Brookfield Renewable Partners L.P.(BEP) - 2023 Q4 - Annual Report

Revenue and Financial Performance - Revenues for the nine months ended September 30, 2023 increased by $200 million to $3,715 million compared to the same period in 2022, driven by business growth and higher realized prices[62] - Revenues for the three months ended September 30, 2023, totaled $1,179 million, an increase of $74 million compared to the same period in the prior year[74] - Brookfield Renewable reported revenues of $1,179 million for the three months ended September 30, 2023, compared to $1,105 million in the same period in 2022[216] - Revenue for 2023 remained stable at $80 million compared to $80 million in 2022[119] - Total proportionate revenues for the three months ended September 30, 2023, were $623 million, compared to $619 million in 2022[109] Net Income and Loss - Net loss attributable to Unitholders for the three months ended September 30, 2023 was $64 million, an improvement from $136 million in the same period of 2022[49] - Brookfield Renewable's net income for the three months ended September 30, 2023, was $24 million, an increase of $101 million compared to the same period in the prior year[74] - Net income for the nine months ended September 30, 2023, was $378 million, compared to $137 million for the same period in 2022[134] - Net income for Q3 2023 was $24 million, compared to a loss of $77 million in Q3 2022[145] - Net income for the nine months ended September 30, 2023, was $352 million, compared to $78 million in the same period in 2022[186] - Net income (loss) for the nine months ended September 30, 2023, was $(95) million[220] Funds From Operations (FFO) and Adjusted EBITDA - Proportionate Adjusted EBITDA for the nine months ended September 30, 2023 increased to $1,652 million from $1,541 million in the same period of 2022[49] - Funds From Operations per Unit for the nine months ended September 30, 2023 increased to $1.29 from $1.21 in the same period of 2022[49] - Funds From Operations (FFO) for the three months ended September 30, 2023, were $253 million, compared to $243 million in 2022[109] - Funds From Operations for Q3 2023 were $253 million, compared to $243 million in Q3 2022, with Funds From Operations per Unit at $0.38 for Q3 2023[136] - Funds From Operations (FFO) for the nine months ended September 30, 2023, increased to $840 million from $780 million in the same period in 2022[195] - Adjusted EBITDA for the nine months ended September 30, 2023, was $1,652 million, compared to $1,541 million for the same period in 2022[137] - Adjusted EBITDA decreased to $50 million in 2023 from $52 million in 2022[119] - Adjusted EBITDA for the corporate segment was $37 million in 2023, up from $30 million in 2022[119] - Total Adjusted EBITDA across all segments was $507 million in 2023, up from $495 million in 2022[120][121] - Adjusted EBITDA for the nine months ended September 30, 2023, was $1,652 million, with significant contributions from North America ($549 million) and Hydroelectric Brazil ($132 million)[193] Generation Capacity and Output - Total generation capacity increased to 25,902 MW as of September 30, 2023, up from 23,617 MW in the same period of 2022[49] - The company signed contracts to deliver an incremental 5,700 GWh per year of generation, including 4,100 GWh to corporate offtakers[51] - Brookfield Renewable expects to commission approximately 5,000 MW of capacity in 2023, contributing $66 million in additional Funds From Operations annually, with 7,000 MW and 8,000 MW on track for 2024 and 2025, respectively[73] - Total generation for Q3 2023 was 15,870 GWh, compared to 14,906 GWh in Q3 2022, with proportionate generation at 6,533 GWh for Q3 2023[136] - Total proportionate generation for the three months ended September 30, 2023, was 6,533 GWh, compared to 6,440 GWh in 2022[109] - Generation (GWh) – actual increased to 501 GWh in 2023 from 445 GWh in 2022, a 12.6% increase[119] - Actual generation for distributed energy & sustainable solutions in Q3 2023 was 1,218 GWh, compared to 1,044 GWh in Q3 2022, with Funds From Operations at $39 million for Q3 2023[137] - Brookfield Renewable's hydroelectric operations generated 1,282 GWh of actual generation for the three months ended September 30, 2023[94] - Brookfield Renewable's utility-scale solar operations generated 689 GWh of actual generation for the three months ended September 30, 2023[97] - Hydroelectric generation in the United States is projected to increase from 1,733 GWh in 2023 to 6,926 GWh in 2024, representing a 300% growth[123] - Wind generation in Brazil is expected to grow from 176 GWh in 2023 to 758 GWh in 2024, a 331% increase[123] - Utility-scale solar generation is forecasted to rise from 618 GWh in 2023 to 2,664 GWh in 2024, a 331% growth[123] - Contracted generation as a percentage of total generation on a proportionate basis is expected to decline from 91% in 2023 to 80% in 2027[123] - Total long-term average generation on a proportionate basis is projected to remain stable at 50,725 GWh from 2024 to 2027[123] Liquidity and Debt - Available liquidity as of September 30, 2023 increased to $4,392 million from $3,695 million as of December 31, 2022[55] - Debt to capitalization for Corporate increased to 14% as of September 30, 2023 from 11% as of December 31, 2022[55] - Brookfield Renewable's liquidity position remains robust with $4.4 billion of total available liquidity at the end of the quarter, providing significant flexibility to fund growth[70] - The company's available liquidity increased from $3,695 million in December 2022 to $4,392 million in September 2023[125] - Total debt principal repayments are projected to be $12,743 million, with $8,797 million due thereafter[127] - Total debt obligations as of September 30, 2023 were $24.3 billion, down slightly from $24.63 billion at the end of 2022[148] - Letters of credit issued as of September 30, 2023 amounted to $1.56 billion, down from $1.61 billion at the end of 2022[158] - The company has $2.38 billion in committed revolving credit facilities available for investments and acquisitions[152] - Brookfield Renewable's proportionate debt is presented based on its share of borrowings obligations, providing insight into asset-level financing and leverage[180] - Non-recourse borrowings decreased slightly to $20.084 billion, indicating a stable debt structure[184] Investments and Acquisitions - Brookfield Renewable committed to invest approximately $2.2 billion ($450 million net) across various investments, including a partnership with Axis Energy in India targeting 2.5 GW of wind and solar capacity[58] - Brookfield Renewable executed asset recycling activities generating proceeds of approximately $1.4 billion over the last 18 months, with $600 million net to the company[70] - Brookfield Renewable closed the acquisition of 50% of X-Elio, bringing its ownership to 100%, and acquired Deriva Energy, which has 5.9 GW of operating and under construction assets and a 6.1 GW development pipeline[73] - Brookfield Renewable completed the sale of its 100% interest in a 95 MW portfolio of wind assets and a 26 MW solar asset in Uruguay during the third quarter of 2023[78] - The company invested $630 million (net of asset sales) into growth, including renewable platforms in India with 14,500 MW of operating and development assets[131] - Brookfield Renewable completed the acquisition of a 50% interest in X-Elio for a total consideration of $918 million ($76 million net to Brookfield Renewable for approximately 4% interest), increasing its economic interest to approximately 17%[202] - Brookfield Renewable acquired a fully integrated renewable power developer in the U.S. with 5,900 MW of operating and under construction assets and a 6,100 MW development pipeline for approximately $1.08 billion ($270 million net to Brookfield Renewable)[202] - Brookfield Renewable subscribed for additional shares in Cleanmax for INR 9.8 billion ($118 million) ($23.6 million net to Brookfield Renewable), increasing its total interest to approximately 36% (7% net to Brookfield Renewable) and gaining majority control of the board[202] - Brookfield Renewable agreed to acquire a leading UK renewables developer with 260 MW of onshore wind assets, 800 MW of near-term developments, and 3 GW of later-stage projects for £483 million ($589 million) ($118 million net to Brookfield Renewable)[202] - Brookfield Renewable completed the acquisition of a 136 MW wind portfolio in Brazil for $95 million, holding a 25% economic interest[227] - Brookfield Renewable acquired a 90% interest in a 730 MW distributed generation platform in Brazil for $4 million, with a fair value of assets at $5 million and liabilities at $1 million[228] Regional Performance - Brookfield Renewable's North American business generated Funds From Operations of $74 million, up from $28 million in the prior year[96] - Brookfield Renewable's European business generated Funds From Operations of $4 million, down from $20 million in the prior year[96] - Brookfield Renewable's Brazilian business generated Funds From Operations of $9 million, up from $7 million in the prior year[96] - Brookfield Renewable's Asian business generated Funds From Operations of $7 million, up from $6 million in the prior year[96] - North America's FFO was $75 million in 2023, compared to $76 million in 2022, impacted by higher interest expense and unfavorable generation mix[111] - Brazil's FFO was $38 million in 2023, compared to $31 million in 2022, driven by higher average revenue per MWh due to inflation indexation[112] - Colombia's FFO was $16 million in 2023, compared to $23 million in 2022, due to lower resources despite higher average revenue per MWh[113] - Utility-scale solar FFO was $51 million in 2023, compared to $86 million in 2022, impacted by lower average revenue per MWh from regulated price adjustments in Spain[117] - Adjusted EBITDA for North America Hydroelectric increased to $45 million in 2023 from $39 million in 2022[120] - Net income (loss) for North America Hydroelectric was $8 million in 2023, compared to $9 million in 2022[120] Financial Instruments and Derivatives - The company entered long-term energy derivative contracts to stabilize price risks on future power generation sales[235] - Brookfield Renewable holds foreign exchange swaps and investments in debt and equity securities as part of its financial instruments[236][237] - The company's financial instruments assets were valued at $10 million, with liabilities at $7 million[230] - Deferred income tax assets were reported at $3 million, while other non-current assets totaled $21 million[230] - Accounts payable and accrued liabilities amounted to $66 million, with provisions at $22 million[230] Equity and Capital Structure - Brookfield Renewable completed the issuance of 8,200,000 LP Units and 7,430,000 class A exchangeable subordinated voting shares for gross proceeds of $500 million, with a concurrent private placement raising an additional $150 million, totaling $650 million in gross proceeds[66] - Brookfield Renewable completed the issuance of 8,200,000 LP Units and 7,430,000 class A exchangeable subordinated voting shares for gross proceeds of $500 million[88] - Brookfield Renewable incurred $20 million in related transaction costs for the issuance of LP Units and Exchangeable Shares[88] - The company's proportionate debt and equity structure includes LP units, BEPC exchangeable shares, Redeemable/Exchangeable partnership units, and GP interest, all classified under equity[203] - Limited partners' equity decreased from $(1,898) million as of December 31, 2022, to $(2,017) million as of September 30, 2023[220] - Total equity increased from $26,286 million as of December 31, 2022, to $28,319 million as of September 30, 2023[220] - Capital contributions during the nine months ended September 30, 2023, amounted to $1,987 million[220] - Distributions or dividends declared during the nine months ended September 30, 2023, totaled $(1,466) million[220] - Non-controlling interests in BEPC shares increased from $2,561 million as of December 31, 2022, to $2,595 million as of September 30, 2023[220] - Accumulated revaluation surplus increased from $6,817 million as of December 31, 2022, to $6,902 million as of September 30, 2023[220] - Cash flow hedges increased from $17 million as of December 31, 2022, to $37 million as of September 30, 2023[220] - Investments in equity securities increased from $1 million as of December 31, 2022, to $2 million as of September 30, 2023[220] Cash Flows and Distributions - Cash flows from operating activities for the nine months ended September 30, 2023 were $1.41 billion, up from $1.14 billion in the same period of 2022[153] - Distributions to Unitholders for the nine months ended September 30, 2023 were $739 million, up from $686 million in the same period of 2022[154] - LP unit distributions increased by 5.5% to $1.35 per unit on an annualized basis in 2023[154] - Dividends declared for Class A Preference Shares were $7 million for Q3 2023, compared to $6 million in Q3 2022, with total dividends paid for the nine months ended September 30, 2023, at $20 million[133] - Brookfield Renewable declared incentive distributions of $28 million and $83 million for the three and nine months ended September 30, 2023, respectively[84] Assets and Liabilities - Property, plant and equipment totaled $56.4 billion as of September 30, 2023, an increase of $2.2 billion compared to December 31, 2022[77] - Brookfield Renewable's total assets increased to $65.563 billion as of September 30, 2023, compared to $64.111 billion at the end of 2022[184] - Current assets decreased to $3.109 billion from $4.183 billion, primarily due to a reduction in trade receivables and other current assets[184] - Property, plant, and equipment increased to $56.437 billion, reflecting ongoing investments in renewable energy infrastructure[184] - Non-recourse borrowings decreased slightly to $20.084 billion, indicating a stable debt structure[184] - Brookfield Renewable's equity-accounted investments grew to $1.707 billion, reflecting increased influence or joint control over investments[184] - The company's cash and cash equivalents stood at $33 million, with restricted cash at $6 million and trade receivables at $13 million[230] - Property, plant, and equipment were valued at $744 million, while non-recourse borrowings totaled $312 million[230] - Brookfield Renewable's goodwill was reported at $236 million, with fair value of net assets acquired at $378 million[230] Other Financial Metrics - Average revenue per MWh remained stable at $88 for both the three and nine months ended September 30, 2023[49] - Brookfield Renewable's Funds From Operations per Unit was $0.38 for the three months ended September 30, 2023[103] - The company has a contracted profile of approximately 90% in Brazil and 70% in Colombia of the long-term average, with a weighted-average remaining contract duration of 13 years[104] - Generation output secured under financial contracts includes 391 GWh for 2023, 1,442 GWh for 2024, 1,360 GWh for 2025, 1,171 GWh for 2026, and 655 GWh for 2027[104] - Weighted-average remaining contract durations are 15 years in North America, 12 years in Europe, 10 years in Brazil, 4 years in Colombia, and 14 years across remaining jurisdictions[104] - Total capitalization as of September 30, 2023 was $59.37 billion, up from $57.25 billion at the end of 2022[148] - Debt-to-total capitalization ratio was 41% as of September 30, 2023, down from 43% at the end of 2022[148] - The company's medium-term notes have a weighted-average interest rate of 4.3% and a term of 10 years[126] - Total LP units on a fully-exchanged basis include 6,849,533 Series 1 Class A Preference Shares, 3,110,531 Series 2 Class A Preference Shares, and 7,000,000 Series 6 Class A Preference Shares[132] - Brookfield Renewable's proportionate financial information reflects Brookfield Renewable's share from facilities using consolidation and equity method, aiding internal analyses and strategic decisions[175] - Brookfield Renewable's voting agreements provide control over entities owning renewable power and sustainable solution investments, consolidating their accounts[173] - Net income (loss) under IFRS may not reflect underlying cash flows due to higher depreciation levels compared to sustaining capital expenditures[177] - Comprehensive income for