CIBCAlso have a US41.00 target. GLTA
EQUITY RESEARCH
May 6, 2022 Flash Research
BROOKFIELD RENEWABLE PARTNERS LP
Q1/22 First Look: In-line Results Overall As Diversification
Shows Merits; Growth Update Is Positive
Summary: FFO per unit of $0.38 matched our estimate and was 1 cent
below consensus of $0.39. BEP’s diversification showed its merits as
segment variances largely offset, plus the company benefitted from asset
sales/other income too (like in prior quarters). Beyond the results, the growth
update was positive—development pipeline expands (including advanced
projects list), and we believe BEP is relatively well-positioned to manage
inflation/ supply chain/tariff disruptions. Further, equity deployment YTD is
tracking well, and the liquidity and funding outlook remains strong (aided by
ongoing asset sales). Conference Call: 9 a.m. ET; dial-in: 1-866-688-9430,
ID# 2250265.
Summary Of Operating Results (see inside note for summary chart).
Generation. Proportionate generation was in line with long-term average
(LTA) but 2% below our forecast. There were some variances across the
segments—S. American hydro generation was stronger than forecast (N.
America was in line). while wind in all regions was below LTA in aggregate
across all the operating regions.
Adj. EBITDA & FFO. Proportionate EBITDA of $423MM (after subtracting
mgmt. expense) aligned with our estimate of $421MM. Strong results for the
S. American hydro segment (on higher generation, better realized pricing in
Colombia, pool price settlements in Brazil)) offset weak results in N. America
(lower average $/MWh given asset mix performance). The Solar/Energy
Transition segments exceeded our forecast on what we believe are gains on
asset sales and other commercial activities. Weaker N. American wind
results were offset by more favourable results in other regions. FFO/unit of
$0.38 matched our estimate with below-EBITDA cash flows items netting out,
but 1 cent below consensus of $0.39.
Other Highlights:
Acquisitions, Asset Sales & Development. Good progress on
development assets. The development pipeline is up 7GW and now stands
at 69GW. Further, BEP’s advanced stage/construction ready project list
ticked higher and remains around 15GW. Equity deployment for the year
stands at $340MM net to BEP, that has them tracking fairly well towards the
annual target of $1B to $1.2B.
Liquidity & Funding. Total liquidity remains strong at $3.8B vs. $4.1B at the
end of Q4/21 and the company continues use asset sales to fund new growth
(should receive $30MM net to BEP from pending sales).