Brookfield Renewable Energy Partners L.P.

Brookfield Renewable Energy Partners L.P.

February 13, 2012 09:09 ET

Brookfield Renewable Announces 2011 Year-End Results

HAMILTON, BERMUDA--(Marketwire - Feb. 13, 2012) - Brookfield Renewable Energy Partners L.P. (TSX:BEP.UN)

Investors, analysts and other interested parties can access Brookfield Renewable's 2011 fourth quarter results as well as the Letter to Unitholders and Supplemental Information on the web site under the Investor Relations section at
The 2011 fourth quarter results conference call can be accessed via webcast on February 13, 2012 at 9:00 a.m. ET at or via teleconference at 1-800-319-4610 toll free in North America. For overseas calls please dial 1-604-638-5340, at approximately 8:50 a.m. ET. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 (password: 1557#) until midnight on March 13, 2012.

All amounts in U.S. dollars unless stated otherwise

Brookfield Renewable Energy Partners L.P. (TSX:BEP.UN) ("Brookfield Renewable") today announced its pro forma results for the year ended December 31, 2011.

Brookfield Renewable was launched on November 28, 2011 from the combination of Brookfield Renewable Power Fund and the renewable power assets of Brookfield Renewable Power Inc. Unless otherwise indicated, results are shown on a pro forma basis, as if the combination had occurred as of January 1, 2010.

Pro forma Financial Results(1)

US$ millions (except per unit amounts), unaudited Results under
actual generation
Results under
LTA generation
For the years ended December 31 2011 2010 2011 2010
Generation (GWh) 15,877 14,480 16,297 15,887
Revenue(2) $ 1,332 $ 1,187 $ 1,392 $ 1,287
EBITDA $ 926 $ 853 $ 986 $ 953
FFO $ 419 $ 350 $ 481 $ 450
FFO per unit $ 1.60 $ 1.33 $ 1.83 $ 1.71
(1) Pro forma results assume that Brookfield Renewable was in existence for entire fiscal years of 2011 and 2010.
(2) Includes share of cash earnings from equity-accounted investments.

"Since launching Brookfield Renewable near the end of 2011, we have continued to strengthen our position as the leading publicly-traded, pure-play renewable power business," said Richard Legault, Chief Executive Officer. "In the two months since closing the transaction, we have commissioned several new facilities, acquired attractive new assets, increased our quarterly distribution, and continued to enhance our financial and capital markets position. We look forward to 2012 and the opportunities that lie ahead."

For 2011, Brookfield Renewable generated pro forma funds from operations ("FFO") which totalled $419 million ($1.60 per unit) as compared to $350 million ($1.33 per unit) in 2010. The increase in FFO was largely attributable to improved hydrology relative to the prior year, as well as the contribution from new generation assets.

Review of Operations

Total generation in 2011 was 15,877 GWh or 10% higher than 14,480 GWh in the prior year, although still 3% lower than the long-term average of 16,297 GWh. The improvement in 2011 reflected stronger hydrology conditions in eastern Canada and the northeastern United States. While hydrology returned to more normalized levels it was still modestly below the long-term average due to below-average inflows in eastern Canada. Helping to offset these conditions were record-breaking inflows for our facilities in the northeastern United States. Energy sales in Brazil were in line with planned levels. Generation from wind facilities also contributed to the increase due primarily to the full year inclusion of an Ontario wind facility commissioned in September 2010.

The tables below summarize generation by segment and region(1):
Generation Variance of Results
For the years ended December 31
Actual 2011 Actual 2010 LTA
2011 vs. 2010 2011
Hydroelectric generation
United States 7,150 6,651 6,811 8 % 5 %
Canada 4,056 3,557 5,061 14 % (20 %)
Brazil(2) 3,307 3,206 3,307 3 % 0 %
14,513 13,414 15,179 8 % (4 %)
Wind energy 662 499 712 33 % (7 %)
Other 702 567 406 24 % 73 %
Total generation 15,877 14,480 16,297 10 % (3 %)
Generation Variance of Results
For the three months ended December 31
Actual 2011 Actual 2010 LTA 2011 2011 vs. 2010 2011 vs. LTA
Hydroelectric generation
United States 1,756 1,711 1,655 3 % 6 %
Canada 756 1,054 1,189 (28 %) (36 %)
Brazil(2) 879 821 879 7 % 0 %
3,391 3,586 3,723 (5 %) (9 %)
Wind energy 255 186 249 37 % 2 %
Other 202 230 104 (12 %) 94 %
Total generation 3,848 4,002 4,076 (4 %) (8 %)
(1) Actual and long-term average generation includes 100% of generation from equity-accounted investments
(2) Assured energy generation levels

Growth Update

Brookfield Renewable has continued to make progress on its growth plans, recently completing construction of four renewable power facilities totaling approximately 280 megawatts of capacity. The facilities that have been commissioned are:

  • Comber Wind - 166 megawatts - Ontario
  • Granite Reliable Wind - 99 megawatts - New Hampshire
  • Lower St. Anthony Falls - 10 megawatts - Minnesota
  • Glen Ferris - 6 megawatts - West Virginia

In addition, subsequent to quarter end, Brookfield Renewable and its institutional partners acquired 223 megawatts of new wind generation assets in California, consisting of a 150 megawatt wind farm benefiting from a 24-year power purchase agreement with Southern California Edison, an incremental 50% interest in our 102 megawatt Coram wind farm, and a further 22 megawatts of additional operating wind generation capacity. These assets are all located in close proximity to one another in the Tehachapi region, recognized as a proven, attractive wind resource region.

Brookfield Renewable also continued to make progress on furthering its growth plans in 2012 and has received the environmental assessment certificate for its 45 megawatt hydroelectric project in British Columbia. Construction is expected to begin in 2012, subject to the successful completion of remaining commercial agreements. Once complete, the facility is expected to generate enough electricity annually to power approximately 15,000 homes.

Distribution Increase and Profile

In January 2012, Brookfield Renewable announced an increase in its unitholder distributions to $1.38 per unit on an annualized basis, representing an increase of three cents per unit per year. The increase is effective with the first quarter distribution payable in April 2012.

The increase in distributions reflects the enhanced cash flows resulting from the significant progress in the company's growth plans. Brookfield Renewable is targeting annual growth in unitholder distributions in the range of 3% to 5% and a target payout ratio of 60% to 70% of FFO.

Capital Program and Liquidity

Brookfield Renewable maintains a disciplined capital maintenance program aimed at maintaining the efficiency, reliability and longevity of its power generating assets. Sustaining capital expenditures in 2011 were in line with the annual target of approximately $50 million to $60 million. The 2012 capital investment is also projected to be consistent with this target.

Brookfield Renewable uses a combination of operating cash flows and credit facilities to fund its operations, and maintain adequate liquidity to achieve its objectives for growth, capital investment and distributions to unitholders. At December 31, 2011, total liquidity was approximately $457 million, consisting of $267 million of cash and cash equivalents and $190 million of undrawn committed credit facilities.

Subsequent to quarter end, Brookfield Renewable successfully completed a C$400 million offering of 10-year notes that bear interest at a rate of 4.79% per year. Proceeds were used to repay existing indebtedness in order to increase our overall term to maturity and further reduce our cost of capital.

Distribution Declaration

The Board of Directors has declared the quarterly distribution in the amount of US$0.345 per unit, payable on April 30, 2012 to L.P. unitholders of record as at the close of business on March 31, 2012.

Distribution Reinvestment Plan

The Board of Directors has approved the adoption and implementation of a Distribution Reinvestment Plan. The plan is expected to be implemented in the current quarter and will allow registered or beneficial holders of Brookfield Renewable Energy Partners L.P. units who are resident in Canada to acquire additional units by reinvesting all or a portion of their cash distributions without paying commissions. Information on the plan, including details on how to enrol, will be made available on Brookfield Renewable's website once the plan takes effect.

Additional Information

The Letter to Unitholders and the Supplemental Information for the period ended December 31, 2011 contain further information on Brookfield Renewable's strategy, operations and financial results. Unitholders are encouraged to read these documents, which are available at

Brookfield Renewable Energy Partners (TSX:BEP.UN) operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 5,000 megawatts of installed capacity. Diversified across 67 river systems and 10 power markets in Canada, the United States and Brazil, the portfolio generates enough electricity from renewable resources to power two million homes on average each year. With a fully-contracted portfolio of high-quality assets and strong growth prospects, the business is positioned to generate stable, long-term cash flows supporting regular and growing cash distributions to unitholders. For more information, please visit

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding Brookfield Renewable Energy Partners L.P. ("Brookfield Renewable") and its future business opportunities, the anticipated construction and generation potential of the British Columbia hydroelectric project, Brookfield Renewable's distribution profile including its target distribution growth and payout ratio, the sustaining capital program, available liquidity, benefits of the recent notes offering on financing term and cost of capital, and implementation of the anticipated distribution reinvestment plan. Forward-looking statements can be identified by the use of words such as "will", expected", "intend", "continue", and targets, or variations of such words and phrases. Although Brookfield Renewable believes its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, they can give no assurance that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Cautionary Statement Regarding use of non-IFRS Accounting Measures

This news release contains references to EBITDA and Funds from operations which are not generally accepted accounting measure under IFRS and therefore may differ from definitions of EBITDA and Funds from operations used by other entities. We believe that operating EBITDA and Funds from operations are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. Neither EBITDA nor Funds from operations should be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. As a result of the Combination, we have also presented these same measurements on a pro forma basis.

A reconciliation of EBITDA and Funds from operations to net income is presented in our Management's Discussion and Analysis related to our audited consolidated financial statements.

References to Brookfield Renewable are to the Partnership together with its subsidiary and operating entities.
References to the Partnership are to Brookfield Renewable Energy Partners L.P.
1 The unaudited pro forma financial results have been prepared based on currently available information and assumptions deemed appropriate by management, are provided for information purposes only and may not be indicative of the results that would have occurred had the combination been effected on the date indicated.
2 EBITDA means 100% of revenues less direct costs (including energy marketing costs), plus our share of cash earnings from equity-accounted investments, before interest, current income taxes, depreciation, amortization and management service costs. FFO is defined as EBITDA less interest, current income taxes and management service cost, which is then adjusted for non-controlling interests. A reconciliation of net income to FFO is available in the Partnership's Supplemental Information for the three months ended December 31, 2011 at
3 Average number of units outstanding on a fully diluted weighted average basis for the three and twelve months ended December 31, 2011 was approximately 262.5 million (2010 - 262.5 million).
4 Payout ratio is defined as distributions to unitholders divided by FFO.

To view the tables associated with this press release, please visit the following link:

Contact Information

  • Brookfield Renewable Energy Partners L.P.
    Zev Korman
    Director, Investor Relations and Communications