Brookfield Renewable Partners Non Voting Units T.BEP.UN

Primary Symbol: BEP Alternate Symbol(s): T.BEP.PR.G | T.BEP.PR.M | T.BEP.PR.R | BRENF

Utilities Utilities - Independent Power Producers

Brookfield Renewable Partners L.P. is a Bermuda-based globally diversified, multi-technology, owner and operator of clean energy and sustainable solutions assets. The Company’s segments include hydroelectric, wind, utility-scale solar and distributed energy, and storage, which includes distributed generation and pumped storage, sustainable solutions, and corporate. Its sustainable solutions include renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation. It has approximately 33,000 megawatts of renewable power operating capacity and an approximately 155,000-megawatt development pipeline. The Company’s portfolio of sustainable solutions includes investment in businesses with an operating portfolio of 47 thousand metric tons per annum of carbon capture and storage, three million Metric Million British thermal units of agricultural renewable natural gas. It is also engaged in the nuclear service business.

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Brookfield Renewable Partners Non Voting Units

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Post by retiredcfon Aug 04, 2023 11:50am

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Post# 35573429

TD

On their Action Buy List with a US$40.00 target. GLTA

Brookfield Renewable Partners L.P.

(BEP-N, BEP.UN-T) US$26.40 | C$35.25

No Significant Surprises; Q2/23 Results Near Expectations

Event

Brookfield Renewable Partners reported Q2/23 financial results this morning.

Q2/23 FFO/unit of $0.48 was slightly below our estimate of $0.49, which matched consensus. Management's FFO definition excludes sustaining capex and amortizing debt repayments.
Proportionate adjusted EBITDA of $586 million was between our forecast of $575 million and the consensus forecast of $595 million.

Conference Call: Today at 8:30 am ET: 1-855-513-1368 (pre-registration link or link to webcast).

Impact: NEUTRAL

Q2/23 FFO was slightly below tempered expectations. As anticipated, generation was soft across the company's operating segments; this was partially offset by stronger-than-forecast price realizations and margins. Management noted that meaningful North American precipitation in July has left its reservoirs set up to capture strong summer pricing, and believes BEP is well-positioned to outperform its 10% FFO/unit growth target for 2023.

Details

Q2/23 proportionate generation was 10% below LTA guidance. Proportionate hydro output was 9% below LTA; a 15% negative variance in North America was mitigated by robust price realizations. Wind and solar production were 19% and 22% below LTA, respectively. Output from the distributed energy & sustainable solutions segment was 55% above LTA.
BEP's capital recycling activities are progressing. Year-to-date, the company has executed recycling activities of $600 million ($400 million net to BEP). Recall, in Q1/23, the company referenced potential recycling of up to $4 billion of total proceeds once closed ($1.5 billion net to BEP). BEP ended Q2/23 with available liquidity of $4.5 billion; we estimate ~$1.6 billion is earmarked for pending transactions.
Development update: BEP's construction pipeline of wind, solar, hydro, storage, and transition projects due online from 2023-2025 (16.1 GW, gross) are expected to add $213 million ($0.32/unit) of FFO. BEP's advanced-stage development initiatives (6.3 GW, gross) are expected to add $61 million ($0.09/unit) of FFO once they are added to BEP's construction pipeline and subsequently commissioned.
Areas of focus on this morning's call: Timelines for closing previously announced transactions, further context regarding expected progress on capital recycling initiatives, and wider thoughts on demand for renewable power from corporate buyers (particularly large technology companies).