Brookfield Renewable (BEPC) Q2 2024 earnings summary

Executive summary

• Delivered record Q2 2024 FFO of $339 million, or $0.51 per unit, up 9% year-over-year, positioning for double-digit FFO per unit growth for the year.

• Deployed or committed nearly $9 billion in capital, with $1 billion net to the company, and announced the proposed $6.7 billion acquisition of Neoen, expanding assets in France, Australia, and the Nordics.

• Commissioned approximately 1.4 GW of new capacity in Q2, advancing a development pipeline exceeding 230 GW, with 65 GW in advanced stages.

• Operations span the U.S., Brazil, Colombia, and Europe, targeting a 12–15% annual total return on renewable assets.

• BEPC exchangeable shares are structured to be economically equivalent to LP units, with aligned dividends and distributions.

Financial highlights

• Q2 2024 revenues were $989 million, up $88 million year-over-year, with FFO at $339 million, up 9% year-over-year, and adjusted EBITDA at $336 million.

• Net loss for Q2 2024 was $339 million, mainly due to remeasurement losses on exchangeable shares and higher operating costs.

• Asset sales generated over $400 million in proceeds ($250 million net), with a 2x multiple on invested capital.

• Group-wide liquidity at June 30, 2024 was $4.4 billion, up from $4.1 billion at year-end 2023.

• Weighted average interest rate on non-recourse borrowings was 6.4% with an average term of 8 years.

Outlook and guidance

• On track to deliver double-digit FFO per unit growth for 2024, with a target of 12%-15% long-term total returns.

• Distribution per LP unit increased 5.2% to $1.42 annually, targeting 5–9% annual distribution growth.

• Plans to commission approximately 7 GW of new capacity in 2024, with annual commissioning capacity expected to grow to 10 GW over the next several years.

• Asset recycling and robust demand for high-quality assets expected to support continued capital deployment.