Brookfield Renewable Partners LP (NYSE:BEP), a renewable power platform with over 19 GW of assets, turned to a second-quarter attributable net loss but posted a slight increase in funds from operations (FFO) to USD 232 million (EUR 197m).
The company, owned by Canada’s Brookfield Asset Management, said on Friday that the April-June quarter was a strong one in view of the achievement of key strategic goals and the improvement of liquidity to USD 3.4 billion. “Looking forward, we believe our global scale, operational depth and financial strength positions us well to benefit from global decarbonization and continue to deliver on our target of 12-15% long-term returns to equity holders," said CEO Sachin Shah.
Brookfield Renewable’s FFO increased to USD 232 million in the second quarter from USD 230 million a year back. New acquisitions, the commissioning of assets under development, strong operational performance and progress on margin enhancement initiatives contributed to the improvement.
The hydroelectric segment accounted for USD 193 million of the quarter's FFO, a decrease from USD 226 million a year before. The wind and solar segments, meanwhile, brought a combined USD 85 million of FFO, 29% more than in the year-ago period, as new capacity went online. The storage segment’s FFO climbed to USD 8 million from USD 7 million.
More details on Brookfield Renewable’s performance can be seen in the table.
| Amounts in USD million, unless otherwise noted |
Q2 2020 |
Q2 2019 |
H1 2020 |
H1 2019 |
| Long-term average generation in GWh |
15,527 |
14,252 |
29,678 |
27,745 |
| -- of which company's share in GWh |
7,309 |
7,109 |
14,026 |
13,807 |
| Actual generation in GWh |
13,264 |
14,881 |
27,528 |
29,006 |
| -- of which company's share in GWh |
6,552 |
7,602 |
13,716 |
14,848 |
| FFO |
232 |
230 |
449 |
457 |
| FFO per unit in USD |
0.75 |
0.74 |
1.44 |
1.47 |
| Normalised FFO |
241 |
203 |
453 |
407 |
| Net income attributable to unitholders (loss) |
(44) |
17 |
(26) |
60 |
At the end of June, Brookfield Renewable had more than 19,000 W of installed hydropower, wind, solar and storage capacity in North America, South America, Europe and Asia, as well as a development pipeline totalling 18,000 MW. Last month, it completed its merger with TerraForm Power Inc (NASDAQ:TERP), creating one of the world’s largest integrated pure-play renewable power companies with over USD 50 billion worth of power assets. Separately, with its institutional partners, it agreed to purchase a 1,200-MW solar project in Brazil, which is 75% contracted. The deal is seen to be finalised in the fourth quarter.
(USD 1.0 = EUR 0.849)
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Author: grendelkhan. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.
