All amounts in
BROOKFIELD, News,
“2024 was another record year for our business. We delivered 10% FFO per unit growth, developed approximately 7,000 megawatts of capacity and deployed and committed
“The outlook for clean power is stronger than ever, with accelerating demand driven by corporate customers on the back of accelerating data center development and broader electrification, which has only been further enhanced by the new
| For the three months ended |
For the twelve months ended |
||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | |||||||
| Net income (loss) attributable to Unitholders | $ | (9 | ) | $ | 35 | $ | (464 | ) | $ | (100 | ) |
| - per LP unit(1) | (0.06 | ) | 0.01 | (0.89 | ) | (0.32 | |||||
| Funds From Operations (FFO)(2) | 304 | 255 | 1,217 | 1,095 | |||||||
| - per Unit(2)(3) | 0.46 | 0.38 | 1.83 | 1.67 | |||||||
Brookfield Renewable generated record FFO of
Highlights for the year include:
- Secured contracts to deliver an incremental ~19,000 GWh per year of generation to our partners, including signing the landmark renewable energy framework agreement with Microsoft.
- Continued to scale our development activities commissioning ~7,000 megawatts of new renewable energy capacity and are on track to reach a ~10,000-megawatt run rate per annum by 2027.
- Deployed or committed to deploy
$12.5 billion ($1.8 billion , net to Brookfield Renewable) into growth, further diversifying our business, marking our largest year for investment ever and, in December, closed our investments inInfinium , Ørsted and Neoen. - Reached agreements to sell assets generating
$2.8 billion (over$1 billion net to Brookfield Renewable) generating a 2.5x multiple on invested capital and ~25% IRR, locking-in strong returns and providing significant capital to fund further accretive growth. - Strengthened our sector leading balance sheet and liquidity, completing almost
$27 billion in financings across the business, including$800 million in upfinancings, which allowed us to end the year with over$4.3 billion of available liquidity at the corporate level. - On the back of our strong results and in conjunction with our solid liquidity and robust outlook for our business, we are increasing our annual distribution to
$1.492 per unit, an over 5% increase year-on-year. Since Brookfield Renewable was publicly listed in 2011, we have delivered 14 consecutive years of annual distribution growth of at least 5% each year.
Dislocated Markets Create Opportunity
The renewables sector has traded down in the public markets on weaker sentiment stemming from the new
Following several decades of modest electricity demand growth, we are experiencing a dramatic shift driven by the AI revolution, one of (if not) the most significant advancement in technology in our lifetime. This is driving demand for our product, which has never been higher, supporting the highest development returns we have seen in over a decade. The current power market fundamentals mean that demand for derisked, long-life operating power assets is also very robust, which is allowing us to recycle assets and crystalize our development gains at extremely attractive levels.
We saw this in the past year, where we closed the sales of Saeta and a 50% interest in Shepherds Flat as well as reached agreements to sell several other assets that generated average returns of ~25% IRR, or nearly double our return targets. This is enabling us to not only secure strong returns for our shareholders but also fund our growth without the use of public equity markets, at a time when the opportunity to invest is greatest.
Over many years, we have consciously focused our business on the lowest-cost and most mature renewable technologies that have the greatest demand from corporate customers and are not reliant on government subsidy. This strategy has positioned us very favorably in the current market – we are not exposed to the sectors of the market seeing reduced support and, instead, are seeing record demand for our product. Given our scale, technology focus, and available capital, we feel we are the best positioned across the industry to capture the accelerating corporate demand.
We feel that executing our business plan will create significant value in our company and as market sentiment passes we will see that translate into our shares. And our strong position, combined with lower public share prices across the sector and increased uncertainty for some private market investors, could create significant opportunity to acquire assets for value and further grow our business.
Our Growth Outlook is Strong, Especially in the
Our pipeline of growth opportunities is as robust as ever and is specifically focused on adding platforms and projects that can meet the growing demand from corporate buyers of electricity. We are in various stages of advancing several large-scale transactions where we will provide capital or strategic solutions at good value. With our global team, capabilities and scale capital we can source and execute opportunities that few other players can, in the most attractive jurisdictions that offer the highest risk-adjusted returns.
Recently there has been much discussion around the impact of potential regulatory changes on the renewables sector in the
More important to our business are the current fundamentals for clean power, which are strong in the
Given the accelerating power needs of large corporate customers to support the expansion of their businesses, and the position of our renewable technologies as the lowest cost source of bulk power regardless of incentive schemes, we are well positioned to deliver the most viable solution to meet their needs across all our key markets.
The opportunity to capture this demand is immense, but it is most valuable to those who already have a pipeline of advanced projects and development pipeline that can be accelerated. From this perspective, our significant investment in the
As one of the largest operators and developers of renewable power assets we also have very strong relationships with a diverse group of global suppliers. We have further strengthened our relationships and secured our development pipeline through the execution of framework agreements with a number of global and
With this supportive backdrop and our competitive advantages of scale capital, deep operating, development and procurement capabilities and market positioning we are more confident than ever on the growth prospects of the business, particularly in the
Our
Increasingly we have been able to demonstrate our full cycle value creation through the sale of derisked operating assets and integrated platforms. Since 2020, we have generated almost
Our development pipeline now stands at approximately 200,000 megawatts and our pace of commissioning projects is tracking towards 10,000 megawatts a year and growing. The scale of our business and our growing development activities have translated into more asset recycling opportunities for us than ever before, as we deliver an increasing number of high-quality, derisked, cash-generating assets into operation, which are in high demand today from investors.
We are also selling our scale platforms with in-house development capabilities and development projects. In December, we closed the sale of Saeta, where we realized the significant value we created through operational enhancements and the build-out of their development function, generating 3 times our invested capital over our relatively short hold period.
In 2024 alone, our commissioned capacity and asset recycling proceeds tripled from the average of the prior three years, highlighted by the delivery of ~2,400 megawatts into production in the
Going forward, asset recycling will continue as a reliable and consistent way for us to deliver strong returns for our shareholders and generate capital to fund growth. We expect to build off of this strong momentum in 2025 and deliver even larger and more recurring monetizations in the future at similarly healthy returns.
Operating Results
We generated FFO of
We continue to target 10%+ FFO per unit growth going forward and today have more visibility on achieving this target than ever before. Almost 90% of our generation is contracted with approximately 70% of revenue linked to inflation, helping to expand the operating margins we earn. We also have significant re-contracting opportunities with our staggered contract profile. We continue to successfully recontract available generation at substantial increases to expiring contracts. These activities will continue to enhance our FFO in the current rising pricing environment over the medium term and provide substantial capacity to fund future growth.
Our asset rotation is scaling and we will continue to crystalize gains on an ongoing basis from asset sales, contributing to our earnings. We will also generate incremental FFO going forward from our development activities, as we bring assets online from our large pipeline of advanced staged projects, in addition to our recently closed acquisitions that we expect to contribute to growth meaningfully in 2025 and beyond.
Our hydroelectric segment delivered FFO of
While recent performance across the North American fleet has been challenged due to unusually low precipitation, we expect this to normalize over the long-term and contribute to growth in 2025 from the lows this year. We continue to see the long-term strategic benefits of our hydro portfolio and our commercial relationships. Demand for dispatchable clean generation in our markets is very strong on the back of growing electricity needs to support data center build-out and broader electrification. And this is translating to favorable contract terms for our hydros, highlighted more recently by two agreements signed with
Our large portfolio of hydro assets with their rolling contract profile has us well positioned to execute additional long-term contracts in the current market with favorable terms similar to those recently signed. We have ~6,000 GWh per year of generation coming available for contract over the next five years, which we expect to provide a significant uplift on cash flows from higher realized pricing and significant funding for growth from upfinancing opportunities on the back of executing new contracts.
Our wind and solar segments generated a combined
Our distributed energy, storage, and sustainable solutions segments also saw significant growth year-over-year generating a combined
We also closed our investment in leading eFuels manufacturer
Balance Sheet & Liquidity
We finished the year with over
We successfully completed nearly
Senior Appointments
We are pleased to announce the appointment of
Jennifer will continue to serve as General Counsel. Wyatt will assume the role of Head of our North American Asset Management group, overseeing the operations we have in the region. Wyatt will succeed
We are also pleased to announce the appointment of
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 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) 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 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 | $ | 3,135 | $ | 1,141 | ||||
| Trade receivables and other financial assets(4) | 6,705 | 5,237 | ||||||
| Equity-accounted investments | 2,740 | 2,546 | ||||||
| Property, plant and equipment, at fair value and |
78,909 | 65,949 | ||||||
| Deferred income tax and other assets(5) | 3,320 | 1,255 | ||||||
| Total Assets | $ | 94,809 | $ | 76,128 | ||||
| Liabilities | ||||||||
| Corporate borrowings(6) | $ | 3,802 | $ | 2,833 | ||||
| Borrowings which have recourse only to assets they finance(7) | 30,588 | 26,869 | ||||||
| Accounts payable and other liabilities(8) | 15,524 | 9,273 | ||||||
| Deferred income tax liabilities | 8,439 | 7,174 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 26,168 | $ | 18,863 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 50 | 55 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,457 | 2,684 | ||||||
| BEPC exchangeable shares | 2,269 | 2,479 | ||||||
| Preferred equity | 537 | 583 | ||||||
| Perpetual subordinated notes | 737 | 592 | ||||||
| Preferred limited partners' equity | 634 | 760 | ||||||
| Limited partners' equity | 3,604 | 36,456 | 3,963 | 29,979 | ||||
| Total Liabilities and Equity | $ | 94,809 | $ | 76,128 | ||||
| Consolidated Statements of Operating Results | |||||||||||||
| UNAUDITED | For the three months ended |
For the twelve months ended |
|||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues | $ | 1,432 | $ | 1,323 | $ | 5,876 | $ | 5,038 | |||||
| Other income | 376 | 468 | 627 | 671 | |||||||||
| Direct operating costs(9) | (705 | ) | (611 | ) | (2,580 | ) | (1,933 | ) | |||||
| Management service costs | (47 | ) | (50 | ) | (204 | ) | (205 | ) | |||||
| Interest expense | (509 | ) | (461 | ) | (1,988 | ) | (1,627 | ) | |||||
| Share of earnings (loss) from equity-accounted investments | (18 | ) | 140 | (88 | ) | 186 | |||||||
| Foreign exchange and financial instrument gain | 458 | 70 | 880 | 502 | |||||||||
| Depreciation | (477 | ) | (517 | ) | (2,010 | ) | (1,852 | ) | |||||
| Other | (537 | ) | (210 | ) | (713 | ) | (212 | ) | |||||
| Income tax recovery (expense) | |||||||||||||
| Current | 166 | (39 | ) | 160 | (128 | ) | |||||||
| Deferred | 49 | 151 | 31 | 176 | |||||||||
| Net income (loss) | $ | 188 | $ | 264 | $ | (9 | ) | $ | 616 | ||||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (197 | ) | $ | (229 | ) | $ | (455 | ) | $ | (716 | ) | |
| Net income (loss) attributable to Unitholders | $ | (9 | ) | $ | 35 | $ | (464 | ) | $ | (100 | ) | ||
| Basic and diluted income (loss) per LP unit | $ | (0.06 | ) | $ | 0.01 | $ | (0.89 | ) | $ | (0.32 | ) | ||
| Consolidated Statements of Cash Flows | |||||||||||||
| For the three months ended |
For the twelve months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | 2024 | 2023 | |||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | 188 | $ | 264 | $ | (9 | ) | $ | 616 | ||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 477 | 517 | 2,010 | 1,852 | |||||||||
| Unrealized foreign exchange and financial instrument (gain) loss | (527 | ) | (82 | ) | (977 | ) | (492 | ) | |||||
| Share of (earnings) loss from equity-accounted investments | 18 | (140 | ) | 88 | (186 | ) | |||||||
| Deferred income tax recovery | (49 | ) | (151 | ) | (31 | ) | (176 | ) | |||||
| Other non-cash items | 228 | (234 | ) | 391 | (282 | ) | |||||||
| 335 | 174 | 1,472 | 1,332 | ||||||||||
| Net change in working capital and other(10) | (114 | ) | 283 | (198 | ) | 533 | |||||||
| 221 | 457 | 1,274 | 1,865 | ||||||||||
| Financing activities | |||||||||||||
| Net corporate borrowings | 139 | — | 725 | 293 | |||||||||
| Corporate credit facilities, net | 140 | — | 240 | — | |||||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 4,654 | 2,218 | 6,749 | 1,328 | |||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 1,501 | 393 | 2,026 | 2,345 | |||||||||
| Net Issuance (Repurchase) of equity instruments and related costs | — | (31 | ) | (37 | ) | 587 | |||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (423 | ) | (253 | ) | (993 | ) | (967 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (263 | ) | (251 | ) | (1,061 | ) | (990 | ) | |||||
| 5,748 | 2,076 | 7,649 | 2,596 | ||||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (2,831 | ) | (704 | ) | (2,940 | ) | (791 | ) | |||||
| Investment in property, plant and equipment | (1,155 | ) | (1,149 | ) | (3,733 | ) | (2,809 | ) | |||||
| Purchase of associates and other assets | (109 | ) | (590 | ) | (93 | ) | (721 | ) | |||||
| Restricted cash and other | 34 | (7 | ) | (34 | ) | (35 | ) | ||||||
| (4,061 | ) | (2,450 | ) | (6,800 | ) | (4,356 | ) | ||||||
| Foreign exchange gain (loss) on cash | (67 | ) | 24 | (95 | ) | 38 | |||||||
| Cash and cash equivalents | |||||||||||||
| Increase | 1,841 | 107 | 2,028 | 143 | |||||||||
| Net change in cash classified within assets held for sale | 28 | — | (34 | ) | — | ||||||||
| Balance, beginning of period | 1,266 | 1,034 | 1,141 | 998 | |||||||||
| Balance, end of period | $ | 3,135 | $ | 1,141 | $ | 3,135 | $ | 1,141 | |||||
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) | ||||||||||||||||||||||||||
| UNAUDITED | Renewable Actual Generation |
Renewable LTA Generation |
Revenues | Adjusted EBITDA(2) | FFO(2) | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Hydroelectric | |||||||||||||||||||||||||||
| 1,880 | 2,456 | 2,910 | 2,910 | $ | 165 | $ | 199 | $ | 88 | $ | 121 | $ | 22 | $ | 55 | ||||||||||||
| 904 | 892 | 983 | 1,036 | 48 | 59 | 41 | 40 | 36 | 34 | ||||||||||||||||||
| 776 | 789 | 1,009 | 995 | 100 | 87 | 50 | 41 | 28 | 16 | ||||||||||||||||||
| 3,560 | 4,137 | 4,902 | 4,941 | 313 | 345 | 179 | 202 | 86 | 105 | ||||||||||||||||||
| Wind | 2,289 | 1,978 | 2,588 | 2,529 | 172 | 138 | 265 | 131 | 214 | 103 | |||||||||||||||||
| Utility-scale solar | 731 | 658 | 896 | 833 | 58 | 85 | 99 | 121 | 70 | 93 | |||||||||||||||||
| Distributed energy & storage | 288 | 272 | 230 | 189 | 50 | 51 | 37 | 42 | 23 | 26 | |||||||||||||||||
| Sustainable solutions | — | — | — | — | 144 | 93 | 47 | 28 | 38 | 22 | |||||||||||||||||
| Corporate | — | — | — | — | — | — | (9 | ) | 6 | (127 | ) | (94 | ) | ||||||||||||||
| Total | 6,868 | 7,045 | 8,616 | 8,492 | $ | 737 | $ | 712 | $ | 618 | $ | 530 | $ | 304 | $ | 255 | |||||||||||
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) | |||||||||||||||||||||||||
| UNAUDITED | Renewable Actual Generation |
Renewable LTA Generation |
Revenues | Adjusted EBITDA(2) | FFO(2) | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||
| 10,821 | 11,603 | 12,155 | 12,161 | $ | 932 | $ | 1,029 | $ | 575 | $ | 670 | $ | 300 | $ | 402 | |||||||||||
| 3,809 | 3,974 | 4,043 | 4,099 | 208 | 240 | 151 | 172 | 130 | 146 | |||||||||||||||||
| 2,950 | 3,408 | 3,646 | 3,647 | 338 | 293 | 176 | 175 | 81 | 76 | |||||||||||||||||
| 17,580 | 18,985 | 19,844 | 19,907 | 1,478 | 1,562 | 902 | 1,017 | 511 | 624 | |||||||||||||||||
| Wind | 8,276 | 6,367 | 9,604 | 7,865 | 629 | 511 | 631 | 493 | 484 | 382 | ||||||||||||||||
| Utility-scale solar | 3,712 | 2,489 | 4,365 | 3,123 | 416 | 365 | 464 | 372 | 349 | 261 | ||||||||||||||||
| Distributed energy & storage | 1,379 | 1,241 | 1,111 | 956 | 227 | 241 | 229 | 180 | 186 | 133 | ||||||||||||||||
| Sustainable solutions | — | — | — | — | 496 | 147 | 165 | 61 | 143 | 52 | ||||||||||||||||
| Corporate | — | — | — | — | — | — | 17 | 59 | (456 | ) | (357 | ) | ||||||||||||||
| Total | 30,947 | 29,082 | 34,924 | 31,851 | $ | 3,246 | $ | 2,826 | $ | 2,408 | $ | 2,182 | $ | 1,217 | $ | 1,095 | ||||||||||
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
| UNAUDITED (MILLIONS) |
Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 71 | $ | 203 | $ | (134 | ) | $ | 25 | $ | 105 | $ | (82 | ) | $ | 188 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 158 | 184 | 87 | 45 | 3 | — | 477 | ||||||||||||||
| Deferred income tax recovery (expense) | (15 | ) | 21 | (11 | ) | (32 | ) | 5 | (17 | ) | (49 | ) | |||||||||
| Foreign exchange and financial instrument gain | (60 | ) | (86 | ) | (120 | ) | (65 | ) | (114 | ) | (13 | ) | (458 | ) | |||||||
| Other(11) | 11 | 81 | 330 | 115 | 22 | 8 | 567 | ||||||||||||||
| Management service costs | — | — | — | — | — | 47 | 47 | ||||||||||||||
| Interest expense | 185 | 136 | 97 | 38 | 4 | 49 | 509 | ||||||||||||||
| Current income tax recovery (expense) | 16 | (16 | ) | (50 | ) | (115 | ) | — | (1 | ) | (166 | ) | |||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) | (187 | ) | (258 | ) | (100 | ) | 26 | 22 | — | (497 | ) | ||||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 179 | $ | 265 | $ | 99 | $ | 37 | $ | 47 | $ | (9 | ) | $ | 618 | ||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| UNAUDITED (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 (gain) loss | (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 attributable to Unitholders | $ | 202 | $ | 131 | $ | 121 | $ | 42 | $ | 28 | $ | 6 | $ | 530 | |||||||
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
| UNAUDITED (MILLIONS) |
Hydroelectric | Wind | Utility-scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 250 | $ | 149 | $ | (150 | ) | $ | 62 | $ | 110 | $ | (430 | ) | $ | (9 | ) | ||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 636 | 805 | 414 | 144 | 11 | — | 2,010 | ||||||||||||||
| Deferred income tax expense (recovery) | 2 | (1 | ) | 6 | 1 | 4 | (43 | ) | (31 | ) | |||||||||||
| Foreign exchange and financial instrument loss (gain) | (122 | ) | (201 | ) | (175 | ) | (199 | ) | (177 | ) | (6 | ) | (880 | ) | |||||||
| Other(11) | 18 | 84 | 384 | 178 | 41 | 94 | 799 | ||||||||||||||
| Management service costs | — | — | — | — | — | 204 | 204 | ||||||||||||||
| Interest expense | 768 | 491 | 355 | 159 | 14 | 201 | 1,988 | ||||||||||||||
| Current income tax expense | 70 | (6 | ) | (85 | ) | (136 | ) | — | (3 | ) | (160 | ) | |||||||||
| Amount attributable to equity accounted investments and non-controlling interests(12) | (720 | ) | (690 | ) | (285 | ) | 20 | 162 | — | (1,513 | ) | ||||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 902 | $ | 631 | $ | 464 | $ | 229 | $ | 165 | $ | 17 | $ | 2,408 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the twelve months ended
| UNAUDITED (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 attributable to Unitholders | $ | 1,017 | $ | 493 | $ | 372 | $ | 180 | $ | 61 | $ | 59 | $ | 2,182 | |||||||
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) |
2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 188 | $ | 264 | $ | (9 | ) | $ | 616 | ||||||
| Add back or deduct the following: | |||||||||||||||
| Depreciation | 477 | 517 | 2,010 | 1,852 | |||||||||||
| Deferred income tax recovery | (49 | ) | (151 | ) | (31 | ) | (176 | ) | |||||||
| Foreign exchange and financial instruments gain (loss) | (458 | ) | (70 | ) | (880 | ) | (502 | ) | |||||||
| Other(15) | 567 | (223 | ) | 799 | (106 | ) | |||||||||
| Amount attributable to equity accounted investment and non-controlling interest(14) | (421 | ) | (82 | ) | (672 | ) | (589 | ) | |||||||
| Funds From Operations | $ | 304 | $ | 255 | $ | 1,217 | $ | 1,095 | |||||||
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 |
||||||||||||||
| UNAUDITED | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) per LP unit(1) | $ | (0.06 | ) | $ | 0.01 | $ | (0.89 | ) | $ | (0.32 | ) | ||||
| Adjust for the proportionate share of | |||||||||||||||
| Depreciation | 0.39 | 0.41 | 1.55 | 1.55 | |||||||||||
| Foreign exchange and financial instruments loss | (0.24 | ) | (0.01 | ) | (0.41 | ) | (0.21 | ) | |||||||
| Deferred income tax recovery and other | 0.37 | (0.03 | ) | 1.58 | 0.65 | ||||||||||
| Funds From Operations per Unit(3) | $ | 0.46 | $ | 0.38 | $ | 1.83 | $ | 1.67 | |||||||
| Brookfield |
| Press Release |
BROOKFIELD RENEWABLE CORPORATION REPORTS
FOURTH QUARTER RESULTS
All amounts in
The Board of Directors of
The Shares of BEPC 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 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Select Financial Information | |||||||||||||
| Net income (loss) attributable to the partnership | $ | 761 | $ | (747 | ) | $ | 236 | $ | (181 | ) | |||
| Funds From Operations (FFO)(2) | 199 | 168 | 794 | 716 | |||||||||
BEPC reported FFO of $794 million for the twelve months ended
| Consolidated Statements of Financial Position | ||||||||
| As of |
||||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 624 | $ | 627 | ||||
| Trade receivables and other financial assets(4) | 3,162 | 2,972 | ||||||
| Equity-accounted investments | 753 | 644 | ||||||
| Property, plant and equipment, at fair value and |
39,388 | 44,892 | ||||||
| Deferred income tax and other assets(5) | 202 | 286 | ||||||
| Total Assets | $ | 44,129 | $ | 49,421 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(7) | $ | 13,775 | $ | 16,072 | ||||
| Accounts payable and other liabilities(8) | 3,153 | 5,680 | ||||||
| Deferred income tax liabilities | 6,493 | 5,819 | ||||||
| Shares classified as financial liabilities | 8,600 | 4,721 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 10,508 | $ | 11,070 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 259 | 272 | ||||||
| The partnership | 1,341 | 12,108 | 5,787 | 17,129 | ||||
| Total Liabilities and Equity | $ | 44,129 | $ | 49,421 | ||||
| Consolidated Statements of Income (Loss) | ||||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | $ | 987 | $ | 1,066 | $ | 4,142 | $ | 3,967 | ||||||
| Other income | 333 | 437 | 429 | 584 | ||||||||||
| Direct operating costs(9) | (457 | ) | (466 | ) | (1,767 | ) | (1,466 | ) | ||||||
| Management service costs | (35 | ) | 6 | (106 | ) | (88 | ) | |||||||
| Interest expense | (635 | ) | (329 | ) | (1,667 | ) | (1,258 | ) | ||||||
| Share of loss from equity-accounted investments | (2 | ) | (1 | ) | (24 | ) | (8 | ) | ||||||
| Foreign exchange and financial instrument gain | 160 | 30 | 238 | 159 | ||||||||||
| Depreciation | (292 | ) | (389 | ) | (1,262 | ) | (1,342 | ) | ||||||
| Other | (47 | ) | (75 | ) | (76 | ) | (61 | ) | ||||||
| Remeasurement of shares classified as financial liability | 1,034 | (816 | ) | 693 | (106 | ) | ||||||||
| Income tax (expense) recovery | ||||||||||||||
| Current | (37 | ) | (34 | ) | (100 | ) | (113 | ) | ||||||
| Deferred | (64 | ) | 69 | (67 | ) | 40 | ||||||||
| Net income (loss) | $ | 945 | $ | (502 | ) | $ | 433 | $ | 308 | |||||
| Net income (loss) attributable to: | ||||||||||||||
| Non-controlling interests: | ||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 181 | $ | 241 | $ | 193 | $ | 481 | ||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 3 | 4 | 4 | 8 | ||||||||||
| The partnership | 761 | (747 | ) | 236 | (181 | ) | ||||||||
| $ | 945 | $ | (502 | ) | $ | 433 | $ | 308 | ||||||
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the twelve months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | 945 | $ | (502 | ) | $ | 433 | $ | 308 | ||||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 292 | 389 | 1,262 | 1,342 | |||||||||
| Unrealized foreign exchange and financial instruments gain | (160 | ) | (40 | ) | (265 | ) | (159 | ) | |||||
| Share of earnings from equity-accounted investments | 2 | 1 | 24 | 8 | |||||||||
| Deferred income tax expense | 64 | (69 | ) | 67 | (40 | ) | |||||||
| Other non-cash items | (249 | ) | (334 | ) | (150 | ) | (361 | ) | |||||
| Remeasurement of shares classified as financial liability | (1,034 | ) | 816 | (693 | ) | 106 | |||||||
| (140 | ) | 261 | 678 | 1,204 | |||||||||
| Net change in working capital and other(10) | (16 | ) | 210 | (129 | ) | 399 | |||||||
| (156 | ) | 471 | 549 | 1,603 | |||||||||
| Financing activities | |||||||||||||
| Non-recourse borrowings and related party borrowings, net | 397 | 584 | 467 | (238 | ) | ||||||||
| Capital contributions from participating non-controlling interests | 48 | 54 | 268 | 189 | |||||||||
| Return of capital to participating non-controlling interests | (53 | ) | (139 | ) | (133 | ) | (169 | ) | |||||
| Issuance of exchangeable shares, net | — | — | — | 251 | |||||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests | (89 | ) | (232 | ) | (410 | ) | (669 | ) | |||||
| 303 | 267 | 192 | (636 | ) | |||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | (99 | ) | — | (180 | ) | |||||||
| Acquisitions in equity-accounted investments | (60 | ) | (15 | ) | (110 | ) | (22 | ) | |||||
| Investment in property, plant and equipment | (311 | ) | (523 | ) | (949 | ) | (1,028 | ) | |||||
| Disposal of subsidiaries, associates and other securities, net | 243 | — | 407 | 243 | |||||||||
| Restricted cash and other | 3 | (6 | ) | (13 | ) | (31 | ) | ||||||
| (125 | ) | (643 | ) | (665 | ) | (1,018 | ) | ||||||
| Foreign exchange gain (loss) on cash | (46 | ) | 19 | (77 | ) | 36 | |||||||
| Cash and cash equivalents | |||||||||||||
| (Decrease) increase | (24 | ) | 114 | (1 | ) | (15 | ) | ||||||
| Net change in cash classified within assets held for sale | 29 | — | (2 | ) | — | ||||||||
| Balance, beginning of period | 619 | 513 | 627 | 642 | |||||||||
| Balance, end of period | $ | 624 | $ | 627 | $ | 624 | $ | 627 | |||||
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) |
2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income (loss) | $ | 945 | $ | (502 | ) | $ | 433 | $ | 308 | |||||
| Add back or deduct the following: | ||||||||||||||
| Depreciation | 292 | 389 | 1,262 | 1,342 | ||||||||||
| Foreign exchange and financial instruments gain | (160 | ) | (30 | ) | (238 | ) | (159 | ) | ||||||
| Deferred income tax expense (recovery) | 64 | (69 | ) | 67 | (40 | ) | ||||||||
| Other(15) | 51 | (383 | ) | (62 | ) | (316 | ) | |||||||
| Dividends on shares classified as financial liabilities(16) | 356 | 61 | 549 | 241 | ||||||||||
| Remeasurement of shares classified as financial liabilities | (1,034 | ) | 816 | (693 | ) | 106 | ||||||||
| Amount attributable to equity accounted investments and non-controlling interests(17) | (315 | ) | (114 | ) | (524 | ) | (766 | ) | ||||||
| Funds From Operations | $ | 199 | $ | 168 | $ | 794 | $ | 716 | ||||||
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 2024 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 2024 annual report.
References to Brookfield Renewable are to
Endnotes
(1) For the three and twelve months ended months ended
(2) Refer Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" and "Cautionary Statement Regarding Use of Non-IFRS Measures".
(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, 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.
(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) 12-15% target returns are calculated as annualized cash return on investment.
Source:
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