Brookfield Renewable Announces Strong First Quarter Results

May 06, 2022

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Millions (except per unit or otherwise noted)	For the three months ended March 31
Unaudited		2022		2021
Select Financial Information
Net loss attributable to Unitholders	$	(78	)	(133	)
Per LP unit⁽¹⁾		(0.16	)	(0.24	)
Funds From Operations (FFO)⁽²⁾		243		242
Per Unit⁽²⁾⁽³⁾		0.38		0.38
Normalized Funds From Operations (FFO)⁽²⁾⁽⁴⁾		292		245
Per Unit⁽²⁾⁽³⁾⁽⁴⁾		0.45		0.38
Operational Information
Total generation (GWh)
– Long-term average generation		15,097		14,099
– Actual generation		15,196		13,828
Brookfield Renewable Partner's share (GWh)
– Long-term average generation		7,414		7,602
– Actual generation		7,425		7,375

Contact information:
Media:	Investors:
Simon Maine	Robin Kooyman
Managing Director – Communications	Senior Vice President - Investor Relations
+44 (0) 739 8 909 278	(416) 649-8172
[email protected]	[email protected]

Brookfield Renewable Partners L.P.
Consolidated Statements of Financial Position
	As of
UNAUDITED (MILLIONS)	March 31				December 31
		2022				2021
Assets
Cash and cash equivalents			$	734			$	764
Trade receivables and other financial assets⁽⁵⁾				2,297				2,301
Equity-accounted investments				1,145				1,107
Property, plant and equipment, at fair value				51,167				49,432
Goodwill, deferred income tax and other assets⁽⁶⁾				3,038				2,263
Total Assets			$	58,381			$	55,867

Liabilities
Corporate borrowings			$	2,292			$	2,149
Borrowings which have recourse only to assets they finance⁽⁷⁾				19,908				19,380
Accounts payable and other liabilities⁽⁸⁾				5,243				4,127
Deferred income tax liabilities				6,480				6,215

Equity
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	$	12,708			$	12,303
General partnership interest in a holding subsidiary held by Brookfield		60				59
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield		2,923				2,894
BEPC exchangeable shares		2,588				2,562
Preferred equity		619				613
Perpetual subordinated notes		592				592
Preferred limited partners' equity		832				881
Limited partners' equity		4,136		24,458		4,092		23,996
Total Liabilities and Equity			$	58,381			$	55,867

Brookfield Renewable Partners L.P.
Consolidated Statements of Operating Results
UNAUDITED	For the three months ended March 31
(MILLIONS, EXCEPT AS NOTED)		2022			2021
Revenues	$	1,136		$	1,020
Other income		71			27
Direct operating costs⁽⁹⁾		(350	)		(391	)
Management service costs		(76	)		(81	)
Interest expense		(266	)		(233	)
Share of earnings from equity-accounted investments		19			5
Foreign exchange and financial instrument (loss) gain		(37	)		48
Depreciation		(401	)		(368	)
Other		(47	)		(99	)
Income tax recovery (expense)
Current		(42	)		(16	)
Deferred		26			33
Net income (loss)	$	33		$	(55	)
Net loss attributable to preferred equity, preferred limited partners' equity, perpetual subordinated notes and non-controlling interests in operating subsidiaries	$	(111	)	$	(78	)
Net loss attributable to Unitholders		(78	)		(133	)
Basic and diluted loss per LP unit	$	(0.16	)	$	(0.24	)

Brookfield Renewable Partners L.P.
Consolidated Statements of Cash Flows

	For the three months ended March 31
UNAUDITED (MILLIONS)		2022			2021
Operating activities
Net income (loss)	$	33		$	(55	)
Adjustments for the following non-cash items:
Depreciation		401			368
Unrealized foreign exchange and financial instrument loss (gain)		50			(27	)
Share of earnings from equity-accounted investments		(19	)		(5	)
Deferred income tax recovery		(26	)		(33	)
Other non-cash items		—			14
		439			262
Net change in working capital and other⁽¹⁰⁾		(136	)		89
		303			351
Financing activities
Non-recourse borrowings, commercial paper, and related party borrowings, net		1,274			916
Capital contributions from participating non-controlling interests – in operating subsidiaries, net		106			814
Redemption of equity instruments and related costs		(49	)		—
Distributions paid:
To participating non-controlling interests - in operating subsidiaries		(191	)		(139	)
To unitholders of Brookfield Renewable or BRELP		(230	)		(216	)
		910			1,375
Investing activities
Acquisitions net of cash and cash equivalents in acquired entity		(780	)		(1,428	)
Investment in property, plant and equipment		(452	)		(289	)
Disposal of associates and other securities, net		39			2
Restricted cash and other		(50	)		(50	)
		(1,243	)		(1,765	)
Foreign exchange gain (loss) on cash		(1	)		(11	)
Cash and cash equivalents
Decrease (increase)		(31	)		(50	)
Net change in cash classified within assets held for sale		1			(23	)
Balance, beginning of period		764			431
Balance, end of period	$	734		$	358

	(GWh)				(MILLIONS)
	Actual Generation		LTA Generation		Revenues				Adjusted EBITDA					FFO
	2022	2021	2022	2021		2022		2021		2022			2021		2022			2021
Hydroelectric
North America	3,144	3,128	3,237	3,233	$	216	$	205	$	129		$	141	$	84		$	104
Brazil	1,081	1,152	988	988		48		52		53			48		45			39
Colombia	972	833	865	806		73		55		53			35		35			27
	5,197	5,113	5,090	5,027		337		312		235			224		164			170
Wind
North America	1,147	1,107	1,193	1,435		86		122		60			81		44			62
Europe	244	371	277	380		51		43		46			67		41			60
Brazil	101	126	126	126		6		7		4			4		3			2
Asia	134	112	133	100		9		7		7			6		4			4
	1,626	1,716	1,729	2,041		152		179		117			158		92			128
Solar	354	327	423	364		81		77		90			59		64			30
Distributed generation, storage & other⁽¹¹⁾	248	219	172	170		79		70		60			46		47			33
Corporate	—	—	—	—		—		—		(3	)		2		(124	)		(119	)
Total	7,425	7,375	7,414	7,602	$	649	$	638	$	499		$	489	$	243		$	242

	Attributable to Unitholders
(MILLIONS)	Hydroelectric			Wind			Solar			DG, storage & other			Corporate			Total
Net income (loss)	$	82		$	(14	)	$	8		$	41		$	(84	)	$	33
Add back or deduct the following:
Depreciation		157			148			66			30			—			401
Deferred income tax expense (recovery)		(6	)		11			(11	)		(3	)		(17	)		(26	)
Foreign exchange and financial instrument loss (gain)		60			(4	)		7			(7	)		(19	)		37
Other⁽¹²⁾		8			23			21			7			17			76
Management service costs		—			—			—			—			76			76
Interest expense		124			62			40			16			24			266
Current income tax expense (recovery)		37			4			1			—			—			42
Amount attributable to equity accounted investments and non-controlling interests⁽¹³⁾		(227	)		(113	)		(42	)		(24	)		—			(406	)
Adjusted EBITDA	$	235		$	117		$	90		$	60		$	(3	)	$	499

Brookfield Renewable Corporation
Consolidated Statements of Financial Position
	As of
UNAUDITED (MILLIONS)	March 31				December 31
		2022				2021
Assets
Cash and cash equivalents			$	558			$	410
Trade receivables and other financial assets⁽⁵⁾				1,929				1,956
Equity-accounted investments				460				455
Property, plant and equipment, at fair value				38,654				37,915
Goodwill, deferred income tax and other assets⁽⁶⁾				1,472				1,250
Total Assets			$	43,073			$	41,986

Liabilities
Borrowings which have recourse only to assets they finance⁽⁷⁾			$	13,745			$	13,512
Accounts payable and other liabilities⁽⁸⁾				3,143				3,066
Deferred income tax liabilities				5,232				5,020
BEPC exchangeable and class B shares				7,073				6,163

Equity
Non-controlling interests:
Participating non-controlling interests – in operating subsidiaries	$	10,573			$	10,297
Participating non-controlling interests – in a holding subsidiary held by the partnership		293				261
The partnership		3,014		13,880		3,667		14,225
Total Liabilities and Equity			$	43,073			$	41,986

Brookfield Renewable Corporation
Consolidated Statements of Income (Loss)

UNAUDITED (MILLIONS)	For the three months ended March 31
UNAUDITED (MILLIONS)		2022			2021

Revenues	$	929		$	839
Other income		64			14
Direct operating costs⁽⁹⁾		(291	)		(338	)
Management service costs		(52	)		(55	)
Interest expense		(228	)		(220	)
Share of (loss) earnings from equity-accounted investments		(2	)		2
Foreign exchange and financial instrument gain (loss)		(33	)		34
Depreciation		(296	)		(290	)
Other		(26	)		(146	)
Remeasurement of BEPC exchangeable and class B shares		(909	)		94
Income tax (expense) recovery
Current		(38	)		(13	)
Deferred		—			17
		(38	)		4
Net loss	$	(882	)	$	(62	)
Net income (loss) attributable to:
Non-controlling interests:
Participating non-controlling interests – in operating subsidiaries	$	90		$	(56	)
Participating non-controlling interests – in a holding subsidiary held by the partnership		4			3
The partnership		(976	)		(9	)
	$	(882	)	$	(62	)

⁽¹⁾	For the three months ended March 31, 2022, average LP units totaled 275.1 million (2021: 274.8 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, 2022 were 645.8 million (2021: 645.5 million), being inclusive of our LP units, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and general partner interest. The actual Units outstanding as at March 31, 2022 were 645.8 million (2021: 645.6 million).
⁽⁴⁾	Normalized FFO assumes long-term average generation in all segments and uses 2021 foreign currency rates. For the three months ended March 31, 2022, the change related to long-term average generation totaled $47 million (2021: $3 million) and the change related to foreign currency totaled $2 million.
⁽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 non-recourse borrowings on the consolidated statement of financial position.
⁽⁸⁾	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.
⁽⁹⁾	Direct operating costs exclude depreciation expense disclosed below.
⁽¹⁰⁾	Balance includes dividends received from equity accounted investments and changes due to or from related parties.
⁽¹¹⁾	Actual generation includes 105 GWh (2021:72 GWh) from facilities that do not have a corresponding LTA.
⁽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 balance 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 realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term.
⁽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⁾	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.
⁽¹⁵⁾	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 balance 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 realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term.
⁽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 $4 billion refers to "Part 5 - Liquidity and Capital Resources" in the Management Discussion and Analysis in the Q1 2022 Interim Report.
⁽²⁰⁾	12-15% target returns are calculated as annualized cash return on investment.