Brookfield Renewable's Q3 FFO rises 12% after TerraForm buyout

Solar panels in USA. Author: Pete Jelliffe. License: Creative Commons. Attribution-NoDerivs 2.0 Generic.

Brookfield Renewable Partners LP (NYSE:BEP), which took full control of TerraForm Power Inc at the end of July, has experienced a 12% year-on-year rise in funds from operations (FFO) in the third quarter of 2020.

The company, which operates over 19 GW of renewable energy assets, last week reported a third-quarter (Q3) FFO of USD 157 million (EUR 132m), up from USD 133 million a year earlier. On a normalised basis, the figure increased by 28% to USD 206 million.

A big portion of the quarterly FFO came from the hydroelectric segment, which contributed USD 113 million. At the same time, the wind and solar segments generated a combined USD 126 million of FFO for a 70% year-on-year jump.

After deducting non-cash depreciation, the net loss attributable to Brookfield Renewable unitholders amounted to USD 162 million compared to USD 58 million in the same period of 2019.

“We had a strong quarter, as we executed on a broad range of transactions that highlight the unique strengths and differentiated value of our business,” said Connor Teskey, CEO of Brookfield Renewable.

The table below shows more information about the company’s Q3 and year-to-date financial performance.

Amounts in USD million, unless otherwise noted	Q3 2020	Q3 2019	9-mo 2020	9-mo 2019
Long-term average generation in GWh	13,446	12,332	43,124	40,077
-- of which company's share in GWh	6,618	5,821	20,644	19,628
Actual generation in GWh	12,007	11,089	39,534	40,095
-- of which company's share in GWh	5,753	5,213	19,469	20,061
FFO	157m	133m	606m	590m
FFO per unit in USD	0.38	0.34	1.52	1.52
Normalised FFO	206m	151m	659m	581m
Net income (loss) attributable to unitholders	(162m)	(58m)	(184m)	(29m)

Brookfield Renewable noted that the all-stock merger with TerraForm Power was immediately cash accretive. During the quarter, the company also closed the purchase of a 1,200 MW shovel-ready solar development project in Brazil that is more than 75% contracted.

(USD 1.0 = EUR 0.843)

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