BIPC(BIPC) - 2023 Q3 - Quarterly Report

Financial Performance - Brookfield Infrastructure reported a net income of $378 million for Q2 2023, up from $176 million in Q2 2022, driven by acquisitions and organic growth [14]. - Funds from Operations (FFO) for Q2 2023 reached $552 million, compared to $513 million in Q2 2022, reflecting a 7.6% increase [15]. - Brookfield Infrastructure reported revenues of $4,256 million for the second quarter of 2023, a 15.6% increase from $3,681 million in the same period of 2022 [30]. - The net income attributable to the partnership for Q2 2023 was $378 million, up 114.8% from $176 million in Q2 2022 [30]. - The company achieved cash from operating activities of $970 million in Q2 2023, compared to $734 million in Q2 2022, reflecting a 32.1% increase [31]. - The company reported a basic and diluted loss per unit attributable to limited partners of $0.38 for Q2 2023, compared to $0.13 in Q2 2022 [33]. - BIPC reported a net loss of $154 million for the three months ended June 30, 2023, compared to a net income of $842 million in the prior year [70]. - Revenues for the three months ended June 30, 2023, were $538 million, an increase from $479 million in the same period of 2022 [74]. Segment Performance - The Utilities segment generated $224 million in FFO for Q2 2023, an increase from $188 million in Q2 2022, while the Data segment also saw growth from $60 million to $72 million [15]. - The midstream segment's FFO decreased slightly to $161 million from $170 million year-over-year, impacted by market-sensitive revenue normalization [17]. - FFO for the transport segment was $199 million, a 5% increase from the prior year, benefiting from a 10% increase in toll rates and an 8% increase in rail network rates [40]. - The data segment reported FFO of $72 million, a 20% increase year-over-year, aided by acquisitions in Europe and Australia [41]. - FFO for the U.K. regulated distribution business increased to $124 million, a 7% increase year-over-year, driven by inflation indexation and higher connection activity [59]. Acquisitions and Investments - Brookfield Infrastructure announced an agreement to acquire a co-controlling stake in Compass Datacenters for $1.35 billion, with an equity contribution of approximately $375 million [18]. - The acquisition of Data4, a European hyperscale data center platform, closed on August 1, 2023, converting a 130 megawatt memorandum into firm contracted capacity [43]. - Brookfield Infrastructure's equity share of deployment across three transactions is expected to be nearly $2 billion [19]. - Brookfield Infrastructure continues to identify investment opportunities above its targeted return threshold, enhancing its global data center growth strategy [42]. Cash Flow and Assets - Cash from operating activities for Q2 2023 was $265 million, compared to $232 million in Q2 2022, indicating improved operational efficiency [9]. - Brookfield Infrastructure's total assets increased to $81,671 million as of June 30, 2023, up from $72,969 million at the end of 2022, marking an increase of 11.7% [29]. - The company completed $1.9 billion in asset sales as part of its capital recycling program in 2023 [37]. - Brookfield Infrastructure's cash and cash equivalents increased to $1,380 million as of June 30, 2023, from $1,279 million at the end of 2022, a growth of 7.9% [29]. - The balance of cash and cash equivalents at the end of the period was $356 million, reflecting a change of $30 million during the period [75]. Liabilities and Equity - Total liabilities and equity as of June 30, 2023, stood at $10.973 billion, up from $10.178 billion in the previous year [8]. - Brookfield Infrastructure's total liabilities and partnership capital reached $81,671 million as of June 30, 2023, consistent with total assets, indicating a balanced financial position [29]. Other Financial Metrics - The average number of limited partnership units outstanding was 458.7 million for the three-month period ended June 30, 2023, compared to 458.0 million in the same period of 2022 [3]. - Average number of partnership units outstanding for Q2 2023 was 771.6 million, compared to 771.1 million in the same period of 2022 [52]. - Direct operating costs rose to $149 million for the three months ended June 30, 2023, compared to $131 million in the prior year [74]. - Interest expense increased to $161 million for the three months ended June 30, 2023, from $143 million in the same period of 2022 [74]. - FFO (Funds From Operations) is defined as net income excluding certain non-recurring expenses, providing a clearer view of operating performance [72]. Corporate Governance - The Board of Directors declared a quarterly distribution of $0.3825 per unit, a 6% increase compared to the prior year, payable on September 29, 2023 [45]. - The company does not undertake any obligation to publicly update or revise forward-looking statements except as required by law [71].