All amounts in
BROOKFIELD, News,
“2023 was a record year for our business on almost all metrics. We generated record FFO per unit, added almost 5,000 megawatts of capacity through development, and deployed or committed
“Going forward we are well positioned to continue benefiting from accelerating demand for clean power from corporate customers, and specifically the large global technology companies, whose increasing appetite for clean power is being driven by data center demand, with securing clean energy now squarely on their critical path to growth.”
| For the three months ended |
For the twelve months ended |
|||||||||||
| US$ millions (except per unit amounts), unaudited | 2023 | 2022 | 2023 | 2022 | ||||||||
| Net income (loss) attributable to Unitholders | $ | 35 | $ | (82 | ) | $ | (100 | ) | $ | (295 | ) | |
|
0.01 | (0.16 | ) | (0.32 | ) | (0.60 | ) | |||||
| Funds From Operations (FFO)(2) | 255 | 225 | 1,095 | 1005 | ||||||||
|
0.38 | 0.35 | 1.67 | 1.56 | ||||||||
Brookfield Renewable generated record FFO of
Other highlights for the year include
- We advanced commercial priorities including securing contracts for new developments for almost 50 terawatt hours of generation, of which over 90% is with corporate customers.
- Accelerated our development activities, commissioning almost 5,000 megawatts of new clean energy capacity globally across wind, solar and battery storage, further diversifying and growing our cash flows. We expect commissioned capacity to contribute
~$60 million of incremental FFO annually on a run-rate basis. - Our advanced stage development pipeline expanded to almost 24,000 megawatts which is expected to contribute approximately
$300 million of FFO annually to Brookfield Renewable once commissioned. - Deployed, or agreed to deploy a record
$9 billion of capital ($2 billion net to Brookfield Renewable) into accretive investments across all of our key markets and closed a number of significant transactions in the fourth quarter including Westinghouse and Deriva Energy, immediately growing our cash flows. - We continued to execute on our capital recycling initiatives generating
$800 million of proceeds ($500 million net to Brookfield Renewable) representing nearly three times our invested capital, and providing funds for growth. - Strengthened our best-in-class balance sheet executing approximately
$15 billion of financings and finishing the year with available liquidity of over$4 billion , positioning the business to opportunistically deploy capital at strong risk adjusted returns.
We continue to deliver attractive risk adjusted returns
We were well equipped to navigate the rising rate environment and supply chain challenges that faced the sector over the past twelve-months. Most notably, our disciplined approach to development, which focuses on removing risks upfront, meant that our development activities remained robust, delivering a record year, at a time when some market participants saw headwinds. Lastly, our prudent approach to financing our business, combined with the strength of our balance sheet, durability of our cash flows, and diverse sources of scale capital, ensured that we were able to continue to pursue growth at a time when some could not and there was less competition.
We capitalized on opportunities, deploying or agreeing to deploy
While our proposed acquisition of Origin Energy did not receive the required level of shareholder support, which was a condition precedent to the closing of the transaction, we are confident in achieving our target deployment of
In light of public market conditions and our strong conviction in the intrinsic value of our business and growth trajectory, we continued to allocate capital to repurchase shares. In 2023, we repurchased 2 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.
We have been scaling our development capabilities and delivered almost 5,000 megawatts in the past year, a record for our business, while also pulling forward our pipeline. Our advanced stage development pipeline now stands at almost 24,000 megawatts with just under 7,000 megawatts on track to be delivered this year and over 7,000 megawatts in 2025. These projects are well advanced with almost 25% of our three year pipeline under construction, over 20% with revenues and inputs fully contracted and over 30% in the final stages of securing PPAs and construction contracts. These projects and our remaining advanced stage pipeline are expected to contribute approximately
Operating Results
Our operating business continued to perform well and we delivered record FFO despite cyclical resource volatility and generation below the long term average at some of our assets. We generated FFO of
We are already seeing the benefits of our growth activities which were back-end weighted this year with commissioning of nearly half of our almost 5,000 megawatts of new capacity in the fourth quarter and the closing of major acquisitions contributing over
Additionally, we expect that our growth initiatives will continue to stabilize our results going forward, not only increasingly diversifying our cash flows, but also enhancing the contracted and less variable components of our business. As we continue to diversify our business, we are reducing the volatility of our results and helping to minimize our exposure to any underlying resource to deliver our earnings growth targets. While we constantly update and monitor our long-term average resource figures for financings and management of our operations, the impact of these metrics on our financial performance is being mitigated by our broader development, growth, and contracting initiatives.
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 And Liquidity
We finished the year in an excellent financial position with over
During the year we strengthened our financial position executing on almost
We were successful with our capital recycling program generating
We sold a 150-megawatt solar project in
Our approach to selling assets that are in demand irrespective of technology or geography has served us well and generated meaningful returns above our underwriting targets for investors. We expect to continue to leverage this funding source going forward as we bring online new projects and acquire new platforms.
Distribution Declaration
The next quarterly distribution in the amount of
In conjunction with the Partnership’s distribution declaration, the Board of Directors of BEPC have declared an equivalent quarterly dividend 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 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) 739 890 9278 | (416) 649-8196 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s Fourth Quarter 2023 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) |
2023 | 2022 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,141 | $ | 998 | ||||
| Trade receivables and other financial assets(4) | 5,237 | 3,747 | ||||||
| Equity-accounted investments | 2,546 | 1,392 | ||||||
| Property, plant and equipment, at fair value and |
66,147 | 55,809 | ||||||
| Deferred income tax and other assets(5) | 1,255 | 2,165 | ||||||
| Total Assets | $ | 76,326 | $ | 64,111 | ||||
| Liabilities | ||||||||
| Corporate borrowings(6) | $ | 2,833 | $ | 2,548 | ||||
| Borrowings which have recourse only to assets they finance(7) | 26,926 | 22,302 | ||||||
| Accounts payable and other liabilities(8) | 9,414 | 6,468 | ||||||
| Deferred income tax liabilities | 7,174 | 6,507 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 18,863 | $ | 14,755 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 55 | 59 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,684 | 2,892 | ||||||
| BEPC exchangeable shares | 2,479 | 2,561 | ||||||
| Preferred equity | 583 | 571 | ||||||
| Perpetual subordinated notes | 592 | 592 | ||||||
| Preferred limited partners' equity | 760 | 760 | ||||||
| Limited partners' equity | 3,963 | 29,979 | 4,096 | 26,286 | ||||
| Total Liabilities and Equity | $ | 76,326 | $ | 64,111 | ||||
| Consolidated Statements of Operating Results | |||||||||||||
| UNAUDITED | For the three months ended |
For the twelve months ended |
|||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | 2023 | 2022 | |||||||||
| Revenues | $ | 1,323 | $ | 1,196 | $ | 5,038 | $ | 4,711 | |||||
| Other income | 468 | 29 | 671 | 136 | |||||||||
| Direct operating costs(9) | (611 | ) | (374 | ) | (1,933 | ) | (1,434 | ) | |||||
| Management service costs | (50 | ) | (44 | ) | (205 | ) | (243 | ) | |||||
| Interest expense | (461 | ) | (351 | ) | (1,627 | ) | (1,224 | ) | |||||
| Share of earnings from equity-accounted investments | 140 | 36 | 186 | 96 | |||||||||
| Foreign exchange and financial instrument gain (loss) | 70 | (14 | ) | 502 | (133 | ) | |||||||
| Depreciation | (517 | ) | (408 | ) | (1,852 | ) | (1,583 | ) | |||||
| Other | (210 | ) | (82 | ) | (212 | ) | (190 | ) | |||||
| Income tax recovery (expense) | |||||||||||||
| Current | (39 | ) | (42 | ) | (128 | ) | (148 | ) | |||||
| Deferred | 151 | 114 | 176 | 150 | |||||||||
| Net income (loss) | $ | 264 | $ | 60 | $ | 616 | $ | 138 | |||||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (229 | ) | $ | (142 | ) | $ | (716 | ) | $ | (433 | ) | |
| Net income (loss) attributable to Unitholders | $ | 35 | $ | (82 | ) | $ | (100 | ) | $ | (295 | ) | ||
| Basic and diluted income (loss) per LP unit | $ | 0.01 | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.60 | ) | ||
| Consolidated Statements of Cash Flows | |||||||||||||
| For the three months ended |
For the twelve months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2023 | 2022 | 2023 | 2022 | |||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | 264 | $ | 60 | $ | 616 | $ | 138 | |||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 517 | 408 | 1,852 | 1,583 | |||||||||
| Unrealized foreign exchange and financial instrument loss (gain) | (82 | ) | 31 | (492 | ) | 269 | |||||||
| Share of (earnings) loss from equity-accounted investments | (140 | ) | (36 | ) | (186 | ) | (96 | ) | |||||
| Deferred income tax recovery | (151 | ) | (114 | ) | (176 | ) | (150 | ) | |||||
| Other non-cash items | (247 | ) | 39 | (295 | ) | 91 | |||||||
| 161 | 388 | 1,319 | 1,835 | ||||||||||
| Net change in working capital and other(10) | 284 | 188 | 534 | (124 | ) | ||||||||
| 445 | 576 | 1,853 | 1,711 | ||||||||||
| Financing activities | |||||||||||||
| Net corporate borrowings | — | 296 | 293 | 296 | |||||||||
| Corporate credit facilities, net | — | (200 | ) | — | — | ||||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 2,231 | 366 | 1,341 | 3,829 | |||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 792 | 1,450 | 2,744 | 1,788 | |||||||||
| Net Issuance (Repurchase) of equity instruments and related costs | (31 | ) | — | 587 | (137 | ) | |||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (253 | ) | (263 | ) | (967 | ) | (1,372 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (251 | ) | (229 | ) | (990 | ) | (915 | ) | |||||
| 2,488 | 1,420 | 3,008 | 3,489 | ||||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (1,104 | ) | (1,071 | ) | (1,191 | ) | (2,452 | ) | |||||
| Investment in property, plant and equipment | (1,149 | ) | (712 | ) | (2,809 | ) | (2,190 | ) | |||||
| Disposal (purchase) of associates and other assets | (590 | ) | (416 | ) | (721 | ) | (518 | ) | |||||
| Restricted cash and other | (7 | ) | 56 | (35 | ) | 94 | |||||||
| (2,850 | ) | (2,143 | ) | (4,756 | ) | (5,066 | ) | ||||||
| Foreign exchange gain (loss) on cash | 24 | 22 | 38 | (28 | ) | ||||||||
| Cash and cash equivalents | |||||||||||||
| Decrease (increase) | 107 | (125 | ) | 143 | 106 | ||||||||
| Net change in cash classified within assets held for sale | — | (8 | ) | — | (8 | ) | |||||||
| Balance, beginning of period | 1,034 | 1,131 | 998 | 900 | |||||||||
| Balance, end of period | $ | 1,141 | $ | 998 | $ | 1,141 | $ | 998 | |||||
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(2) | FFO | ||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||
| 2,456 | 2,427 | 2,910 | 2,910 | $ | 199 | $ | 219 | $ | 121 | $ | 131 | $ | 55 | $ | 87 | |||||||||||||
| 892 | 960 | 1,036 | 1,020 | 59 | 55 | 40 | 40 | 34 | 38 | |||||||||||||||||||
| 789 | 1,222 | 995 | 1,064 | 87 | 68 | 41 | 58 | 16 | 33 | |||||||||||||||||||
| 4,137 | 4,609 | 4,941 | 4,994 | 345 | 342 | 202 | 229 | 105 | 158 | |||||||||||||||||||
| Wind | 1,978 | 1,531 | 2,529 | 1,929 | 138 | 143 | 131 | 124 | 103 | 97 | ||||||||||||||||||
| Utility-scale solar | 658 | 414 | 834 | 551 | 85 | 77 | 121 | 54 | 93 | 29 | ||||||||||||||||||
| Distributed energy & storage | 272 | 209 | 189 | 181 | 51 | 70 | 42 | 48 | 26 | 35 | ||||||||||||||||||
| Sustainable solutions | 106 | 57 | 9 | 7 | 93 | 13 | 28 | 2 | 22 | 1 | ||||||||||||||||||
| Corporate | — | — | — | — | — | — | 6 | 4 | (94 | ) | (95 | ) | ||||||||||||||||
| Total | 7,151 | 6,820 | 8,502 | 7,662 | $ | 712 | $ | 645 | $ | 530 | $ | 461 | $ | 255 | $ | 225 | ||||||||||||
PROPORTIONATE RESULTS FOR THE TWELVE MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the twelve months ended
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA(2) | FFO | ||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||||
| 11,603 | 11,285 | 12,161 | 12,161 | $ | 1,029 | $ | 964 | $ | 670 | $ | 603 | $ | 402 | $ | 412 | |||||||||||||
| 3,974 | 3,828 | 4,099 | 4,060 | 240 | 197 | 172 | 167 | 146 | 138 | |||||||||||||||||||
| 3,408 | 4,411 | 3,647 | 3,802 | 293 | 273 | 175 | 201 | 76 | 117 | |||||||||||||||||||
| 18,985 | 19,524 | 19,907 | 20,023 | 1,562 | 1,434 | 1,017 | 971 | 624 | 667 | |||||||||||||||||||
| Wind | 6,367 | 5,951 | 7,865 | 6,797 | 511 | 538 | 493 | 430 | 382 | 326 | ||||||||||||||||||
| Utility-scale solar | 2,489 | 1,878 | 3,123 | 2,406 | 365 | 374 | 372 | 362 | 261 | 253 | ||||||||||||||||||
| Distributed energy & storage | 1,241 | 1,050 | 956 | 886 | 241 | 242 | 180 | 189 | 133 | 148 | ||||||||||||||||||
| Sustainable solutions | 385 | 266 | 40 | 14 | 147 | 48 | 61 | 8 | 52 | 6 | ||||||||||||||||||
| Corporate | — | — | — | — | — | — | 59 | 42 | (357 | ) | (395 | ) | ||||||||||||||||
| Total | 29,467 | 28,669 | 31,891 | 30,126 | $ | 2,826 | $ | 2,636 | $ | 2,182 | $ | 2,002 | $ | 1,095 | $ | 1,005 | ||||||||||||
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
| Attributable to Unitholders | |||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 67 | $ | 142 | $ | 190 | $ | (100 | ) | $ | 44 | $ | (79 | ) | $ | 264 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 170 | 215 | 98 | 28 | 6 | — | 517 | ||||||||||||||
| Deferred income tax recovery | (33 | ) | (39 | ) | (31 | ) | (41 | ) | — | (7 | ) | (151 | ) | ||||||||
| Foreign exchange and financial instrument loss (gain) | (55 | ) | (50 | ) | 38 | 35 | (57 | ) | 19 | (70 | ) | ||||||||||
| Other(11) | 18 | (147 | ) | (158 | ) | 90 | (17 | ) | (9 | ) | (223 | ) | |||||||||
| Management service costs | — | — | — | — | — | 50 | 50 | ||||||||||||||
| Interest expense | 185 | 85 | 96 | 27 | 19 | 49 | 461 | ||||||||||||||
| Current income tax expense | 18 | 7 | 6 | — | — | 8 | 39 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) |
(168 | ) | (82 | ) | (118 | ) | 3 | 33 | (25 | ) | (357 | ) | |||||||||
| Adjusted EBITDA | $ | 202 | $ | 131 | $ | 121 | $ | 42 | $ | 28 | $ | 6 | $ | 530 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| Attributable to Unitholders | |||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 161 | $ | 31 | $ | (90 | ) | $ | 24 | $ | 13 | $ | (79 | ) | $ | 60 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 152 | 135 | 88 | 27 | 5 | 1 | 408 | ||||||||||||||
| Deferred income tax recovery | (52 | ) | (6 | ) | (26 | ) | (6 | ) | — | (24 | ) | (114 | ) | ||||||||
| Foreign exchange and financial instrument loss (gain) | (17 | ) | (14 | ) | 70 | (31 | ) | (8 | ) | 14 | 14 | ||||||||||
| Other(11) | 57 | 39 | 7 | 62 | (2 | ) | 5 | 168 | |||||||||||||
| Management service costs | — | — | — | — | — | 44 | 44 | ||||||||||||||
| Interest expense | 166 | 66 | 62 | 22 | 3 | 32 | 351 | ||||||||||||||
| Current income tax expense (recovery) | 31 | 8 | 2 | — | 1 | — | 42 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) | (269 | ) | (135 | ) | (59 | ) | (50 | ) | (10 | ) | — | (523 | ) | ||||||||
| Adjusted EBITDA | $ | 229 | $ | 124 | $ | 54 | $ | 48 | $ | 2 | $ | (7 | ) | $ | 450 | ||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the twelve months ended
| Attributable to Unitholders | |||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 423 | $ | 307 | $ | 209 | $ | (90 | ) | $ | 102 | $ | (335 | ) | $ | 616 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 652 | 709 | 348 | 56 | 85 | 2 | 1,852 | ||||||||||||||
| Deferred income tax expense (recovery) | (61 | ) | 20 | (43 | ) | (37 | ) | (22 | ) | (33 | ) | (176 | ) | ||||||||
| Foreign exchange and financial instrument loss (gain) | (162 | ) | (239 | ) | (17 | ) | (5 | ) | (89 | ) | 10 | (502 | ) | ||||||||
| Other(11) | 39 | (111 | ) | (171 | ) | 111 | 3 | 23 | (106 | ) | |||||||||||
| Management service costs | — | — | — | — | — | 205 | 205 | ||||||||||||||
| Interest expense | 745 | 297 | 282 | 59 | 94 | 150 | 1,627 | ||||||||||||||
| Current income tax expense | 85 | 20 | 13 | — | — | 10 | 128 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) | (704 | ) | (510 | ) | (249 | ) | 86 | (112 | ) | 27 | (1,462 | ) | |||||||||
| Adjusted EBITDA | $ | 1,017 | $ | 493 | $ | 372 | $ | 180 | $ | 61 | $ | 59 | $ | 2,182 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the twelve months ended
| Attributable to Unitholders | |||||||||||||||||||||
| (MILLIONS) | Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage | Sustainable solutions | Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 359 | $ | 7 | $ | (56 | ) | $ | 122 | $ | 2 | $ | (296 | ) | $ | 138 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 613 | 552 | 291 | 96 | 28 | 3 | 1,583 | ||||||||||||||
| Deferred income tax expense (recovery) | (66 | ) | 35 | (35 | ) | (3 | ) | (1 | ) | (80 | ) | (150 | ) | ||||||||
| Foreign exchange and financial instrument loss (gain) | 183 | (77 | ) | 80 | (39 | ) | (8 | ) | (6 | ) | 133 | ||||||||||
| Other(11) | 65 | 113 | 109 | — | 77 | 93 | 457 | ||||||||||||||
| Management service costs | — | — | — | — | — | 243 | 243 | ||||||||||||||
| Interest expense | 586 | 254 | 195 | 78 | 2 | 109 | 1,224 | ||||||||||||||
| Current income tax expense | 123 | 16 | 7 | — | 2 | — | 148 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) | (892 | ) | (470 | ) | (229 | ) | (65 | ) | (94 | ) | (24 | ) | (1,774 | ) | |||||||
| Adjusted EBITDA | $ | 971 | $ | 430 | $ | 362 | $ | 189 | $ | 8 | $ | 42 | $ | 2,002 | |||||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income (loss) is reconciled to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||||
| UNAUDITED (MILLIONS) |
2023 | 2022 | 2023 | 2022 | |||||||||||
| Net income | $ | 264 | $ | 60 | $ | 616 | $ | 138 | |||||||
| Add back or deduct the following: | |||||||||||||||
| Depreciation | 517 | 408 | 1,852 | 1,583 | |||||||||||
| Deferred income tax recovery | (151 | ) | (114 | ) | (176 | ) | (150 | ) | |||||||
| Foreign exchange and financial instruments gain (loss) | (70 | ) | 14 | (502 | ) | 133 | |||||||||
| Other(13) | (223 | ) | 179 | (106 | ) | 457 | |||||||||
| Amount attributable to equity accounted investment and non-controlling interest(14) | (82 | ) | (322 | ) | (589 | ) | (1,156 | ) | |||||||
| Funds From Operations | $ | 255 | $ | 225 | $ | 1,095 | $ | 1,005 | |||||||
| Normalized long-term average generation adjustment | 68 | 46 | 147 | 86 | |||||||||||
| Normalized foreign currency adjustment | (6 | ) | — | (1 | ) | — | |||||||||
| Normalized Funds From Operations | $ | 317 | $ | 271 | $ | 1,241 | $ | 1,091 | |||||||
The following table reconciles the per Unit non-IFRS financial metrics to the most directly comparable IFRS measures. Net income (loss) per LP unit is reconciled to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net loss per LP unit(1) | $ | 0.01 | $ | (0.16 | ) | $ | (0.32 | ) | $ | (0.60 | ) | ||
| Adjust for the proportionate share of | |||||||||||||
| Depreciation | 0.41 | 0.34 | 1.55 | 1.45 | |||||||||
| Deferred income tax recovery and other | (0.01 | ) | 0.08 | (0.21 | ) | 0.30 | |||||||
| Foreign exchange and financial instruments loss | (0.03 | ) | 0.09 | 0.65 | 0.41 | ||||||||
| Funds From Operations per Unit(3) | $ | 0.38 | $ | 0.35 | $ | 1.67 | $ | 1.56 | |||||
| Normalized long-term average generation adjustment | 0.10 | 0.08 | 0.22 | 0.13 | |||||||||
| Normalized foreign exchange adjustment | — | — | — | — | |||||||||
| Normalized Funds From Operations per Unit(3) | $ | 0.48 | $ | 0.43 | $ | 1.89 | $ | 1.69 | |||||
BROOKFIELD RENEWABLE CORPORATION REPORTS
FOURTH 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 twelve months ended |
||||||||||
| US$ millions (except per unit amounts), unaudited | 2023 | 2022 | 2023 | 2022 | |||||||
| Select Financial Information | |||||||||||
| Net (loss) income attributable to the partnership | $ | (747 | ) | $ | 953 | $ | (181 | ) | $ | 1,503 | |
| Funds From Operations (FFO)(2) | 168 | 139 | 716 | 612 | |||||||
BEPC reported FFO of $716 million for the twelve months ended
| Consolidated Statements of Financial Position | ||||||||
| As of |
||||||||
| UNAUDITED (MILLIONS) |
2023 | 2022 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 627 | $ | 642 | ||||
| Trade receivables and other financial assets(4) | 2,972 | 2,567 | ||||||
| Equity-accounted investments | 644 | 451 | ||||||
| Property, plant and equipment, at fair value and |
44,979 | 38,551 | ||||||
| Deferred income tax and other assets(5) | 286 | 1,077 | ||||||
| Total Assets | $ | 49,508 | $ | 43,288 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(7) | $ | 16,072 | $ | 13,715 | ||||
| Accounts payable and other liabilities(8) | 5,767 | 3,122 | ||||||
| Deferred income tax liabilities | 5,819 | 5,263 | ||||||
| BEPC exchangeable and class B shares | 4,721 | 4,364 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 11,070 | $ | 10,680 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 272 | 271 | ||||||
| The partnership | 5,787 | 17,129 | 5,873 | 16,824 | ||||
| Total Liabilities and Equity | $ | 49,508 | $ | 43,288 | ||||
| Consolidated Statements of Income (Loss) | ||||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||
| Revenues | $ | 1,066 | $ | 956 | $ | 3,967 | $ | 3,778 | ||||||
| Other income | 437 | 14 | 584 | 93 | ||||||||||
| Direct operating costs(9) | (466 | ) | (294 | ) | (1,466 | ) | (1,174 | ) | ||||||
| Management service costs | 6 | (37 | ) | (88 | ) | (169 | ) | |||||||
| Interest expense | (329 | ) | (285 | ) | (1,258 | ) | (1,032 | ) | ||||||
| Share of earnings from equity-accounted investments | (1 | ) | 5 | (8 | ) | 6 | ||||||||
| Foreign exchange and financial instrument gain (loss) | 30 | 33 | 159 | (65 | ) | |||||||||
| Depreciation | (389 | ) | (309 | ) | (1,342 | ) | (1,179 | ) | ||||||
| Other | (75 | ) | (36 | ) | (61 | ) | (90 | ) | ||||||
| Remeasurement of BEPC exchangeable and class B shares | (816 | ) | 1,026 | (106 | ) | 1,800 | ||||||||
| Income tax (expense) recovery | ||||||||||||||
| Current | (34 | ) | (35 | ) | (113 | ) | (133 | ) | ||||||
| Deferred | 69 | 40 | 40 | 15 | ||||||||||
| Net (loss) income | $ | (502 | ) | $ | 1,078 | $ | 308 | $ | 1,850 | |||||
| Net (loss) income attributable to: | ||||||||||||||
| Non-controlling interests: | ||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 241 | $ | 121 | $ | 481 | $ | 336 | ||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 4 | 4 | 8 | 11 | ||||||||||
| The partnership | (747 | ) | 953 | (181 | ) | 1,503 | ||||||||
| $ | (502 | ) | $ | 1,078 | $ | 308 | $ | 1,850 | ||||||
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
|||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | (502 | ) | $ | 1,078 | $ | 308 | $ | 1,850 | ||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 389 | 309 | 1,342 | 1,179 | |||||||||
| Unrealized foreign exchange and financial instruments loss (gain) | (40 | ) | (25 | ) | (159 | ) | 187 | ||||||
| Share of earnings (loss) from equity-accounted investments | 1 | (5 | ) | 8 | (6 | ) | |||||||
| Deferred income tax expense | (69 | ) | (40 | ) | (40 | ) | (15 | ) | |||||
| Other non-cash items | (347 | ) | (4 | ) | (374 | ) | 6 | ||||||
| Remeasurement of exchangeable and class B shares | 816 | (1,026 | ) | 106 | (1,800 | ) | |||||||
| 248 | 287 | 1,191 | 1,401 | ||||||||||
| Net change in working capital and other(10) | 220 | 132 | 409 | (117 | ) | ||||||||
| 468 | 419 | 1,600 | 1,284 | ||||||||||
| Financing activities | |||||||||||||
| Non-recourse borrowings and related party borrowings, net | 586 | (219 | ) | (236 | ) | 647 | |||||||
| Capital contributions from participating non-controlling interests | 454 | 85 | 589 | 369 | |||||||||
| Return of capital to participating non-controlling interests | (139 | ) | — | (169 | ) | (54 | ) | ||||||
| Issuance of exchangeable shares, net | — | — | 251 | — | |||||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests | (232 | ) | (228 | ) | (669 | ) | (1,286 | ) | |||||
| To the partnership | — | (78 | ) | — | (78 | ) | |||||||
| 669 | (440 | ) | (234 | ) | (402 | ) | |||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (499 | ) | — | (580 | ) | — | |||||||
| Acquisitions in equity-accounted investments | (15 | ) | — | (22 | ) | (48 | ) | ||||||
| Investment in property, plant and equipment | (523 | ) | (223 | ) | (1,028 | ) | (847 | ) | |||||
| Proceeds from disposal of subsidiaries, associates and other securities | — | — | 109 | 92 | |||||||||
| Disposal of subsidiaries, associates and other securities, net | — | — | 134 | — | |||||||||
| Restricted cash and other | (6 | ) | 53 | (31 | ) | 65 | |||||||
| (1,043 | ) | (170 | ) | (1,418 | ) | (738 | ) | ||||||
| Foreign exchange gain (loss) on cash | 20 | 19 | 37 | (19 | ) | ||||||||
| Cash and cash equivalents | |||||||||||||
| Increase (decrease) | 114 | (172 | ) | (15 | ) | 125 | |||||||
| Net change in cash classified within assets held for sale | — | (8 | ) | — | (8 | ) | |||||||
| Balance, beginning of period | 513 | 822 | 642 | 525 | |||||||||
| Balance, end of period | $ | 627 | $ | 642 | $ | 627 | $ | 642 | |||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income to Funds From Operations:
| For the three months ended |
For the twelve months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2023 | 2022 | 2023 | 2022 | |||||||||
| Net (loss) income | $ | (502 | ) | $ | 1,078 | $ | 308 | $ | 1,850 | ||||
| Add back or deduct the following: | |||||||||||||
| Depreciation | 389 | 309 | 1,342 | 1,179 | |||||||||
| Foreign exchange and financial instruments (gain) loss | (30 | ) | (33 | ) | (159 | ) | 65 | ||||||
| Deferred income tax (recovery) expense | (69 | ) | (40 | ) | (40 | ) | (15 | ) | |||||
| Other | (383 | ) | 68 | (316 | ) | 242 | |||||||
| Dividends on BEPC exchangeable shares(16) | 61 | 55 | 241 | 220 | |||||||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | 816 | (1,026 | ) | 106 | (1,800 | ) | |||||||
| Amount attributable to equity accounted investments and non-controlling interests(17) | (114 | ) | (272 | ) | (766 | ) | (1,129 | ) | |||||
| Funds From Operations | $ | 168 | $ | 139 | $ | 716 | $ | 612 | |||||
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 - Year Ended December 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our audited Q4 2023 annual report. For a reconciliation of FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Year Ended December 31” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our audited Q4 2023 annual report.
References to Brookfield Renewable are to
Endnotes
(1) For the three and twelve months ended months ended
(2) Refer to "Reconciliation of non-IFRS Measure" and “Cautionary Statement Regarding Use of Non-IFRS Measures” in this document, as well as "Part 9 - Presentation to Stakeholders and Performance Measurement" in the Management's Discussion and Analysis in the 2023 Annual Report.
(3) Average Units outstanding for the for the three and twelve months ended months ended
(4) Balance includes restricted cash, trades receivables and other current assets, financial instrument assets, and due from related parties.
(5) Balance includes deferred income tax assets, assets held for sale, intangible assets, and other long-term assets.
(6) Balance includes current and non-current portion of corporate borrowings.
(7) Balance includes current and non-current portion of non-recourse borrowings on the consolidated statement of financial position.
(8) 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.
(9) Direct operating costs exclude depreciation expense disclosed below.
(10) Balance includes dividends received from equity accounted investments and changes due to or from related parties.
(11) 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 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.
(12) 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.
(13) 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 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 in Funds From Operations.
(14) 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.
(15) 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.
(16) Balance is included within interest expense on the consolidated statements of income (loss).
(17) 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.
(18) Any references to capital refer to Brookfield's cash deployed, excluding any debt financing.
(19) Available liquidity of approximately 4.1 billion refers to "Part 5 - Liquidity and Capital Resources" in the Management Discussion and Analysis in the 2023 annual report.
(20) 12-15% target returns are calculated as annualized cash return on investment.
*updated
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