May 2, 2014 – Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN; NYSE: BEP) (“Brookfield Renewable”) today announced strong results for the three months ended March 31, 2014.
“Our first quarter results reflect the strong performance from our portfolio and provide an early indication of the strategic impact of positioning the business for improving market fundamentals and expanding into new markets,” said Richard Legault, President and CEO. “We expect these initiatives to grow and diversify our revenue streams and to support the long-term growth of cash flows and distributions on a per-unit basis.”
Financial Results
Unaudited | ||||
US$ millions (except per unit or otherwise noted) | Three months ended March 31 | |||
2014 | 2013 | |||
Generation (GWh) | ||||
– Total | 5,711 | 5,535 | ||
– Brookfield Renewable’s share | 4,756 | 4,634 | ||
Revenues | $ | 480 | $ | 437 |
Adjusted EBITDA(1) | $ | 360 | $ | 319 |
Funds from operations (FFO)(1) | $ | 185 | $ | 162 |
FFO per unit(1)(2) | $ | 0.70 | $ | 0.61 |
(1) None-IFRS measure. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.
(2) For the three and 12 months ended December 31, 2013 weighted average LP units, Redeemable/Exchangeable units and General partnership units totaled 265.3 million (2012: 265.2 million).
Review of Operations
For the first quarter, adjusted EBITDA achieved a quarterly record of $360 million, an increase of 13% compared to $319 million in Q1 2013. Funds from operations (FFO) increased 14% to $185 million or $0.70 per unit as compared with $162 million or $0.61 per unit in the prior year. Results benefited from higher electricity prices in the northeastern United States and Brazil, which added $35 million to FFO in the quarter.
Total generation for the three months ended March 31, 2014 was 5,711 GWh, an increase of 176 GWh from the same period in the prior year.
The hydroelectric portfolio generated 5,001 GWh, in-line with the long-term average (LTA) of 4,916 GWh and an increase of 222 GWh as compared to the first quarter of 2013. Generation from existing hydroelectric assets was 4,711 GWh compared to 4,779 GWh for the prior year. Portfolios acquired in Maine during the quarter and the first quarter of 2013 contributed another 231 GWh of generation, and a facility commissioned in Brazil in the first quarter of 2013 contributed an additional 59 GWh.
The wind portfolio generated 610 GWh as compared to LTA of 635 GWh, and an increase of 71 GWh compared to the first quarter of 2013. Generation increased over the prior year due to improved wind conditions and an incremental 27 GWh from a full quarter’s contribution from facilities acquired in California in the first quarter of 2013.
The tables below summarize generation by segment and region:
Generation (GWh) | Variance of Results | |||||
For the months ended March 31 |
Actual 2014 | Actual 2013 | LTA 2014 | Actual vs. LTA | Actual vs. Prior Year | |
Hydroelectric generation | ||||||
United States | 2,591 | 2,561 | 2,794 | (203) | 30 | |
Canada | 1,311 | 1,282 | 1,193 | 118 | 29 | |
Brazil(1) | 1,099 | 936 | 929 | 170 | 163 | |
5,001 | 4,779 | 4,916 | 85 | 222 | ||
Wind Generation | ||||||
United States | 273 | 219 | 311 | (38) | 57 | |
Canada | 337 | 323 | 324 | 13 | 14 | |
610 | 539 | 635 | (25) | 71 | ||
Other | 100 | 217 | 219 | (119) | (117) | |
Total generation(2) | 5,711 | 5,535 | 5,770 | (59) | 176 |
(1) For assets acquired or reaching commercial operation during the year, this figure is calculated from the acquisition or commercial operation date.
(2) In Brazil, assured generation levels are used as a proxy for LTA.
(3) Includes our share of generation in respect of those equity-accounted investments which we do not manage.
Recent Highlights
Distribution Increase and Declaration
The Board of Directors has declared a quarterly distribution in the amount of $0.3875 per limited partnership unit, payable on June 30, 2014 to unitholders of record as at the close of business on May 30, 2014. This distribution is consistent with Brookfield Renewable’s policy of targeting a long-term, sustainable distribution in the range of 60-70% of FFO and which increases on average by 3% to 5% annually.
The regular quarterly dividends on the Brookfield Renewable Power Preferred Equity Inc. preferred shares have also been declared.
Distribution Currency Option
The quarterly distributions payable on limited partnership units of Brookfield Renewable Energy Partners are declared in U.S. dollars. Registered and beneficial shareholders who are resident in Canada or the United States may opt to receive their distributions in either U.S. dollars or the Canadian dollar equivalent. Unless they request the Canadian dollar equivalent, shareholders will continue to receive distributions in U.S. dollars (which may be converted for them by the broker or other intermediary, as may currently be the case). The Canadian dollar equivalent of the quarterly distribution will be based on the Bank of Canada noon exchange rate on the record date or, if the record date falls on a weekend or holiday, on the Bank of Canada noon exchange rate of the preceding business day.
Registered shareholders 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 limited partnership units who are resident in Canada to acquire additional 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 Brookfield Renewable’s website at www.brookfieldrenewable.com/DRIP.
Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on its website at www.brookfieldrenewable.com under Investor Relations.
Additional Information
The Letter to Shareholders and the Supplemental Results for the period ended March 31, 2014 contain further information on Brookfield Renewable’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available at www.brookfieldrenewable.com.
Brookfield Renewable Energy Partners (TSX: BEP.UN; NYSE: BEP) operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals over 6,000 megawatts of installed capacity. Diversified across 71 river systems and 12 power markets in the United States, Canada and Brazil, the portfolio’s output is sold predominantly under long-term contracts and generates enough electricity from renewable resources to power more than three million homes on average each year. With a portfolio of high-quality assets and strong growth prospects, the business is positioned to generate stable, long-term cash flows supporting regular and growing cash distributions to shareholders. For more information, please visit www.brookfieldrenewable.com.
For more information, please contact:
Zev Korman
Vice President, Investor and Media Relations
Tel: 416-359-1955
Email: zev.korman@brookfield.com
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