BIPC(BIPC) - 2024 Q4 - Annual Report

Financial and Operational Highlights Brookfield Infrastructure reported strong 2024 financial results with FFO up 8% to $2.5 billion, despite a net income decrease to $391 million due to higher financing costs Full Year 2024 Key Financial Metrics (in US$ millions, except FFO per unit) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income (attributable to partnership) | $391 | $432 | -9.5% | | FFO | $2,468 | $2,288 | +7.9% | | FFO per unit | $3.12 | $2.95 | +5.8% | - FFO growth of 8% was supported by a 7% organic growth rate, which was driven by elevated inflation, stronger volumes across infrastructure networks, and the commissioning of over $1 billion in new capital projects[3] - Results were positively impacted by recent acquisitions and mark-to-market gains on hedging, but partially offset by higher financing costs and one-time transaction fees[2][3] Segment Performance Total FFO from segments reached $2.468 billion, with Transport and Data segments showing strong growth, while Utilities and Midstream saw declines due to asset sales FFO by Segment (in US$ millions) | Segment | 2024 FFO | 2023 FFO | YoY Change | | :--- | :--- | :--- | :--- | | Utilities | $760 | $879 | -13.5% | | Transport | $1,224 | $888 | +37.8% | | Midstream | $625 | $684 | -8.6% | | Data | $333 | $275 | +21.1% | | Corporate | ($474) | ($438) | -8.2% | | Total FFO | $2,468 | $2,288 | +7.9% | Utilities Segment Utilities segment FFO was $760 million, a decrease due to asset sales, but achieved 7% comparable growth from inflation and new capital - On a comparable basis, the Utilities segment's FFO grew 7% year-over-year[4] - The reported FFO reduction was primarily due to the sale of an Australian utility business and the recapitalization of a Brazilian gas transmission business[4] Transport Segment Transport segment FFO surged nearly 40% to $1,224 million due to acquisitions and strong tariff increases across rail and toll roads - FFO increased by nearly 40% to $1,224 million, largely due to the acquisition of a global intermodal logistics company and an increased stake in a Brazilian rail operation[5] - The segment benefited from average tariff increases of 7% across its rail networks and 6% across its toll road portfolio[5] Midstream Segment Midstream segment FFO was $625 million, with 11% comparable growth from higher volumes, despite a reported decrease due to capital recycling - On a comparable basis, the Midstream segment's FFO grew 11% year-over-year, driven by robust customer activity and higher volumes[6] - The reported FFO decrease was primarily related to capital recycling activities at the U.S. gas pipeline[6] Data Segment Data segment FFO increased 21% to $333 million, driven by strong organic growth and new investments in data centers and towers - FFO grew 21% over the prior year to $333 million[7] - Growth was attributable to strong organic performance and contributions from new investments, including data centers and an Indian tower portfolio[7] Update on Strategic Initiatives Brookfield Infrastructure met its $2 billion 2024 capital recycling target and expects to generate $5-6 billion more from asset sales by 2027 - Achieved the targeted $2 billion of capital recycling proceeds in 2024[8] - Secured approximately $850 million in asset sale proceeds in the first month of 2025[8] - Closed the sale of a French fiber platform for ~$100 million (17% IRR) and is finalizing the sale of Mexican gas pipelines for ~$500 million (22% IRR)[9] - The company is confident in its ability to deliver $5-6 billion in asset sale proceeds over the next two years[10] Distribution and Dividend Increase The Board approved a 6% increase in quarterly distribution to $0.43 per unit, marking the 16th consecutive year of increases - A quarterly distribution of $0.43 per unit has been declared, representing a 6% increase compared to the prior year[11] - The distribution is payable on March 31, 2025, to unitholders of record as of February 28, 2025[11] Brookfield Infrastructure Partners L.P. (BIP) Financial Statements BIP's consolidated financials show total assets at $104.6 billion, revenues at $21.0 billion, and net income attributable to partnership at $391 million Consolidated Statement of Financial Position Highlights (in US$ millions) | Account | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Total assets | $104,590 | $100,784 | | Total liabilities | $74,737 | $66,768 | | Total partnership capital | $29,853 | $34,016 | Consolidated Statement of Operating Results Highlights (in US$ millions) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $21,039 | $17,931 | | Net income | $1,683 | $1,448 | | Net income attributable to partnership | $391 | $432 | Consolidated Statement of Cash Flows Highlights (in US$ millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash from operating activities | $4,653 | $4,078 | | Cash used by investing activities | ($6,901) | ($12,990) | | Cash from financing activities | $2,612 | $9,419 | Brookfield Infrastructure Corporation (BIPC) Report BIPC declared a 6% dividend increase to $0.43 per share, with net income at $72 million due to re-measurement, but underlying earnings grew 20% - BIPC declared a quarterly dividend of $0.43 per share, a 6% increase, which is identical in amount and dates to the BIP distribution[39] - BIPC reported net income of $72 million for 2024, compared to $606 million in 2023. The decrease was mainly due to the revaluation of its own shares classified as liabilities under IFRS[42][50] - Underlying earnings, excluding certain accounting impacts, were 20% above the prior year, benefiting from the acquisition of a global intermodal logistics operation[42]