Brookfield Renewable Reports Strong Third Quarter Results and $850 Million of Capital Raising Initiatives

Contact information:

Media:
Claire Holland
Vice President - Communications
(416) 369-8236
[email protected]

Investors:
Divya Biyani
Manager – Investor Relations
(416) 369-2616
[email protected]

Oct 31, 2018

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Financial Results

For the periods ended September 30
US$ millions (except per unit or otherwise noted)	Three Months Ended						Nine Months Ended
Unaudited		2018			2017			2018			2017
Total generation (GWh)
- Actual generation		11,609			9,370			37,611			31,472
- Long-term average generation		12,113			9,098			38,486			30,136
Brookfield Renewable's share
- Actual generation		5,552			5,198			18,701			18,078
- Long-term average generation		5,956			5,053			19,242			17,221
Funds From Operations (FFO)⁽¹⁾	$	105		$	91		$	470		$	438
Per Unit⁽¹⁾⁽²⁾	$	0.33		$	0.28		$	1.50		$	1.44
Normalized FFO^(1)(2)(3)	$	139		$	74		$	513		$	380
Per Unit^(1)(2)(3)	$	0.44		$	0.24		$	1.64		$	1.25
Net (Loss) Income Attributable to Unitholders	$	(55	)	$	(43	)	$	(49	)	$	11
Per Unit⁽²⁾	$	(0.18	)	$	(0.14	)	$	(0.16	)	$	0.04


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)

UNAUDITED			Three months ended Sep 30				Nine months ended Sep 30
(MILLIONS, EXCEPT AS NOTED)			2018		2017		2018		2017
Revenues			$	674	$	608	$	2,202	$	1,968
Other income				7		7		26		25
Direct operating costs				(257)		(243)		(760)		(716)
Management service costs				(22)		(21)		(64)		(58)
Interest expense – borrowings				(176)		(158)		(534)		(477)
Share of earnings from
	equity-accounted investments			6		4		12		3
Foreign exchange and				(10)		(12)		(35)		(44)
	unrealized financial instruments loss
Depreciation				(192)		(202)		(611)		(600)
Other				(18)		(4)		(72)		23
Income tax recovery (expense)
	Current			(6)		(15)		(20)		(27)
	Deferred			11		4		(2)		(17)
				5		(11)		(22)		(44)
Net income (loss)			$	17	$	(32)	$	142	$	80
Net income (loss) attributable to:
Non-controlling interests
	Participating non-controlling interests - in
		operating subsidiaries	$	55	$	(4)	$	142	$	29
	General partnership interest in a holding
		subsidiary held by Brookfield		(1)		(1)		(1)		-
	Participating non-controlling interests - in a
		holding subsidiary - Redeemable/
		Exchangeable units held by Brookfield		(22)		(18)		(20)		5
	Preferred equity			7		7		20		19
Preferred limited partners' equity				10		8		29		21
Limited partners' equity				(32)		(24)		(28)		6
			$	17	$	(32)	$	142	$	80
Basic and diluted (loss) earnings per LP Unit			$	(0.18)	$	(0.14)	$	(0.16)	$	0.04


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

UNAUDITED				Sep 30		Dec 31
(MILLIONS)				2018		2017
Assets
Current assets
	Cash and cash equivalents		$	313	$	799
	Restricted cash			211		181
	Trade receivables and other current assets			569		554
	Financial instrument assets			59		72
	Due from related parties			54		60
	Assets held for sale			758		-
				1,964		1,666
Financial instrument assets				161		113
Equity-accounted investments				1,111		721
Property, plant and equipment, at fair value				25,521		27,096
Goodwill				905		901
Deferred income tax assets				169		177
Other long-term assets				110		230
			$	29,941	$	30,904
Liabilities
Current liabilities
	Accounts payable and accrued liabilities		$	516	$	542
	Financial instrument liabilities			40		184
	Due to related parties			120		112
	Current portion of long-term debt			864		1,676
	Liabilities directly associated with assets held for sale			527		-
				2,067		2,514
Financial instrument liabilities				121		86
Long-term debt and credit facilities				10,528		10,090
Deferred income tax liabilities				3,543		3,588
Other long-term liabilities				328		344
				16,587		16,622
Equity
Non-controlling interests
	Participating non-controlling interests - in operating			6,046		6,298
	General partnership interest in a holding subsidiary held by Brookfield			51		58
	Participating non-controlling interests - in a holding subsidiary
		- Redeemable/Exchangeable units held by Brookfield		2,489		2,843
	Preferred equity			600		616
Preferred limited partners' equity				707		511
Limited partners' equity				3,461		3,956
				13,354		14,282
			$	29,941	$	30,904


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

UNAUDITED			Three months ended Sep 30				Nine months ended Sep 30
(MILLIONS)				2018		2017		2018		2017
Operating activities
Net income (loss)			$	17	$	(32)	$	142	$	80
Adjustments for the following non-cash items:
	Depreciation			192		202		611		600
	Foreign exchange and
		unrealized financial instrument loss		5		23		14		50
	Share of earnings from
		equity-accounted investments		(5)		(4)		(11)		(3)
	Deferred income tax (recovery) expense			(11)		(4)		2		17
	Other non-cash items			10		8		50		(24)
Dividends received from equity-accounted investments				13		2		27		5
Changes in due to or from related parties				16		5		28		(5)
Net change in working capital balances				(1)		4		(46)		26
				236		204		817		746
Financing activities
Long-term debt - borrowings				713		500		2,676		799
Long-term debt - repayments				(316)		(709)		(2,549)		(1,171)
Capital contributions from participating non-controlling
	interests - in operating subsidiaries			9		232		13		281
Acquisition of Isagen from non-controlling interests				-		-		-		(5)
Issuance of preferred limited partnership units				-		-		196		187
Issuance of LP Units				-		411		-		411
Repurchase of LP Units				-		-		(8)
Distributions paid:
	To participating non-controlling interests -
		in operating subsidiaries		(81)		(130)		(438)		(426)
	To preferred shareholders			(7)		(7)		(20)		(19)
	To preferred limited partners' unitholders			(9)		(8)		(27)		(19)
	To unitholders of Brookfield Renewable or BRELP			(161)		(151)		(482)		(440)
Borrowings from related party				-		-		200		-
Repayments to related party				(200)		-		(200)		-
				(52)		138		(639)		(402)
Investing activities
Acquisitions net of cash and
	cash equivalents in acquired entity			-		(280)		(12)		(280)
Investment in:
	Sustaining capital expenditures			(37)		(39)		(93)		(90)
	Development and construction of renewable power
		generating assets		(22)		(67)		(60)		(156)
Proceeds from disposal of assets				-		-		-		150
Investment in securities				-		-		25		-
Investment in equity accounted investments				-		9		(420)		(30)
Restricted cash and other				(46)		(2)		(75)		(24)
				(105)		(379)		(635)		(430)
Foreign exchange (loss) gain on cash				(6)		6		(14)		6
Cash and cash equivalents
	Increase (decrease)			73		(31)		(471)		(80)
	Net change in cash classified within assets held for sale			3		-		(15)		-
	Balance, beginning of period			237		174		799		223
	Balance, end of period		$	313	$	143	$	313	$	143
Supplemental cash flow information:
	Interest paid		$	154	$	116	$	469	$	421
	Interest received			5		6		17		23
	Income taxes paid			10		15		33		43

		(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	2,526	2,900	2,654	2,654	$	166	$	201	$	99		$	128		$	53		$	82		$	(3	)	$	35

	Brazil	791	802	996	978		53		60		38			42			31			37			2			1

	Colombia	742	881	859	861		54		47		29			25			20			13			11			1
		4,059	4,583	4,509	4,493		273		308		166			195			104			132			10			37

Wind
	North America	597	285	696	378		50		30		30			21			14			11			(27	)		(21	)

	Europe	141	96	208	95		17		11		9			4			2			-			(9	)		(1	)

	Brazil	211	95	242	87		15		10		13			9			11			7			5			6

	Other	48	-	41	-		4		-		3			-			2			-			1			-
		997	476	1,187	560		86		51		55			34			29			18			(30	)		(16	)

Solar		279	-	260	-		58		-		46			-			31			-			19			-

Storage & Other		217	139	-	-		25		18		14			9			11			6			5			2

Corporate		-	-	-	-		-		-		(4	)		(6	)		(70	)		(65	)		(59	)		(66	)

Total		5,552	5,198	5,956	5,053	$	442	$	377	$	277		$	232		$	105		$	91		$	(55	)	$	(43	)

													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			273		86		58		25		-	442		(100)		332		674
Other income			2		-		1		-		1	4		(1)		4		7
Direct operating costs			(109)		(31)		(13)		(11)		(5)	(169)		31		(119)		(257)
Share of Adjusted EBITDA from
	equity accounted investments		-		-		-		-		-	-		70		-		70
Adjusted EBITDA			166		55		46		14		(4)	277		-		217
Management service costs			-		-		-		-		(22)	(22)		-		-		(22)
Interest expense - borrowings			(58)		(25)		(15)		(3)		(27)	(128)		29		(77)		(176)
Current income taxes			(4)		(1)		-		-		-	(5)		2		(3)		(6)
Distributions attributable to
	Preferred limited partners equity		-		-		-		-		(10)	(10)		-		-		(10)
	Preferred equity		-		-		-		-		(7)	(7)		-		-		(7)
Share of interest and cash taxes from
	equity accounted investments		-		-		-		-		-	-		(31)		-		(31)
Share of Funds From Operations
	attributable to non-controlling interests		-		-		-		-		-	-		-		(137)		(137)
Funds From Operations			104		29		31		11		(70)	105		-		-
Adjusted sustaining capital expenditures⁽²⁾			(16)		-		-		-		(2)	(18)		-		-
Adjusted Funds From Operations			88		29		31		11		(72)	87		-		-
Adjusted sustaining capital expenditures⁽²⁾			16		-		-		-		2	18		-		-
Depreciation			(93)		(50)		(11)		(5)		(1)	(160)		32		(64)		(192)
Foreign exchange and
	unrealized financial instrument loss		(4)		(3)		-		-		1	(6)		-		(4)		(10)
Deferred income tax expense			6		(3)		(1)		-		15	17		3		(9)		11
Other			(3)		(3)		-		(1)		(4)	(11)		(2)		(5)		(18)
Share of earnings from
	equity accounted investments		-		-		-		-		-	-		(33)		-		(33)
Net loss attributable to
	non-controlling interests		-		-		-		-		-	-		-		82		82
Net income (loss) attributable to Unitholders⁽³⁾			10		(30)		19		5		(59)	(55)		-		-		(55)

									Per unit
(MILLIONS, EXCEPT AS NOTED)				2018			2017			2018			2017
Net loss attributable to:
	Limited partners' equity		$	(32	)	$	(24	)	$	(0.18	)	$	(0.14	)
	General partnership interest in a holding
		subsidiary held by Brookfield		(1	)		(1	)		-			-
	Participating non-controlling interests - in a holding
		subsidiary - Redeemable/Exchangeable units
		held by Brookfield		(22	)		(18	)		-			-
Net loss attributable to Unitholders			$	(55	)	$	(43	)	$	(0.18	)	$	(0.14	)
Adjusted for proportionate share of:
Depreciation				160			133			0.51			0.43
	Foreign exchange and
		unrealized financial instruments loss		6			8			0.02			0.02
Deferred income tax recovery				(17	)		(10	)		(0.05	)		(0.03	)
Other				11			3			0.03			-
Funds From Operations			$	105		$	91		$	0.33		$	0.28

Weighted average units outstanding⁽¹⁾										312.6			311.8

	(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	9,704	10,866	9,915	9,916	$	655	$	726	$	455		$	520		$	322		$	386		$	130		$	198

Brazil	2,731	2,559	2,931	2,896		185		178		133			135			109			115			5			3

Colombia	2,382	2,705	2,547	2,553		160		140		91			73			62			38			41			12
	14,817	16,130	15,393	15,365		1,000		1,044		679			728			493			539			176			213

Wind
North America	1,905	1,117	2,184	1,326		158		109		109			83			64			52			(39	)		(13	)

Europe	413	362	496	367		46		35		27			19			13			9			(12	)		(6	)

Brazil	473	204	506	163		33		19		26			15			20			11			(1	)		8

Other	117	-	117	-		9		-		6			-			3			-			(3	)		-
	2,908	1,683	3,303	1,856		246		163		168			117			100			72			(55	)		(11	)

Solar	569	-	546	-		106		-		87			-			57			-			19			-

Storage & Other	407	265	-	-		62		42		33			17			23			7			(6	)		(5	)

Corporate	-	-	-	-		-		-		(15	)		(16	)		(203	)		(180	)		(183	)		(186	)

Total	18,701	18,078	19,242	17,221	$	1,414	$	1,249	$	952		$	846		$	470		$	438		$	(49	)	$	11