Brookfield Renewable's funds from operations drop in Q2 2012
Aug 7, 2012 - Canadian Brookfield Renewable Energy Partners LP (TSE:BEP.UN) today reported funds from operations of USD 87 million (EUR 70m) for the second quarter of 2012, down from USD 158 million a year ago on a pro forma basis, due to a drop in power output.
Lower generation hit assets in markets where power purchase agreement prices are higher than the company's average price, which has a disproportionate effect on revenue and funds from operations, Brookfield Renewable explained.
The company saw its pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) fall to USD 221 million from USD 286 million.
Revenue amounted to USD 337 million, compared with USD 381 million a year before.
Output from Brookfield's hydropower and wind power plants dropped to 4,101 GWh from 4,491 GWh a year back. The result was also below the long-term average of 4,998 GWh. Hydropower generation declined due to low precipitation levels and inflows in the US and Canada’s eastern regions. At the same time, wind power output grew significantly thanks to the addition of fresh capacity and asset purchases.
In the first half of 2012, Brookfield Renewable saw its funds from operations dip to USD 262 million from USD 280 million. Revenue contracted to USD 763 million from USD 703 million, while generation was up 6% on the year to 8,918 GWh.