“We had a strong quarter, as we executed on our key strategic priorities, including delivering operational performance, investing in growth, and bolstering our liquidity position to
| Financial Results | |||||||||||||
| For the period ended June 30 | |||||||||||||
| Millions (except per unit or otherwise noted) | Three months ended June 30 | Six months ended June 30 | |||||||||||
| Unaudited | 2020 | 2019 | 2020 | 2019 | |||||||||
| Total generation (GWh) | |||||||||||||
| – Long-term average generation | 15,527 | 14,252 | 29,678 | 27,745 | |||||||||
| – Actual generation | 13,264 | 14,881 | 27,528 | 29,006 | |||||||||
| Brookfield Renewable Partner's share | |||||||||||||
| – Long-term average generation | 7,309 | 7,109 | 14,026 | 13,807 | |||||||||
| – Actual generation | 6,552 | 7,602 | 13,716 | 14,848 | |||||||||
| Net (loss) income Attributable to Unitholders | $(44) | $17 | $(26) | $60 | |||||||||
| Per Unit(1) | (0.14) | 0.05 | (0.08) | 0.19 | |||||||||
| Funds From Operations (FFO)(2) | 232 | 230 | 449 | 457 | |||||||||
| Per Unit(1)(2) | 0.75 | 0.74 | 1.44 | 1.47 | |||||||||
| Normalized Funds From Operations (FFO)(2)(3) | 241 | 203 | 453 | 407 | |||||||||
| Per Unit(1) | 0.77 | 0.65 | 1.46 | 1.31 | |||||||||
(1) For the three and six months ended June 30, 2020, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 311.3 million (2019: 311.2 million and 311.1 million, respectively). The actual units outstanding at June 30, 2020 were 311.4 million (2019: 311.2 million).
(2) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(3) Normalized FFO assumes long-term average generation in all segments except the
Brookfield Renewable reported FFO of
Highlights
- Generated FFO of
$232 million , up slightly from prior year, and normalized FFO of$241 million , a 19% increase over the prior year, as our sites continue to perform well with high levels of asset availability, and we benefited from growth from new acquisitions and development assets coming online;
- Subsequent to quarter-end, completed the creation of Brookfield Renewable Corporation and merger with TerraForm Power;
- We agreed to invest over
$580 million ($130 million net to BEP) of equity, including the acquisition of a 1,200 megawatt solar development project inBrazil ;
- Our liquidity remains robust at
$3.4 billion and our balance sheet remains in excellent shape - with no material debt maturities over the next five years; and
- So far this year, we generated close to
$500 million of proceeds ($85 million net to BEP) from asset recycling initiatives.
Update on Growth Initiatives
Subsequent to quarter-end, we completed the merger of TerraForm Power into Brookfield Renewable on an all-stock basis. The merger is accretive to Brookfield Renewable, simplifies our corporate structure, strengthens our business in
We, together with our institutional partners, also agreed to acquire a 1,200 megawatt solar development project in Brazil. This is one of the largest solar development projects in the world and requires both development and energy marketing capabilities to bring the project to completion. The project is 75% contracted, and we expect to leverage our deep energy marketing capabilities to contract the remaining power. In addition, given our global scale, we intend to drive down equipment procurement, installation and operating costs to deliver additional value over time. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.
Brookfield Renewable Corporation (BEPC)
We completed the special distribution of BEPC shares providing investors with greater flexibility in how they invest in our business. BEPC is listed on the same exchanges as BEP, offering investors the optionality to invest in Brookfield Renewable through either a partnership or Canadian corporation, which we believe should lead to increased demand and enhanced liquidity for our securities.
We completed the special distribution on July 30th by providing unitholders with one share of BEPC for every four units of BEP. We have subsequently seen strong support for BEPC shares in the market, with strong trading volumes over the first week of trading and the share price trading slightly above the BEP unit price. We are very pleased with the launch and positive market reception thus far.
Results from Operations
During the second quarter, we generated FFO of
With an increasingly diversified portfolio of operating assets, limited off-taker concentration risk, and a strong contract profile, our cash flows are highly resilient. While generation for the quarter was below the long-term average, driven largely by drier conditions in the
We continue to be focused on maintaining a highly diversified, investment grade customer base with over 600 customers around the world under long-term power purchase agreements. For example, our commercial and industrial counterparties, which comprise less than 20% of our generation, are well diversified across regions and sectors, with our largest C&I customer representing only 2% of our total contracted generation. Our contract profile remains strong, with 95% of total generation contracted in 2020, and a weighted-average remaining contract length of 15 years. Therefore, our cash flows are well protected from exposure to short-term price volatility and are expected to remain stable over the long-term.
During the quarter, our hydroelectric segment delivered FFO of
Our wind and solar segments generated a combined
Balance Sheet and Liquidity
Our liquidity position remains strong, with close to
Our investment grade balance sheet has no material maturities over the next five years, an average overall debt duration of 10 years, and approximately 80% of our financings are non-recourse to BEP. During the quarter, we executed over
We also continued to execute our capital recycling strategy of selling mature, de-risked or non-core assets to lower cost of capital buyers and redeploying the proceeds into higher yielding opportunities. So far this year, we, together with our institutional partners, generated close to
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 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
| Contact information: | |
| Media: | Investors: |
| Claire Holland | Cara Silverman |
| Senior Vice President - Communications | Manager - Investor Relations |
| (416) 369-8236 | (416) 649-8172 |
| [email protected] | [email protected] |
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Renewable’s 2020 Second Quarter Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Renewable’s website at www.bep.brookfield.com.
The conference call can be accessed via webcast on August 7, 2020, at 9:00 a.m. Eastern Time at https://edge.media-ser
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