Brookfield Asset Management's 2016 net profit declines 28.5%

Wind and solar power plant in the US. Featured Image: welcomia/Shutterstock.com

Feb 10 (Renewables Now) - Canada’s Brookfield Asset Management Inc (TSE:BAM.A) on Thursday reported a 28.5% year-on-year drop in full-year net profit to USD 3.34 billion (EUR 3.14bn).

Funds from operations (FFO) rose by 26% to USD 3.24 billion because of strong growth in asset management revenues and carried interests. Still, fair value changes decreased relative to 2015 and that led to the overall reduction in profitability, the company explained.

The Canadian asset manager is negotiating a deal to buy the two yieldcos of bankrupt renewables developer SunEdison (OTCMKTS:SUNEQ), namely TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL).

“TerraForm Power and its sister company TerraForm Global collectively own and operate 4,000 megawatts of solar and wind assets. We are working to acquire the companies under an exclusivity arrangement, which, if successful, will position them as a growing, viable business,” the company said in its release.

A previously reported, the company’s renewables arm, Brookfield Renewable Partners LP (NYSE:BEP), boosted its 2016 normalised FFO by 12.6% year-on-year to USD 527 million.

Brookfield Asset Management increased its quarterly dividend by 8% to USD 0.14 per share, which represents USD 0.56 per annum. It is payable on March 31, 2017 to shareholders of record on February 28.

(USD 1.0 = EUR 0.940)

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