Financial Performance - For Q2 2023, the company reported revenues of $2,914 million, an increase of $596 million (25.7%) compared to $2,318 million in Q2 2022[141]. - For the first half of 2023, revenues reached $5,835 million, up $1,266 million (27.7%) from $4,569 million in the same period of 2022[144]. - Net income for Q2 2023 decreased to $158 million, down $892 million (84.9%) from $1,050 million in Q2 2022[143]. - The company recognized a net loss of $27 million for the first half of 2023, compared to a net income of $887 million in the same period of 2022[143]. - Total revenues for the six months ended June 30, 2023, were $27,264 million, a decrease from $28,034 million in the same period of 2022[168]. - Adjusted EBITDA for the six months ended June 30, 2023, was $1,228 million, compared to $1,016 million for the same period in 2022, reflecting a 20.9% increase[169]. Operating Costs and Expenses - Direct operating costs for Q2 2023 increased to $2,566 million, up $456 million (21.6%) from $2,110 million in Q2 2022[146]. - General and administrative expenses for Q2 2023 rose to $117 million, an increase of $45 million (62.5%) compared to $72 million in Q2 2022[147]. - Interest expense, net increased by $174 million to $307 million for Q2 2023, primarily due to higher borrowings and interest rates[149]. - Current income tax expense rose by $96 million to $113 million for Q2 2023, primarily due to a taxable gain on the sale of a non-core division[153]. - Interest expense for the period is reported at $4,856 million, with $906 million due in the next year[189]. Revenue Sources - Revenues from nuclear technology services operations for Q2 2023 were $1,006 million, and for the first half of 2023, they were $2,062 million[145]. - The increase in revenues was primarily driven by contributions from dealer software and technology services operations acquired in 2022[143]. Assets and Liabilities - Financial assets increased by $139 million to $636 million as of June 30, 2023, compared to $497 million at the end of 2022[160]. - Accounts receivable and other, net decreased by $208 million to $2,983 million as of June 30, 2023[161]. - Total assets decreased by $450 million to $26,926 million as of June 30, 2023, compared to $27,376 million at the end of 2022[158]. - Non-recourse borrowings in subsidiaries increased by $258 million to $13,171 million as of June 30, 2023[159]. - Property, plant & equipment (PP&E) decreased by $15 million to $3,750 million as of June 30, 2023, primarily due to $172 million in depreciation and $35 million in dispositions[163]. - Intangible assets decreased by $213 million to $9,082 million as of June 30, 2023, mainly due to the sale of a non-core division[163]. - Goodwill decreased by $202 million to $6,712 million as of June 30, 2023, primarily due to the sale of a non-core division[165]. Cash Flow - Cash flow used in operating activities for the six months ended June 30, 2023, was $69 million, compared to cash provided of $196 million in the same period of 2022[180]. - Total cash flow provided by investing activities was $375 million for the six months ended June 30, 2023, compared to cash used of $1,683 million in the same period of 2022[182]. - The company had cash and cash equivalents of $836 million as of June 30, 2023, an increase from $736 million as of December 31, 2022[178]. Dividends and Share Repurchase - The Board of Directors declared a quarterly dividend of $0.0625 per exchangeable share, payable on September 29, 2023[177]. - The company has not repurchased any of its exchangeable shares during the six months ended June 30, 2023[187]. - The company is authorized to repurchase up to 5% of its issued and outstanding exchangeable shares, equating to 3,647,810 shares[186]. Regulatory and Legal Matters - The proposed sale of the nuclear technology services operations has an enterprise value of approximately $8 billion, pending regulatory approvals[145]. - The company has entered into indemnity agreements with Brookfield related to certain construction projects in the Middle East[185]. - The company assesses potential litigation claims but has determined that the potential loss amount cannot be measured and is not probable at this time[186]. Accounting Changes - The company adopted amendments to IAS 12 and IAS 1 effective January 1, 2023, with no material impact on its financial statements[195][197].
Brookfield Business (BBUC) - 2023 Q2 - Quarterly Report