Brookfield Renewable Reports Strong First Quarter Results

May 03, 2018

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Financial Results

For the period ended March 31
US$ millions (except per unit or otherwise noted)			Three Months Ended
Unaudited			2018		2017
Total generation (GWh)
	- Actual generation		12,880		10,484
	- Long-term average generation		12,852		10,364
Brookfield Renewable's share
	- Actual generation		6,694		6,161
	- Long-term average generation		6,351		5,889
Funds From Operations (FFO)⁽¹⁾		$	193	$	166
	Per Unit^{(1) (2)}	$	0.62	$	0.55
Net Income Attributable to Unitholders		$	8	$	16
	Per Unit⁽²⁾	$	0.03	$	0.05




BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME

UNAUDITED
FOR THE THREE MONTHS ENDED MARCH 31
(MILLIONS, EXCEPT AS NOTED)	2018			2017
Revenues	$	793			$	677
Other income		9				8
Direct operating costs		(256	)			(233	)
Management service costs		(21	)			(16	)
Interest expense – borrowings		(180	)			(163	)
Share of loss from equity-accounted investments		-				(3	)
Unrealized financial instruments loss		(7	)			(20	)
Depreciation		(213	)			(200	)
Other		(29	)			(2	)
Income tax expense
Current		(7	)			(16	)
Deferred		(9	)			(5	)
		(16	)			(21	)
Net income	$	80			$	27
Net income attributable to:
Non-controlling interests
Participating non-controlling interests - in operating subsidiaries	$	56			$	(1	)
General partnership interest in a holding subsidiary held by Brookfield		-				-
Participating non-controlling interests - in a holding subsidiary - Redeemable/
Exchangeable units held by Brookfield		3				7
Preferred equity		7				6
Preferred limited partners' equity		9				6
Limited partners' equity		5				9
	$	80			$	27
Basic and diluted earnings per LP Unit	$	0.03			$	0.05


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

UNAUDITED		Mar 31		Dec 31
(MILLIONS)		2018		2017
Assets
Current assets
Cash and cash equivalents	$	404	$	799
Restricted cash		232		181
Trade receivables and other current assets		571		554
Financial instrument assets		39		72
Due from related parties		68		60
		1,314		1,666
Financial instrument assets		123		113
Equity-accounted investments		719		721
Property, plant and equipment, at fair value		27,352		27,096
Goodwill		994		901
Deferred income tax assets		172		177
Other long-term assets		162		230
	$	30,836	$	30,904
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	511	$	542
Financial instrument liabilities		133		184
Due to related parties		144		112
Current portion of long-term debt		1,242		1,676
		2,030		2,514
Financial instrument liabilities		71		86
Long-term debt and credit facilities		10,201		10,090
Deferred income tax liabilities		3,707		3,588
Other long-term liabilities		354		344
		16,363		16,622
Equity
Non-controlling interests
Participating non-controlling interests - in operating subsidiaries		6,404		6,298
General partnership interest in a holding subsidiary held by Brookfield		57		58
Participating non-controlling interests - in a holding subsidiary
- Redeemable/Exchangeable units held by Brookfield		2,804		2,843
Preferred equity		600		616
Preferred limited partners' equity		707		511
Limited partners' equity		3,901		3,956
		14,473		14,282
	$	30,836	$	30,904


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED
THREE MONTHS ENDED MARCH 31
(MILLIONS)		2018			2017
Operating activities
Net income	$	80		$	27
Adjustments for the following non-cash items:
Depreciation		213			200
Unrealized financial instrument loss		7			20
Share of loss from equity-accounted investments		-			3
Deferred income tax expense		9			5
Other non-cash items		-			1
Dividends received from equity-accounted investments		2			-
Changes in due to or from related parties		21			(5	)
Net change in working capital balances		(32	)		49
		300			300
Financing activities
Long-term debt - borrowings		1,491			147
Long-term debt - repayments		(1,935	)		(255	)
Capital contributions from participating non-controlling interests - in operating subsidiaries		4			38
Acquisition of Isagen from non-controlling interests		-			(5	)
Issuance of preferred limited partnership units		196			187
Distributions paid:
To participating non-controlling interests - in operating subsidiaries		(176	)		(135	)
To preferred shareholders		(7	)		(6	)
To preferred limited partners' unitholders		(8	)		(5	)
To unitholders of Brookfield Renewable or BRELP		(160	)		(144	)
		(595	)		(178	)
Investing activities
Acquisitions		(12	)		-
Investment in:
Sustaining capital expenditures		(27	)		(18	)
Development and construction of renewable power generating assets		(25	)		(49	)
Proceeds from disposal of assets		-			150
Investment in securities		38			(12	)
Restricted cash and other		(78	)		(85	)
		(104	)		136
Foreign exchange gain on cash		4			5
Cash and cash equivalents
(Decrease) increase		(395	)		263
Balance, beginning of period		799			223
Balance, end of period	$	404		$	486
Supplemental cash flow information:
Interest paid	$	130		$	117
Interest received	$	7		$	8
Income taxes paid	$	13		$	16

		(GWh)				(MILLIONS)
		Actual Generation		LTA Generation		Revenues				Adjusted EBITDA⁽¹⁾						Funds From Operations⁽¹⁾						Net Income (Loss)
		2018	2017	2018	2017		2018		2017		2018			2017			2018			2017			2018			2017
Hydroelectric
	North America	3,765	3,766	3,439	3,439	$	261	$	255	$	191		$	194		$	146		$	148		$	77		$	83

	Brazil	1,038	871	957	950		69		52		51			42			41			33			1			(4	)

	Colombia	768	826	844	846		53		47		31			24			21			10			12			-
		5,571	5,463	5,240	5,235		383		354		273			260			208			191			90			79

Wind
	North America	645	398	697	452		54		39		41			31			26			21			(6	)		1

	Europe	165	172	155	169		17		15		11			11			8			7			(1	)		(1	)

	Brazil	103	58	118	33		8		4		5			3			3			2			(1	)		1

	Other	32	-	34	-		2		-		1			-			-			-			(1	)		-
		945	628	1,004	654		81		58		58			45			37			30			(9	)		1

Solar		115	-	107	-		18		-		16			-			10			-			(2	)		-

Storage & Other		63	70	-	-		17		13		9			3			5			-			(12	)		(6	)

Corporate		-	-	-	-		-		-		(5	)		(6	)		(67	)		(55	)		(59	)		(58	)

Total		6,694	6,161	6,351	5,889	$	499	$	425	$	351		$	302		$	193		$	166		$	8		$	16

															Contribution
		Attributable to Unitholders													from		Attributable
		Hydroelectric		Wind		Solar			Storage		Corporate		Total		equity		to non-			As per
								and							accounted		controlling			IFRS
($ MILLIONS)								Other							investments		interests			financials⁽¹⁾
Revenues		383		81		18			17		-		499		(39	)		333			793
Other income		2		1		2			-		1		6		(2	)		5			9
Direct operating costs		(112	)	(24	)	(4	)		(8	)	(6	)	(154	)	13			(115	)		(256	)
Share of Adjusted EBITDA from equity accounted investments		-		-		-			-		-		-		28			8			36
Adjusted EBITDA		273		58		16			9		(5	)	351		-			231
Management service costs		-		-		-			-		(21	)	(21	)	-			-			(21	)
Interest expense - borrowings		(61	)	(20	)	(6	)		(4	)	(25	)	(116	)	9			(73	)		(180	)
Current income taxes		(4	)	(1	)	-			-		-		(5	)	-			(2	)		(7	)
Distributions attributable to
	Preferred limited partners equity	-		-		-			-		(9	)	(9	)	-			-			(9	)
	Preferred equity	-		-		-			-		(7	)	(7	)	-			-			(7	)
Share of interest and cash taxes from equity accounted investments		-		-		-			-		-		-		(9	)		(8	)		(17	)
Share of Funds From Operations attributable to non-controlling interests		-		-		-			-		-		-		-			(148	)		(148	)
Funds From Operations		208		37		10			5		(67	)	193		-			-
Adjusted sustaining capital expenditures⁽²⁾		-		-		-			-		-		(18	)	-			-
Adjusted Funds From Operations		208		37		10			5		(67	)	175		-			-
Adjusted sustaining capital expenditures⁽²⁾		-		-		-			-		-		18		-			-
Depreciation		(100	)	(39	)	(6	)		(6	)	-		(151	)	12			(74	)		(213	)
Unrealized financial instrument gain		-		(1	)	(2	)		1		7		5		-			(12	)		(7	)
Deferred income tax expense		(5	)	(6	)	(1	)		-		5		(7	)	2			(4	)		(9	)
Other		(13	)	-		(3	)		(12	)	(4	)	(32	)	5			(2	)		(29	)
Share of earnings from
	equity accounted investments	-		-		-			-		-		-		(19	)		-			(19	)
Net loss attributable to
	non-controlling interests	-		-		-			-		-		-		-			92			92
Net income (loss) attributable to Unitholders⁽³⁾		90		(9	)	(2	)		(12	)	(59	)	8		-			-			8

						Per unit
(MILLIONS, EXCEPT AS NOTED)		2018			2017		2018			2017
Net income attributable to:
Limited partners' equity	$	5		$	9	$	0.03		$	0.05
General partnership interest in a holding subsidiary held by Brookfield		-			-		-			-
Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield		3			7		-			-
Net income attributable to Unitholders	$	8		$	16	$	0.03		$	0.05
Adjusted for proportionate share of:
Depreciation		151			133		0.49			0.44
Unrealized financial instruments (gain) loss		(5	)		15		(0.02	)		0.05
Deferred income tax expense		7			-		0.02			-
Other		32			2		0.10			0.01
Funds From Operations	$	193		$	166	$	0.62		$	0.55

Weighted average units outstanding⁽¹⁾							312.7			299.2