Brookfield Renewable Partners L.P.(BEP)2025-02-28 21:08Financial Reporting and Standards - Brookfield Renewable's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) [88]. - All dollar amounts are expressed in U.S. dollars unless otherwise indicated [89]. - The Management's Discussion and Analysis contains forward-looking information within the meaning of U.S. and Canadian securities laws [90]. - Certain comparative figures have been reclassified to conform to the current year's presentation [89]. - The company utilizes non-IFRS financial measures to explain its financial results [90]. - A reconciliation of the non-IFRS financial measures to the most comparable IFRS financial measures is available [90]. - The Management's Discussion and Analysis is provided as of February 28, 2025, for the year ended December 31, 2024 [86]. - Brookfield Renewable's financial statements are prepared in accordance with IFRS, requiring estimates and judgments related to assets, liabilities, revenues, and expenses [257]. Company Structure and Ownership - The ultimate parent of Brookfield Renewable is Brookfield Corporation, which includes Brookfield Asset Management [86]. - Holders of various units, including LP units and exchangeable shares, are collectively referred to as "Unitholders" [87]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching 5,876 million, an increase of 464 million for the year ended December 31, 2024, compared to a loss of 1,217 million, or 1,095 million or 2,002 million in 2022 to 9 million compared to a net income of 138 million in 2022 [165]. Growth and Market Expansion - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter [91]. - The company provided a future outlook with a revenue guidance of 12.5 billion into growth initiatives, marking the largest investment year ever [94]. - The development pipeline now stands at approximately 200,000 MW, with a commissioning pace of nearly 7,000 MW per year, targeting a run rate of ~10,000 MW per annum by 2027 [95]. Capital Expenditures and Investments - Capital expenditures for the quarter were reported at 10 million aimed at innovative product features [91]. - The company invested 2.8 billion, achieving average returns of approximately 25% IRR [97]. Liquidity and Financial Position - Liquidity position remains strong with available liquidity of 4,320 million, up from 2.45 billion in committed revolving credit facilities available for investments and acquisitions [177]. - Cash flow from operating activities before changes totaled 1,390 million in 2023 [179]. Operational Costs and Expenses - Direct operating costs rose to 647 million compared to the prior year, primarily due to costs from newly acquired facilities [102]. - Interest expense increased to 361 million compared to 2023, attributed to recent acquisitions and financing initiatives [103]. - Depreciation expenses for 2024 amounted to 1,852 million, and in 2022 it was 3,246 million from 484 million in Funds From Operations in 2024, an increase from 349 million in 2024 from 261 million in 2023, benefiting from stronger generation and asset sales [147]. - Distributed energy & storage operations reported Funds From Operations of 186 million in 2024, up from $133 million in 2023, due to new facilities [148]. Risks and Challenges - The company faces risks from climate change affecting resource availability and electricity generation capacity [208]. - Future re-contracting of long-term contracts may not yield similar terms, impacting financial performance [214]. - The occurrence of dam failures could lead to significant capital expenditures and liabilities, impacting generating capacity and potentially resulting in new regulations [219]. - The company relies on third-party service providers for critical business functions, exposing it to risks from disruptions or cybersecurity threats [229]. Corporate Governance and Structure - Brookfield Corporation exercises substantial influence over Brookfield Renewable, impacting its management and operational decisions [253]. - The departure of key professionals from Brookfield could adversely affect the company's ability to achieve its objectives, as it relies on their skills and business contacts [255]. Future Outlook - The company plans to continue expanding its renewable energy portfolio and investing in new technologies to enhance operational efficiency and market presence [151]. - The company anticipates future demand growth for renewable energy in North America by 2028 to 2035, and in Colombia and Brazil by 2028 and 2030, respectively [273].