Brookfield Infrastructure Partners(BIP) - 2023 Q2 - Quarterly Report

Funds from Operations (FFO) Performance - Funds from operations (FFO) for the first quarter was $554 million, increasing 12% relative to the comparable period[1] - The utilities segment generated FFO of $208 million, an increase of 25% from the same period last year, with organic growth over 10%[2] - The midstream segment generated $198 million of FFO, consistent with the prior year[3] - The transport segment saw FFO of $192 million, an increase of 11% excluding the divested North American container terminal[24] - The data segment generated FFO of $70 million, an increase of 21% from the same period last year, with organic growth of 9%[25] - FFO increased to $111 million this quarter, representing a 9% increase compared to the same period in the prior year[37] - Consolidated Funds from Operations (FFO) reached $1,138 million, up from $1,059 million in the same period last year[39] - FFO per unit was $554 million, compared to $493 million in the prior year[39] - FFO (Funds from Operations) remained stable at $227 million in both Q1 2023 and Q1 2022[48] Organic Growth and Inflation Impact - Organic growth for the quarter was robust at 9%, reflecting the benefits of continued elevated levels of inflation on tariffs and strong volumes across transport networks[1] - The utilities segment generated FFO of $208 million, an increase of 25% from the same period last year, with organic growth over 10%[2] - The data segment generated FFO of $70 million, an increase of 21% from the same period last year, with organic growth of 9%[25] Acquisitions and Divestitures - Brookfield Infrastructure announced the acquisition of 100% of Triton for $85 per share, equating to an enterprise value of $13.3 billion[5] - Brookfield Infrastructure completed the sale of two U.S. gas storage assets for gross proceeds of $235 million, with attractive transaction multiples of 21x and 15x EBITDA[6] - The company expects its asset sale program to generate approximately $2 billion of proceeds this year[28] Financial Position and Cash Flow - Total assets increased to $81,925 million as of March 31, 2023, up from $72,969 million as of December 31, 2022[35] - Cash and cash equivalents rose to $1,515 million as of March 31, 2023, compared to $1,279 million as of December 31, 2022[35] - Net investments in operating assets were $4,699 million, significantly higher than $42 million in the prior year[36] - Cash used by operating activities was $10 million in Q1 2023, compared to $123 million generated in Q1 2022[47] - Cash used by investing activities decreased to $129 million in Q1 2023 from $639 million in Q1 2022[47] - Cash and cash equivalents decreased by $143 million in Q1 2023, compared to an increase of $609 million in Q1 2022[47] Net Income and Expenses - Net income for the quarter was $143 million, down from $294 million in the same period last year[39] - Depreciation and amortization expense increased to $645 million, up from $544 million in the prior year[39] - Net loss for Q1 2023 was $195 million, compared to $216 million in Q1 2022[61] - Brookfield Infrastructure reported net income of $23 million for the three-month period ended March 31, 2023, compared to $70 million in the prior year[75] Revenues and Costs - Revenues for the quarter were $497 million, up from $461 million in the same period last year[46] - Revenues increased to $4,218 million in Q1 2023 from $3,411 million in Q1 2022[53] - Direct operating costs rose to $3,229 million in Q1 2023 from $2,506 million in Q1 2022[53] Interest Expense and Earnings - Interest expense increased to $153 million, up from $102 million in the prior year[46] - Interest expense increased to $568 million in Q1 2023 from $409 million in Q1 2022[53] - Share of earnings from associates and joint ventures grew to $103 million in Q1 2023 from $54 million in Q1 2022[53] - Mark-to-market losses increased to $94 million in Q1 2023 from $54 million in Q1 2022[53] Dividends and Distributions - Brookfield Infrastructure declared a quarterly distribution of $0.3825 per unit, payable on June 30, 2023[8] - Brookfield Infrastructure declared a quarterly dividend of $0.3825 per class A exchangeable subordinate voting share, payable on June 30, 2023[73] Data Segment Expansion - Data4 plans to add 400 megawatts of capacity, with a significant proportion already contracted or reserved, and a total Brookfield equity investment of $2.4 billion (BIP's share – approximately $600 million)[76]