All amounts in
“We had a strong quarter, as we executed on our key priorities, including investing in growth, delivering on our corporate contracting initiatives and bolstering our liquidity,” said Connor Teskey, CEO of Brookfield Renewable. “The tailwinds for renewables are accelerating as governments and businesses around the world are intensifying their focus on decarbonization. Given our global scale, operational depth, and financial strength, we remain uniquely positioned to participate in the accelerating build out of renewables that will impact all sectors of the economy.”
| Financial Results | |||||||
| Millions (except per unit or otherwise noted) | For the three months ended March 31 | ||||||
| Unaudited | 2021 | 2020 | |||||
| Total generation (GWh) | |||||||
| – Long-term average generation | 14,099 | 14,151 | |||||
| – Actual generation | 13,828 | 14,264 | |||||
| Brookfield Renewable Partner's share (GWh) | |||||||
| – Long-term average generation | 7,602 | 6,717 | |||||
| – Actual generation | 7,375 | 7,164 | |||||
| Net income (loss) attributable to Unitholders | $ | (133 | ) | $ | 20 | ||
| Per LP unit(1) | (0.24 | ) | 0.01 | ||||
| Funds From Operations (FFO)(2) | 242 | 217 | |||||
| Per Unit(2)(3) | 0.38 | 0.37 | |||||
| Normalized Funds From Operations (FFO)(2)(4) | 257 | 193 | |||||
| Per Unit(2)(3)(4) | 0.40 | 0.33 | |||||
| (1) | For the three months ended March 31, 2021, average LP units totaled 274.8 million (2020: 268.5 million). |
| (2) | Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”. |
| (3) | Average Units outstanding for the three months ended March 31, 2021 were 645.5 million (2020: 583.7 million), being inclusive of our LP units, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and general partner interest. The actual Units outstanding at March 31, 2021 were 645.6 million (2020: 467.0 million). |
| (4) | Normalized FFO assumes long-term average generation in all segments except the |
Brookfield Renewable reported FFO of
Highlights
- Generated FFO of
$242 million , or$0.38 per unit, a 21% increase on a normalized per unit basis over the same period in the prior year;
- Progressed approximately 6,000 megawatts through construction and advanced stage permitting, and added nearly 4,500 megawatts to our development pipeline;
- We signed 29 agreements for approximately 2,300 GWh of renewable generation with corporate offtakers across all major industries and including many of the largest counterparties by market capitalization in the world;
- Invested or agreed to invest
$1.6 billion (nearly$410 million net to Brookfield Renewable) of equity across a range of transactions, including onshore wind, offshore wind, utility scale solar, and distributed generation, inthe United States ,Europe , andIndia ;
- Issued a
$350 million perpetual green subordinated note issuance at a fixed rate of 4.625%. Our balance sheet remains robust with almost$3 .4 billion of available liquidity and no meaningful near-term maturities; and
- Raised over
$850 million (approximately$410 million net to Brookfield Renewable) from asset recycling initiatives, including the sale of mature onshore wind portfolios inIreland and theU.S. at attractive values, returning approximately two times our invested capital.
Update on Growth Initiatives
As the opportunity to invest in renewables and decarbonization expands, we continue to exercise a value-oriented approach to growing our business. We remain disciplined in focusing on opportunities that play to our strengths – where we can invest for value, leverage our operating capabilities to increase cashflow, and deploy incremental capital at attractive returns to grow our businesses over time. Recently, we executed on a number of transactions that highlight this approach.
For the past several years, we monitored the offshore wind sector, while not investing. But as the technology has grown and matured, we have become more comfortable. This quarter we closed our first investment in offshore wind, which includes a pipeline to build 3 gigawatts of capacity supported by an attractive contract structure, over the next several years. Similarly, in
Recently, we signed or closed the following transactions:
- Shepherds Flat – An 845-megawatt wind farm in
Oregon that includes one of the largest repowering opportunities in the world. Once completed we expect total generation to increase by approximately 25%. We are making good progress on the repowering and are also advancing a 400-megawatt new-build development pipeline that was included in the transaction;
- Investment in Polenergia – A scale renewable business in
Europe with an interest in a 3 gigawatt offshore wind development pipeline. We believe Polenergia has tremendous growth prospects, and we are well positioned as both a supportive operating partner and capital provider to the business;
- Exelon Distributed Generation (DG) – A distributed generation business, comprising 360 megawatts of operating capacity with an additional over 700 megawatts under development. We now own one of the leading distributed generation businesses in the
U.S. , with deep operating, development, and origination capabilities, and an almost 2,000-megawatt portfolio that generates high-quality contracted cash flows that are diversified by geography and customer; and
- Indian Solar Project - On the back of a relationship established through our acquisition of a portfolio of loans from a non-bank financial company at the end of 2020, we signed an agreement which gives us the right to acquire a 450-megawatt shovel ready solar project from one of the largest developers in
India . The project is expected to be commissioned by the end of the year and is backed by 25-year power purchase agreements with a high-quality state utility. We expect to invest$70 million ($20 million net to Brookfield Renewable) of equity in the project and are targeting 20%+ returns.
Results from Operations
During the first quarter, we generated FFO of
With an increasingly diversified portfolio of operating assets, limited concentration risk with counterparties, and a long-term contract profile, our cash flows are highly resilient. While generation for the quarter was marginally below the long-term average, driven largely by drier conditions in
During the quarter, our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Our energy transition segment generated
Balance Sheet and Liquidity
Our financial position continues to be strong. We have approximately
We continued to take advantage of the low interest environment and executed on
We also continue to execute our capital recycling strategy of selling mature, de-risked or non-core assets to lower cost of capital buyers while redeploying the proceeds into higher yielding opportunities. The proceeds from these transactions will be used to fund growth opportunities executed in the quarter, as well as our robust future growth pipeline.
In April, we agreed to sell our remaining 360 megawatts of operating assets and development pipeline in
Today, across
We also signed an agreement to sell 390 megawatts of wind assets primarily in
Distribution Declaration
The next quarterly distribution in the amount of
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
Brookfield Renewable Partners maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of BEP units who are residents in
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, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in
Brookfield Renewable is the flagship listed renewable power 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
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