Brookfield Renewable Partners L.P. (
TSX: BEP.UN;
NYSE: BEP) (“
Brookfield
Renewable” or "
BEP") today reported
financial results for the three and twelve months ended December
31, 2021.
“2021 was another strong year for our business
as we achieved our highest ever FFO per unit, deployed capital
in-line with our target and continued to expand our development
activities with over 15,000 megawatts of capacity under
construction or in late-stage development and an overall global
development pipeline of 62,000 megawatts,” said Connor Teskey, CEO
of Brookfield Renewable. “Looking ahead, decarbonization is now
firmly established as an objective of the global economy and as one
of the pre-eminent global clean energy companies with deep
operating capabilities and scale, we are uniquely positioned to
execute on the most attractive decarbonization investment
opportunities around the world.”
Financial
Results |
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UNAUDITEDFOR THE PERIODS ENDED DECEMBER 31 |
Three Months Ended |
|
Years Ended |
(US $ millions, except per unit amounts) |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Select Financial Information |
|
|
|
|
|
Net loss
attributable to Unitholders |
$ |
(57 |
) |
$ |
(120 |
) |
|
$ |
(368 |
) |
$ |
(304 |
) |
Per LP unit(1) |
|
(0.12 |
) |
|
(0.22 |
) |
|
|
(0.69 |
) |
|
(0.61 |
) |
Funds
From Operations (FFO)(2) |
|
214 |
|
|
201 |
|
|
|
934 |
|
|
807 |
|
Per Unit(2)(3) |
|
0.33 |
|
|
0.31 |
|
|
|
1.45 |
|
|
1.32 |
|
Normalized Funds From Operations (FFO)(2)(4) |
|
263 |
|
|
242 |
|
|
|
1,091 |
|
|
882 |
|
Per Unit(2)(3)(4) |
|
0.41 |
|
|
0.37 |
|
|
|
1.69 |
|
|
1.45 |
|
Operational Information |
|
|
|
|
|
Total
generation (GWh) |
|
|
|
|
|
– Long-term average generation |
|
14,946 |
|
|
14,333 |
|
|
|
58,913 |
|
|
57,457 |
|
– Actual generation |
|
14,585 |
|
|
13,247 |
|
|
|
56,629 |
|
|
52,782 |
|
Brookfield Renewable Partner's share (GWh) |
|
|
|
|
|
– Long-term average generation |
|
7,197 |
|
|
7,354 |
|
|
|
29,852 |
|
|
27,998 |
|
– Actual generation |
|
6,637 |
|
|
6,583 |
|
|
|
27,150 |
|
|
26,052 |
|
Brookfield Renewable reported FFO of $934
million or $1.45 per Unit of FFO for the twelve months ended
December 31, 2021, a 10% increase from the prior year or 17%
on a normalized basis supported by the stability of our
high-quality, inflation-linked contracted cash flows, organic
growth initiatives and contributions from acquisitions. After
deducting non-cash depreciation, deferred income taxes recovery,
foreign exchange and derivative gains (losses) and other, our Net
loss attributable to Unitholders for the twelve months ended
December 31, 2021 was $368 million or $0.69 per LP
unit.
Other Highlights for 2021
Include:
- We advanced key commercial
priorities, securing contracts to deliver 11,000 gigawatt hours of
clean energy annually including 6,000 gigawatt hours to corporate
offtakers and completed cost savings initiatives that have
delivered $20 million of savings on an annualized basis.
- We commissioned approximately 1,000
megawatts of new capacity and progressed over 15,000 megawatts
through construction and advanced-stage development.
- We agreed to invest approximately
$4.3 billion (~$1.1 billion net to Brookfield Renewable) of capital
across various transactions in every major market and technology we
operate in. We further diversified our business with our first
investment in offshore wind, and we expanded our hydroelectric and
battery storage portfolios.
- We maintained our robust investment
grade balance sheet and ended the year with over $4 billion of
available liquidity and access to significant sovereign and
institutional capital that we can invest alongside of, which
provides enhanced flexibility for future growth.
Spotlight On Hydros
We continue to believe hydropower is the premier
renewable technology due to its perpetual nature and
dispatchability. And while the asset classes of wind and solar are
certainly growing faster, the benefits of hydro are rapidly
increasing in today’s market environment. As decarbonization
continues to drive additional demand for carbon-free baseload
generation, our scale hydroelectric portfolio will continue to be a
meaningful differentiator for our business and positions us as a
partner of choice to support governments and companies in achieving
their carbon reduction goals. Further, the dispatchable or embedded
storage benefits of hydro are becoming increasingly beneficial as
more intermittent renewables are added to the grid. Recently, we
executed on several initiatives that highlight the unique and
valuable nature of our hydroelectric business.
In December, we signed a 40-year power purchase
agreement at our 265-megawatt Lievre facilities in Canada with
Hydro Quebec. The contract represents an attractive premium to the
prices the facility has historically achieved, generating an
additional $20 million of revenue per annum. More importantly,
given the duration of the contract and the quality of the
counterparty, we concurrently raised an additional C$1.0 billion of
40-year investment grade debt on the facility at very attractive
fixed rates. We will redeploy this capital into growth, and when
deployed at our target returns, it is expected to generate over
$100 million of annual net FFO for the business. Said differently,
through the recontracting and upfinancing of a single hydro asset,
we can fund the majority of our targeted 2022 equity deployment at
exceptionally attractive rates. With over 5,500 gigawatt hours 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.
In the fourth quarter, we also completed an
investment grade upfinancing at our pumped hydro storage business
in the UK. This followed a sustained period of record performance
due to an increase in value of the critical grid-stabilizing
ancillary services including back-up capacity it sells to the
increasingly intermittent greener electric grid. With the proceeds
from the financing, we have now returned over 100% of the capital
we invested in the business in 2017.
Finally, we continue to leverage our
hydroelectric fleet to provide 24/7 green power solutions to our
customers. During the quarter, we signed a 15-year power purchase
agreement with a large manufacturer, alongside a retail supply
agreement to serve the entirety of their load requirements in the
U.S. Northwest. The agreement is unique in the market and is part
of a differentiated supply solution that we tailored to our
customer’s bespoke requirements. The power purchase agreement will
be served by a 110-megawatt solar project in Washington State that
we will construct, and when the sun does not shine, the customer’s
energy requirements can be served from our hydroelectric assets in
British Columbia.
We continue to see select opportunities for
growth in hydroelectric generation, especially for large and
experienced operators like us. Recently, our Colombian business
acquired one of the largest privately held generation portfolios in
Colombia, comprised of seven recently built run-of-river hydropower
plants with a total capacity of nearly 150 megawatts for
approximately $425 million. This is the largest follow-on
acquisition by our Colombian business since our initial investment
in 2016, and we expect it to be highly complementary and
synergistic to our existing operations.
Update On Growth
Initiatives
Since our last update, we agreed to invest
approximately $2 billion (~$500 million net to Brookfield
Renewable) of capital across various transactions at our target
returns of 12-15%.
In North America, we acquired Urban Grid, a
leading utility-scale solar developer in the U.S. with a
20,000-megawatt development pipeline and a strong position in the
high-value PJM market. Its pipeline includes 2,000 megawatts of
under construction or ready-to-build solar projects and an
additional 4,000 megawatts of de-risked advanced stage buildout
opportunities, that we expect to build out backed by corporate
contracts over the next six years with additional upside given the
depth of its remaining pipeline. The purchase price is $650 million
(~$160 million net to Brookfield Renewable) with the opportunity to
invest hundreds of millions of dollars into further growth in the
future. In Europe, we acquired a German utility-scale solar
developer with a 1,700-megawatt pipeline, for approximately $80
million (~$20 million net to Brookfield Renewable) and expect to
develop at least 800 megawatts of new renewable capacity over the
next six years from this pipeline. These transactions provide
late-stage development projects in core markets to match with the
abundance of corporate demand we are seeing for green power and
will benefit from synergies with our existing operations.
In the UK, we signed an agreement with a leading
battery energy storage solutions provider for the option to fund
and own up to 800 megawatts of battery energy storage projects and
almost 200 megawatts of co-located solar projects over the next
five years. Large and increasing exposure to intermittent
renewables, together with the decommissioning of thermal plants,
has created significant demand for energy storage in the UK – a
dynamic we have great visibility on through First Hydro. We
anticipate the buildout of the projects will require up to
approximately $260 million of equity (~$65 million net to
Brookfield Renewable). This will grow our existing 3,400-megawatt
global energy storage portfolio and give us a leading position in
the capacity-constrained UK market.
We continued to execute on our growth plans for
distributed generation in the fourth quarter. With leading
capabilities in North America, South America, Europe and Asia, we
are uniquely positioned to be a global solutions provider for clean
onsite generation. Our DG operating assets have grown to over 1,400
megawatts and our development pipeline has increased to 6,400
megawatts. In the quarter, we expanded our distributed generation
portfolio by acquiring 780 megawatts of operating and development
assets in Europe and South America and we also signed a strategic
agreement with Shoals Technologies Group, a leading provider of
solutions for storage, solar and eMobility, to pursue distributed
renewable energy generation and EV charging solutions across the
U.S.
In Asia, we completed the acquisition of over
300 megawatts of wind, including a transaction alongside Apple’s
Renewable Energy Fund, increasing our footprint in the region as
well as benefiting from synergies with our existing operations.
Finally, we achieved a record level of
development over 2021. We commissioned approximately 1,000
megawatts of new capacity and finished the year with almost 15,000
megawatts of construction and advanced-stage projects. These
projects are diversified across distributed- and utility-scale
solar, wind, storage, hydro and green hydrogen in 14 different
countries. In total, we expect these projects to contribute almost
$180 million in annual FFO to our business once completed.
Results From Operations
In 2021, we generated FFO of $934 million or
$1.45 per unit, a 10% increase from 2020 or 17% on a normalized
basis, as the business benefited from recent acquisitions, strong
underlying asset availability, and execution on organic growth
initiatives.
During the year, our hydroelectric segment
delivered FFO of $639 million. The portfolio continues to exhibit
strong cash flow resiliency given the increasingly diversified
asset base, strong price environment and our recent recontracting
initiatives delivering strong results even when generation was
below long-term average.
Our wind and solar segments generated a combined
$581 million of FFO, representing a 55% increase over the prior
year. We benefited from contributions from acquisitions, and
approximately 770 megawatts of solar and wind projects commissioned
during the year.
Our energy transition segment generated $162
million of FFO. Revenues from our pumped storage assets as well as
our distributed generation portfolio continue to demonstrate strong
growth as global electricity generation decarbonizes. Over the past
three years, our distributed generation portfolio grew revenue by
approximately 40% annually, bolstered by the acquisitions and
strategic partnerships we have signed.
Balance Sheet And Liquidity
Our financial position remains robust, with
approximately $4.1 billion of total available liquidity at year
end, and our business model is self-funded. During the year, we
executed on key financing and capital raising initiatives aimed at
maintaining robust access to capital and a prudent debt maturity
ladder, as well as maintaining a low-risk, investment-grade balance
sheet.
During 2021, we continued to take advantage of
the low interest environment. We executed on $13 billion of
investment grade financings, including $1.5 billion of upfinancings
net to Brookfield Renewable, securing a weighted average debt
maturity of 13 years with no material maturities over the next
three years. With these financing activities completed, our
business is well protected against the potential of rising interest
rates. We have very limited exposure to near-term maturities or
floating interest rates across our business.
We also continue to use opportunistic capital
recycling as an important lever to drive value and fund growth.
During the year, we executed on agreements to sell over 1,600
megawatts, generating proceeds of $1.5 billion ($540 million net to
Brookfield Renewable), including an agreement in the fourth quarter
to sell a 625-megawatt solar PV portfolio in Mexico at an
attractive valuation of $400 million (~$50 million net to
Brookfield Renewable).
Distribution Declaration And
Increase
The next quarterly distribution in the amount of
$0.32 per LP unit, is payable on March 31, 2022 to unitholders of
record as at the close of business on February 28, 2022. This
represents a 5% increase to our distribution, bringing our total
annual distribution per unit to $1.28.
In conjunction with Brookfield Renewable
Partners' distribution declaration, the Board of Directors of
Brookfield Renewable Corporation has declared an equivalent
quarterly dividend of $0.32 per share, also payable on March 31,
2022 to shareholders of record as at the close of business on
February 28, 2022.
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 U.S. dollars. Unitholders who
are residents in the United States will receive payment in U.S.
dollars and unitholders who are residents in Canada will receive
the Canadian dollar equivalent unless they request otherwise. The
Canadian dollar equivalent of the quarterly distribution will be
based on the Bank of Canada daily average exchange rate on the
record date or, if the record date falls on a weekend or holiday,
on the Bank of Canada daily average exchange rate of the preceding
business day.
Registered unitholders who are residents in
Canada who wish to receive a U.S. dollar distribution and
registered unitholders who are residents in the United States
wishing to receive the Canadian dollar distribution equivalent
should contact Brookfield Renewable’s transfer agent, Computershare
Trust Company of Canada , in writing at 100 University Avenue, 8th
Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253.
Beneficial unitholders (i.e., those holding their units in street
name with their brokerage) should contact the broker with whom
their units are held.
Distribution Reinvestment
Plan
Brookfield Renewable maintains a Distribution
Reinvestment Plan (“DRIP”) which allows holders of its LP Units who
are resident in Canada to acquire additional LP Units by
reinvesting all or a portion of their cash distributions without
paying commissions. Information on the DRIP, including details on
how to enroll, is available on our website at
https://bep.brookfield.com/stock-and-distribution/distributions/drip.
Additional information on Brookfield Renewable’s distributions and
preferred share dividends can be found on our website at
https://bep.brookfield.com.
Brookfield Renewable
Brookfield Renewable operates one of the world’s
largest publicly traded, pure-play renewable power platforms. Its
portfolio consists of hydroelectric, wind, solar and storage
facilities in North America, South America, Europe and Asia, and
totals over 21,000 megawatts of installed capacity and an
approximately 62,000-megawatt development pipeline. Investors can
access its portfolio either through Brookfield Renewable Partners
L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership,
or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian
corporation. Further information is available at
www.bep.brookfield.com and https://bep.brookfield.com/bepc.
Important information may be disseminated exclusively via the
website; investors should consult the site to access this
information.
Brookfield Renewable is the flagship listed
renewable power company of Brookfield Asset Management, a leading
global alternative asset manager with approximately $690 billion of
assets under management.
Please note that Brookfield Renewable’s previous
audited annual and unaudited quarterly reports filed with the U.S.
Securities and Exchange Commission (“SEC”) and securities
regulators in Canada, are available on our website at
https://bep.brookfield.com, on SEC’s website at www.sec.gov and on
SEDAR’s website at www.sedar.com. Hard copies of the annual and
quarterly reports can be obtained free of charge upon request.
Contact information: |
|
Media: |
Investors: |
Kerrie McHugh |
Robin Kooyman |
Senior Vice President – Corporate
Communications |
Senior Vice President – Investor Relations |
(212) 618-3469 |
(416) 649-8172 |
kerrie.mchugh@brookfield.com |
robin.kooyman@brookfield.com |
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Renewable’s fourth quarter and full-year 2021
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 February 4, 2022 at 9:00 a.m. Eastern Time at
https://edge.media-server.com/mmc/p/mh8ooud8 or via teleconference
at 1-866-688-9430 toll free in North America. If dialing from
outside Canada or the U.S., please dial 1-409-216-0817 at
approximately 8:50 a.m. Eastern Time. When prompted, enter the
conference ID, 2575137. A recording of the teleconference can be
accessed through February 11, 2022 at 1-855-859-2056, or from
outside Canada and the U.S. please call 1-404-537-3406. When
prompted, enter the conference ID, 2575137.
Brookfield Renewable Partners L.P. |
Consolidated Statements of Financial Position |
|
As of |
|
December 31 |
December 31 |
UNAUDITED(MILLIONS) |
|
2021 |
|
2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
764 |
|
$ |
431 |
Trade receivables and other financial assets(5) |
|
|
2,301 |
|
|
1,661 |
Equity-accounted investments |
|
|
1,107 |
|
|
971 |
Property, plant and equipment, at fair value |
|
|
49,432 |
|
|
44,590 |
Goodwill |
|
|
966 |
|
|
970 |
Deferred income tax and other assets(6) |
|
|
1,297 |
|
|
1,099 |
Total Assets |
|
$ |
55,867 |
|
$ |
49,722 |
|
|
|
|
|
Liabilities |
|
|
|
|
Corporate borrowings |
|
$ |
2,149 |
|
$ |
2,135 |
Borrowings which have recourse only to assets they finance(7) |
|
|
19,380 |
|
|
15,947 |
Accounts payable and other liabilities(8) |
|
|
4,127 |
|
|
4,358 |
Deferred income tax liabilities |
|
|
6,215 |
|
|
5,515 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests |
|
|
|
|
Participating non-controlling interests - in operating
subsidiaries |
$ |
12,303 |
|
$ |
11,100 |
|
General partnership interest in a holding subsidiary held by
Brookfield |
|
59 |
|
|
56 |
|
Participating non-controlling interests - in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield |
|
2,894 |
|
|
2,721 |
|
BEPC exchangeable shares |
|
2,562 |
|
|
2,408 |
|
Preferred equity |
|
613 |
|
|
609 |
|
Perpetual subordinated notes |
|
592 |
|
|
— |
|
Preferred limited partners' equity |
|
881 |
|
|
1,028 |
|
Limited partners' equity |
|
4,092 |
|
23,996 |
|
3,845 |
|
21,767 |
Total Liabilities and Equity |
|
$ |
55,867 |
|
$ |
49,722 |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Income (Loss) |
|
|
|
|
|
|
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
UNAUDITED(MILLIONS, EXCEPT AS NOTED) |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Revenues |
$ |
1,091 |
|
$ |
952 |
|
|
$ |
4,096 |
|
$ |
3,810 |
|
Other income |
|
15 |
|
|
77 |
|
|
|
304 |
|
|
128 |
|
Direct operating costs(9) |
|
(375 |
) |
|
(357 |
) |
|
|
(1,365 |
) |
|
(1,274 |
) |
Management service costs |
|
(64 |
) |
|
(84 |
) |
|
|
(288 |
) |
|
(235 |
) |
Interest expense |
|
(255 |
) |
|
(243 |
) |
|
|
(981 |
) |
|
(976 |
) |
Share of earnings from
equity-accounted investments |
|
19 |
|
|
31 |
|
|
|
22 |
|
|
27 |
|
Foreign exchange and financial
instrument gain (loss) |
|
(54 |
) |
|
115 |
|
|
|
(32 |
) |
|
127 |
|
Depreciation |
|
(381 |
) |
|
(337 |
) |
|
|
(1,501 |
) |
|
(1,367 |
) |
Other |
|
(77 |
) |
|
(307 |
) |
|
|
(307 |
) |
|
(432 |
) |
Income tax (expense)
recovery |
|
|
|
|
|
Current |
|
17 |
|
|
(37 |
) |
|
|
(43 |
) |
|
(66 |
) |
Deferred |
|
97 |
|
|
185 |
|
|
|
29 |
|
|
213 |
|
|
|
114 |
|
|
148 |
|
|
|
(14 |
) |
|
147 |
|
Net income (loss) |
$ |
33 |
|
$ |
(5 |
) |
|
$ |
(66 |
) |
$ |
(45 |
) |
Net
loss attributable to preferred equity, preferred limited partners’
equity, perpetual subordinated notes and
non-controlling interests in operating subsidiaries |
|
(90 |
) |
|
(115 |
) |
|
|
(302 |
) |
|
(259 |
) |
Net income (loss) attributable to Unitholders |
$ |
(57 |
) |
$ |
(120 |
) |
|
$ |
(368 |
) |
$ |
(304 |
) |
Basic and diluted (loss) earnings per LP unit |
$ |
(0.12 |
) |
$ |
(0.22 |
) |
|
$ |
(0.69 |
) |
$ |
(0.61 |
) |
Brookfield Renewable Partners L.P. |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
UNAUDITED (MILLIONS) |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
2021 |
|
|
|
2020 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
33 |
|
|
$ |
(5 |
) |
|
|
$ |
(66 |
) |
|
$ |
(45 |
) |
Adjustments for the following
non-cash items: |
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
381 |
|
|
|
337 |
|
|
|
|
1,501 |
|
|
|
1,367 |
|
Unrealized foreign exchange and financial instrument loss
(gain) |
|
|
100 |
|
|
|
(119 |
) |
|
|
|
122 |
|
|
|
(134 |
) |
Share of earnings from equity-accounted investments |
|
|
(19 |
) |
|
|
(31 |
) |
|
|
|
(22 |
) |
|
|
(27 |
) |
Deferred income tax expense |
|
|
(97 |
) |
|
|
(185 |
) |
|
|
|
(29 |
) |
|
|
(213 |
) |
Other non-cash items |
|
|
(26 |
) |
|
|
248 |
|
|
|
|
(136 |
) |
|
|
388 |
|
|
|
|
372 |
|
|
|
245 |
|
|
|
|
1,370 |
|
|
|
1,336 |
|
Net
change in working capital and other(10) |
|
|
(110 |
) |
|
|
34 |
|
|
|
|
(636 |
) |
|
|
(40 |
) |
|
|
|
262 |
|
|
|
279 |
|
|
|
|
734 |
|
|
|
1,296 |
|
Financing activities |
|
|
|
|
|
|
|
|
|
Net corporate borrowings |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
266 |
|
Corporate credit facilities,
net |
|
|
(150 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
(299 |
) |
Non-recourse borrowings,
commercial paper, and related party borrowings, net |
|
|
1,273 |
|
|
|
(260 |
) |
|
|
|
2,769 |
|
|
|
120 |
|
Capital contributions from
participating non-controlling interests - in operating
subsidiaries, net |
|
|
31 |
|
|
|
357 |
|
|
|
|
689 |
|
|
|
367 |
|
Issuance of Perpetual
Subordinated Notes, Preferred LP Units and related costs, net |
|
|
252 |
|
|
|
(23 |
) |
|
|
|
439 |
|
|
|
151 |
|
Distributions paid: |
|
|
|
|
|
|
|
|
|
To participating non-controlling interests – in operating
subsidiaries, preferred shareholders, preferred limited
partners unitholders, and perpetual subordinate notes |
|
|
(255 |
) |
|
|
(203 |
) |
|
|
|
(900 |
) |
|
|
(628 |
) |
To unitholders of Brookfield Renewable or BRELP and shareholders of
Brookfield Renewable Corporation |
|
|
(212 |
) |
|
|
(202 |
) |
|
|
|
(854 |
) |
|
|
(769 |
) |
|
|
|
939 |
|
|
|
(331 |
) |
|
|
|
2,143 |
|
|
|
(792 |
) |
Investing activities |
|
|
|
|
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
|
|
— |
|
|
|
— |
|
|
|
|
(1,426 |
) |
|
|
(105 |
) |
Investment in property, plant
and equipment |
|
|
(1,136 |
) |
|
|
(190 |
) |
|
|
|
(1,967 |
) |
|
|
(447 |
) |
Disposal of subsidiaries,
associates and other securities, net |
|
|
103 |
|
|
|
23 |
|
|
|
|
936 |
|
|
|
58 |
|
Restricted cash and other |
|
|
80 |
|
|
|
146 |
|
|
|
|
(46 |
) |
|
|
68 |
|
|
|
|
(953 |
) |
|
|
(21 |
) |
|
|
|
(2,503 |
) |
|
|
(426 |
) |
Foreign exchange gain (loss) on cash |
|
|
(20 |
) |
|
|
23 |
|
|
|
|
(36 |
) |
|
|
13 |
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Increase (decrease) |
|
$ |
228 |
|
|
$ |
(50 |
) |
|
|
$ |
338 |
|
|
$ |
91 |
|
Net change in cash classified within assets held for sale |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
|
(5 |
) |
|
|
(12 |
) |
Balance, beginning of period |
|
|
537 |
|
|
|
482 |
|
|
|
|
431 |
|
|
|
352 |
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
$ |
764 |
|
|
$ |
431 |
|
|
|
$ |
764 |
|
|
$ |
431 |
|
PROPORTIONATE RESULTS FOR THE THREE
MONTHS ENDED DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the three months ended December 31:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
|
2021 |
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
2,559 |
2,514 |
|
|
2,913 |
2,912 |
|
|
$ |
237 |
$ |
182 |
|
|
$ |
151 |
|
$ |
105 |
|
|
$ |
115 |
|
$ |
68 |
|
Brazil |
810 |
849 |
|
|
1,007 |
1,007 |
|
|
|
38 |
|
39 |
|
|
|
26 |
|
|
63 |
|
|
|
18 |
|
|
58 |
|
Colombia |
1,100 |
966 |
|
|
1,004 |
977 |
|
|
|
64 |
|
57 |
|
|
|
42 |
|
|
38 |
|
|
|
40 |
|
|
23 |
|
|
4,469 |
4,329 |
|
|
4,924 |
4,896 |
|
|
|
339 |
|
278 |
|
|
|
219 |
|
|
206 |
|
|
|
173 |
|
|
149 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
1,044 |
1,132 |
|
|
1,195 |
1,349 |
|
|
|
98 |
|
90 |
|
|
|
53 |
|
|
58 |
|
|
|
36 |
|
|
38 |
|
Europe |
262 |
339 |
|
|
251 |
357 |
|
|
|
35 |
|
41 |
|
|
|
36 |
|
|
51 |
|
|
|
30 |
|
|
45 |
|
Brazil |
128 |
141 |
|
|
168 |
169 |
|
|
|
5 |
|
6 |
|
|
|
4 |
|
|
6 |
|
|
|
4 |
|
|
4 |
|
Asia |
121 |
123 |
|
|
113 |
104 |
|
|
|
8 |
|
8 |
|
|
|
7 |
|
|
8 |
|
|
|
4 |
|
|
5 |
|
|
1,555 |
1,735 |
|
|
1,727 |
1,979 |
|
|
|
146 |
|
145 |
|
|
|
100 |
|
|
123 |
|
|
|
74 |
|
|
92 |
|
Solar |
356 |
304 |
|
|
381 |
338 |
|
|
|
68 |
|
77 |
|
|
|
67 |
|
|
84 |
|
|
|
41 |
|
|
51 |
|
Energy
transition(11) |
257 |
215 |
|
|
165 |
141 |
|
|
|
79 |
|
54 |
|
|
|
52 |
|
|
38 |
|
|
|
37 |
|
|
26 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
(7 |
) |
|
5 |
|
|
|
(111 |
) |
|
(117 |
) |
Total |
6,637 |
6,583 |
|
|
7,197 |
7,354 |
|
|
$ |
632 |
$ |
554 |
|
|
$ |
431 |
|
$ |
456 |
|
|
$ |
214 |
|
$ |
201 |
|
PROPORTIONATE RESULTS FOR THE YEAR ENDED
DECEMBER 31
The following chart reflects the generation and
summary financial figures on a proportionate basis
for the twelve months ended December 31:
|
(GWh) |
|
|
(MILLIONS) |
|
Actual Generation |
|
|
LTA Generation |
|
|
Revenues |
|
|
Adjusted EBITDA |
|
|
FFO |
|
2021 |
2020 |
|
|
2021 |
2020 |
|
|
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Hydroelectric |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
10,470 |
11,863 |
|
|
12,167 |
12,166 |
|
|
$ |
804 |
$ |
824 |
|
|
$ |
528 |
$ |
562 |
|
|
$ |
380 |
|
$ |
420 |
|
Brazil |
3,626 |
3,663 |
|
|
4,004 |
4,004 |
|
|
|
169 |
|
175 |
|
|
|
155 |
|
177 |
|
|
|
131 |
|
|
152 |
|
Colombia |
3,950 |
2,999 |
|
|
3,555 |
3,488 |
|
|
|
224 |
|
211 |
|
|
|
159 |
|
131 |
|
|
|
128 |
|
|
90 |
|
|
18,046 |
18,525 |
|
|
19,726 |
19,658 |
|
|
|
1,197 |
|
1,210 |
|
|
|
842 |
|
870 |
|
|
|
639 |
|
|
662 |
|
Wind |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
4,009 |
3,560 |
|
|
5,051 |
4,239 |
|
|
|
370 |
|
263 |
|
|
|
277 |
|
196 |
|
|
|
200 |
|
|
123 |
|
Europe |
1,029 |
908 |
|
|
1,077 |
1,002 |
|
|
|
125 |
|
105 |
|
|
|
187 |
|
96 |
|
|
|
164 |
|
|
79 |
|
Brazil |
589 |
552 |
|
|
670 |
671 |
|
|
|
29 |
|
27 |
|
|
|
23 |
|
24 |
|
|
|
17 |
|
|
17 |
|
Asia |
469 |
428 |
|
|
451 |
443 |
|
|
|
32 |
|
28 |
|
|
|
24 |
|
25 |
|
|
|
15 |
|
|
18 |
|
|
6,096 |
5,448 |
|
|
7,249 |
6,355 |
|
|
|
556 |
|
423 |
|
|
|
511 |
|
341 |
|
|
|
396 |
|
|
237 |
|
Solar |
1,777 |
1,284 |
|
|
2,016 |
1,510 |
|
|
|
348 |
|
245 |
|
|
|
298 |
|
232 |
|
|
|
185 |
|
|
139 |
|
Energy
transition(12) |
1,231 |
795 |
|
|
861 |
475 |
|
|
|
314 |
|
169 |
|
|
|
214 |
|
130 |
|
|
|
162 |
|
|
103 |
|
Corporate |
— |
— |
|
|
— |
— |
|
|
|
— |
|
— |
|
|
|
11 |
|
41 |
|
|
|
(448 |
) |
|
(334 |
) |
Total |
27,150 |
26,052 |
|
|
29,852 |
27,998 |
|
|
$ |
2,415 |
$ |
2,047 |
|
|
$ |
1,876 |
$ |
1,614 |
|
|
$ |
934 |
|
$ |
807 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the three months ended December 31, 2021:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Solar |
Energytransition |
Corporate |
Total |
Net income (loss) |
$ |
182 |
|
$ |
(57 |
) |
$ |
(30 |
) |
$ |
7 |
|
$ |
(69 |
) |
$ |
33 |
|
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
140 |
|
|
155 |
|
|
65 |
|
|
21 |
|
|
— |
|
|
381 |
|
Deferred income tax expense (recovery) |
|
(9 |
) |
|
(25 |
) |
|
(23 |
) |
|
(8 |
) |
|
(32 |
) |
|
(97 |
) |
Foreign exchange and financial instrument loss (gain) |
|
14 |
|
|
28 |
|
|
11 |
|
|
4 |
|
|
(3 |
) |
|
54 |
|
Other(13) |
|
(3 |
) |
|
29 |
|
|
39 |
|
|
43 |
|
|
12 |
|
|
120 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
64 |
|
|
64 |
|
Interest expense |
|
113 |
|
|
59 |
|
|
53 |
|
|
9 |
|
|
21 |
|
|
255 |
|
Current income tax expense (recovery) |
|
(20 |
) |
|
3 |
|
|
— |
|
|
— |
|
|
— |
|
|
(17 |
) |
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(198 |
) |
|
(92 |
) |
|
(48 |
) |
|
(24 |
) |
|
— |
|
|
(362 |
) |
Adjusted EBITDA |
$ |
219 |
|
$ |
100 |
|
$ |
67 |
|
$ |
52 |
|
$ |
(7 |
) |
$ |
431 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the three months ended December 31, 2020:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Solar |
Energytransition |
Corporate |
Total |
Net income (loss) |
$ |
151 |
|
$ |
67 |
|
$ |
35 |
|
$ |
23 |
|
$ |
(281 |
) |
$ |
(5 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
136 |
|
|
135 |
|
|
48 |
|
|
17 |
|
|
1 |
|
|
337 |
|
Deferred income tax expense (recovery) |
|
(44 |
) |
|
(37 |
) |
|
(20 |
) |
|
(14 |
) |
|
(70 |
) |
|
(185 |
) |
Foreign exchange and financial instrument loss (gain) |
|
(15 |
) |
|
(28 |
) |
|
(71 |
) |
|
10 |
|
|
(11 |
) |
|
(115 |
) |
Other(13) |
|
3 |
|
|
(16 |
) |
|
73 |
|
|
(4 |
) |
|
258 |
|
|
314 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
84 |
|
|
84 |
|
Interest expense |
|
100 |
|
|
56 |
|
|
54 |
|
|
9 |
|
|
24 |
|
|
243 |
|
Current income tax expense (recovery) |
|
32 |
|
|
4 |
|
|
1 |
|
|
— |
|
|
— |
|
|
37 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(157 |
) |
|
(58 |
) |
|
(36 |
) |
|
(3 |
) |
|
— |
|
|
(254 |
) |
Adjusted EBITDA |
$ |
206 |
|
$ |
123 |
|
$ |
84 |
|
$ |
38 |
|
$ |
5 |
|
$ |
456 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the twelve months ended December 31, 2021:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Solar |
Energytransition |
Corporate |
Total |
Net income (loss) |
$ |
309 |
|
$ |
(88 |
) |
$ |
6 |
|
$ |
64 |
|
$ |
(357 |
) |
$ |
(66 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
545 |
|
|
597 |
|
|
263 |
|
|
94 |
|
|
2 |
|
|
1,501 |
|
Deferred income tax expense (recovery) |
|
124 |
|
|
(37 |
) |
|
(34 |
) |
|
(9 |
) |
|
(73 |
) |
|
(29 |
) |
Foreign exchange and financial instrument loss (gain) |
|
47 |
|
|
40 |
|
|
(23 |
) |
|
4 |
|
|
(36 |
) |
|
32 |
|
Other(13) |
|
46 |
|
|
151 |
|
|
92 |
|
|
55 |
|
|
109 |
|
|
453 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
288 |
|
|
288 |
|
Interest expense |
|
407 |
|
|
247 |
|
|
187 |
|
|
48 |
|
|
92 |
|
|
981 |
|
Current income tax expense (recovery) |
|
25 |
|
|
13 |
|
|
5 |
|
|
— |
|
|
— |
|
|
43 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(661 |
) |
|
(412 |
) |
|
(198 |
) |
|
(42 |
) |
|
(14 |
) |
|
(1,327 |
) |
Adjusted EBITDA |
$ |
842 |
|
$ |
511 |
|
$ |
298 |
|
$ |
214 |
|
$ |
11 |
|
$ |
1,876 |
|
The following table reflects Adjusted EBITDA and
provides a reconciliation to net income (loss) to Adjusted EBITDA
for the twelve months ended December 31, 2020:
|
Attributable to Unitholders |
(MILLIONS) |
Hydroelectric |
Wind |
Solar |
Energytransition |
Corporate |
Total |
Net income (loss) |
$ |
475 |
|
$ |
(57 |
) |
$ |
(27 |
) |
$ |
64 |
|
$ |
(500 |
) |
$ |
(45 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
Depreciation |
|
513 |
|
|
547 |
|
|
227 |
|
|
75 |
|
|
5 |
|
|
1,367 |
|
Deferred income tax expense (recovery) |
|
(31 |
) |
|
(52 |
) |
|
(26 |
) |
|
(8 |
) |
|
(96 |
) |
|
(213 |
) |
Foreign exchange and financial instrument loss (gain) |
|
(29 |
) |
|
(70 |
) |
|
(16 |
) |
|
5 |
|
|
(17 |
) |
|
(127 |
) |
Other(13) |
|
74 |
|
|
82 |
|
|
129 |
|
|
45 |
|
|
318 |
|
|
648 |
|
Management service costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
235 |
|
|
235 |
|
Interest expense |
|
400 |
|
|
251 |
|
|
201 |
|
|
30 |
|
|
94 |
|
|
976 |
|
Current income tax expense (recovery) |
|
55 |
|
|
8 |
|
|
1 |
|
|
— |
|
|
2 |
|
|
66 |
|
Amount attributable to equity accounted investments and
non-controlling interests(14) |
|
(587 |
) |
|
(368 |
) |
|
(257 |
) |
|
(81 |
) |
|
— |
|
|
(1,293 |
) |
Adjusted EBITDA |
$ |
870 |
|
$ |
341 |
|
$ |
232 |
|
$ |
130 |
|
$ |
41 |
|
$ |
1,614 |
|
The following table reconciles the non-IFRS
financial metrics to the most directly comparable IFRS measures.
Net income (loss) is reconciled to Funds From Operations for the
three months and twelve months ended December 31:
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
UNAUDITED(MILLIONS) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net income
(loss) |
$ |
33 |
|
|
$ |
(5 |
) |
|
$ |
(66 |
) |
|
$ |
(45 |
) |
Add back or deduct the
following: |
|
|
|
|
|
|
|
Depreciation |
|
381 |
|
|
|
337 |
|
|
|
1,501 |
|
|
|
1,367 |
|
Deferred income tax expense (recovery) |
|
(97 |
) |
|
|
(185 |
) |
|
|
(29 |
) |
|
|
(213 |
) |
Foreign exchange and unrealized financial instruments gain
(loss) |
|
54 |
|
|
|
(115 |
) |
32 |
|
32 |
|
|
|
(127 |
) |
Other(13) |
|
120 |
|
|
|
314 |
|
|
|
453 |
|
|
|
648 |
|
Amount
attributable to equity accounted investment and non-controlling
interest(15) |
|
(277 |
) |
|
|
(145 |
) |
|
|
(957 |
) |
|
|
(823 |
) |
Funds From Operations |
$ |
214 |
|
|
$ |
201 |
|
|
$ |
934 |
|
|
$ |
807 |
|
Normalized long-term average
generation adjustment |
|
43 |
|
|
|
41 |
|
|
|
161 |
|
|
|
75 |
|
Normalized foreign currency adjustment |
|
6 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Normalized Funds From Operations |
$ |
263 |
|
|
$ |
242 |
|
|
$ |
1,091 |
|
|
$ |
882 |
|
The following table reconciles the per Unit
non-IFRS financial metrics to the most directly comparable IFRS
measures. Net income (loss) per LP unit is reconciled to Funds From
Operations per Unit, for the three and twelve months ended
December 31:
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Net income (loss) per LP unit(1) |
$ |
(0.12 |
) |
$ |
(0.22 |
) |
|
$ |
(0.69 |
) |
$ |
(0.61 |
) |
Adjust for the proportionate
share of |
|
|
|
|
|
Depreciation |
|
0.33 |
|
|
0.33 |
|
|
|
1.43 |
|
|
1.24 |
|
Foreign exchange and financial instruments loss (gain) |
|
0.10 |
|
|
— |
|
|
|
0.20 |
|
|
0.06 |
|
Deferred income tax recovery and other |
|
0.02 |
|
|
0.20 |
|
|
|
0.51 |
|
|
0.63 |
|
Funds From Operations per Unit(3) |
$ |
0.33 |
|
$ |
0.31 |
|
|
$ |
1.45 |
|
$ |
1.32 |
|
Normalized long-term average generation adjustment |
|
0.07 |
|
|
0.06 |
|
|
|
0.25 |
|
|
0.13 |
|
Normalized foreign exchange adjustment |
|
0.01 |
|
|
— |
|
|
|
(0.01 |
) |
|
— |
|
Normalized Funds From Operations per Unit(3) |
$ |
0.41 |
|
$ |
0.37 |
|
|
$ |
1.69 |
|
$ |
1.45 |
|
BROOKFIELD RENEWABLE CORPORATION
REPORTS FOURTH QUARTER AND FULL-YEAR 2021
RESULTS
All amounts in U.S. dollars unless otherwise
indicated
The Board of Directors of Brookfield Renewable
Corporation ("BEPC" or our "company") (NYSE, TSX: BEPC) today has
declared a quarterly dividend of $0.32 per class A exchangeable
subordinate voting share of BEPC (a "Share"), payable on March 31,
2022 to shareholders of record as at the close of business on
February 28, 2022. This dividend is identical in amount per share
and has identical record and payment dates to the quarterly
distribution announced today by BEP on BEP's LP units.
The BEPC exchangeable shares are structured with
the intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Renewable Partners L.P.
("BEP" or the "Partnership") (NYSE: BEP; TSX: BEP.UN). We believe
economic equivalence is achieved through identical dividends and
distributions on the BEPC exchangeable shares and BEP's LP units
and each BEPC exchangeable share being exchangeable at the option
of the holder for one BEP LP unit at any time. Given the economic
equivalence, we expect that the market price of the Shares will be
significantly impacted by the market price of BEP's LP units and
the combined business performance of our company and BEP as a
whole. In addition to carefully considering the disclosures made in
this news release in its entirety, shareholders are strongly
encouraged to carefully review BEP's continuous disclosure filings
available electronically on EDGAR on the SEC's website at
www.sec.gov or on SEDAR at www.sedar.com.
Financial
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITEDFOR THE PERIODS ENDED DECEMBER 31 |
Three Months Ended |
|
Years Ended |
(US $ millions, except per unit amounts) |
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|
Select Financial Information |
|
|
|
|
|
Net
income (loss) attributable to the partnership |
$ |
130 |
$ |
(1,516 |
) |
|
$ |
946 |
$ |
(2,738 |
) |
Funds
From Operations (FFO)(2) |
$ |
137 |
$ |
85 |
|
|
$ |
554 |
$ |
402 |
|
Operational Information |
|
|
|
|
|
Proportionate Generation (GWh) |
|
4,279 |
|
3,971 |
|
|
|
17,606 |
|
15,578 |
|
BEPC reported FFO of $554 million for the twelve
months ended December 31, 2021, compared to $402 million in
the prior year. After deducting non-cash depreciation, deferred
income tax expense (recovery), foreign exchange and derivative
gains, other and remeasurement of the Shares, our Net income
attributable to the partnership for the twelve months ended
December 31, 2021 was $946 million.
Brookfield Renewable Corporation |
Consolidated Statements of Financial Position |
|
As of |
UNAUDITED(MILLIONS) |
December 31 |
December 31 |
2021 |
2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
410 |
|
$ |
355 |
Trade receivables and other financial assets(5) |
|
|
1,956 |
|
|
1,297 |
Equity-accounted investments |
|
|
455 |
|
|
372 |
Property, plant and equipment, at fair value |
|
|
37,915 |
|
|
36,097 |
Goodwill |
|
|
849 |
|
|
970 |
Deferred income tax and other assets(16) |
|
|
401 |
|
|
382 |
Total Assets |
|
$ |
41,986 |
|
$ |
39,473 |
|
|
|
|
|
Liabilities |
|
|
|
|
Borrowings which have recourse only to assets they finance(7) |
|
$ |
13,512 |
|
$ |
12,822 |
Accounts payable and other liabilities(17) |
|
|
3,066 |
|
|
3,296 |
Deferred income tax liabilities |
|
|
5,020 |
|
|
4,200 |
BEPC exchangeable and class B shares |
|
|
6,163 |
|
|
7,430 |
|
|
|
|
|
Equity |
|
|
|
|
Non-controlling interests: |
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
$ |
10,297 |
|
$ |
10,290 |
|
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
261 |
|
|
258 |
|
The partnership |
|
3,667 |
|
14,225 |
|
1,177 |
|
11,725 |
Total Liabilities and Equity |
|
$ |
41,986 |
|
$ |
39,473 |
Brookfield Renewable Corporation |
Consolidated Statements of Income (Loss) |
|
|
|
|
|
UNAUDITED(MILLIONS) |
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
905 |
|
$ |
746 |
|
|
$ |
3,367 |
|
$ |
3,087 |
|
Other income |
|
|
12 |
|
|
70 |
|
|
|
60 |
|
|
99 |
|
Direct operating costs(9) |
|
|
(344 |
) |
|
(280 |
) |
|
|
(1,185 |
) |
|
(1,061 |
) |
Management service costs |
|
|
(28 |
) |
|
(46 |
) |
|
|
(175 |
) |
|
(152 |
) |
Interest expense |
|
|
(229 |
) |
|
(229 |
) |
|
|
(900 |
) |
|
(816 |
) |
Share of (loss) earnings from
equity-accounted investments |
|
|
— |
|
|
(1 |
) |
|
|
2 |
|
|
(4 |
) |
Foreign exchange and financial
instrument gain (loss) |
|
|
(82 |
) |
|
63 |
|
|
|
(27 |
) |
|
74 |
|
Depreciation |
|
|
(281 |
) |
|
(259 |
) |
|
|
(1,115 |
) |
|
(1,065 |
) |
Other |
|
|
(56 |
) |
|
(429 |
) |
|
|
(277 |
) |
|
(493 |
) |
Remeasurement of BEPC
exchangeable and class B shares |
|
|
193 |
|
|
(1,398 |
) |
|
|
1,267 |
|
|
(2,561 |
) |
Income tax (expense)
recovery |
|
|
|
|
|
|
Current |
|
|
20 |
|
|
(35 |
) |
|
|
(31 |
) |
|
(61 |
) |
Deferred |
|
|
70 |
|
|
166 |
|
|
|
(56 |
) |
|
134 |
|
|
|
|
90 |
|
|
131 |
|
|
|
(87 |
) |
|
73 |
|
Net income (loss) |
|
$ |
180 |
|
$ |
(1,632 |
) |
|
$ |
930 |
|
$ |
(2,819 |
) |
Net income (loss) attributable to: |
|
|
|
|
|
|
Non-controlling interests: |
|
|
|
|
|
|
Participating non-controlling interests – in operating
subsidiaries |
|
$ |
46 |
|
$ |
(123 |
) |
|
$ |
(23 |
) |
$ |
(92 |
) |
Participating non-controlling interests – in a holding subsidiary
held by the partnership |
|
|
4 |
|
|
7 |
|
|
|
7 |
|
|
11 |
|
The partnership |
|
|
130 |
|
|
(1,516 |
) |
|
|
946 |
|
|
(2,738 |
) |
|
|
$ |
180 |
|
$ |
(1,632 |
) |
|
$ |
930 |
|
$ |
(2,819 |
) |
Brookfield Renewable Corporation |
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
UNAUDITED(MILLIONS) |
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Operating activities |
|
|
|
|
|
Net income |
$ |
180 |
|
$ |
(1,632 |
) |
|
$ |
930 |
|
$ |
(2,819 |
) |
Adjustments for the following
non-cash items: |
|
|
|
|
|
Depreciation |
|
281 |
|
|
259 |
|
|
|
1,115 |
|
|
1,065 |
|
Unrealized foreign exchange and financial instruments loss
(gain) |
|
126 |
|
|
(64 |
) |
|
|
102 |
|
|
(78 |
) |
Share of earnings from equity-accounted investments |
|
— |
|
|
1 |
|
|
|
(2 |
) |
|
4 |
|
Deferred income tax expense |
|
(70 |
) |
|
(166 |
) |
|
|
56 |
|
|
(134 |
) |
Other non-cash items |
|
59 |
|
|
361 |
|
|
|
109 |
|
|
409 |
|
Remeasurement of exchangeable
and class B shares |
|
(193 |
) |
|
1,398 |
|
|
|
(1,267 |
) |
|
2,561 |
|
|
|
383 |
|
|
157 |
|
|
|
1,043 |
|
|
1,008 |
|
Net
change in working capital and other(10) |
|
(153 |
) |
|
(36 |
) |
|
|
(648 |
) |
|
(16 |
) |
|
|
230 |
|
|
121 |
|
|
|
395 |
|
|
992 |
|
Financing activities |
|
|
|
|
|
Non-recourse borrowings and
related party borrowings, net |
|
654 |
|
|
(163 |
) |
|
|
1,469 |
|
|
(32 |
) |
Capital contributions from
participating non-controlling interests |
|
23 |
|
|
300 |
|
|
|
65 |
|
|
329 |
|
Capital contributions from the
partnership |
|
— |
|
|
— |
|
|
|
— |
|
|
102 |
|
Return of capital to
participating non-controlling interests |
|
— |
|
|
(80 |
) |
|
|
(181 |
) |
|
(82 |
) |
Issuance of exchangeable
shares, net |
|
— |
|
|
(23 |
) |
|
|
— |
|
|
(44 |
) |
Distributions paid and return
of capital: |
|
|
|
|
|
To participating non-controlling interests |
|
(184 |
) |
|
(150 |
) |
|
|
(675 |
) |
|
(513 |
) |
To the partnership |
|
— |
|
|
1 |
|
|
|
— |
|
|
(235 |
) |
|
|
493 |
|
|
(115 |
) |
|
|
678 |
|
|
(475 |
) |
Investing
activities |
|
|
|
|
|
Acquisitions net of cash and
cash equivalents in acquired entity |
|
— |
|
|
— |
|
|
|
(12 |
) |
|
(105 |
) |
Investment in property, plant
and equipment |
|
(791 |
) |
|
(175 |
) |
|
|
(1,354 |
) |
|
(373 |
) |
Disposal of subsidiaries,
associates and other securities, net |
|
— |
|
|
6 |
|
|
|
376 |
|
|
17 |
|
Restricted cash and other |
|
84 |
|
|
126 |
|
|
|
6 |
|
|
(17 |
) |
|
|
(707 |
) |
|
(43 |
) |
|
|
(984 |
) |
|
(478 |
) |
Foreign exchange gain (loss) on cash |
|
(19 |
) |
|
15 |
|
|
|
(34 |
) |
|
12 |
|
Cash and cash equivalents |
|
|
|
|
|
Increase (decrease) |
$ |
(3 |
) |
$ |
(22 |
) |
|
$ |
55 |
|
$ |
51 |
|
Balance, beginning of period |
|
413 |
|
|
377 |
|
|
|
355 |
|
|
304 |
|
|
|
|
|
|
|
Balance, end of period |
$ |
410 |
|
$ |
355 |
|
|
$ |
410 |
|
$ |
355 |
|
RECONCILIATION OF NON-IFRS
MEASURES
The following table reconciles net income (loss)
to Funds From Operations for the three and twelve months ended
December 31:
|
For the three months endedDecember 31 |
|
For the twelve months endedDecember 31 |
UNAUDITED(MILLIONS) |
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
Net income (loss) |
$ |
180 |
|
$ |
(1,632 |
) |
|
$ |
930 |
|
$ |
(2,819 |
) |
Add back or deduct the
following: |
|
|
|
|
|
Depreciation |
|
281 |
|
|
259 |
|
|
|
1,115 |
|
|
1,065 |
|
Foreign exchange and financial instruments loss (gain) |
|
82 |
|
|
(63 |
) |
|
|
27 |
|
|
(74 |
) |
Deferred income tax expense (recovery) |
|
(70 |
) |
|
(166 |
) |
|
|
56 |
|
|
(134 |
) |
Other(18) |
|
92 |
|
|
429 |
|
|
|
423 |
|
|
517 |
|
Dividends on BEPC exchangeable shares(19) |
|
53 |
|
|
50 |
|
|
|
209 |
|
|
116 |
|
Remeasurement of BEPC
exchangeable and BEPC class B shares |
|
(193 |
) |
|
1,398 |
|
|
|
(1,267 |
) |
|
2,561 |
|
Amount attributable to equity
accounted investments and non-controlling interests(20) |
|
(288 |
) |
|
(190 |
) |
|
|
(939 |
) |
|
(830 |
) |
Funds
From Operations |
$ |
137 |
|
$ |
85 |
|
|
$ |
554 |
|
$ |
402 |
|
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 U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “intend”,
“should”, “could”, “target”, “growth”, “expect”, “believe”, “plan”,
derivatives thereof and other expressions which are predictions of
or indicate future events, trends or prospects and which do not
relate to historical matters identify the above mentioned and other
forward-looking statements. Forward-looking statements in this news
release include statements regarding the quality of Brookfield
Renewable’s and its subsidiaries’ businesses and our expectations
regarding future cash flows and distribution growth. They include
statements regarding Brookfield Renewable’s anticipated financial
performance, future commissioning of assets, contracted nature of
our portfolio, technology diversification, acquisition
opportunities, expected completion of acquisitions and
dispositions, financing and refinancing opportunities, BEPC’s
eligibility for index inclusion, BEPC’s ability to attract new
investors as well as the future performance and prospects of BEPC
and BEP, future energy prices and demand for electricity, economic
recovery, achieving long-term average generation, project
development and capital expenditure costs, energy policies,
economic growth, growth potential of the renewable asset class, the
future growth prospects and distribution profile of Brookfield
Renewable and Brookfield Renewable’s access to capital. Although
Brookfield Renewable believes that these forward-looking statements
and information are based upon reasonable assumptions and
expectations, you should not place undue reliance on them, or any
other forward-looking statements or information in this news
release. The future performance and prospects of Brookfield
Renewable are subject to a number of known and unknown risks and
uncertainties. Factors that could cause actual results of
Brookfield Renewable to differ materially from those contemplated
or implied by the statements in this news release include (without
limitation) our inability to identify sufficient investment
opportunities and complete transactions; the growth of our
portfolio and our inability to realize the expected benefits of our
transactions or acquisitions; weather conditions and other factors
which may impact generation levels at facilities; adverse outcomes
with respect to outstanding, pending or future litigation; economic
conditions in the jurisdictions in which Brookfield Renewable
operates; ability to sell products and services under contract or
into merchant energy markets; changes to government regulations,
including incentives for renewable energy; ability to complete
development and capital projects on time and on budget; inability
to finance operations or fund future acquisitions due to the status
of the capital markets; health, safety, security or environmental
incidents; regulatory risks relating to the power markets in which
Brookfield Renewable operates, including relating to the regulation
of our assets, licensing and litigation; risks relating to internal
control environment; contract counterparties not fulfilling their
obligations; changes in operating expenses, including employee
wages, benefits and training, governmental and public policy
changes, and other risks associated with the construction,
development and operation of power generating facilities. For
further information on these known and unknown risks, please see
“Risk Factors” included in the Form 20-F of BEP and in the Form
20-F of BEPC and other risks and factors that are described
therein.
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 news release
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 news release. This
news release 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
Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized
FFO per Unit, which are not generally accepted accounting measures
under IFRS and therefore may differ from definitions of Adjusted
EBITDA, FFO, FFO per Unit, Normalized FFO and Normalized FFO per
Unit used by other entities. We believe that Adjusted EBITDA, FFO,
FFO per Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO, FFO per
Unit, Normalized FFO and Normalized 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 Adjusted EBITDA, FFO and FFO per Unit to the most
directly comparable IFRS measure, please see “Reconciliation of
Non-IFRS Measures - Three Months Ended December 31” and
“Reconciliation of Non-IFRS Measures - Year Ended December 31”
included elsewhere herein and “Financial Performance Review on
Proportionate Information - Reconciliation of Non-IFRS Measures”
included in our Form 20-F. Normalized FFO assumes long-term average
generation in all segments except the Brazil and Colombia
hydroelectric segments and uses 2020 foreign currency rates.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
Endnotes
(1) For the three and twelve
months ended December 31, 2021, average LP units totaled 275.0
million and 274.9 million, respectively (2020: 274.8 million and
271.1 million, respectively).
(2) Refer to "Reconciliation of
non-IFRS Measure" and “Cautionary Statement Regarding Use of
Non-IFRS Measures” in this document, as well as "Part 9 -
Presentation to Stakeholders and Performance Measurement" in the
Management's Discussion and Analysis in the 2021 Annual Report.
(3) Average Units outstanding
for the three and twelve months ended December 31, 2021 were
645.7 million and 645.6 million, respectively (2020: 645.5 million
and 609.5 million, respectively), being inclusive of our LP units,
Redeemable/Exchangeable partnership units, BEPC exchangeable shares
and general partner interest. The actual Units outstanding at
December 31, 2021 were 645.8 million (2020: 645.5
million).
(4) Normalized FFO assumes
long-term average generation in all segments except the Brazil and
Colombia hydroelectric segments and uses 2020 foreign currency
rates. For the three and twelve months ended December 31,
2021, the change related to long-term average generation totaled
$43 million and $161 million, respectively (2020:
$41 million and $75 million, respectively) and the change
related to foreign currency totaled $6 million and
$(4) million, respectively.
(5) Balance includes restricted
cash, trades receivables and other current assets, financial
instrument assets, and due from related parties.
(6) Balance includes 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 asset 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
90 GWh (2020: 98 GWh) from facilities that do not have a
corresponding LTA.
(12) Actual generation includes
442 GWh (2020: 375 GWh) from facilities that do not have a
corresponding LTA.
(13) Refer to Note 9 - Other in
the Audited Consolidated Financial Statements for more details on
the Other balance, and includes 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.
(14) 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.
(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 includes deferred
income tax assets, intangible assets, and other long-term
assets.
(17) Balance includes accounts
payable and accrued liabilities, financial instrument liabilities,
due to related parties, provisions, and other long-term
liabilities.
(18) Refer to Note 8 - Other in
the Audited Consolidated Financial Statements for more details on
the other balance, and includes 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.
(19) Balance is included within
interest expense on the consolidated statements of income
(loss).
(20) 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.
(21) Any references to capital
refer to Brookfield's cash deployed, excluding any debt
financing.
(22) Available liquidity of
$4.1 billion refer to "Part 5 - Liquidity and Capital Resources" in
the Management Discussion and Analysis in the 2021 Annual
Report.
(23) Incremental FFO
attributable to the Lievre PPA of $100 million is calculated
assuming proceeds are deployed earning a 16% FFO yield, less
financing costs.
(24) 12-15% target returns are
calculated as annualized cash return on investment.
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