Brookfield Renewable (BEPC) Q3 2024 earnings summary

Executive summary

• Delivered record funds from operations (FFO) for Q3 2024, driven by asset development, acquisitions, and strong pricing, with operations primarily in the U.S., Brazil, Colombia, and Europe.

• On track to achieve 10%+ FFO per unit growth target for 2024 and targets a long-term total return of 12%-15% per annum.

• Business model focused on lowest-cost, mature renewable technologies, global diversification, and stable, regulated cash flows.

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

Financial highlights

• Q3 FFO reached $278 million, or $0.42 per unit, up 11% year-over-year; Q3 2024 revenues were $1,041 million, up $107 million year-over-year.

• Generated $2.3 billion in proceeds from asset monetizations year-to-date, with returns of 2.5x invested capital and IRRs above 20%.

• Committed and deployed over $11 billion of equity into growth, including the proposed Neoen acquisition.

• Ended the quarter with $4.6 billion in available liquidity.

• Net loss for Q3 2024 was $664 million, mainly due to prior year gain on asset sales and a $612 million loss from remeasurement of exchangeable shares.

Outlook and guidance

• Expect to achieve 10%+ FFO per unit growth for 2024 and maintain a long-term target of 12%-15% total return for investors.

• Distribution per LP unit increased 5.2% to $1.42 annually, with a target of 5%-9% annual distribution growth.

• No material refinancing issues anticipated through 2028; capital sources expected to cover growth and commitments.