| Sustainable solutions | — | — | — | — | 119 | 19 | 35 | 12 | 33 | 11 | |||||||||||||||||
| Corporate | — | — | — | — | — | — | (7 | ) | 3 | (112 | ) | (106 | ) | ||||||||||||||
| Total | 8,461 | 8,187 | 8,654 | 7,845 | $ | 875 | $ | 772 | $ | 575 | $ | 559 | $ | 296 | $ | 275 | |||||||||||
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) | $ | 122 | $ | 9 | $ | (61 | ) | $ | (28 | ) | $ | (6 | ) | $ | (106 | ) | $ | (70 | ) | ||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 161 | 210 | 96 | 31 | 4 | — | 502 | ||||||||||||||
| Deferred income tax expense (recovery) | 2 | (6 | ) | (1 | ) | (3 | ) | — | (6 | ) | (14 | ) | |||||||||
| Foreign exchange and financial instrument loss (gain) | (34 | ) | (75 | ) | 7 | 8 | (23 | ) | (3 | ) | (120 | ) | |||||||||
| Other(12) | (47 | ) | (29 | ) | (21 | ) | (24 | ) | 10 | 16 | (95 | ) | |||||||||
| Management service costs | — | — | — | — | — | 45 | 45 | ||||||||||||||
| Interest expense | 198 | 111 | 85 | 32 | 3 | 47 | 476 | ||||||||||||||
| Current income tax expense | 18 | 9 | — | 1 | — | — | 28 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (127 | ) | (108 | ) | (15 | ) | 26 | 47 | — | (177 | ) | ||||||||||
| Adjusted EBITDA | $ | 293 | $ | 121 | $ | 90 | $ | 43 | $ | 35 | $ | (7 | ) | $ | 575 | ||||||
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 |
District energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 238 | $ | 29 | $ | (48 | ) | $ | 26 | $ | 27 | $ | (95 | ) | $ | 177 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 154 | 150 | 82 | 29 | 14 | — | 429 | ||||||||||||||
| Deferred income tax expense (recovery) | 25 | — | (1 | ) | (14 | ) | 1 | (30 | ) | (19 | ) | ||||||||||
| Foreign exchange and financial instrument loss (gain) | (94 | ) | (40 | ) | 2 | (10 | ) | 1 | (5 | ) | (146 | ) | |||||||||
| Other(12) | 25 | 5 | 12 | 16 | (13 | ) | 29 | 74 | |||||||||||||
| Management service costs | — | — | — | — | — | 57 | 57 | ||||||||||||||
| Interest expense | 183 | 62 | 65 | 23 | 11 | 50 | 394 | ||||||||||||||
| Current income tax expense | 34 | 4 | 5 | — | — | — | 43 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (242 | ) | (103 | ) | (48 | ) | (25 | ) | (29 | ) | (3 | ) | (450 | ) | |||||||
| Adjusted EBITDA | $ | 323 | $ | 107 | $ | 69 | $ | 45 | $ | 12 | $ | 3 | $ | 559 | |||||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income is reconciled to Funds From Operations:
| For the three months ended |
||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | ||||
| Net income | $ | (70 | ) | $ | 177 | |
| Add back or deduct the following: | ||||||
| Depreciation | 502 | 429 | ||||
| Deferred income tax recovery | (14 | ) | (19 | ) | ||
| Foreign exchange and financial instruments gain | (120 | ) | (146 | ) | ||
| Other(14) | (95 | ) | 74 | |||
| Amount attributable to equity accounted investment and non-controlling interest(15) | 93 | (240 | ) | |||
| Funds From Operations | $ | 296 | $ | 275 | ||
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 |
||||||
| 2024 | 2023 | |||||
| Net income (loss) per LP unit(1) | $ | (0.23 | ) | $ | (0.09 | ) |
| Adjust for the proportionate share of | ||||||
| Depreciation | 0.38 | 0.37 | ||||
| Deferred income tax recovery and other | 0.36 | 0.22 | ||||
| Foreign exchange and financial instruments loss (gain) | (0.06 | ) | (0.07 | ) | ||
| Funds From Operations per Unit(3) | $ | 0.45 | $ | 0.43 | ||
REPORTS FIRST 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 |
||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | ||||
| Select Financial Information | ||||||
| Net income (loss) attributable to the partnership | $ | 491 | $ | (1,065 | ) | |
| Funds From Operations (FFO)(2) | 219 | 202 | ||||
BEPC reported FFO of
| Consolidated Statements of Financial Position | |||||||||||
| As of | |||||||||||
| UNAUDITED | |||||||||||
| (MILLIONS) | 2024 | 2023 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 639 | $ | 627 | |||||||
| Trade receivables and other financial assets(5) | 2,386 | 2,972 | |||||||||
| Equity-accounted investments | 603 | 644 | |||||||||
| Property, plant and equipment, at fair value and |
40,332 | 44,892 | |||||||||
| Deferred income tax and other assets(6) | 280 | 286 | |||||||||
| Total Assets | $ | 44,240 | $ | 49,421 | |||||||
| Liabilities | |||||||||||
| Borrowings which have recourse only to assets they finance(8) | $ | 14,491 | $ | 16,072 | |||||||
| Accounts payable and other liabilities(9) | 3,769 | 5,680 | |||||||||
| Deferred income tax liabilities | 5,791 | 5,819 | |||||||||
| BEPC exchangeable and class B shares | 4,173 | 4,721 | |||||||||
| Equity | |||||||||||
| Non-controlling interests: | |||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 9,661 | $ | 11,070 | |||||||
| Participating non-controlling interests – in a holding subsidiary | |||||||||||
| held by the partnership | 260 | 272 | |||||||||
| The partnership | 6,095 | 16,016 | 5,787 | 17,129 | |||||||
| Total Liabilities and Equity | $ | 44,240 | $ | 49,421 | |||||||
| Consolidated Statements of Income (Loss) | |||||||
| UNAUDITED | For the three months ended |
||||||
| (MILLIONS) | 2024 | 2023 | |||||
| Revenues | $ | 1,125 | $ | 1,066 | |||
| Other income | 24 | 13 | |||||
| Direct operating costs(10) | (484 | ) | (304 | ) | |||
| Management service costs | (21 | ) | (36 | ) | |||
| Interest expense | (363 | ) | (306 | ) | |||
| Share of (loss) earnings from equity-accounted investments | (15 | ) | 3 | ||||
| Foreign exchange and financial instrument gain | 29 | 115 | |||||
| Depreciation | (345 | ) | (306 | ) | |||
| Other | 26 | (39 | ) | ||||
| Remeasurement of BEPC exchangeable and class B shares | 548 | (1,063 | ) | ||||
| Income tax (expense) recovery | |||||||
| Current | (20 | ) | (38 | ) | |||
| Deferred | (13 | ) | (25 | ) | |||
| Net income (loss) | $ | 491 | $ | (920 | ) | ||
| Net income (loss) attributable to: | |||||||
| Non-controlling interests: | |||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 1 | $ | 143 | |||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | (1 | ) | 2 | ||||
| The partnership | 491 | (1,065 | ) | ||||
| $ | 491 | $ | (920 | ) | |||
| Consolidated Statements of Cash Flows | |||||||
| UNAUDITED | For the three months ended |
||||||
| (MILLIONS) | 2024 | 2023 | |||||
| Operating activities | |||||||
| Net income (loss) | $ | 491 | $ | (920 | ) | ||
| Adjustments for the following non-cash items: | |||||||
| Depreciation | 345 | 306 | |||||
| Unrealized foreign exchange and financial instruments gain | (28 | ) | (108 | ) | |||
| Share of (earnings) loss from equity-accounted investments | 15 | (2 | ) | ||||
| Deferred income tax expense | 13 | 25 | |||||
| Other non-cash items | 16 | 24 | |||||
| Remeasurement of exchangeable and class B shares | (548 | ) | 1,063 | ||||
| 304 | 388 | ||||||
| Net change in working capital and other(11) | (47 | ) | 204 | ||||
| 257 | 592 | ||||||
| Financing activities | |||||||
| Non-recourse borrowings and related party borrowings, net | 131 | (281 | ) | ||||
| Capital contributions from participating non-controlling interests | 82 | 52 | |||||
| Distributions paid and return of capital: | |||||||
| To participating non-controlling interests | (76 | ) | (133 | ) | |||
| 137 | (362 | ) | |||||
| Investing activities | |||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | (81 | ) | ||||
| Investment in property, plant and equipment | (277 | ) | (162 | ) | |||
| Disposal of subsidiaries, associates and other securities, net | (113 | ) | 3 | ||||
| Restricted cash and other | 19 | 13 | |||||
| (371 | ) | (227 | ) | ||||
| Foreign exchange gain (loss) on cash | (9 | ) | 12 | ||||
| Cash and cash equivalents | |||||||
| Increase | 14 | 15 | |||||
| Net change in cash classified within assets held for sale | (2 | ) | — | ||||
| Balance, beginning of period | 627 | 642 | |||||
| Balance, end of period | $ | 639 | $ | 657 | |||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income (loss) to Funds From Operations:
| For the three months ended |
|||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | |||||
| Net income (loss) | $ | 491 | $ | (920 | ) | ||
| Add back or deduct the following: | |||||||
| Depreciation | 345 | 306 | |||||
| Foreign exchange and financial instruments loss gain | (29 | ) | (115 | ) | |||
| Deferred income tax expense | 13 | 25 | |||||
| Other(16) | (204 | ) | 44 | ||||
| Dividends on BEPC exchangeable shares(17) | 65 | 58 | |||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | (548 | ) | 1,063 | ||||
| Amount attributable to equity accounted investments and non-controlling interests(18) | 86 | (259 | ) | ||||
| Funds From Operations | $ | 219 | $ | 202 | |||
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 March 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our unaudited Q1 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 March 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our unaudited Q1 2024 interim report.
References to Brookfield Renewable are to
Endnotes
(1) For the three months ended
(2) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(3) Average Units outstanding for the three months ended
(4) Normalized FFO assumes long-term average generation in all segments and uses 2022 foreign currency rates. For the three 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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