Brookfield Renewable Power Fund
TSX : BRC.UN

Brookfield Renewable Power Fund
Brookfield Renewable Power Preferred Equity
TSX : BRF.PR.A

November 09, 2011 17:40 ET

Brookfield Renewable Power Fund Announces Results for Third Quarter of 2011

GATINEAU, QUEBEC--(Marketwire - Nov. 9, 2011) - Brookfield Renewable Power Fund (the "Fund") (TSX:BRC.UN) reported today its financial and operating results for the third quarter ended September 30, 2011. All results are reported under International Financial Reporting Standards ("IFRS"). Additional information on the Fund's strategy and results can be found in its Letter to Unitholders and Supplemental Information at www.brpfund.com under Investor Relations/Financial Highlights.

"The Fund's third quarter announcement of its proposed combination with the renewable power assets of Brookfield Renewable Power Inc. received a very positive market response," said Richard Legault, Chief Executive Officer of the Fund. "We believe that the combination of these two platforms will allow us to build on the Fund's excellent long-term track record of creating value for its investors, and we expect that the merged entity, Brookfield Renewable Energy Partners L.P., will rank among the very best renewable power businesses globally in terms of asset quality, geographic scale and diversification, and access to capital."

The Fund's total generation in the third quarter of 2011 was 1,355 gigawatt hours ("GWh") as compared to 881 GWh in the third quarter of 2010 and a long-term average of 1,566 GWh. Hydrology conditions were below the long-term quarterly average but dramatically improved from the record-breaking dry conditions experienced in the third quarter of 2010. At quarter-end, reservoirs on a blended basis were above their usual levels for this time of year. Wind generation of 93 GWh was lower than expected due to less favourable wind conditions in the quarter.

Financial and Operating Highlights
Unaudited Three months ended September 30 Nine months ended September 30
CDN $ millions, except otherwise noted 2011 2010 2011 2010
Revenues $ 73.3 $ 34.1 $ 248.7 $ 179.2
Net Operating Cash Flow 36.4 0.3 128.8 68.1
Distributions to Unitholders 34.0 34.0 102.1 101.7
Per unit ($)
Net Operating Cash Flow 0.35 - 1.23 0.65
Distributions to Unitholders 0.32 0.32 0.97 0.97
Power generated (GWh) 1,355 881 4,512 3,638
Average price ($/MWh) 65 62 66 64
Note: Under IFRS, the Fund no longer consolidates the results of the Prince Wind farm, Powell River and the Pingston Hydro joint venture, which are held through 50%-owned subsidiaries. These assets are accounted for using the equity-method.

Third quarter revenues were $73.3 million as compared to $34.1 million, and net operating cash flow was $36.4 million as compared with $0.3 million in the same period last year, reflecting significantly improved hydroelectric generation relative to the third quarter of 2010. Third quarter distributions paid to unitholders were $34.0 million or 32.499 cents per unit, consistent with the same period last year.

Liquidity and Capital Program

At September 30, 2011, the Fund had total liquidity of $185.5 million, comprised of cash of $39.3 million, $106.2 million available under committed credit facilities and $40.0 million available under the hydrology reserve facility.

In the first nine months of 2011, the Fund invested $12.2 million in sustaining capital expenditures and $9.0 million in major maintenance. For the fourth quarter, capital expenditures and major maintenance are expected to be $14.6 million and $2.9 million, respectively, including expenditures for the Comber Wind project.

The construction of Comber Wind is nearing completion. Turbine installation is now complete with all 72 turbines installed. The substation is connected to the transmission grid and energized. Construction of the collector system connecting the turbines to the main substation is nearing completion. Commissioning and testing of the individual turbines is in progress and the project has partially started delivering energy to the power grid. The project is expected to enter operations in the fall of 2011.

Conference Call

A conference call for investors and media to review the third quarter results for 2011 will be held on Thursday, November 10, 2011 at 8:00 a.m. (EDT). To participate in the conference call, please dial 1-800-319-4610 toll-free in North America, or for overseas calls please dial 1-604-638-5340 at approximately 7:50 a.m. (EST). The conference call will also be webcast live on the Fund's website at www.brpfund.com, where it will be archived for future reference. A telephone replay will be archived and available through December 10, 2011. To access this rebroadcast, please call 1-800-319-6413 or 1-604-638-9010 (passcode 1557#).

Distributions

The schedule below sets out the cash distribution history for the last twelve months:

RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT
September 30, 2011 October 31, 2011 32.499 cents
June 30, 2011 July 29, 2011 32.499 cents
March 31, 2011 April 29, 2011 10.833 cents
February 28, 2011 March 31, 2011 10.833 cents
January 31, 2011 February 28, 2011 10.833 cents
December 31, 2010 January 31, 2011 10.833 cents
November 30, 2010 December 31, 2010 10.833 cents
October 31, 2010 November 30, 2010 10.833 cents

Quarterly Preferred Share Dividends

The Board of Directors of Brookfield Renewable Power Preferred Equity Inc. has declared the quarterly dividend on its Class A Preference Shares, Series 1, payable on January 31, 2012 to shareholders of record as at the close of business on January 15, 2012. Information on the Fund's quarterly distributions and preferred share quarterly dividends can be found on the company's web site under Investor Relations.

Basis of Presentation

This news release and accompanying financial statements make reference to net operating cash flow on a total and per share basis. The Fund focuses on net operating cash flow as the measure of its success as it best reflects its ability to generate cash flows to pay stable and sustainable distributions to our unitholders. Net operating cash flow is not a defined financial measure under IFRS and, as such, may not be comparable to similar measures presented by other issuers. Net operating cash flow consists of revenues, net of direct operating costs, the costs associated with financing, including dividends on the guaranteed preferred shares issued by a subsidiary, current income taxes and the cash portion of the Fund's share of profits in equity-accounted investments.

The information in this news release is based primarily on information that has been extracted from the Fund's interim financial statements for the three and nine months ended September 30, 2011, which have been prepared using the standards and interpretations currently issued under IFRS and expected to be effective at the end of our first annual IFRS reporting period, which is intended to be December 31, 2011. The amounts have not been audited by our external auditor.

CAUTIONARY STATEMENT ON 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 the Fund's future generation position, the Comber Wind project, the anticipated growth and diversification of the Fund's portfolio, capital expenditures, and the Fund's financial and liquidity position. Forward-looking statements can be identified by the use of words such as "well positioned", "will", "plans", "expected", "intend", "continue", and "in the process", or variations of such words and phrases. Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, it 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 the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to the board's discretion to declare dividends; changes in hydrology and wind conditions; equipment failure; construction risks; refinancing risks; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc., Brookfield Asset Management Inc. and the Fund; failure by the Fund to discover liabilities associated with, and inability of the Fund to successfully integrate, acquisitions; risks associated with the Fund's proposed combination of all of its assets with the renewable power assets of Brookfield Renewable Power Inc.; our ability to execute our growth strategy; and other risks and factors detailed from time to time in the Fund's public filings including the Annual Information Form dated March 30, 2011 under the heading "Risk Factors" and Management's Discussion and Analysis of Financial Results in the 2010 Annual Report under the headings "Financial Instrument Risks" and "Business and Environmental Risks". We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as required by law, the Fund undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

About Brookfield Renewable Power Fund

Brookfield Renewable Power Fund (www.brpfund.com) is a premier Canadian income fund and one of the largest power income funds in North America with more than 1,700 megawatts of power generating capacity and average annual production exceeding 6,500 gigawatt hours.

The Fund produces electricity exclusively from environmentally friendly and renewable resources, including 42 high quality hydroelectric generating stations and two wind farms in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.

Brookfield Renewable Power Inc., which comprises most of the power operations of Brookfield Asset Management, owns approximately 34% of the Fund's outstanding units on a fully exchanged basis.

The Units are listed for trading on the TSX under the symbol BRC.UN.

For more information, please visit www.brpfund.com.

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