Brookfield Renewable Partners L.P.(BEP) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for Q2 2024 were $1.482 billion, a 23$1.205 billion in Q2 2023[85] - Net loss attributable to Unitholders for Q2 2024 was $154 million, compared to$39 million in Q2 2023[85] - Proportionate Adjusted EBITDA for Q2 2024 was $629 million, up 7.3$586 million in Q2 2023[85] - Revenues for Q2 2024 totaled $1,482 million, a$277 million increase compared to the same period in 2023, driven by business growth, inflation escalation, and high asset availability[96] - Net loss for Q2 2024 was $88 million, a$239 million decrease compared to the prior year, primarily due to increased costs and foreign exchange impacts[96] - Total revenues for the three and six months ended June 30, 2024 were $1,482 million and$2,974 million, respectively, compared to $1,205 million and$2,536 million in 2023[161] - Net income (loss) attributable to Unitholders for Q2 2024 was $(154) million, compared to$(39) million in Q2 2023[166] - Basic loss per LP unit for Q2 2024 was $(0.28), compared to$(0.10) in Q2 2023[166] - Distribution per LP unit for Q2 2024 was $0.36, consistent with Q2 2023[166] - Net loss attributable to Unitholders for the three months ended June 30, 2024, was$39 million[211] - Revenues totaled $2,974 million, an increase of$438 million (17.3%) year-over-year, driven by business growth, inflation escalation, and high asset availability[217] - Net loss decreased by $486 million (75.5$158 million, influenced by foreign exchange impacts and operational changes[217] - Consolidated revenue for the three months ended June 30, 2024, was $1,482 million, a 23$1,205 million in 2023[237] - Wind segment revenue for the three months ended June 30, 2024, was $424 million, a 47$289 million in 2023[237] - Utility-scale solar revenue for the three months ended June 30, 2024, was $259 million, a 49$174 million in 2023[237] - Hydroelectric revenue for the three months ended June 30, 2024, was $682 million, a 6$644 million in 2023[237] - Distributed energy & storage revenue for the three months ended June 30, 2024, was $113 million, a 23$92 million in 2023[237] Operational Metrics - Total generation capacity reached 34,189 MW in Q2 2024, a 32.2% increase from 25,859 MW in Q2 2023[85] - Brookfield Renewable secured contracts for an incremental 2,700 GWh/year of generation, with ~90% contracted to corporate customers[87] - The company's development pipeline stands at over 200 GW, with 65 GW at an advanced stage, and expects to commission 7 GW of new capacity in 2024[95] - Recently acquired and commissioned facilities contributed 3,957 GWh of generation and $221 million to revenues, partially offset by asset sales reducing generation by 76 GWh and revenues by$7 million[96] - Total generation for Q2 2024 was 20,602 GWh, compared to 17,798 GWh in Q2 2023[166] - Proportionate generation for the six months ended June 30, 2024 was 16,759 GWh, up from 15,650 GWh in 2023[167] - Generation (GWh) – actual was 395 for the three months ended June 30, 2024[127] - The company's power portfolio has a weighted-average remaining contract duration of 13 years on a proportionate basis, with contracted profiles of approximately 90% in Brazil and 80% in Colombia[136] - Secured generation under financial contracts includes 553 GWh for 2024, 1,322 GWh for 2025, 967 GWh for 2026, 725 GWh for 2027, and 63 GWh for 2028[136] - Weighted-average remaining contract durations are 14 years in North America, 14 years in Europe, 10 years in Brazil, 4 years in Colombia, and 15 years across remaining jurisdictions[136] - Contracted generation as a percentage of total generation on a proportionate basis is 90% for 2024, decreasing to 78% by 2028[137] - Economic exposure of contracted generation is distributed as: power authorities (35%), distribution companies (23%), commercial & industrial users (31%), and Brookfield (11%)[136] Liquidity and Financing - The company has $4.4 billion of available liquidity and executed$1.7 billion of project-level financings in Q2 2024[87] - Brookfield Renewable issued $150 million of perpetual subordinated notes at a fixed rate of 7.25$400 million committed unsecured revolving credit facility from Brookfield Corporation, with no draws during the current period[102] - Brookfield Renewable redeemed all outstanding Series 15 Preferred Units for C$175 million in Q2 2024[109] - Available liquidity stands at$4,425 million as of June 30, 2024, including $559 million in cash and cash equivalents[141] - Weighted-average interest rates for corporate borrowings are 6.6$11,247 million with a weighted-average interest rate of 5.4% and term of 11 years[142] - The company issued C$300 million Series 18 and C$100 million Series 17 medium-term notes on July 17, 2024[139][141] - Total debt principal repayments and scheduled amortization as of June 30, 2024, amount to $14.408 billion, with$3.161 billion from medium-term notes and $4.484 billion from non-recourse borrowings[144] - Capital expenditures are funded through operational cash flow and non-recourse debt, with$2.45 billion in committed revolving credit facilities available for investments and acquisitions[145] - Cash flows from operating activities for the six months ended June 30, 2024, totaled $555 million, compared to$1.045 billion in 2023[147] - Cash flows from financing activities for the six months ended June 30, 2024, were $1.329 billion, driven by corporate and non-recourse financings, including$297 million from medium-term notes and $150 million from perpetual green subordinated notes[149] - Distributions to Unitholders increased by 5.2$1.42 per LP unit annually, with $531 million paid in the first six months of 2024[149] - Cash flows used in investing activities for the six months ended June 30, 2024, were$1.729 billion, including $1.660 billion invested in property, plant, and equipment for renewable energy projects[157] - The company invested in 3,770 MW of wind, solar, distributed generation, and storage projects in the U.S., 660 MW in Brazil, and 1,070 MW in India during the first six months of 2024[157] - Proceeds from asset sales in the first six months of 2024 totaled$283 million, including the sale of a 30 MW hydroelectric asset and a 60 MW battery storage asset in the U.S.[157] - Brookfield Renewable issued C$300 million of Series 18 medium-term notes with a fixed interest rate of 4.96$100 million of Series 17 medium-term notes with a fixed interest rate of 5.32% and a maturity date of January 10, 2054[187] - Brookfield Renewable issued $150 million of perpetual subordinated notes at a fixed rate of 7.25$17 million, compared to $14 million in 2023[256] - Brookfield Renewable redeemed all outstanding Series 15 Preferred Limited Partnership units for C$175 million during the quarter[257] - No Class A Preferred Limited Partnership Units were repurchased during the three and six months ended June 30, 2024[257] - Brookfield Renewable has $3.7 billion in capital expenditure commitments as of June 30, 2024, with$2.1 billion payable in 2024, $1.173 billion in 2025,$488 million from 2026 to 2028, and $3 million thereafter[272] - Brookfield Renewable has issued letters of credit totaling$2.006 billion as of June 30, 2024, including $115 million with institutional partners and$1.891 billion through subsidiaries[278] - Brookfield Renewable has a $400 million committed unsecured revolving credit facility provided by Brookfield Corporation, maturing in December 2024, with no draws during the current period[280] - Brookfield Renewable has$431 million in borrowings from Brookfield Reinsurance as of June 30, 2024, classified as due to related party[280] Acquisitions and Investments - Brookfield Renewable agreed to acquire a 53% stake in Neoen for $6.7 billion, adding 8 GW of operating and in-construction assets[88] - Brookfield Renewable deployed or committed to deploy$8.6 billion of capital globally, including acquisitions in India, South Korea, and Australia[88] - The company will become one of the largest battery developers with 2,300 MW of operating and under-construction capacity after closing the Neoen acquisition[89] - Brookfield Renewable acquired a 75% interest in a renewables development platform in Australia with over 2 GW of wind and co-located battery projects for $162 million ($32 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 74% interest in a wind-focused commercial and industrial renewable business in India with 500 MW of operating assets and a 3 GW development pipeline for $89 million ($18 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a fully integrated solar-focused renewables platform in South Korea with 103 MW of distributed generation assets and a 2.2 GW development pipeline for $17 million ($3.4 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 70% interest in a 238 MW portfolio of utility-scale solar development assets in South Korea for $13 million ($3 million net to Brookfield Renewable)[187] - Brookfield Renewable acquired a 150 MW wind facility in China for $42 million ($8 million net to Brookfield Renewable)[187] - Brookfield Renewable increased its total interest in Powen to approximately 50% (10% net to Brookfield Renewable) through a subscription for additional shares[187] - Brookfield Renewable plans to acquire wind projects in China with capacities of 102 MW and 350 MW, with considerations of CNY 116 million ($16 million) and CNY 790 million ($109 million) respectively, both expected to close in Q4 2024[274] - In Brazil, Brookfield Renewable is developing 829 MW and operating 13 MW of distributed energy and storage projects, with a consideration of R$340 million ($60 million), expected to close between 2024 and 2026[274] - Brookfield Renewable is involved in a European acquisition with an enterprise value of €6.1 billion ($6.7 billion) for Neon, targeting 23 GW of development and 5 GW of operating capacity, with an expected close in Q4 2024[274] - In India, Brookfield Renewable is acquiring 524 MW of operating capacity and 2.75 GW of development capacity for$89 million, with an expected close in Q3 2024[274] Segment Performance - Proportionate revenue for hydroelectric operations in Q2 2024 was $381 million, down from$398 million in Q2 2023[116] - Proportionate Adjusted EBITDA for hydroelectric operations in Q2 2024 was $231 million, down from$270 million in Q2 2023[116] - Proportionate Funds From Operations for hydroelectric operations in Q2 2024 was $136 million, down from$171 million in Q2 2023[116] - Proportionate revenue for wind operations in Q2 2024 was $154 million, up from$129 million in Q2 2023[120] - Proportionate Funds From Operations for utility-scale solar operations in Q2 2024 was $91 million, up from$77 million in Q2 2023[126] - Proportionate Funds From Operations for sustainable solutions in Q2 2024 was $42 million, up from$10 million in Q2 2023[123] - Proportionate total revenue for Q2 2024 was $830 million, up from$719 million in Q2 2023[115] - Revenue for the distributed energy & sustainable solutions business was 61 million for the three months ended June 30, 2024[127] - Adjusted EBITDA for the distributed energy & sustainable solutions business was 54 million for the three months ended June 30, 2024[127] - Funds From Operations for the distributed energy & sustainable solutions business was $44 million for the three months ended June 30, 2024[127] - Revenue for the three months ended June 30, 2024, was$114 million compared to $14 million in 2023[127] - Adjusted EBITDA for the three months ended June 30, 2024, was$51 million compared to $11 million in 2023[127] - Funds From Operations for the three months ended June 30, 2024, was$42 million compared to $10 million in 2023[127] - Adjusted EBITDA attributable to Unitholders was$629 million for the three months ended June 30, 2024[130] - Funds From Operations was $339 million for the three months ended June 30, 2024, compared to$312 million in 2023[134] - Basic loss per LP unit was $(0.28) for the three months ended June 30, 2024, compared to$(0.10) in 2023[134] - North America segment reported a net income of $119 million, while the Corporate segment incurred a net loss of$216 million, resulting in a total net loss of $158 million[169] - Adjusted EBITDA attributable to Unitholders was$1,204 million, with North America contributing $371 million and Corporate contributing$33 million[169] - Depreciation expenses totaled $1,019 million, with the largest contributions from Utility-scale Wind ($406 million) and Hydroelectric ($207 million)[169] - Funds From Operations for the six months ended June 30, 2024, were$635 million, compared to $587 million in the same period in 2023[173] - Basic loss per LP unit for the six months ended June 30, 2024, was$(0.51), compared to $(0.20) in the same period in 2023[174] - Average units outstanding for the six months ended June 30, 2024, were 664.1 million, up from 647.8 million in 2023[173] - Funds From Operations (FFO) for North America was$97 million, down from 114 million due to lower generation and currency weakening[225] - FFO for distributed energy & sustainable solutions was 44 million, slightly down from $45 million, impacted by lower same-store generation[227] - Total revenues for the six months ended June 30, 2024, were$2,974 million, with North America contributing $559 million, Hydroelectric Brazil$112 million, Colombia $151 million, and Wind$324 million[232] - Funds From Operations (FFO) for the period totaled $635 million, with significant contributions from North America ($234 million), Wind ($190 million), and Utility-scale solar ($152 million)[232] - Total assets as of June 30, 2024, amounted to $73,799 million, including$15,916 million in North America, $1,682 million in Hydroelectric Brazil, and$6,569 million in Wind[235] - Property, plant, and equipment stood at $61,826 million, with North America accounting for$14,851 million, Hydroelectric Brazil $1,353 million, and Wind$5,734 million[235] - Total liabilities as of June 30, 2024, were $45,818 million, with North America representing$9,074 million, Hydroelectric Brazil $542 million, and Wind$4,410 million[235] - Cash and cash equivalents increased to $1,236 million as of June 30, 2024, from$1,141 million at December 31, 2023[235] - Direct operating costs for the six months ended June 30, 2024, were $1,252 million, with North America accounting for$204 million, Hydroelectric Brazil $37 million, and Wind$118 million[232] - Interest expense for the period was $965 million, with North America contributing$134 million, Hydroelectric Brazil $8 million, and Wind$60 million[232] - Current income taxes for the six months ended June 30, 2024, totaled $44 million, with North America accounting for$3 million, Hydroelectric Brazil $3 million, and Wind$7 million[232] - Foreign exchange and financial instrument gain for the period was $236 million[232] Asset and Liability Management - Property, plant and equipment decreased by$2.2 billion to $61.8 billion as of June 30, 2024, due to asset disposals, currency fluctuations, and depreciation[99] - Assets held for sale totaled$412 million as of June 30, 2024, including wind assets in the UK, hydroelectric assets in Brazil, and distributed generation assets in the U.S.[100] - Brookfield Renewable completed the sale of a 30 MW hydroelectric asset, an 85 MW biomass portfolio, and a 60 MW battery storage asset in Q2 2024[100] - Total LP units on a fully-exchanged basis decreased to 659,181,663 as of June 30, 2024, from 661,303,805 at the end of