All amounts in
BROOKFIELD, News,
"We had another successful quarter highlighted by agreements to monetize several assets, crystallizing strong returns and generating significant funds to deploy into future growth. We also signed numerous favorable large-scale contracts within our North American hydro portfolio during the quarter that will enable us to execute upfinancings providing additional capital to invest in the current attractive environment,” said
| For the three months ended |
For the nine months ended |
|||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income (loss) attributable to Unitholders | $ | (181 | ) | $ | (64 | ) | $ | (455 | ) | $ | (135 | ) |
| – per LP unit(1) | (0.32 | ) | (0.14 | ) | (0.83 | ) | (0.34 | ) | ||||
| Funds From Operations (FFO)(2) | 278 | 253 | 913 | 840 | ||||||||
| – per Unit(2)(3) | 0.42 | 0.38 | 1.38 | 1.29 | ||||||||
Brookfield Renewable reported FFO of
Key highlights:
- Deployed, or committed to deploy
$2.3 billion of capital ($500 million net to Brookfield Renewable). - Commissioned ~1,200 megawatts of new renewable energy capacity in the quarter and continue to advance a record ~7,000 megawatts for the year in total.
- Reached new agreements to sell assets this quarter, bringing our year-to-date proceeds from asset sales to over
$2.3 billion ($1 billion net to Brookfield Renewable) and generating a ~25% IRR and a 2.5 times multiple on invested capital. - Advanced commercial initiatives securing contracts to deliver an incremental 6,100-gigawatt hours per year of generation, including favorable contracts at our hydro facilities which are expected to result in up to
$500 million of upfinancing proceeds. - Our best-in-class balance sheet continues to get stronger with
$4.6 billion of available liquidity.
Proven full-cycle value generation
We underwrite our investments on a hold to maturity basis to deliver our target 12-15% returns. However, we can often enhance these returns by monetizing mature assets to buyers with a lower cost of capital, who value the long-life, derisked, infrastructure-like cash flows of renewable power projects. Asset recycling also represents a highly accretive way to fund our business and contributes to our sustainable self-funding model.
Important to successful asset monetizations is the strength of our balance sheet, which enables us to be patient and sell assets when markets are constructive. Throughout 2024, we have seen a very robust bid for high-quality, cash-generative operating platforms, particularly those that have a growth angle. Against this market demand, we have been successful recycling capital from our existing asset base at returns significantly above our targets. While every investment is different, in each case, these results were driven by acquiring for value, improving the assets through the execution of our business plan, and monetizing opportunistically for fair value.
To date this year, we have executed transactions generating
In September, we reached an agreement to sell Saeta, which we acquired in 2018 during a period of market uncertainty that created an attractive value entry point. Following the acquisition, we executed our business plan divesting non-core assets, enhancing the operations, optimizing the capital structure, and establishing a corporate development function that was successful in creating organic growth in the business.
We agreed to sell the company, excluding the 350-megawatts of concentrated solar power assets, to a leading global renewable energy company as part of their strategic entry into the Iberian region for an equity value of
In 2017 we acquired a 25% interest in First Hydro, the leading
During the quarter, we also agreed to sell a 50% interest in our Shepherds Flat wind portfolio where we executed one of the largest wind repowering projects globally, increasing generation by ~25% and extending the asset’s useful life by approximately ten years. On closing we will generate almost 2.0 times our invested capital on the portion sold for
We are now one of the leading renewable energy operators and developers in
It continues to be both a seller’s and a buyer’s market
2024 will be our largest year for investments into growth, with over
This creates a tremendous opportunity for those equipped to deploy capital at attractive value entry points to acquire growing businesses or fund existing operations. This constructive environment also allows us to monetize more mature assets and recycle the proceeds back into accretive new investments under an attractive and high-returning self-funding model.
Recently we agreed to partner with Ørsted, a global leader in offshore wind, to acquire a 12% interest in a portfolio of ~3,500 megawatts of operating capacity in the
The portfolio is secured with long-term, government backed, inflation-linked contracts for difference and approximately 90% of operating costs fixed through long-term O&M, transmission and lease contracts, and comes with no development or construction risk. We are thrilled to partner with Ørsted, a global leader in offshore wind, who will continue to own a 38% interest and operate the portfolio, which we expect to generate returns in-line with our targets.
We also announced a strategic partnership with a leading eFuels manufacturer,
Operating Results
We generated FFO of
Our hydroelectric segment delivered FFO of
With an additional 6,000 GWh of generation available for recontracting over the next five years, and an increasingly constructive pricing environment for our hydro portfolio, we have significant capacity across our fleet to execute on similar contracts that we expect to contribute additional FFO and generate a highly accretive funding source for our growth.
Our wind and solar segments generated a combined
We continued to grow and advance our development pipeline which now stands at 200,000 megawatts with 65,000 megawatts at the advanced stage. We expect to commission ~7,000 megawatts this year, a record for our business, adding approximately
Balance Sheet & Liquidity
We have
We expect to execute
Distribution Declaration
The next quarterly distribution in the amount of
The previously announced proposed reorganization of BEPC, which is expected to be completed in
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 renewable power portfolio consists of hydroelectric, wind, utility-scale solar, distributed generation 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)7398 909 278 | (416)-649-8196 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s Third 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 | $ | 1,266 | $ | 1,141 | ||||
| Trade receivables and other financial assets(5) | 4,541 | 5,237 | ||||||
| Equity-accounted investments | 2,178 | 2,546 | ||||||
| Property, plant and equipment, at fair value and |
63,371 | 65,949 | ||||||
| Deferred income tax and other assets(6) | 3,817 | 1,255 | ||||||
| Total Assets | $ | 75,173 | $ | 76,128 | ||||
| Liabilities | ||||||||
| Corporate borrowings(7) | $ | 4,160 | $ | 2,833 | ||||
| Borrowings which have recourse only to assets they finance(8) | 25,307 | 26,869 | ||||||
| Accounts payable and other liabilities(9) | 10,976 | 9,273 | ||||||
| Deferred income tax liabilities | 6,777 | 7,174 | ||||||
| Equity | ||||||||
| Non-controlling interests | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 18,471 | $ | 18,863 | ||||
| General partnership interest in a holding subsidiary held by Brookfield | 45 | 55 | ||||||
| Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield | 2,211 | 2,684 | ||||||
| BEPC exchangeable shares | 2,042 | 2,479 | ||||||
| Preferred equity | 571 | 583 | ||||||
| Perpetual subordinated notes | 738 | 592 | ||||||
| Preferred limited partners' equity | 634 | 760 | ||||||
| Limited partners' equity | 3,241 | 27,953 | 3,963 | 29,979 | ||||
| Total Liabilities and Equity | $ | 75,173 | $ | 76,128 | ||||
| Consolidated Statements of Operating Results | |||||||||||||
| UNAUDITED | For the three months ended |
For the nine months ended |
|||||||||||
| (MILLIONS, EXCEPT AS NOTED) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenues | $ | 1,470 | $ | 1,179 | $ | 4,444 | $ | 3,715 | |||||
| Other income | 155 | 116 | 251 | 203 | |||||||||
| Direct operating costs(10) | (623 | ) | (496 | ) | (1,875 | ) | (1,322 | ) | |||||
| Management service costs | (59 | ) | (43 | ) | (157 | ) | (155 | ) | |||||
| Interest expense | (514 | ) | (370 | ) | (1,479 | ) | (1,166 | ) | |||||
| Share of earnings (loss) from equity-accounted investments | (12 | ) | — | (70 | ) | 46 | |||||||
| Foreign exchange and financial instrument gain | 186 | 114 | 422 | 432 | |||||||||
| Depreciation | (514 | ) | (448 | ) | (1,533 | ) | (1,335 | ) | |||||
| Other | (137 | ) | (7 | ) | (176 | ) | (2 | ) | |||||
| Income tax recovery (expense) | |||||||||||||
| Current | 38 | (9 | ) | (6 | ) | (89 | ) | ||||||
| Deferred | (29 | ) | (12 | ) | (18 | ) | 25 | ||||||
| Net income (loss) | $ | (39 | ) | $ | 24 | $ | (197 | ) | $ | 352 | |||
| Net income attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries | $ | (142 | ) | $ | (88 | ) | $ | (258 | ) | $ | (487 | ) | |
| Net loss attributable to Unitholders | (181 | ) | (64 | ) | (455 | ) | (135 | ) | |||||
| Basic and diluted loss per LP unit | $ | (0.32 | ) | $ | (0.14 | ) | $ | (0.83 | ) | $ | (0.34 | ) | |
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED | For the three months ended |
For the nine months ended |
|||||||||||
| (MILLIONS) | 2024 | 2023 | 2024 | 2023 | |||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | (39 | ) | $ | 24 | $ | (197 | ) | $ | 352 | |||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 514 | 448 | 1,533 | 1,335 | |||||||||
| Unrealized foreign exchange and financial instrument gain | (211 | ) | (144 | ) | (450 | ) | (410 | ) | |||||
| Share of (earnings) loss from equity-accounted investments | 12 | — | 70 | (46 | ) | ||||||||
| Deferred income tax expense (recovery) | 29 | 12 | 18 | (25 | ) | ||||||||
| Other non-cash items | 70 | (62 | ) | 163 | (48 | ) | |||||||
| 375 | 278 | 1,137 | 1,158 | ||||||||||
| Net change in working capital and other(11) | 123 | 85 | (84 | ) | 250 | ||||||||
| 498 | 363 | 1,053 | 1,408 | ||||||||||
| Financing activities | |||||||||||||
| Net corporate borrowings | 289 | — | 586 | 293 | |||||||||
| Corporate credit facilities, net | (200 | ) | — | 100 | — | ||||||||
| Non-recourse borrowings, commercial paper, and related party borrowings, net | 683 | 166 | 2,095 | (890 | ) | ||||||||
| Capital contributions from participating non-controlling interests – in operating subsidiaries, net | 236 | 371 | 525 | 1,952 | |||||||||
| Issuance of equity instruments, net and related costs | — | (12 | ) | (37 | ) | 618 | |||||||
| Distributions paid: | |||||||||||||
| To participating non-controlling interests - in operating subsidiaries | (169 | ) | (265 | ) | (570 | ) | (714 | ) | |||||
| To unitholders of Brookfield Renewable or BRELP | (267 | ) | (250 | ) | (798 | ) | (739 | ) | |||||
| 572 | 10 | 1,901 | 520 | ||||||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | (98 | ) | — | (109 | ) | (87 | ) | ||||||
| Investment in property, plant and equipment | (918 | ) | (604 | ) | (2,578 | ) | (1,660 | ) | |||||
| Disposal (purchase) of associates and other assets | 64 | 87 | 16 | (131 | ) | ||||||||
| Restricted cash and other | (58 | ) | (13 | ) | (68 | ) | (28 | ) | |||||
| (1,010 | ) | (530 | ) | (2,739 | ) | (1,906 | ) | ||||||
| Foreign exchange gain (loss) on cash | 16 | (16 | ) | (28 | ) | 14 | |||||||
| Cash and cash equivalents | |||||||||||||
| Increase (decrease) | 76 | (173 | ) | 187 | 36 | ||||||||
| Net change in cash classified within assets held for sale | (46 | ) | 5 | (62 | ) | — | |||||||
| Balance, beginning of period | 1,236 | 1,202 | 1,141 | 998 | |||||||||
| Balance, end of period | $ | 1,266 | $ | 1,034 | $ | 1,266 | $ | 1,034 | |||||
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) | ||||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | |||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Hydroelectric | |||||||||||||||||||||||||||
| 2,333 | 2,543 | 2,449 | 2,445 | $ | 208 | $ | 221 | $ | 116 | $ | 138 | $ | 44 | $ | 75 | ||||||||||||
| 862 | 813 | 1,032 | 1,035 | 48 | 62 | 33 | 45 | 28 | 38 | ||||||||||||||||||
| 810 | 705 | 886 | 892 | 87 | 74 | 50 | 39 | 24 | 16 | ||||||||||||||||||
| 4,005 | 4,061 | 4,367 | 4,372 | 343 | 357 | 199 | 222 | 96 | 129 | ||||||||||||||||||
| Wind | 1,751 | 1,277 | 2,072 | 1,575 | 133 | 102 | 109 | 123 | 80 | 95 | |||||||||||||||||
| Utility-scale solar | 1,152 | 687 | 1,363 | 880 | 145 | 82 | 158 | 75 | 127 | 51 | |||||||||||||||||
| Distributed energy & storage | 412 | 361 | 330 | 283 | 64 | 61 | 95 | 40 | 85 | 29 | |||||||||||||||||
| Sustainable solutions | — | — | — | — | 119 | 21 | 32 | 10 | 30 | 9 | |||||||||||||||||
| Corporate | — | — | — | — | — | — | (7 | ) | 37 | (140 | ) | (60 | ) | ||||||||||||||
| Total | 7,320 | 6,386 | 8,132 | 7,110 | $ | 804 | $ | 623 | $ | 586 | $ | 507 | $ | 278 | $ | 253 | |||||||||||
PROPORTIONATE RESULTS FOR THE NINE MONTHS ENDED
The following chart reflects the generation and summary financial figures on a proportionate basis for the nine months ended
| (GWh) | (MILLIONS) | |||||||||||||||||||||||||
| Actual Generation | LTA Generation | Revenues | Adjusted EBITDA | FFO | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Hydroelectric | ||||||||||||||||||||||||||
| 8,941 | 9,147 | 9,245 | 9,247 | $ | 767 | $ | 830 | $ | 487 | $ | 549 | $ | 278 | $ | 347 | |||||||||||
| 2,905 | 3,082 | 3,060 | 3,063 | 160 | 181 | 110 | 132 | 94 | 112 | |||||||||||||||||
| 2,174 | 2,619 | 2,637 | 2,652 | 238 | 206 | 126 | 134 | 53 | 60 | |||||||||||||||||
| 14,020 | 14,848 | 14,942 | 14,962 | 1,165 | 1,217 | 723 | 815 | 425 | 519 | |||||||||||||||||
| Wind | 5,987 | 4,389 | 7,016 | 5,335 | 457 | 373 | 366 | 362 | 270 | 279 | ||||||||||||||||
| Utility-scale solar | 2,981 | 1,830 | 3,469 | 2,290 | 358 | 280 | 365 | 251 | 279 | 168 | ||||||||||||||||
| Distributed energy & storage | 1,091 | 969 | 881 | 767 | 177 | 190 | 192 | 138 | 163 | 107 | ||||||||||||||||
| Sustainable solutions | — | — | — | — | 352 | 54 | 118 | 33 | 105 | 30 | ||||||||||||||||
| Corporate | — | — | — | — | — | — | 26 | 53 | (329 | ) | (263 | ) | ||||||||||||||
| Total | 24,079 | 22,036 | 26,308 | 23,354 | $ | 2,509 | $ | 2,114 | $ | 1,790 | $ | 1,652 | $ | 913 | $ | 840 | ||||||||||
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
| (MILLIONS) | Hydroelectric | Wind | Utility- scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 51 | $ | (71 | ) | $ | 63 | $ | 48 | $ | 2 | $ | (132 | ) | $ | (39 | ) | ||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 158 | 215 | 103 | 34 | 4 | — | 514 | ||||||||||||||
| Deferred income tax expense (recovery) | 9 | (15 | ) | 15 | 33 | — | (13 | ) | 29 | ||||||||||||
| Foreign exchange and financial instrument loss (gain) | (21 | ) | 32 | (60 | ) | (127 | ) | (23 | ) | 13 | (186 | ) | |||||||||
| Other(12) | 4 | (11 | ) | 38 | 75 | 27 | 9 | 142 | |||||||||||||
| Management service costs | — | — | — | — | — | 59 | 59 | ||||||||||||||
| Interest expense | 186 | 126 | 94 | 49 | 1 | 58 | 514 | ||||||||||||||
| Current income tax expense | 32 | (9 | ) | (37 | ) | (23 | ) | — | (1 | ) | (38 | ) | |||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (220 | ) | (158 | ) | (58 | ) | 6 | 21 | — | (409 | ) | ||||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 199 | $ | 109 | $ | 158 | $ | 95 | $ | 32 | $ | (7 | ) | $ | 586 | ||||||
The following table reflects Adjusted EBITDA and provides a reconciliation from Net income (loss) to Adjusted EBITDA for the three months ended
| (MILLIONS) | Hydroelectric | Wind | Utility- scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 25 | $ | 61 | $ | 26 | $ | 10 | $ | (22 | ) | $ | (76 | ) | $ | 24 | |||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 165 | 164 | 83 | 28 | 7 | 1 | 448 | ||||||||||||||
| Deferred income tax expense (recovery) | (27 | ) | 49 | (17 | ) | 4 | — | 3 | 12 | ||||||||||||
| Foreign exchange and financial instrument loss (gain) | (7 | ) | (74 | ) | (29 | ) | (40 | ) | 18 | 18 | (114 | ) | |||||||||
| Other(12) | 3 | 19 | (14 | ) | 4 | 13 | (16 | ) | 9 | ||||||||||||
| Management service costs | — | — | — | — | — | 43 | 43 | ||||||||||||||
| Interest expense | 184 | 64 | 53 | 32 | 11 | 26 | 370 | ||||||||||||||
| Current income tax expense | 8 | 3 | (4 | ) | — | — | 2 | 9 | |||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (129 | ) | (163 | ) | (23 | ) | 2 | (17 | ) | 36 | (294 | ) | |||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 222 | $ | 123 | $ | 75 | $ | 40 | $ | 10 | $ | 37 | $ | 507 | |||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the nine months ended
| (MILLIONS) | Hydroelectric | Wind | Utility- scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 179 | $ | (54 | ) | $ | (16 | ) | $ | 37 | $ | 5 | $ | (348 | ) | $ | (197 | ) | |||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 478 | 621 | 327 | 99 | 8 | — | 1,533 | ||||||||||||||
| Deferred income tax expense (recovery) | 17 | (22 | ) | 17 | 33 | (1 | ) | (26 | ) | 18 | |||||||||||
| Foreign exchange and financial instrument loss (gain) | (62 | ) | (115 | ) | (55 | ) | (134 | ) | (63 | ) | 7 | (422 | ) | ||||||||
| Other(12) | 7 | 3 | 54 | 63 | 19 | 86 | 232 | ||||||||||||||
| Management service costs | — | — | — | — | — | 157 | 157 | ||||||||||||||
| Interest expense | 583 | 355 | 258 | 121 | 10 | 152 | 1,479 | ||||||||||||||
| Current income tax expense | 54 | 10 | (35 | ) | (21 | ) | — | (2 | ) | 6 | |||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (533 | ) | (432 | ) | (185 | ) | (6 | ) | 140 | — | (1,016 | ) | |||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 723 | $ | 366 | $ | 365 | $ | 192 | $ | 118 | $ | 26 | $ | 1,790 | |||||||
The following table reflects Adjusted EBITDA and provides a reconciliation to net income (loss) to Adjusted EBITDA for the nine months ended
| (MILLIONS) | Hydroelectric | Wind | Utility- scale solar |
Distributed energy & storage |
Sustainable solutions |
Corporate | Total | ||||||||||||||
| Net income (loss) | $ | 356 | $ | 149 | $ | 17 | $ | 33 | $ | 53 | $ | (256 | ) | $ | 352 | ||||||
| Add back or deduct the following: | |||||||||||||||||||||
| Depreciation | 482 | 489 | 249 | 85 | 28 | 2 | 1,335 | ||||||||||||||
| Deferred income tax expense (recovery) | (28 | ) | 58 | (12 | ) | (18 | ) | 1 | (26 | ) | (25 | ) | |||||||||
| Foreign exchange and financial instrument loss (gain) | (107 | ) | (189 | ) | (55 | ) | (38 | ) | (34 | ) | (9 | ) | (432 | ) | |||||||
| Other(12) | 21 | 38 | (13 | ) | 41 | — | 32 | 119 | |||||||||||||
| Management service costs | — | — | — | — | — | 155 | 155 | ||||||||||||||
| Interest expense | 560 | 207 | 185 | 82 | 31 | 101 | 1,166 | ||||||||||||||
| Current income tax expense | 67 | 13 | 7 | — | — | 2 | 89 | ||||||||||||||
| Amount attributable to equity accounted investments and non-controlling interests(13) | (536 | ) | (403 | ) | (127 | ) | (47 | ) | (46 | ) | 52 | (1,107 | ) | ||||||||
| Adjusted EBITDA attributable to Unitholders | $ | 815 | $ | 362 | $ | 251 | $ | 138 | $ | 33 | $ | 53 | $ | 1,652 | |||||||
The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income is reconciled to Funds From Operations:
| UNAUDITED | For the three months ended |
For the nine months ended |
||||||||||
| (MILLIONS) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | $ | (39 | ) | $ | 24 | $ | (197 | ) | $ | 352 | ||
| Add back or deduct the following: | ||||||||||||
| Depreciation | 514 | 448 | 1,533 | 1,335 | ||||||||
| Deferred income tax expense (recovery) | 29 | 12 | 18 | (25 | ) | |||||||
| Foreign exchange and financial instruments gain | (186 | ) | (114 | ) | (422 | ) | (432 | ) | ||||
| Other(14) | 142 | 9 | 232 | 119 | ||||||||
| Amount attributable to equity accounted investment and non-controlling interest(15) | (182 | ) | (126 | ) | (251 | ) | (509 | ) | ||||
| Funds From Operations | $ | 278 | $ | 253 | $ | 913 | $ | 840 | ||||
The following table reconciles the per Unit non-IFRS financial metrics to the most directly comparable IFRS measures. Net income per LP unit is reconciled to Funds From Operations:
| For the three months ended |
For the nine months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income (loss) per LP unit(1) | $ | (0.32 | ) | $ | (0.14 | ) | $ | (0.83 | ) | $ | (0.34 | ) |
| Adjust for the proportionate share of | ||||||||||||
| Depreciation | 0.39 | 0.38 | 1.16 | 1.14 | ||||||||
| Deferred income tax recovery and other | 0.41 | 0.19 | 1.22 | 0.68 | ||||||||
| Foreign exchange and financial instruments (gain) | (0.06 | ) | (0.05 | ) | (0.17 | ) | (0.19 | ) | ||||
| Funds From Operations per Unit(3) | $ | 0.42 | $ | 0.38 | $ | 1.38 | $ | 1.29 | ||||
REPORTS THIRD QUARTER RESULTS
All amounts in
The Board of Directors of
The BEPC exchangeable shares are structured with the intention of being economically equivalent to the non-voting limited partnership units of
| For the three months ended |
For the nine months ended |
||||||||||
| US$ millions (except per unit amounts), unaudited | 2024 | 2023 | 2024 | 2023 | |||||||
| Select Financial Information | |||||||||||
| Net income (loss) attributable to the partnership | $ | (674 | ) | $ | 1,340 | $ | (525 | ) | $ | 566 | |
| Funds From Operations (FFO)(2) | 157 | 151 | 595 | 548 | |||||||
BEPC reported FFO of
| Consolidated Statements of Financial Position | ||||||||
| As of | ||||||||
| UNAUDITED (MILLIONS) |
||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 619 | $ | 627 | ||||
| Trade receivables and other financial assets(5) | 2,567 | 2,972 | ||||||
| Equity-accounted investments | 631 | 644 | ||||||
| Property, plant and equipment, at fair value and |
37,412 | 44,892 | ||||||
| Deferred income tax and other assets(6) | 1,646 | 286 | ||||||
| Total Assets | $ | 42,875 | $ | 49,421 | ||||
| Liabilities | ||||||||
| Borrowings which have recourse only to assets they finance(8) | $ | 13,772 | $ | 16,072 | ||||
| Accounts payable and other liabilities(9) | 4,416 | 5,680 | ||||||
| Deferred income tax liabilities | 5,439 | 5,819 | ||||||
| BEPC exchangeable and class B shares | 5,062 | 4,721 | ||||||
| Equity | ||||||||
| Non-controlling interests: | ||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 9,081 | $ | 11,070 | ||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | 229 | 272 | ||||||
| The partnership | 4,876 | 14,186 | 5,787 | 17,129 | ||||
| Total Liabilities and Equity | $ | 42,875 | $ | 49,421 | ||||
| Consolidated Statements of Income (Loss) | ||||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the nine months ended |
||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | $ | 1,041 | $ | 934 | $ | 3,155 | $ | 2,901 | ||||||
| Other income | 29 | 95 | 96 | 147 | ||||||||||
| Direct operating costs(10) | (407 | ) | (388 | ) | (1,310 | ) | (1,000 | ) | ||||||
| Management service costs | (28 | ) | (26 | ) | (71 | ) | (94 | ) | ||||||
| Interest expense | (328 | ) | (308 | ) | (1,032 | ) | (929 | ) | ||||||
| Share of loss from equity-accounted investments | — | (7 | ) | (22 | ) | (7 | ) | |||||||
| Foreign exchange and financial instrument gain (loss) | 12 | 21 | 78 | 129 | ||||||||||
| Depreciation | (313 | ) | (320 | ) | (970 | ) | (953 | ) | ||||||
| Other | (31 | ) | 3 | (29 | ) | 14 | ||||||||
| Remeasurement of BEPC exchangeable and class B shares | (612 | ) | 1,393 | (341 | ) | 710 | ||||||||
| Income tax (expense) recovery | ||||||||||||||
| Current | (34 | ) | (7 | ) | (63 | ) | (79 | ) | ||||||
| Deferred | 7 | (20 | ) | (3 | ) | (29 | ) | |||||||
| Net income (loss) | $ | (664 | ) | $ | 1,370 | $ | (512 | ) | $ | 810 | ||||
| Net income (loss) attributable to: | ||||||||||||||
| Non-controlling interests: | ||||||||||||||
| Participating non-controlling interests – in operating subsidiaries | $ | 10 | $ | 29 | $ | 12 | $ | 240 | ||||||
| Participating non-controlling interests – in a holding subsidiary held by the partnership | — | 1 | 1 | 4 | ||||||||||
| The partnership | (674 | ) | 1,340 | (525 | ) | 566 | ||||||||
| $ | (664 | ) | $ | 1,370 | $ | (512 | ) | $ | 810 | |||||
| Consolidated Statements of Cash Flows | |||||||||||||
| UNAUDITED (MILLIONS) |
For the three months ended |
For the nine months ended |
|||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Operating activities | |||||||||||||
| Net income (loss) | $ | (664 | ) | $ | 1,370 | $ | (512 | ) | $ | 810 | |||
| Adjustments for the following non-cash items: | |||||||||||||
| Depreciation | 313 | 320 | 970 | 953 | |||||||||
| Unrealized foreign exchange and financial instruments (gain) loss | (39 | ) | (27 | ) | (105 | ) | (119 | ) | |||||
| Share of loss from equity-accounted investments | — | 7 | 22 | 7 | |||||||||
| Deferred income tax expense | (7 | ) | 20 | 3 | 29 | ||||||||
| Other non-cash items | 53 | (56 | ) | 99 | (27 | ) | |||||||
| Remeasurement of exchangeable and class B shares | 612 | (1,393 | ) | 341 | (710 | ) | |||||||
| 268 | 241 | 818 | 943 | ||||||||||
| Net change in working capital and other(11) | 40 | 47 | (113 | ) | 189 | ||||||||
| 308 | 288 | 705 | 1,132 | ||||||||||
| Financing activities | |||||||||||||
| Non-recourse borrowings and related party borrowings, net | (160 | ) | (196 | ) | 70 | (822 | ) | ||||||
| Capital contributions from participating non-controlling interests | 95 | 32 | 220 | 135 | |||||||||
| Return of capital to participating non-controlling interests | (44 | ) | (30 | ) | (80 | ) | (30 | ) | |||||
| Issuance of exchangeable shares, net | — | — | — | 251 | |||||||||
| Distributions paid and return of capital: | |||||||||||||
| To participating non-controlling interests | (57 | ) | (116 | ) | (321 | ) | (437 | ) | |||||
| (166 | ) | (310 | ) | (111 | ) | (903 | ) | ||||||
| Investing activities | |||||||||||||
| Acquisitions net of cash and cash equivalents in acquired entity | — | — | — | (81 | ) | ||||||||
| Investment in equity-accounted investments | — | (4 | ) | — | (7 | ) | |||||||
| Investment in property, plant and equipment | (162 | ) | (185 | ) | (638 | ) | (505 | ) | |||||
| Disposal of subsidiaries, associates and other securities, net | 86 | 137 | 164 | 243 | |||||||||
| Restricted cash and other | (42 | ) | (1 | ) | (66 | ) | (25 | ) | |||||
| (118 | ) | (53 | ) | (540 | ) | (375 | ) | ||||||
| Foreign exchange gain (loss) on cash | 8 | (10 | ) | (31 | ) | 17 | |||||||
| Cash and cash equivalents | |||||||||||||
| Decrease | 32 | (85 | ) | 23 | (129 | ) | |||||||
| Net change in cash classified within assets held for sale | (27 | ) | 3 | (31 | ) | — | |||||||
| Balance, beginning of period | 614 | 595 | 627 | 642 | |||||||||
| Balance, end of period | 619 | 513 | $ | 619 | $ | 513 | |||||||
RECONCILIATION OF NON-IFRS MEASURES
The following table reconciles Net income (loss) to Funds From Operations:
| For the three months ended |
For the nine months ended |
||||||||||||
| UNAUDITED (MILLIONS) |
2024 | 2023 | 2024 | 2023 | |||||||||
| Net income (loss) | $ | (664 | ) | $ | 1,370 | $ | (512 | ) | $ | 810 | |||
| Add back or deduct the following: | |||||||||||||
| Depreciation | 313 | 320 | 970 | 953 | |||||||||
| Foreign exchange and financial instruments loss (gain) | (12 | ) | (21 | ) | (78 | ) | (129 | ) | |||||
| Deferred income tax expense | (7 | ) | 20 | 3 | 29 | ||||||||
| Other(14) | 32 | (11 | ) | (113 | ) | 67 | |||||||
| Dividends on BEPC exchangeable shares(16) | 64 | 61 | 193 | 180 | |||||||||
| Remeasurement of BEPC exchangeable and BEPC class B shares | 612 | (1,393 | ) | 341 | (710 | ) | |||||||
| Amount attributable to equity accounted investments and non-controlling interests(17) | (181 | ) | (195 | ) | (209 | ) | (652 | ) | |||||
| Funds From Operations | $ | 157 | $ | 151 | $ | 595 | $ | 548 | |||||
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 – Three Months Ended September 30” included elsewhere herein and “Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures” included in our unaudited Q3 2024 interim report. For a reconciliation of FFO and FFO per Unit to the most directly comparable IFRS measure, please see “Reconciliation of Non-IFRS Measures - Quarter Ended
References to Brookfield Renewable are to
Endnotes
(1) For the three and nine months ended
(2) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(3) Average Units outstanding for the three and nine months ended
(4) Normalized FFO assumes long-term average generation in all segments and uses 2023 foreign currency rates. For the three and nine months ended
(5) Balance includes restricted cash, trades receivables and other current assets, financial instrument assets, and due from related parties.
(6) Balance includes goodwill, deferred income tax assets, assets held for sale, intangible assets, and other long-term assets.
(7) Balance includes current and non-current portion of corporate borrowings.
(8) Balance includes current and non-current portion of non-recourse borrowings on the consolidated statement of financial position.
(9) 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.
(10) Direct operating costs exclude depreciation expense disclosed below.
(11) Balance includes change in working capital, dividends received from equity accounted investments and changes due to or from related parties.
(12) 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 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 other hedges, income earned on financial assets and structured investments in sustainable solutions, transferable tax credits 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.
(13) 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.
(14) 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 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 other hedges, income earned on financial assets and structured investments in sustainable solutions, and transferable tax credits 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.
(15) 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.
(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) Any references to capital refer to Brookfield's cash deployed, excluding any debt financing.
(19) Available liquidity of over
(20) 12-15% target returns are calculated as annualized cash return on investment.
Source:
| Title | Document |
|---|---|
English |