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Brookfield Renewable Reports Strong Third Quarter Results and $850 Million of Capital Raising Initiatives

All amounts in U.S. dollars unless otherwise indicated

BROOKFIELD, News, Oct. 31, 2018 (GLOBE NEWSWIRE) --  Brookfield Renewable Partners L.P. (TSX: BEP.UN; NYSE: BEP) (“Brookfield Renewable”) today reported financial results for the three and nine months ended September 30, 2018.

“The business continued to deliver strong per unit growth this quarter and we advanced a number of strategic priorities globally,” said Sachin Shah, CEO of Brookfield Renewable. “In particular, we bolstered the strength of our balance sheet and liquidity, capitalizing on the continued demand from investors globally for high-quality renewable assets. We expect to raise $850 million through capital recycling initiatives at strong valuations and upfinancings reflecting our growing cash flows. These initiatives will increase our available liquidity to over $2.3 billion giving us significant financial resources in the current investment environment.”

Financial Results         
         
For the periods ended September 30        
US$ millions (except per unit or otherwise noted)Three Months EndedNine Months Ended
Unaudited 2018  2017  2018  2017
Total generation (GWh)        
- Actual generation 11,609  9,370  37,611  31,472
- Long-term average generation 12,113  9,098  38,486  30,136
Brookfield Renewable's share        
- Actual generation 5,552  5,198  18,701  18,078
- Long-term average generation 5,956  5,053  19,242  17,221
Funds From Operations (FFO)(1)$105 $91 $470 $438
Per Unit(1)(2)$0.33 $0.28 $1.50 $1.44
Normalized FFO(1)(2)(3)$139 $74 $513 $380
Per Unit(1)(2)(3)$0.44 $0.24 $1.64 $1.25
Net (Loss) Income Attributable to Unitholders$(55)$(43)$(49)$11
Per Unit(2)$(0.18)$(0.14)$(0.16)$0.04

   (1) Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see “Reconciliation of Non-IFRS Measures” and “Cautionary Statement Regarding Use of Non-IFRS Measures”.
   (2) For the three and nine months ended September 30, 2018, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 312.6 million and 312.7 million, respectively (2017: 311.8 million and 303.5 million, respectively).
   (3) Normalized FFO assumes long-term average generation in North America and Europe and uses constant foreign currency rates. For the three and nine months ended September 30, 2018, the change related to long-term average generation totaled $22 million and $35 million (2017: ($17) million and ($58) million), respectively, and the change to foreign currency totaled $12 and $8 million, respectively.
   

Brookfield Renewable reported a net loss for the three months ended September 30, 2018 of $55 million ($0.18 per Unit) compared to a net loss of $43 million ($0.14 per Unit) for the same period in 2017. Funds from Operations (FFO) totalled $105 million ($0.33 per Unit) compared to $91 million ($0.28 per Unit) for the same period in 2017, representing an 18% year-over-year per unit increase in FFO. These results reflect both margin enhancement and growth-related initiatives.  

Capital Raising Initiatives

We expect to complete approximately $1 billion of asset sales and upfinancings by the end the of the year, which would generate net proceeds of $850 million to BEP. As of the date of this report we have executed on over $500 million of these initiatives. In total, this will increase our available liquidity to $2.3 billion as we enhance our financial flexibility in the current investment environment.

We announced today that we have sold a 25% interest in a 413 megawatt Canadian hydroelectric portfolio to a consortium of buyers. Brookfield Renewable will retain management and operating responsibilities for the portfolio. We also intend to sell an additional 25% interest in these assets at the same price to another group of investors prior to year-end.

The portfolio is comprised of three diverse and fully contracted hydroelectric assets – the 349 megawatt Great Lakes Power system in Ontario, the 19 megawatt Carmichael facility in Ontario, and the 45 megawatt Kokish facility in British Columbia which is 25% owned by ‘Namgis First Nation. The facilities are underpinned by power purchase agreements with investment grade off-takers and an average remaining contract duration of 14 years. TD Securities is acting as financial advisor to Brookfield Renewable and Torys LLP is acting as legal advisor.

We also continue to progress the sale of a 178 megawatt wind and solar portfolio in South Africa.

During the quarter, we issued a C$300 million corporate green bond. The issue was priced at 4.25% which is 100 basis points below the corresponding maturing debt. As a result, we now have no material maturities over the next five years and the weighted average term of our debt is over 10 years.

Operating and Financial Results

Our hydroelectric segment contributed $104 million to FFO. While generation was below long-term average levels in certain geographies this quarter, we benefitted from selling power stored in our reservoirs during high priced periods. In the U.S., this active marketing of power allowed us to capture prices in the range of $60 per megawatt-hour, while in Brazil short term power sales were at close to R$500 per megawatt-hour (~U.S.$165 per megawatt-hour). In Colombia, we continued to execute on our business plan and signed 12 new multi-year contracts at prices above the current spot price. 

Our wind segment contributed $29 million to FFO, which is nearly double relative to the prior year period as we benefitted from recent acquisitions. Although wind variability is a reality of our business, our global scale provides significant resource diversity benefits as overall generation was in-line with plan. For example, weaker wind resource in the U.S. and Ireland was largely offset by outperformance in Brazil.   

Our solar, storage and other segments contributed $42 million of FFO in-line with expectations, reflecting stable resource and revenues tied to availability rather than generation.

We continued to advance our global development pipeline. A highlight was that we commissioned a 28 megawatt wind farm in Ireland this quarter. We also progressed an additional 19 megawatts of wind in Scotland, 49 megawatts of small hydro in Brazil, and a 63 megawatt expansion of our pumped storage facility in the U.S. Together these projects are expected to contribute $17 million to FFO on an annualized basis starting in the fourth quarter of 2018. We are also advancing an additional 176 megawatts of advanced stage development through permitting and contracting. We continued to pursue a tuck-in asset strategy in Europe, closing the acquisition of a 23 megawatt wind farm in Ireland subsequent to quarter-end.

Update on Power Marketing Arrangement

In 2011, Brookfield Asset Management (BAM) listed its renewable power business by combining all its renewable assets under one flagship, global entity (Brookfield Renewable Partners – BEP). As part of this transaction, BAM provided BEP with energy marketing services in North America in exchange for a fee.  In addition, BAM acquired power from BEP under long term power purchase agreements (“PPAs”).  

In order to facilitate the sale of the 25% interest in the select Canadian hydroelectric assets, BAM and BEP have agreed to the following:

  • The energy marketing services agreement between BEP and BAM will be terminated and BEP will no longer pay BAM a fee. Instead, this expertise will be internalized into BEP, consistent with the capabilities that BEP has developed to market and sell power in other parts of the world;

  • BEP and BAM have amended or agreed to transfer certain of their existing PPAs including increasing the payments that BEP receives with respect to its Ontario hydro assets to better align those payments with the underlying third-party contracts associated with these assets. The contract price that BEP earns in Ontario has been increased by C$16 per megawatt-hour. BEP has also been granted the option to extend the contract at its Great Lakes Power system in 2029 through 2044 at a price of C$60 per megawatt-hour; 

  • In exchange for the termination of services, the elimination of power marketing fees previously paid by BEP and the increased payments received by BEP for power sold by the Canadian portfolio and the transfer of other PPAs, BEP and BAM have agreed to reduce the price BEP receives for its existing PPA related to its New York assets by approximately $3 per megawatt-hour per year between 2021 and 2026.

These changes were designed to be effected on a value neutral basis to BEP and BAM.  Additionally, these changes will simplify Brookfield Renewable’s operations and strengthen its trading and commercial capabilities. Brookfield Renewable’s contract profile will remain largely unchanged, with its remaining contract duration continuing to average 14 years.

Closing of the PPA amendments described above with respect to the Ontario assets were completed today. Closing of the remainder of the transaction is subject to customary closing conditions and is targeted to occur in the first half of 2019. This transaction was approved by an independent committee of directors of Brookfield Renewable based on advice received from independent financial and legal advisors.

Distribution Declaration

The next quarterly distribution in the amount of $0.49 per LP Unit, is payable on December 31, 2018 to unitholders of record as at the close of business on November 30, 2018. Brookfield Renewable targets a sustainable distribution with increases targeted on average at 5% to 9% annually.

The quarterly dividends on Brookfield Renewable’s preferred shares and preferred LP units have also been declared.

Distribution Currency Option

The quarterly distributions payable on the Partnership’s LP Units are declared in U.S. dollars. Unitholders resident in the United States will receive payment in U.S. dollars and unitholders resident in Canada will receive the Canadian dollar equivalent unless they request otherwise. The Canadian dollar equivalent of the quarterly distribution will be based on the Bank of Canada daily average exchange rate on the record date or, if the record date falls on a weekend or holiday, on the Bank of Canada daily average exchange rate of the preceding business day.

Registered unitholders resident in Canada who wish to receive a U.S. dollar distribution and registered unitholders resident in the United States wishing to receive the Canadian dollar distribution equivalent should contact Brookfield Renewable’s transfer agent, Computershare Trust Company of Canada, in writing at 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253. Beneficial unitholders (i.e., those holding their units in street name with their brokerage) should contact the broker with whom their units are held.

Distribution Reinvestment Plan

Brookfield Renewable maintains a Distribution Reinvestment Plan (“DRIP”) which allows holders of its LP Units who are resident in Canada to acquire additional LP Units by reinvesting all or a portion of their cash distributions without paying commissions. Information on the DRIP, including details on how to enroll, is available on our website at https://bep.brookfield.com/stock-and-distribution/distributions/drip.

Additional information on Brookfield Renewable’s distributions and preferred share dividends can be found on our website at https://bep.brookfield.com.

Brookfield Renewable Partners

Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals over 17,000 megawatts of installed capacity and an 8,000 megawatt development pipeline. Brookfield Renewable is listed on the New York and Toronto stock exchanges. Further information is available at https://bep.brookfield.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with over $300 billion of assets under management.

Please note that Brookfield Renewable’s previous audited annual and unaudited quarterly reports filed with the U.S. Securities and Exchange Commission (“SEC”) and securities regulators in Canada, are available on our website at https://bep.brookfield.com, on SEC’s website at www.sec.gov and on SEDAR’s website at www.sedar.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

       
Contact information:      
       
Media:   
Claire Holland     
Vice President - Communications
(416) 369-8236   
claire.holland@brookfield.com
 Investors:
Divya Biyani
Manager – Investor Relations
(416) 369-2616
divya.biyani@brookfield.com
    
       

Quarterly Earnings Call Details

Investors, analysts and other interested parties can access Brookfield Renewable’s 2018 Second Quarter Results as well as the Letter to Shareholders and Supplemental Information on Brookfield Renewable’s website at https://bep.brookfield.com.

The conference call can be accessed via webcast on October 31, 2018 at 9:00 a.m. Eastern Time at https://event.on24.com/wcc/r/1853632/C78C153A2D0C50CAA4396BD9A872359F or via teleconference at 1-866-521-4909 toll free in North America. If dialing from outside Canada or the U.S., please dial 1-647-427-2311, at approximately 8:50 a.m. Eastern Time. A recording of the teleconference can be accessed through November 30, 2018 at 1-800-585-8367, or from outside Canada and the U.S. please call 1-416-621-4642.

Cautionary Statement Regarding Forward-looking Statements

This news release contains forward-looking statements and information within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words “will”, “intend”, “should”, “could”, “target”, “growth”, “expect”, “believe”, “plan”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding the quality of Brookfield Renewable’s and its subsidiaries’ businesses and our expectations regarding future cash flows and distribution growth. They include statements regarding our liquidity, upfinancings, the expected proceeds from opportunistically recycling capital, as well as the benefits from acquisitions and Brookfield Renewable’s global scale and resource diversity. They also include statements regarding the simplification of Brookfield Renewable’s operations and the strengthening of its trading and commercial capabilities, statements regarding the progress towards completion of development projects, and the expected contribution of development projects to future generation capacity and cash flows. Although Brookfield Renewable believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, you should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Renewable are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Renewable to differ materially from those contemplated or implied by the statements in this news release include economic conditions in the jurisdictions in which we operate; our ability to sell products and services under contract or into merchant energy markets; weather conditions and other factors which may impact generation levels at our facilities; our ability to grow within our current markets or expand into new markets; our ability to complete development and capital projects on time and on budget; our inability to finance our operations or fund future acquisitions due to the status of the capital markets; the ability to effectively source, complete and integrate new acquisitions and to realize the benefits of such acquisitions; health, safety, security or environmental incidents; changes to government regulations; regulatory risks relating to the power markets in which we operate, including relating to the regulation of our assets, licensing and litigation; risks relating to our internal control environment; our lack of control over all of our operations; contract counterparties not fulfilling their obligations; and other risks associated with the construction, development and operation of power generating facilities.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this news release and should not be relied upon as representing our views as of any subsequent date. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the forward-looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see “Risk Factors” included in our Form 20-F.

Cautionary Statement Regarding Use of Non-IFRS Measures

This press release contains references to Adjusted EBITDA, Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit and Normalized Funds From Operations per Unit which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit and Normalized Funds From Operations per Unit used by other entities. We believe that Adjusted EBITDA, Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit and Normalized Funds From Operations per Unit 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 Adjusted EBITDA, Funds From Operations, Normalized Funds From Operations, Adjusted Funds From Operations, Funds From Operations per Unit nor Normalized Funds From Operations per Unit 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.

References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise

     
BROOKFIELD RENEWABLE PARTNERS L.P.    
CONSOLIDATED STATEMENTS OF INCOME (LOSS)    
           
UNAUDITEDThree months ended Sep 30Nine months ended Sep 30
(MILLIONS, EXCEPT AS NOTED)2018 20172018 2017
Revenues$674 $608$2,202 $1,968
Other income 7  7 26  25
Direct operating costs (257)  (243) (760)  (716)
Management service costs (22)  (21) (64)  (58)
Interest expense – borrowings (176)  (158) (534)  (477)
Share of earnings from        
 equity-accounted investments 6  4 12  3
Foreign exchange and (10)  (12) (35)  (44)
 unrealized financial instruments loss        
Depreciation (192)  (202) (611)  (600)
Other (18)  (4) (72)  23
Income tax recovery (expense)        
 Current (6)  (15) (20)  (27)
 Deferred 11  4 (2)  (17)
  5  (11) (22)  (44)
Net income (loss)$17 $(32)$142 $80
Net income (loss) attributable to:        
Non-controlling interests        
 Participating non-controlling interests - in        
  operating subsidiaries$55 $(4)$142 $29
 General partnership interest in a holding        
  subsidiary held by Brookfield (1)  (1) (1)  -
 Participating non-controlling interests - in a        
  holding subsidiary - Redeemable/        
  Exchangeable units held by Brookfield (22)  (18) (20)  5
 Preferred equity 7  7 20  19
Preferred limited partners' equity 10  8 29  21
Limited partners' equity (32)  (24) (28)  6
   $17 $(32)$142 $80
Basic and diluted (loss) earnings per LP Unit$(0.18) $(0.14)$(0.16) $0.04
           
     


 
BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
       
UNAUDITED Sep 30 Dec 31
(MILLIONS) 2018 2017
Assets    
Current assets    
 Cash and cash equivalents$313$799
 Restricted cash 211 181
 Trade receivables and other current assets 569 554
 Financial instrument assets 59 72
 Due from related parties 54 60
 Assets held for sale 758 -
    1,964 1,666
Financial instrument assets 161 113
Equity-accounted investments 1,111 721
Property, plant and equipment, at fair value 25,521 27,096
Goodwill 905 901
Deferred income tax assets 169 177
Other long-term assets 110 230
 $29,941$30,904
Liabilities    
Current liabilities    
 Accounts payable and accrued liabilities$516$542
 Financial instrument liabilities 40 184
 Due to related parties 120 112
 Current portion of long-term debt 864 1,676
 Liabilities directly associated with assets held for sale 527 -
    2,067 2,514
Financial instrument liabilities 121 86
Long-term debt and credit facilities 10,528 10,090
Deferred income tax liabilities 3,543 3,588
Other long-term liabilities 328 344
    16,587 16,622
Equity    
Non-controlling interests    
 Participating non-controlling interests - in operating 6,046 6,298
 General partnership interest in a holding subsidiary held by Brookfield 51 58
 Participating non-controlling interests - in a holding subsidiary    
   - Redeemable/Exchangeable units held by Brookfield 2,489 2,843
 Preferred equity 600 616
Preferred limited partners' equity 707 511
Limited partners' equity 3,461 3,956
    13,354 14,282
   $29,941$30,904
       
 


         
BROOKFIELD RENEWABLE PARTNERS L.P.        
CONSOLIDATED STATEMENTS OF CASH FLOWS        
           
UNAUDITEDThree months ended Sep 30Nine months ended Sep 30
(MILLIONS) 2018  2017  2018  2017 
Operating activities        
Net income (loss)$17 $(32) $142 $80 
Adjustments for the following non-cash items:        
 Depreciation 192  202  611  600 
 Foreign exchange and        
  unrealized financial instrument loss 5  23  14  50 
 Share of earnings from        
  equity-accounted investments (5)  (4)  (11)  (3) 
 Deferred income tax (recovery) expense (11)  (4)  2  17 
 Other non-cash items 10  8  50  (24) 
Dividends received from equity-accounted investments 13  2  27  5 
Changes in due to or from related parties 16  5  28  (5) 
Net change in working capital balances (1)  4  (46)  26 
    236  204  817  746 
Financing activities        
Long-term debt - borrowings 713  500  2,676  799 
Long-term debt - repayments (316)  (709)  (2,549)  (1,171) 
Capital contributions from participating non-controlling        
 interests - in operating subsidiaries 9  232  13  281 
Acquisition of Isagen from non-controlling interests -  -  -  (5) 
Issuance of preferred limited partnership units -  -  196  187 
Issuance of LP Units -  411  -  411 
Repurchase of LP Units -  -  (8)   
Distributions paid:        
 To participating non-controlling interests -        
  in operating subsidiaries (81)  (130)  (438)  (426) 
 To preferred shareholders (7)  (7)  (20)  (19) 
 To preferred limited partners' unitholders (9)  (8)  (27)  (19) 
 To unitholders of Brookfield Renewable or BRELP (161)  (151)  (482)  (440) 
Borrowings from related party -  -  200  - 
Repayments to related party (200)  -  (200)  - 
    (52)  138  (639)  (402) 
Investing activities        
Acquisitions net of cash and        
 cash equivalents in acquired entity -  (280)  (12)  (280) 
Investment in:        
 Sustaining capital expenditures (37)  (39)  (93)  (90) 
 Development and construction of renewable power        
  generating assets (22)  (67)  (60)  (156) 
Proceeds from disposal of assets -  -  -  150 
Investment in securities -  -  25  - 
Investment in equity accounted investments -  9  (420)  (30) 
Restricted cash and other (46)  (2)  (75)  (24) 
    (105)  (379)  (635)  (430) 
Foreign exchange (loss) gain on cash (6)  6  (14)  6 
Cash and cash equivalents        
 Increase (decrease) 73  (31)  (471)  (80) 
 Net change in cash classified within assets held for sale 3  -  (15)  - 
 Balance, beginning of period 237  174  799  223 
 Balance, end of period$313 $143 $313 $143 
Supplemental cash flow information:        
 Interest paid$154 $116 $469 $421 
 Interest received 5  6  17  23 
 Income taxes paid 10  15  33  43 


PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30

The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended September 30:

   (GWh)(MILLIONS)
 Actual GenerationLTA GenerationRevenuesAdjusted EBITDA(1)Funds From Operations(1)Net Income (Loss)
 2018201720182017 2018 2017 2018  2017  2018  2017  2018  2017 
Hydroelectric                    
 North America2,5262,9002,6542,654$166$201$99 $128 $53 $82 $(3)$35 
                       
 Brazil791802996978 53 60 38  42  31  37  2  1 
                       
 Colombia742881859861 54 47 29  25  20  13  11  1 
   4,0594,5834,5094,493 273 308 166  195  104  132  10  37 
                       
Wind                    
 North America597285696378 50 30 30  21  14  11  (27) (21)
                       
 Europe1419620895 17 11 9  4  2  -  (9) (1)
                       
 Brazil2119524287 15 10 13  9  11  7  5  6 
                       
 Other48-41- 4 - 3  -  2  -  1  - 
   9974761,187560 86 51 55  34  29  18  (30) (16)
                       
Solar279-260- 58 - 46  -  31  -  19  - 
                       
Storage & Other217139-- 25 18 14  9  11  6  5  2 
                       
Corporate---- - - (4) (6) (70) (65) (59) (66)
                       
Total5,5525,1985,9565,053$442$377$277 $232 $105 $91 $(55)$(43)

 (1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) for the three months ended September 30, 2018:

               Contribution    
   Attributable to UnitholdersfromAttributable  
   HydroelectricWindSolarStorageCorporate Totalequityto non-As per
         and   accountedcontrollingIFRS
($ MILLIONS)      Other   investmentsinterestsfinancials(1)
Revenues 273  86  58  25  -  442  (100)  332  674 
Other income 2  -  1  -  1  4  (1)  4  7 
Direct operating costs (109)  (31)  (13)  (11)  (5)  (169)  31  (119)  (257) 
Share of Adjusted EBITDA from                  
 equity accounted investments -  -  -  -  -  -  70  -  70 
Adjusted EBITDA 166  55  46  14  (4)  277  -  217   
Management service costs -  -  -  -  (22)  (22)  -  -  (22) 
Interest expense - borrowings (58)  (25)  (15)  (3)  (27)  (128)  29  (77)  (176) 
Current income taxes (4)  (1)  -  -  -  (5)  2  (3)  (6) 
Distributions attributable to                  
 Preferred limited partners equity -  -  -  -  (10)  (10)  -  -  (10) 
 Preferred equity -  -  -  -  (7)  (7)  -  -  (7) 
Share of interest and cash taxes from                  
 equity accounted investments -  -  -  -  -  -  (31)  -  (31) 
Share of Funds From Operations                  
 attributable to non-controlling interests -  -  -  -  -  -  -  (137)  (137) 
Funds From Operations 104  29  31  11  (70)  105  -  -   
Adjusted sustaining capital expenditures(2) (16)  -  -  -  (2)  (18)  -  -   
Adjusted Funds From Operations 88  29  31  11  (72)  87  -  -   
Adjusted sustaining capital expenditures(2)  16  -  -  -  2  18  -  -   
Depreciation (93)  (50)  (11)  (5)  (1)  (160)  32  (64)  (192) 
Foreign exchange and                  
 unrealized financial instrument loss (4)  (3)  -  -  1  (6)  -  (4)  (10) 
Deferred income tax expense 6  (3)  (1)  -  15  17  3  (9)  11 
Other (3)  (3)  -  (1)  (4)  (11)  (2)  (5)  (18) 
Share of earnings from                  
 equity accounted investments -  -  -  -  -  -  (33)  -  (33) 
Net loss attributable to                  
 non-controlling interests -  -  -  -  -  -  -  82  82 
Net income (loss) attributable to Unitholders(3) 10  (30)  19  5  (59)  (55)  -  -  (55) 

 (1) Share of earnings from equity-accounted investments of $6 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $55 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
 (2) Based on long-term sustaining capital expenditure plans.
 (3) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) for the three months ended September 30, 2017:

   Attributable to UnitholdersContributionAttributable  
   HydroelectricWindStorageCorporate Totalfrom equityto non-As per
      and   accountedcontrollingIFRS
($ MILLIONS)   Other   investmentsinterestsfinancials(1)
Revenues 308 51 18 - 377 (15) 246 608
Other income 5 - - - 5 - 2 7
Direct operating costs (118) (17) (9) (6) (150) 6 (99) (243)
Share of Adjusted EBITDA from                
 equity accounted investments - - - - - 9 - 9
Adjusted EBITDA 195 34 9 (6) 232 - 149  
Management service costs - - - (21) (21) - - (21)
Interest expense - borrowings (58) (15) (3) (23) (99) 3 (62) (158)
Current income taxes (5) (1) - - (6) - (9) (15)
Distributions attributable to                
 Preferred limited partners equity - - - (8) (8) - - (8)
 Preferred equity - - - (7) (7) - - (7)
Share of interest and cash taxes from                
 equity accounted investments - - - - - (3) - (3)
Share of Funds From Operations                
 attributable to non-controlling interests - - - - - - (78) (78)
Funds From Operations 132 18 6 (65) 91 - -  
Adjusted sustaining capital expenditures(2) - - - (2) (17) - -  
Adjusted Funds From Operations 132 18 6 (67) 74 - -  
Adjusted sustaining capital expenditures(2) - - - 2 17 - -  
Depreciation (98) (28) (7) - (133) 3 (72) (202)
Foreign exchange and                
 unrealized financial instrument loss (1) (8) - 1 (8) - (4) (12)
Deferred income tax expenses (recovery) 11 (8) - 7 10 - (6) 4
Other (7) 10 3 (9) (3) (1) - (4)
Share of earnings from                
 equity accounted investments - - - - - (2) - (2)
Net loss attributable to                
 non-controlling interests - - - - - - 82 82
Net income (loss) attributable to Unitholders(3) 37 (16) 2 (66) (43) - - (43)

 (1) Share of earnings from equity-accounted investments of $4 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net loss attributable to participating non-controlling interests – in operating subsidiaries of $4 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
 (2) Based on long-term sustaining capital expenditure plans.
 (3) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
         

The following table reconciles net loss attributable to Unitholders and loss per unit, the most directly comparable IFRS measures, to Funds From Operations, and Funds From Operations per unit, both non-IFRS financial metrics for the three months ended September 30:

        Per unit
(MILLIONS, EXCEPT AS NOTED) 2018  2017  2018  2017 
Net loss attributable to:        
 Limited partners' equity$(32)$(24)$(0.18)$(0.14)
 General partnership interest in a holding        
  subsidiary held by Brookfield (1) (1) -  - 
 Participating non-controlling interests - in a holding        
  subsidiary - Redeemable/Exchangeable units        
  held by Brookfield (22) (18) -  - 
Net loss attributable to Unitholders$(55)$(43)$(0.18)$(0.14)
Adjusted for proportionate share of:        
Depreciation 160  133  0.51  0.43 
 Foreign exchange and        
  unrealized financial instruments loss 6  8  0.02  0.02 
Deferred income tax recovery (17) (10) (0.05) (0.03)
Other 11  3  0.03  - 
Funds From Operations$105 $91 $0.33 $0.28 
            
Weighted average units outstanding(1)     312.6  311.8 

  (1) Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.


PROPORTIONATE RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30

The following chart reflects the generation and summary financial figures on a proportionate basis for the nine months ended September 30:

 (GWh) (MILLIONS)
 Actual GenerationLTA Generation Revenues Adjusted EBITDA(1) Funds From Operations(1) Net Income (Loss)
 2018201720182017 2018 2017 2018  2017  2018  2017  2018  2017 
Hydroelectric                    
North America9,70410,8669,9159,916$655$726$455 $520 $322 $386 $130 $198 
                     
Brazil2,7312,5592,9312,896 185 178 133  135  109  115  5  3 
                     
Colombia2,3822,7052,5472,553 160 140 91  73  62  38  41  12 
 14,81716,13015,39315,365 1,000 1,044 679  728  493  539  176  213 
                     
Wind                    
North America1,9051,1172,1841,326 158 109 109  83  64  52  (39) (13)
                     
Europe413362496367 46 35 27  19  13  9  (12) (6)
                     
Brazil473204506163 33 19 26  15  20  11  (1) 8 
                     
Other117-117- 9 - 6  -  3  -  (3) - 
 2,9081,6833,3031,856 246 163 168  117  100  72  (55) (11)
                     
Solar569-546- 106 - 87  -  57  -  19  - 
                     
Storage & Other407265-- 62 42 33  17  23  7  (6) (5)
                     
Corporate---- - - (15) (16) (203) (180) (183) (186)
                     
Total18,70118,07819,24217,221$1,414$1,249$952 $846 $470 $438 $(49)$11 

 (1) Non-IFRS measures. Refer to “Cautionary Statement Regarding Use of Non-IFRS Measures”.

RECONCILIATION OF NON-IFRS MEASURES

The following table reflects Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations and provides a reconciliation to net income (loss) for the nine months ended September 30, 2018:

             Contribution    
 Attributable to UnitholdersfromAttributable  
 HydroelectricWindSolarStorageCorporate Totalequityto non-As per
       and   accountedcontrollingIFRS
($ MILLIONS)    Other   investmentsinterestsfinancials(1)
Revenues 1,000  246  106  62  -  1,414  (197)  985  2,202 
Other income 10  2  4  -  2  18  (5)  13  26 
Direct operating costs (331)  (80)  (23)  (29)  (17)  (480)  63  (343)  (760) 
Share of Adjusted EBITDA from                  
equity accounted investments -  -  -  -  -  -  139  12  151 
Adjusted EBITDA 679  168  87  33  (15)  952  -  667   
Management service costs -  -  -  -  (64)  (64)  -  -  (64) 
Interest expense - borrowings (174)  (65)  (30)  (10)  (75)  (354)  54  (234)  (534) 
Current income taxes (12)  (3)  -  -  -  (15)  3  (8)  (20) 
Distributions attributable to                  
Preferred limited partners equity -  -  -  -  (29)  (29)  -  -  (29) 
Preferred equity -  -  -  -  (20)  (20)  -  -  (20) 
Share of interest and cash taxes from                  
equity accounted investments -  -  -  -  -  -  (57)  (10)  (67) 
Share of Funds From Operations                  
attributable to non-controlling interests -  -  -  -  -  -  -  (415)  (415) 
Funds From Operations 493  100  57  23  (203)  470  -  -   
Adjusted sustaining capital expenditures(2) (48)  -  -  -  (6)  (54)  -  -   
Adjusted Funds From Operations 445  100  57  23  (209)  416  -  -   
Adjusted sustaining capital expenditures(2) 48  -  -  -  6  54  -  -   
Depreciation (287)  (131)  (24)  (17)  (1)  (460)  61  (212)  (611) 
Foreign exchange and                  
unrealized financial instrument loss (3)  (4)  (3)  (2)  14  2  (6)  (31)  (35) 
Deferred income tax expense (2)  (7)  (1)  -  24  14  2  (18)  (2) 
Other (25)  (13)  (10)  (10)  (17)  (75)  15  (12)  (72) 
Share of earnings from                  
equity accounted investments -  -  -  -  -  -  (72)  -  (72) 
Net income attributable to                  
non-controlling interests -  -  -  -  -  -  -  273  273 
Net income (loss) attributable to Unitholders(3) 176  (55)  19  (6)  (183)  (49)  -  -  (49) 

 (1) Share of earnings from equity-accounted investments of $12 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $142 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.
 (2) Based on long-term sustaining capital expenditure plans.
 (3) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

The following table reflects Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations and provides a reconciliation to net income (loss) for the nine months ended September 30, 2017:

                
 Attributable to UnitholdersContributionAttributable  
 HydroelectricWindStorageCorporate Totalfrom equityto non-As per
     and   accountedcontrollingIFRS
($ MILLIONS)   Other   investmentsinterestsfinancials(1)
Revenues 1,044  163  42  -  1,249  (35) 754  1,968 
Other income 13  0  -  1  14  -  11  25 
Direct operating costs (329) (46) (25) (17) (417) 15  (314) (716)
Share of Adjusted EBITDA from                
equity accounted investments -  -  -  -  -  20  -  20 
Adjusted EBITDA 728  117  17  (16) 846  -  451   
Management service costs -  -  -  (58) (58) -  -  (58)
Interest expense - borrowings (179) (44) (10) (66) (299) 9  (187) (477)
Current income taxes (10) (1) -  -  (11) -  (16) (27)
Distributions attributable to                
Preferred limited partners equity -  -  -  (21) (21) -  -  (21)
Preferred equity -  -  -  (19) (19) -  -  (19)
Share of interest and cash taxes from                
equity accounted investments -  -  -  -  -  (9) -  (9)
Share of Funds From Operations                
attributable to non-controlling interests -  -  -  -  -  -  (248) (248)
Funds From Operations 539  72  7  (180) 438  -  -   
Adjusted sustaining capital expenditures(2) (45) -  -  (6) (51) -  -   
Adjusted Funds From Operations 494  72  7  (186) 387  -  -   
Adjusted sustaining capital expenditures(2) 45  -  -  6  51  -  -   
Depreciation (293) (84) (19) -  (396) 9  (213) (600)
Foreign exchange and                
unrealized financial instrument loss (7) (13) -  (15) (35) 1  (4) (38)
Deferred income tax expense (11) -  -  18  7  -  (24) (17)
Other (15) 14  7  (9) (3) (2) 22  17 
Share of earnings from                
equity accounted investments -  -  -  -  -  (8) -  (8)
Net income attributable to                
non-controlling interests -  -  -  -  -  -  219  219 
Net income (loss) attributable to Unitholders(3) 213  (11) (5) (186) 11  -  -  11 

 (1) Share of earnings from equity-accounted investments of $3 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $29 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.
 (2) Based on long-term sustaining capital expenditure plans.
 (3) Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.


The following table reconciles net (loss) income attributable to Limited partners’ equity and (loss) earnings per LP Unit, the most directly comparable IFRS measures, to Funds From Operations, Funds From Operations per Unit and Adjusted EBITDA, all non-IFRS financial metrics for the nine months ended September 30:

        Per unit
(MILLIONS, EXCEPT AS NOTED) 2018  2017  2018  2017 
Net (loss) income attributable to:        
 Limited partners' equity$(28)$6 $(0.16)$0.04 
 General partnership interest in a holding        
  subsidiary held by Brookfield (1) -  -  - 
 Participating non-controlling interests - in a holding        
  subsidiary - Redeemable/Exchangeable units        
  held by Brookfield (20) 5  -  - 
Net (loss) income attributable to Unitholders$(49)$11 $(0.16)$0.04 
 Depreciation 460  396  1.47  1.30 
 Foreign exchange and        
  unrealized financial instruments (gain) loss (2) 35  (0.01) 0.12 
 Deferred income tax recovery (14) (7) (0.04) (0.02)
 Other 75  3  0.24  - 
Funds From Operations$470 $438 $1.50 $1.44 
Weighted average Units outstanding(1)     312.7  303.5 

  (1)  Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.

 

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