Brookfield Renewable Partners (BEP) Q4 2023 earnings summary

Executive summary

• Record 2023 FFO was $1.095 billion, or $1.67 per Unit, up 7% per Unit; normalized FFO was $1.241 billion, or $1.89 per Unit, amid generation below long-term averages at some assets.

• Growth, strong asset availability and higher realized prices supported results; nearly 5,000 MW of clean energy capacity was commissioned, and $9 billion of capital was deployed or committed.

• Annualized distribution increased 5.2% to $1.42 per LP unit.

Financial highlights

• FY revenue was $5.038 billion versus $4.711 billion in 2022; proportionate Adjusted EBITDA was $2.182 billion versus $2.002 billion.

• FY net loss attributable to Unitholders was $100 million, or $0.32 per LP unit, versus $295 million, or $0.60 per unit, in 2022.

• Q4 FFO increased 13% to $255 million; FFO per Unit rose 9% to $0.38 from $0.35.

• Q4 net income attributable to unitholders was $35 million, or $0.01 per LP unit, versus a net loss of $82 million, or $0.16 per unit, in Q4 2022.

Outlook and guidance

• Target long-term distribution growth of 5%–9% annually; the $0.355 quarterly distribution is payable March 28, 2024, to holders of record February 29, 2024.

• Nearly 7,000 MW of advanced-stage projects are on track for delivery in 2024 and over 7,000 MW in 2025; the pipeline is expected to add ~$300 million of annual run-rate FFO once commissioned.

• Nearly 5,000 MW commissioned in 2023 is expected to contribute ~$60 million of annual run-rate FFO; commissioned capacity is also expected to contribute ~$65 million of annualized incremental FFO.

• Management targets 10%+ FFO per-unit growth, with the goal intact for 2024 and beyond, and expects to deploy $7–8 billion over five years.

• Advanced-stage and construction-ready development assets are expected to contribute $363 million of annualized FFO; the near-term ~23,800 MW pipeline is expected to contribute ~$300 million annually once commissioned.