"Our business performed well in the second quarter as we continue to surface margin expansion opportunities and advance our project development," said Sachin Shah, CEO of Brookfield Renewable. "Combined with a broadening investible universe and strong growth prospects, we remain confident in our target of delivering 12-15% total annualized returns to our shareholders."
Financial Results ---------------------------------------------------------------------------- For the periods ended June30 US$ millions (except per unit or otherwise noted) Three Months Ended Six Months Ended Unaudited 2017 2016 2017 2016 ---------------------------------------------------------------------------- Generation (GWh) - Total 11,618 8,792 22,102 17,821 - Brookfield Renewable's share 6,719 5,197 12,880 11,093 Net income (loss)$ 85 $ (19) $ 112 $ 60 Per LP Unit$ 0.13 $ (0.11) $ 0.18 $ 0.05 Funds From Operations (FFO)(1)$ 181 $ 105 $ 347 $ 292 Per Unit(1)(2)$ 0.61 $ 0.37 $ 1.16 $ 1.05 Normalized FFO(1)(3)$ 170 $ 155 $ 306 $ 263 Per Unit(1)(2)(3)$ 0.57 $ 0.55 $ 1.02 $ 0.94 ---------------------------------------------------------------------------- (1) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non- IFRS Measures". (2) For the three and six months ended June 30, 2017, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 299.2 million and 299.2 million, respectively (2016: 280.8 million and 278.2 million). (3) Normalized FFO assumes long-term average generation in North America, the 2017 reduced contract price at our facility inLouisiana , and uses 2016 average foreign currency rates for the respective periods.
Brookfield Renewable reported net income for the three months ended June 30, 2017 of
Adjusted EBITDA and FFO were
Financial Results and Operations
Our business in
This quarter, our European business achieved strong availability, and continued to advance a number of key development contracting initiatives. We commissioned our 15 MW Crockandun wind farm in
In
Asset availability in
Update on Growth Initiatives
We continue to make progress on closing the TerraForm Power and TerraForm Global transactions, which we announced in the first quarter. Certain important milestones have been met, including bankruptcy court approval. The transactions are still expected to close in the second half of this year.
Following the quarter end, together with our institutional partners, we agreed to acquire a 25% interest in the
We maintain conviction that we can continue to deliver 5% to 9% distribution growth based on organic levers within our business. Inflation escalators that are embedded in many of our contracts are on track to contribute 1% to 2% to bottom line FFO growth this year. We are also expecting to deliver 1% to 2% annual FFO growth from margin expansion across our business as we both improve productivity and optimize the revenue profile of our portfolios. Finally, our proprietary development pipeline should add
Liquidity
Our liquidity position today exceeds
At quarter end, the weighted average remaining duration of our project-level debt was 9 years and our exposure to floating rate debt was 17%. In
Distribution and Declaration
The next quarterly distribution in the amount of
The regular quarterly dividends on Brookfield Renewable's preferred shares and preferred LP units have also been declared.
Distribution Currency Option
The quarterly distributions payable on the Partnership's LP Units are declared in
Registered unitholders resident in
Distribution Reinvestment Plan
Brookfield Renewable maintains a Distribution Reinvestment Plan ("DRIP") which allows holders of its LP Units who are resident in
Additional information on Brookfield Renewable's distributions and preferred share dividends can be found on our website at https://bep.brookfield.com.
Brookfield Renewable Partners
Brookfield Renewable Partners operates one of the world's largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric and wind facilities in
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with approximately
Please note that Brookfield Renewable's previous audited annual and unaudited quarterly reports have been filed on SEDAR and can also be found in the shareholders section of our website at https://bep.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable's 2017 Second Quarter Results as well as the Letter to Shareholders and Supplemental Information on Brookfield Renewable's website at https://bep.brookfield.com.
The conference call can be accessed via webcast on August 4, 2017 at 9:00 a.m. Eastern Time at http://services.choruscall.ca/links/brenewablep20170804.html or via teleconference at 1-800-319-4610 toll free in
Cautionary Statement Regarding Forward-looking Statements
This news release contains forward-looking statements and information within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of Section 27A of the
The future performance and prospects of Brookfield Renewable are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Renewable to differ materially from those contemplated or implied by the statements in this news release include economic conditions in the jurisdictions in which we operate; our ability to sell products and services under contract or into merchant energy markets; weather conditions and other factors which may impact generation levels at our facilities; changes to government regulations, including incentives for renewable energy; our ability to grow within our current markets or expand into new markets; our ability to complete development and capital projects on time and on budget; our inability to finance our operations or fund future acquisitions due to the status of the capital markets; the ability to effectively source, complete and integrate new acquisitions and to realize the benefits of such acquisitions; health, safety, security or environmental incidents; regulatory risks relating to the power markets in which we operate, including relating to the regulation of our assets, licensing and litigation; risks relating to our internal control environment; our lack of control over all of our operations; contract counterparties not fulfilling their obligations; and other risks associated with the construction, development and operation of power generating facilities.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this news release and should not be relied upon as representing our views as of any subsequent date. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the forward-looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see "Risk Factors" included in our Form 20-F.
Cautionary Statement Regarding Use of Non-IFRS Measures
This news release contains references to Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit, Normalized Funds From Operations and Normalized Funds From Operations per Unit, which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit, Normalized Funds From Operations and Normalized Funds From Operations per Unit used by other entities. We believe that these are useful supplemental measures that may assist investors in assessing the operating and financial performance of our operating portfolio. Neither Adjusted EBITDA, Funds From Operations, Adjusted Funds from Operations, Adjusted Funds From Operations per Unit, Normalized Funds From Operations nor Normalized Funds From Operations 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.
References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise.
BROOKFIELD RENEWABLE PARTNERS L.P. CONSOLIDATED STATEMENTS OF INCOME (LOSS) ---------------------------------------------------------------------------- Three months ended UNAUDITED Jun 30 (MILLIONS, EXCEPT AS NOTED) 2017 2016 ---------------------------------------------------------------------------- Revenues$ 683 $ 627 Other income 10 10 Direct operating costs (240) (262) Management service costs (21) (15) Interest expense - borrowings (156) (161) Share of earnings (loss) from equity-accounted investments 2 (1) Unrealized financial instruments loss (6) (2) Depreciation (198) (204) Other 23 - Income tax expense Current 4 (5) Deferred (16) (6) ---------------------------------------------------------------------------- (12) (11) ---------------------------------------------------------------------------- Net income (loss)$ 85 $ (19) ---------------------------------------------------------------------------- Net income (loss) attributable to: Non-controlling interests Participating non-controlling interests - in operating subsidiaries$ 34 $ (1) General partnership interest in a holding subsidiary held by Brookfield 1 - Participating non-controlling interests - in a holding subsidiary - Redeemable/ Exchangeable units held by Brookfield 16 (13) Preferred equity 6 7 Preferred limited partners' equity 7 3 Limited partners' equity 21 (15) ----------------------------------------------------------------------------$ 85 $ (19) ---------------------------------------------------------------------------- Basic and diluted earnings (loss) per LP Unit$ 0.13 $ (0.11) ----------------------------------------------------------------------------BROOKFIELD RENEWABLE PARTNERS L.P. CONSOLIDATED STATEMENTS OF INCOME (LOSS) ---------------------------------------------------------------------------- Six months ended UNAUDITED Jun 30 (MILLIONS, EXCEPT AS NOTED) 2017 2016 ---------------------------------------------------------------------------- Revenues$ 1,360 $ 1,301 Other income 18 32 Direct operating costs (473) (505) Management service costs (37) (30) Interest expense - borrowings (319) (288) Share of earnings (loss) from equity-accounted investments (1) - Unrealized financial instruments loss (26) (2) Depreciation (398) (383) Other 21 (12) Income tax expense Current (12) (12) Deferred (21) (41) ---------------------------------------------------------------------------- (33) (53) ---------------------------------------------------------------------------- Net income (loss)$ 112 $ 60 ---------------------------------------------------------------------------- Net income (loss) attributable to: Non-controlling interests Participating non-controlling interests - in operating subsidiaries$ 33 $ 26 General partnership interest in a holding subsidiary held by Brookfield 1 - Participating non-controlling interests - in a holding subsidiary - Redeemable/ Exchangeable units held by Brookfield 23 7 Preferred equity 12 13 Preferred limited partners' equity 13 6 Limited partners' equity 30 8 ----------------------------------------------------------------------------$ 112 $ 60 ---------------------------------------------------------------------------- Basic and diluted earnings (loss) per LP Unit$ 0.18 $ 0.05 ----------------------------------------------------------------------------BROOKFIELD RENEWABLE PARTNERS L.P. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ---------------------------------------------------------------------------- UNAUDITED Jun 30 Dec 31 (MILLIONS) 2017 2016 ---------------------------------------------------------------------------- Assets Current assets Cash and cash equivalents$ 174 $ 223 Restricted cash 125 121 Trade receivables and other current assets 406 454 Financial instrument assets 6 55 Due from related parties 63 54 ---------------------------------------------------------------------------- 774 907 Financial instrument assets 199 145 Equity-accounted investments 205 206 Property, plant and equipment, at fair value 24,849 25,257 Goodwill 885 896 Deferred income tax assets 145 150 Other long-term assets 163 176 ----------------------------------------------------------------------------$ 27,220 $ 27,737 ---------------------------------------------------------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities$ 419 $ 467 Financial instrument liabilities 55 156 Due to related parties 86 76 Current portion of long-term debt 952 1,034 ---------------------------------------------------------------------------- 1,512 1,733 Financial instrument liabilities 143 72 Long-term debt and credit facilities 9,040 9,148 Deferred income tax liabilities 3,820 3,802 Other long-term liabilities 305 310 ---------------------------------------------------------------------------- 14,820 15,065 ---------------------------------------------------------------------------- Equity Non-controlling interests Participating non-controlling interests - in operating subsidiaries 5,348 5,589 General partnership interest in a holding subsidiary held by Brookfield 53 55 Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield 2,575 2,680 Preferred equity 597 576 Preferred limited partners' equity 511 324 Limited partners' equity 3,316 3,448 ---------------------------------------------------------------------------- 12,400 12,672 ----------------------------------------------------------------------------$ 27,220 $ 27,737 ----------------------------------------------------------------------------BROOKFIELD RENEWABLE PARTNERS L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS ---------------------------------------------------------------------------- Three months ended UNAUDITED Jun 30 (MILLIONS) 2017 2016 ---------------------------------------------------------------------------- Operating activities Net income (loss)$ 85 $ (19) Adjustments for the following non-cash items: Depreciation 198 204 Unrealized financial instrument loss 6 2 Share of (earnings) loss from equity-accounted investments (2) 1 Deferred income tax expense 16 6 Other non-cash items (32) 4 Dividends received from equity-accounted investments 3 3 Changes in due to or from related parties (5) 25 Net change in working capital balances (27) (87) ---------------------------------------------------------------------------- 242 139 ---------------------------------------------------------------------------- Financing activities Long-term debt - borrowings 152 352 Long-term debt - repayments (207) (386) Capital contributions from participating non-controlling interests - in operating subsidiaries 11 641 Return of capital to participating non-controlling interests - in operating subsidiaries - - Acquisition of Isagen from non-controlling interests - (929) Issuance of preferred limited partnership units - 147 Issuance of LP Units - 657 Distributions paid: To participating non-controlling interests - in operating subsidiaries (161) (26) To preferred shareholders (6) (7) To preferred limited partners' unitholders (6) (3) To unitholders of Brookfield Renewable or BRELP (145) (124) ---------------------------------------------------------------------------- (362) 322 ---------------------------------------------------------------------------- Investing activities Acquisitions - (862) Cash and cash equivalents in acquired entity - - Investment in: Sustaining capital expenditures (33) (19) Development and construction of renewable power generating assets (40) (67) Proceeds from disposal of assets - - Investment in securities (27) (99) Restricted cash and other 63 531 ---------------------------------------------------------------------------- (37) (516) ---------------------------------------------------------------------------- Foreign exchange (loss) gain on cash (5) 5 ---------------------------------------------------------------------------- Cash and cash equivalents (Decrease) increase (162) (50) Balance, beginning of period 336 260 ---------------------------------------------------------------------------- Balance, end of period$ 174 $ 210 ---------------------------------------------------------------------------- Supplemental cash flow information: Interest paid$ 188 $ 198 Interest received$ 9 $ 11 Income taxes paid$ 12 $ 1 ----------------------------------------------------------------------------BROOKFIELD RENEWABLE PARTNERS L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS ---------------------------------------------------------------------------- Six months ended UNAUDITED Jun 30 (MILLIONS) 2017 2016 ---------------------------------------------------------------------------- Operating activities Net income (loss)$ 112 $ 60 Adjustments for the following non-cash items: Depreciation 398 383 Unrealized financial instrument loss 26 2 Share of (earnings) loss from equity-accounted investments 1 - Deferred income tax expense 21 41 Other non-cash items (31) (12) Dividends received from equity-accounted investments 3 3 Changes in due to or from related parties (10) 19 Net change in working capital balances 22 (132) ---------------------------------------------------------------------------- 542 364 ---------------------------------------------------------------------------- Financing activities Long-term debt - borrowings 299 1,630 Long-term debt - repayments (462) (494) Capital contributions from participating non-controlling interests - in operating subsidiaries 49 2,044 Return of capital to participating non-controlling interests - in operating subsidiaries (36) - Acquisition of Isagen from non-controlling interests (5) (929) Issuance of preferred limited partnership units 187 147 Issuance of LP Units - 657 Distributions paid: To participating non-controlling interests - in operating subsidiaries (260) (41) To preferred shareholders (12) (13) To preferred limited partners' unitholders (11) (4) To unitholders of Brookfield Renewable or BRELP (289) (250) ---------------------------------------------------------------------------- (540) 2,747 ---------------------------------------------------------------------------- Investing activities Acquisitions - (2,881) Cash and cash equivalents in acquired entity - 117 Investment in: Sustaining capital expenditures (51) (32) Development and construction of renewable power generating assets (89) (112) Proceeds from disposal of assets 150 - Investment in securities (39) (116) Restricted cash and other (22) 36 ---------------------------------------------------------------------------- (51) (2,988) ---------------------------------------------------------------------------- Foreign exchange (loss) gain on cash - 24 ---------------------------------------------------------------------------- Cash and cash equivalents (Decrease) increase (49) 147 Balance, beginning of period 223 63 ---------------------------------------------------------------------------- Balance, end of period$ 174 $ 210 ---------------------------------------------------------------------------- Supplemental cash flow information: Interest paid$ 305 $ 275 Interest received$ 17 $ 20 Income taxes paid$ 28 $ 17 ----------------------------------------------------------------------------
Review of operations
The table below summarizes actual and long-term generation by segments for the three months ended June 30:
----------------------------------------------------------------------------
Generation (GWh)(1) Variance of Results
----------------------------------------------------------------------------
For the three months ended Actual Actual LTA Actual vs. Actual vs.
June 30 2017 2016 2017 LTA Prior Year
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Hydroelectric
North America
United States 3,666 2,590 3,619 47 1,076
Canada 1,737 1,348 1,508 229 389
----------------------------------------------------------------------------
5,403 3,938 5,127 276 1,465
Colombia(2) 4,138 2,787 3,509 629 1,351
Brazil 1,061 1,082 1,159 (98) (21)
----------------------------------------------------------------------------
10,602 7,807 9,795 807 2,795
----------------------------------------------------------------------------
Wind
North America
United States 281 284 372 (91) (3)
Canada 282 205 292 (10) 77
----------------------------------------------------------------------------
563 489 664 (101) 74
Europe 240 278 259 (19) (38)
Brazil 123 149 101 22 (26)
----------------------------------------------------------------------------
926 916 1,024 (98) 10
----------------------------------------------------------------------------
Other 90 69 123 (33) 21
----------------------------------------------------------------------------
Total(3) 11,618 8,792 10,942 676 2,826
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
(3) Includes 100% of generation from equity-accounted investments.
Generation from our hydroelectric portfolios in
Generation at our wind facilities was consistent with the same period of the prior year but below long-term average due to lower wind resources. The same period of the prior year included 66 GWh relating to the 137 MW wind portfolio in
The table below summarizes generation by segment and region for the six months ended June 30:
----------------------------------------------------------------------------
Generation (GWh)(1) Variance of Results
----------------------------------------------------------------------------
For the six months ended June Actual Actual LTA Actual vs. Actual vs.
30 2017 2016 2017 LTA Prior Year
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Hydroelectric
North America 10,325 9,190 9,907 418 1,135
Colombia(2) 7,564 4,412 7,017 547 3,152
Brazil 2,118 2,108 2,298 (180) 10
----------------------------------------------------------------------------
20,007 15,710 19,222 785 4,297
----------------------------------------------------------------------------
Wind
North America 1,047 1,010 1,239 (192) 37
Europe 672 749 687 (15) (77)
Brazil 262 262 182 80 -
----------------------------------------------------------------------------
1,981 2,021 2,108 (127) (40)
----------------------------------------------------------------------------
Other 114 90 151 (37) 24
----------------------------------------------------------------------------
Total generation(3) 22,102 17,821 21,481 621 4,281
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
(3) Includes 100% of generation for assets we manage.
During the six months ended June 30, 2017, strong inflows and improved hydrological conditions benefited the overall hydroelectric portfolio. In
Generation at our wind facilities in
The following table reconciles Adjusted EBITDA and Funds From Operations to net income as presented in the consolidated statements of net income (loss), for the three and six months ended June 30:
----------------------------------------------------------------------------
Three months Six months
ended Jun 30 ended Jun 30
(MILLIONS) 2017 2016 2017 2016
--------------------------------
Revenues $ 683 $ 627 $1,360 $1,301
Other income 10 10 18 32
Share of cash earnings from equity-accounted
investments 4 2 5 4
Direct operating costs (240) (262) (473) (505)
--------------------------------
Adjusted EBITDA(1) 457 377 910 832
Management service costs (21) (15) (37) (30)
Interest expense - borrowings (156) (161) (319) (288)
Current income taxes 4 (5) (12) (12)
Distributions to preferred limited partners (7) (3) (13) (6)
Cash portion of non-controlling interests
Participating non-controlling interests -
in operating subsidiaries (90) (81) (170) (191)
Preferred equity (6) (7) (12) (13)
----------------------------------------------------------------------------
Funds From Operations(1) $ 181 $ 105 $ 347 $ 292
Adjusted sustaining capital expenditures(2) (17) (17) (34) (33)
--------------------------------
Adjusted Funds From Operations(1) 164 88 313 259
Add: cash portion of non-controlling
interests 96 88 182 204
Add: distributions to preferred limited
partners 7 3 13 6
Add: adjusted sustaining capital
expenditures 17 17 34 33
Depreciation (198) (204) (398) (383)
Unrealized financial instruments loss (6) (2) (26) (2)
Share of non-cash loss from equity-accounted
investments (2) (3) (6) (4)
Deferred income tax expense (16) (6) (21) (41)
Other 23 - 21 (12)
----------------------------------------------------------------------------
Net income (loss) $ 85 $ (19) $ 112 $ 60
----------------------------------------------------------------------------
(1) Non-IFRS measures. Refer to "Cautionary Statement Regarding Use of
Non-IFRS Measures".
(2) Based on long-term sustaining capital expenditure plans.
The following table reconciles net income (loss) attributable to Limited partners' equity and earnings (loss) per LP Unit, the most directly comparable IFRS measures, to Funds From Operations, and Funds From Operations per unit, both non-IFRS financial metrics for the three and six months ended June 30:
----------------------------------------------------------------------------
Three months ended June 30
Per unit
-------------------
(MILLIONS, EXCEPT AS NOTED) 2017 2016 2017 2016
----------------------------------------------------------------------------
Net income (loss) attributable to:
Limited partners' equity $ 21 $ (15) $ 0.13 $ (0.11)
General partnership interest in a
holding
subsidiary held by Brookfield 1 - - -
Participating non-controlling
interests - in a holding
subsidiary -Redeemable /
Exchangeable units held by
Brookfield 16 (13) - -
----------------------------------------------------------------------------
Net income (loss) attributable to
Unitholders $ 38 $ (28) $ 0.13 $ (0.11)
Depreciation 127 131 0.42 0.47
Unrealized financial instruments loss 12 - 0.04 -
Share of non-cash loss from equity-
accounted investments 2 3 0.01 0.01
Deferred income tax expense
(recovery) 3 (8) 0.01 (0.03)
Other (1) 7 - 0.03
----------------------------------------------------------------------------
Funds From Operations(1) $ 181 $ 105 $ 0.61 $ 0.37
----------------------------------------------------------------------------
Weighted average units outstanding(2) 299.25 280.84
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Six months ended June 30
Per unit
--------------------
(MILLIONS, EXCEPT AS NOTED) 2017 2016 2017 2016
----------------------------------------------------------------------------
Net income (loss) attributable to:
Limited partners' equity $ 30 $ 8 $ 0.18 $ 0.05
General partnership interest in a
holding
subsidiary held by Brookfield 1 - - -
Participating non-controlling
interests - in a holding
subsidiary -Redeemable /
Exchangeable units held by
Brookfield 23 7 - -
----------------------------------------------------------------------------
Net income (loss) attributable to
Unitholders $ 54 $ 15 $ 0.18 $ 0.05
Depreciation 257 250 0.86 0.90
Unrealized financial instruments loss 22 3 0.07 0.01
Share of non-cash loss from equity-
accounted investments 6 4 0.02 0.01
Deferred income tax expense
(recovery) 4 8 0.01 0.03
Other 4 12 0.02 0.05
----------------------------------------------------------------------------
Funds From Operations(1) $ 347 $ 292 $ 1.16 $ 1.05
----------------------------------------------------------------------------
Weighted average units outstanding(2) 299.20 278.18
----------------------------------------------------------------------------
(1) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-
IFRS Measures".
(2) Includes GP interest, Redeemable/Exchangeable partnership units, and
LP Units.
GENERATION AND FINANCIAL REVIEW ON A PROPORTIONATE BASIS BY SEGMENTS FOR THE THREE MONTHS ENDED JUNE 30, 2017
The following table reflects the actual and long-term average generation for the three months ended June 30 on a proportionate basis:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Actual
Generation(1) LTA Generation(1)
----------------------------------------------------------------------------
GENERATION (GWh) 2017 2016 2017 2016
----------------------------------------------------------------------------
Hydroelectric
North America
United States 2,522 1,834 2,434 2,439
Canada 1,690 1,300 1,461 1,461
----------------------------------------------------------------------------
4,212 3,134 3,895 3,900
Colombia(2) 998 596 846 751
Brazil 886 900 968 959
----------------------------------------------------------------------------
6,096 4,630 5,709 5,610
----------------------------------------------------------------------------
Wind
North America
United States 152 148 204 204
Canada 282 205 292 292
----------------------------------------------------------------------------
434 353 496 496
Europe 94 110 103 129
Brazil 51 62 42 42
----------------------------------------------------------------------------
579 525 641 667
----------------------------------------------------------------------------
Other 44 42 52 59
----------------------------------------------------------------------------
Total 6,719 5,197 6,402 6,336
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Variance of Results
----------------------------------------------------------------------------
Actual vs.
Prior Year
Actual vs. LTA
----------------------------------------------------------------------------
GENERATION (GWh) 2017 2016
----------------------------------------------------------------------------
Hydroelectric
North America
United States 88 (605) 688
Canada 229 (161) 390
----------------------------------------------------------------------------
317 (766) 1,078
Colombia(2) 152 (155) 402
Brazil (82) (59) (14)
----------------------------------------------------------------------------
387 (980) 1,466
----------------------------------------------------------------------------
Wind
North America
United States (52) (56) 4
Canada (10) (87) 77
----------------------------------------------------------------------------
(62) (143) 81
Europe (9) (19) (16)
Brazil 9 20 (11)
----------------------------------------------------------------------------
(62) (142) 54
----------------------------------------------------------------------------
Other (8) (17) 2
----------------------------------------------------------------------------
Total 317 (1,139) 1,522
----------------------------------------------------------------------------
(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) for the three months ended June 30:
Attributable to Unitholders
Hydroelectric Wind
North North
America Colombia Brazil America Europe Brazil
($ MILLIONS)
----------------------------------------------------------------------------
Revenues 269 46 65 40 9 5
Other income - 1 3 - - -
Share of cash
earnings from
equity-accounted
investments 3 - 1 - - -
Direct operating
costs (72) (23) (18) (9) (5) (1)
---------------------------------------------------------
Adjusted EBITDA(2) 200 24 51 31 4 4
Management service
costs - - - - - -
Interest expense -
borrowings (44) (10) (4) (11) (2) (2)
Current income
taxes 2 1 (2) - - -
Distributions to
preferred limited
partners - - - - - -
Cash portion of
non-controlling
interests
Participating non-
controlling
interests -
in operating
subsidiaries - - - - - -
Preferred equity - - - - - -
----------------------------------------------------------------------------
Funds From
Operations(2) 158 15 45 20 2 2
Depreciation (55) (8) (34) (21) (3) (2)
Unrealized
financial
instrument loss - 1 - - (6) -
Share of non-cash
loss from equity-
accounted
investments (1) - (1) - - -
Deferred income tax
expense (11) (4) - 23 1 -
Other (9) 7 (4) 2 2 1
Cash portion of
participating
non-controlling
interests - - - - - -
Preferred equity - - - - - -
Distributions to
preferred limited
partners - - - - - -
----------------------------------------------------------------------------
Net income (loss) 82 11 6 24 (4) 1
----------------------------------------------------------------------------
Attributable to Unitholders
Other Corporate Total
($ MILLIONS)
----------------------------------------------------------------------------
Revenues 2 - 436
Other income - 1 5
Share of cash
earnings from
equity-accounted
investments - - 4
Direct operating
costs (3) (5) (136)
---------------------------------------------------------
Adjusted EBITDA(2) (1) (4) 309
Management service
costs - (21) (21)
Interest expense -
borrowings - (22) (95)
Current income
taxes - - 1
Distributions to
preferred limited
partners - (7) (7)
Cash portion of
non-controlling
interests
Participating non-
controlling
interests -
in operating
subsidiaries - - -
Preferred equity - (6) (6)
----------------------------------------------------------------------------
Funds From
Operations(2) (1) (60) 181
Depreciation (4) - (127)
Unrealized
financial
instrument loss - (7) (12)
Share of non-cash
loss from equity-
accounted
investments - - (2)
Deferred income tax
expense - (12) (3)
Other 2 - 1
Cash portion of
participating
non-controlling
interests - - -
Preferred equity - - -
Distributions to
preferred limited
partners - - -
----------------------------------------------------------------------------
Net income (loss) (3) (79) 38
----------------------------------------------------------------------------
Non-controlling
interests
and
preferred
limited
partners'
equity(1)
2017 2016
($ MILLIONS)
----------------------------------------------------------------------------
Revenues 247 683 627
Other income 5 10 10
Share of cash
earnings from
equity-accounted
investments - 4 2
Direct operating
costs (104) (240) (262)
---------------------------------------------------------
Adjusted EBITDA(2) 148 457 - 377
Management service
costs - (21) (15)
Interest expense -
borrowings (61) (156) (161)
Current income
taxes 3 4 (5)
Distributions to
preferred limited
partners - (7) (3)
Cash portion of
non-controlling
interests
Participating non-
controlling
interests -
in operating
subsidiaries (90) (90) (81)
Preferred equity - (6) (7)
----------------------------------------------------------------------------
Funds From
Operations(2) - 181 105
Depreciation (71) (198) (204)
Unrealized
financial
instrument loss 6 (6) (2)
Share of non-cash
loss from equity-
accounted
investments - (2) (3)
Deferred income tax
expense (13) (16) (6)
Other 22 23 -
Cash portion of
participating
non-controlling
interests 90 90 81
Preferred equity 6 6 7
Distributions to
preferred limited
partners 7 7 3
----------------------------------------------------------------------------
Net income (loss) 47 85 (19)
----------------------------------------------------------------------------
(1) Attributable to participating non-controlling interests, preferred
equity and preferred limited partners' equity.
(2) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-
IFRS Measures".
GENERATION AND FINANCIAL REVIEW ON A PROPORTIONATE BASIS BY SEGMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2017
The following table reflects the actual and long-term average generation for the six months ended June 30 on a proportionate basis:
----------------------------------------------------------------------------
Variance of Results
----------------------------------------------------------------------------
Actual vs.
Prior Year
Actual
Generation(1) LTA Generation(1) Actual vs. LTA
----------------------------------------------------------------------------
GENERATION
(GWh) 2017 2016 2017 2016 2017 2016
----------------------------------------------------------------------------
Hydroelect
ric
North
America 8,024 7,274 7,408 7,315 616 (41) 750
Colombia
(2) 1,824 851 1,692 1,105 132 (254) 973
Brazil 1,757 1,745 1,918 1,940 (161) (195) 12
----------------------------------------------------------------------------
11,605 9,870 11,018 10,360 587 (490) 1,735
----------------------------------------------------------------------------
Wind
North
America 832 756 948 948 (116) (192) 76
Europe 266 296 272 307 (6) (11) (30)
Brazil 109 109 76 76 33 33 -
----------------------------------------------------------------------------
1,207 1,161 1,296 1,331 (89) (170) 46
----------------------------------------------------------------------------
Other 68 62 80 114 (12) (52) 6
----------------------------------------------------------------------------
Total 12,880 11,093 12,394 11,805 486 (712) 1,787
----------------------------------------------------------------------------
(1) For assets acquired or reaching commercial operation during the year,
this figure is calculated from the acquisition or commercial operation
date and is not annualized.
(2) Includes generation from both hydroelectric and Co-gen facilities.
The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income for the six months ended June 30:
Attributable to Unitholders
Hydroelectric Wind
North North
($ MILLIONS) America Colombia Brazil America Europe Brazil
----------------------------------------------------------------------------
Revenues 524 93 116 79 24 9
Other income - 2 6 - - -
Share of cash
earnings from
equity-accounted
investments 3 - 2 - - -
Direct operating
costs (133) (47) (31) (17) (9) (2)
-------------------------------------------------------
Adjusted EBITDA(2) 394 48 93 62 15 7
Management service
costs - - - - - -
Interest expense -
borrowings (89) (22) (10) (21) (6) (3)
Current income taxes 1 (1) (5) - - -
Distributions to
preferred limited
partners - - - - - -
Cash portion of non-
controlling
interests
Participating non-
controlling
interests -
in operating
subsidiaries - - - - - -
Preferred equity - - - - - -
----------------------------------------------------------------------------
Funds From
Operations(2) 306 25 78 41 9 4
Depreciation (109) (16) (69) (41) (10) (4)
Unrealized financial
instrument loss (1) (1) - - (8) -
Share of non-cash
loss from equity-
accounted
investments (4) - (2) - - -
Deferred income tax
expense (18) (6) 2 23 3 -
Other (7) 10 (6) 2 (3) 1
Cash portion of
participating
non-controlling
interests - - - - - -
Preferred equity - - - - - -
Distributions to
preferred limited
partners - - - - - -
----------------------------------------------------------------------------
Net income 167 12 3 25 (9) 1
----------------------------------------------------------------------------
Non-
controlling
interests
and
Attributable to
Unitholders preferred
Other Corporate Total limited 2017 2016
partners'
($ MILLIONS) equity(1)
----------------------------------------------------------------------------
Revenues 7 - 852 508 1,360 1,301
Other income - 1 9 9 18 32
Share of cash
earnings from
equity-accounted
investments - - 5 - 5 4
Direct operating
costs (8) (11) (258) (215) (473) (505)
-------------------------------------------------------
Adjusted EBITDA(2) (1) (10) 608 302 910 - 832
Management service
costs - (37) (37) - (37) (30)
Interest expense -
borrowings - (43) (194) (125) (319) (288)
Current income taxes - - (5) (7) (12) (12)
Distributions to
preferred limited
partners - (13) (13) - (13) (6)
Cash portion of non-
controlling
interests
Participating non-
controlling
interests -
in operating
subsidiaries - - - (170) (170) (191)
Preferred equity - (12) (12) - (12) (13)
----------------------------------------------------------------------------
Funds From
Operations(2) (1) (115) 347 - 347 292
Depreciation (8) - (257) (141) (398) (383)
Unrealized financial
instrument loss - (12) (22) (4) (26) (2)
Share of non-cash
loss from equity-
accounted
investments - - (6) - (6) (4)
Deferred income tax
expense - (8) (4) (17) (21) (41)
Other 2 (3) (4) 25 21 (12)
Cash portion of
participating
non-controlling
interests - - - 170 170 191
Preferred equity - - - 12 12 13
Distributions to
preferred limited
partners - - - 13 13 6
----------------------------------------------------------------------------
Net income (7) (138) 54 58 112 60
----------------------------------------------------------------------------
(1) Attributable to participating non-controlling interests, preferred
equity and preferred limited partners' equity.
(2) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-
IFRS Measures".
Contacts: Media: Claire Holland (416) 369-8236 [email protected] Investors: Divya Biyani (416) 369-2616 [email protected]
Source: Brookfield Renewable Partners L.P.
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