Aug 08, 2013
August 8, 2013 – Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN; NYSE: BEP) (“Brookfield Renewable”) today announced significantly improved results for the three and six months ended June 30, 2013.
“We are very pleased with our results for the second quarter and first half of the year,” said Richard Legault, President and CEO of Brookfield Renewable. “Recent acquisitions have met or exceeded expectations and contributed meaningfully to improved generation and cash flows. Moreover, we continue to be very well positioned for growth, with significant upside tied to a strengthening U.S. economy and ultimately, rising energy prices. The current investment environment complements our unique strengths as a renewable energy company and is expected to further support attractive total returns to shareholders over time.”
Financial Results
(1) None-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-IFRS Measures".
(2) Weighted average LP units, redeemable/exchangeable partnership units held by Brookfield Asset Management and general partnership units totaled 265.2 million.
Review of Operations
Total generation was 6,265 GWh for the three months ended June 30, 2013 compared to the long-term average of 6,171 GWh and to 4,101 GWh for the same period in the prior year. Hydroelectric generation was 1,948 GWh higher than the prior year reflecting new assets which performed strongly and contributed 994 GWh to generation, and a return to long-term average generation in the current quarter relative to the very dry conditions in the same period last year. Reservoir levels on a portfolio basis are in line with long-term average conditions for this time of year.
Generation from wind totaled 737 GWh and was essentially in line with the long-term average. Wind generation increased by 270 GWh year-over-year, reflecting improved wind conditions as well as the acquisition of wind facilities in California.
For the second quarter, Adjusted EBITDA was $357 million as compared to $221 million in Q2 2012, and assets acquired in the last year contributed $45 million. Funds from operations of $187 million or $0.71 per unit was in line with plan as compared with $87 million or $0.33 per unit in the prior year.
For the first half of 2013, funds from operations of $349 million or $1.32 per unit was in line with plan as compared with $262 million or $0.99 per unit in the first six months of 2012.
The tables below summarize generation by segment and region:
(1) In Brazil, assured generation levels are used as a proxy for long-term average.
(2) Includes 100% of generation from equity-accounted investments.
(1) In Brazil, assured generation levels are used as a proxy for long-term average.
(2) Includes 100% of generation from equity-accounted investments.
Quarterly Highlights
Achievements in the second quarter include:
The Board of Directors has declared a quarterly distribution in the amount of US$0.3625 per unit, payable on October 31, 2013 to unitholders of record as at the close of business on September 30, 2013. This distribution is consistent with Brookfield Renewable’s policy of targeting a long-term, sustainable distribution in the range of 60-70% of FFO and which increases on average by 3% to 5% annually.
The regular quarterly dividends on the Brookfield Renewable Power Preferred Equity Inc. preferred shares have also been declared.
Information on Brookfield Renewable’s distributions and preferred share dividends can be found on its website at www.brookfieldrenewable.com under Investor Relations.
Distribution Reinvestment Plan
Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its limited partnership units who are resident in Canada to acquire additional units by reinvesting all or a portion of their cash distributions without paying commissions. Information on the DRIP, including details on how to enroll, is available on Brookfield Renewable’s website at www.brookfieldrenewable.com/DRIP.
Additional Information
The Letter to Shareholders and the Supplemental Results for the period ended June 30, 2013 contain further information on Brookfield Renewable’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available at www.brookfieldrenewable.com.
Brookfield Renewable Energy Partners (TSX: BEP.UN; NYSE: BEP) operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 5,900 megawatts of installed capacity. Diversified across 70 river systems and 12 power markets in the United States, Canada and Brazil, the portfolio’s output is sold predominantly under long-term contracts and generates enough electricity from renewable resources to power more than three million homes on average each year. With a portfolio of high-quality assets and strong growth prospects, the business is positioned to generate stable, long-term cash flows supporting regular and growing cash distributions to shareholders. For more information, please visit www.brookfieldrenewable.com.
For more information, please contact:
Zev Korman
Vice President, Investor and Media Relations
Tel: 416-359-1955
Email: [email protected]
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and information, within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding the quality of Brookfield Renewable’s assets and the resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance, future commissioning of assets, contracted portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions, listing on the NYSE, future energy prices and demand for electricity, the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable&rs
“We are very pleased with our results for the second quarter and first half of the year,” said Richard Legault, President and CEO of Brookfield Renewable. “Recent acquisitions have met or exceeded expectations and contributed meaningfully to improved generation and cash flows. Moreover, we continue to be very well positioned for growth, with significant upside tied to a strengthening U.S. economy and ultimately, rising energy prices. The current investment environment complements our unique strengths as a renewable energy company and is expected to further support attractive total returns to shareholders over time.”
Financial Results
| Unaudited, US$ millions (except per unit amounts) |
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|
Three months ended
June 30
|
Six months ended June 30 |
|||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||
| Generation (GWh) | ||||||||||
| - Total | 6,265 | 4,101 | 11,800 | 8,918 | ||||||
| - Brookfield Renewable's share | 5,403 | 3,638 | 10,037 | 8,091 | ||||||
| Revenues |
$ | 484 | $ | 337 | $ | 921 | $ | 763 | ||
| Adjusted EBITDA (1) |
$ | 357 | $ | 221 | $ | 676 | $ | 539 | ||
| Funds from operations (FFO)(1) | $ | 187 | $ | 87 | $ | 349 | $ | 262 | ||
| FFO per unit(1)(2) | $ | 0.71 | $ | 0.33 | $ | 1.32 | $ | 0.99 | ||
(2) Weighted average LP units, redeemable/exchangeable partnership units held by Brookfield Asset Management and general partnership units totaled 265.2 million.
Review of Operations
Total generation was 6,265 GWh for the three months ended June 30, 2013 compared to the long-term average of 6,171 GWh and to 4,101 GWh for the same period in the prior year. Hydroelectric generation was 1,948 GWh higher than the prior year reflecting new assets which performed strongly and contributed 994 GWh to generation, and a return to long-term average generation in the current quarter relative to the very dry conditions in the same period last year. Reservoir levels on a portfolio basis are in line with long-term average conditions for this time of year.
Generation from wind totaled 737 GWh and was essentially in line with the long-term average. Wind generation increased by 270 GWh year-over-year, reflecting improved wind conditions as well as the acquisition of wind facilities in California.
For the second quarter, Adjusted EBITDA was $357 million as compared to $221 million in Q2 2012, and assets acquired in the last year contributed $45 million. Funds from operations of $187 million or $0.71 per unit was in line with plan as compared with $87 million or $0.33 per unit in the prior year.
For the first half of 2013, funds from operations of $349 million or $1.32 per unit was in line with plan as compared with $262 million or $0.99 per unit in the first six months of 2012.
The tables below summarize generation by segment and region:
| Generation (GWh) |
Variance of Results | |||||
| For the three months ended June 30 | Actual 2013 | Actual 2012 | LTA 2013 | Actual vs. LTA | Actual vs. Prior Year |
|
| Hydroelectric generation | ||||||
| United States | 2,942 | 1,619 | 2,829 | 113 | 1,323 | |
| Canada | 1,519 | 986 | 1,461 | 58 | 533 | |
| Brazil(1) | 903 | 811 | 903 | - | 92 | |
| 5,364 | 3,416 | 5,193 | 171 | 1,948 | ||
| Wind Energy | ||||||
| United States | 459 | 221 | 468 | (9) | 238 | |
| Canada |
278 | 246 | 292 | (14) | 32 | |
| 737 | 467 | 760 | (23) | 270 | ||
| Other | 164 | 218 | 218 | (54) | (54) | |
| Total generation(2) | 6,265 | 4,101 | 6,171 | 94 | 2,164 | |
(2) Includes 100% of generation from equity-accounted investments.
| Generation (GWh) |
Variance of Results | |||||
| For the six months ended June 30 | Actual 2013 | Actual 2012 | LTA 2013 | Actual vs. LTA | Actual vs. Prior Year |
|
| Hydroelectric generation | ||||||
| United States | 5,503 | 3,577 | 5,218 | 285 | 1,926 | |
| Canada | 2,801 | 2,294 | 2,657 | 144 | 507 | |
| Brazil(1) | 1,839 | 1,678 | 1,839 | - | 161 | |
| 10,143 | 7,549 | 9,714 | 429 | 2,594 | ||
| Wind Energy | ||||||
| United States | 675 | 311 | 726 | (51) | 364 | |
| Canada |
601 | 614 | 616 | (15) | (13) | |
| 1,276 | 925 | 1,342 | (66) | 351 | ||
| Other | 381 | 444 | 440 | (59) | (63) | |
| Total generation(2) | 11,800 | 8,918 | 11,496 | 304 | 2,882 | |
(2) Includes 100% of generation from equity-accounted investments.
Quarterly Highlights
Achievements in the second quarter include:
- Completed the acquisition and integration of Western Wind Energy Corp., expanding Brookfield Renewable’s operating wind portfolio in the attractive California market to 430 MW.
- Successfully integrated the 360 MW White Pine hydroelectric portfolio in Maine, providing meaningful upside potential from rising energy prices.
- Enhanced liquidity by $300 million to approximately $1 billion as at the date of this release, reflecting an increase to the corporate credit facility to approximately $1.3 billion, strong operating cash flows and the proceeds of the preferred share issuance in May 2013.
- Advanced construction of the 45 MW Kokish River hydro project in western Canada which is progressing as planned and is on track for completion in mid-2014.
- Achieved a listing of shares on the New York Stock Exchange on June 11, 2013, under the symbol BEP, which is expected to enhance Brookfield Renewable’s long-term access to capital globally.
The Board of Directors has declared a quarterly distribution in the amount of US$0.3625 per unit, payable on October 31, 2013 to unitholders of record as at the close of business on September 30, 2013. This distribution is consistent with Brookfield Renewable’s policy of targeting a long-term, sustainable distribution in the range of 60-70% of FFO and which increases on average by 3% to 5% annually.
The regular quarterly dividends on the Brookfield Renewable Power Preferred Equity Inc. preferred shares have also been declared.
Information on Brookfield Renewable’s distributions and preferred share dividends can be found on its website at www.brookfieldrenewable.com under Investor Relations.
Distribution Reinvestment Plan
Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its limited partnership units who are resident in Canada to acquire additional units by reinvesting all or a portion of their cash distributions without paying commissions. Information on the DRIP, including details on how to enroll, is available on Brookfield Renewable’s website at www.brookfieldrenewable.com/DRIP.
Additional Information
The Letter to Shareholders and the Supplemental Results for the period ended June 30, 2013 contain further information on Brookfield Renewable’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available at www.brookfieldrenewable.com.
* * * * *
Brookfield Renewable Energy Partners (TSX: BEP.UN; NYSE: BEP) operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 5,900 megawatts of installed capacity. Diversified across 70 river systems and 12 power markets in the United States, Canada and Brazil, the portfolio’s output is sold predominantly under long-term contracts and generates enough electricity from renewable resources to power more than three million homes on average each year. With a portfolio of high-quality assets and strong growth prospects, the business is positioned to generate stable, long-term cash flows supporting regular and growing cash distributions to shareholders. For more information, please visit www.brookfieldrenewable.com.
For more information, please contact:
Zev Korman
Vice President, Investor and Media Relations
Tel: 416-359-1955
Email: [email protected]
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and information, within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding the quality of Brookfield Renewable’s assets and the resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance, future commissioning of assets, contracted portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions, listing on the NYSE, future energy prices and demand for electricity, the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable&rs
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