Bullboard - Stock Discussion Forum Brookfield Infrastructure Partners LP BIP

Alternate Symbol(s): T.BIP.PR.A | T.BIP.PR.B | T.BIP.UN | T.BIP.PR.E | T.BIP.PR.F | BRIPF | BIP.PR.B

Brookfield Infrastructure Partners L.P. is a global infrastructure company. The Company owns and operates in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. The Company’s segments include Utilities, Transport, Midstream, Data and Corporate. The Utilities segment consists of regulated transmission (natural gas and electricity) and commercial and... see more

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NYSE:BIP - Post Discussion

Brookfield Infrastructure Partners LP > TD

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Post by retiredcf on Nov 02, 2022 2:34pm

TD

Have a US$49.00 target. GLTA

Brookfield Infrastructure Partners L.P.

(BIP-N, BIP.UN-T) US$36.51

Q3/22 FFO/Unit a Slight Beat; Considerable Financial Resilience Event

BIP reported Q3/22 FFO/unit of $0.68, a penny above the consensus estimate of $0.67 and in line with our forecast of $0.68. The conference call is at 9:00 a.m ET. Registration: link.

Impact: SLIGHTLY POSITIVE

Q3/22 Results: FFO/unit increased15% y/y. Organic growth was a robust 10%, reflecting the benefit of elevated inflation and the commissioning of ~$1.2bln of capital projects over the TTM. Acquisitions which deployed ~$2bln of capital over the TTM also contributed. BIP is uniquely positioned to benefit from inflation, as 70%-75% of EBITDA is inflation-linked, while 10-15% has pass-through mechanisms under fee-for-service models, such that the LP can expand its margins during periods of high inflation. BIP expects 2023 to be another strong year, with FFO/unit growth above its 6%-9% target range.
Financial Resilience: BIP has $2.3bln of corporate liquidity, which should increase to almost $3bln following the completion of secured asset sales. The LP also has several asset sales processes underway that should generate a further $1.5bln of proceeds. Less than 2% of BIP's asset-level debt matures over the next 12 months and it has no corporate maturities until 2024. Additionally, 90% of BIP's debt issued outside Brazil is fixed-rate and >80% of FFO over the next 24 months is expected to be denominated in or hedged to the U.S. dollar.
Record Backlog: BIP has a record capital backlog, supported by the outsized organic growth profiles associated with recent acquisitions (HomeServe, DFMG, Uniti, Intellihub, and AusNet), which provides a relatively lower-risk and highly visible source of near- to medium-term growth. The commissioning of the Heartland Petrochemical Complex and a portion of the Brazilian electricity transmission portfolio will add ~$2bln to BIP's asset base, which will be more than replaced in the backlog by the Intel transaction, which adds $3.7bln of future capex at BIP's share.

Capital Deployment: Given the transactions secured year-to-date, BIP has already achieved its capital deployment target for 2023, and historically, periods of market dislocation, such as we are currently experiencing, have enabled the LP to make deep value acquisitions, e.g., Babcock & Brown Infrastructure (2010) and two Brazilian utilities (2016).