Exhibit | |||||
99.1 | |||||
99.2 | |||||
99.3 | |||||
99.4 | |||||
BROOKFIELD RENEWABLE CORPORATION | ||||||||
Date: May 5, 2023 | By: | /s/ Jennifer Mazin | ||||||
Name: Jennifer Mazin Title: General Counsel and Corporate Secretary |
UNAUDITED (MILLIONS) | Notes | March 31, 2023 | December 31, 2022 | ||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | 12 | $ | 657 | $ | 642 | ||||||||||||
Restricted cash | 13 | 28 | 44 | ||||||||||||||
Trade receivables and other current assets | 14 | 1,070 | 1,321 | ||||||||||||||
Financial instrument assets | 4 | 113 | 106 | ||||||||||||||
Due from related parties | 17 | 947 | 615 | ||||||||||||||
Assets held for sale | — | 698 | |||||||||||||||
2,815 | 3,426 | ||||||||||||||||
Financial instrument assets | 4 | 470 | 481 | ||||||||||||||
Equity-accounted investments | 11 | 561 | 451 | ||||||||||||||
Property, plant and equipment, at fair value | 7 | 38,264 | 37,828 | ||||||||||||||
Intangible assets | 206 | 208 | |||||||||||||||
Goodwill | 747 | 723 | |||||||||||||||
Deferred income tax assets | 6 | 78 | 70 | ||||||||||||||
Other long-term assets | 109 | 101 | |||||||||||||||
Total Assets | $ | 43,250 | $ | 43,288 | |||||||||||||
Liabilities | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable and accrued liabilities | 15 | $ | 597 | $ | 621 | ||||||||||||
Financial instrument liabilities | 4 | 209 | 270 | ||||||||||||||
Due to related parties | 17 | 560 | 464 | ||||||||||||||
Non-recourse borrowings | 8 | 1,475 | 1,299 | ||||||||||||||
Provisions | 16 | 16 | |||||||||||||||
Liabilities directly associated with assets held for sale | — | 217 | |||||||||||||||
BEPC exchangeable and class B shares | 10 | 5,427 | 4,364 | ||||||||||||||
8,284 | 7,251 | ||||||||||||||||
Financial instrument liabilities | 4 | 459 | 578 | ||||||||||||||
Non-recourse borrowings | 8 | 12,450 | 12,416 | ||||||||||||||
Deferred income tax liabilities | 6 | 5,408 | 5,263 | ||||||||||||||
Provisions | 359 | 341 | |||||||||||||||
Other long-term liabilities | 579 | 615 | |||||||||||||||
Equity | |||||||||||||||||
Non-controlling interests | |||||||||||||||||
Participating non-controlling interests – in operating subsidiaries | 9 | 10,512 | 10,680 | ||||||||||||||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 9 | 279 | 271 | ||||||||||||||
The partnership | 10 | 4,920 | 5,873 | ||||||||||||||
Total Equity | 15,711 | 16,824 | |||||||||||||||
Total Liabilities and Equity | $ | 43,250 | $ | 43,288 |
Approved on behalf of Brookfield Renewable Corporation: | |||||
Patricia Zuccotti Director | David Mann Director |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 2 |
UNAUDITED (MILLIONS) | Three months ended March 31 | ||||||||||||||||
Notes | 2023 | 2022 | |||||||||||||||
Revenues | 17 | $ | 1,066 | $ | 929 | ||||||||||||
Other income | 13 | 64 | |||||||||||||||
Direct operating costs(1) | (304) | (291) | |||||||||||||||
Management service costs | 17 | (36) | (52) | ||||||||||||||
Interest expense | 8 | (306) | (228) | ||||||||||||||
Share of earnings (loss) from equity-accounted investments | 11 | 3 | (2) | ||||||||||||||
Foreign exchange and financial instruments (loss) gain | 4 | 110 | (33) | ||||||||||||||
Depreciation | 7 | (306) | (296) | ||||||||||||||
Other | (34) | (26) | |||||||||||||||
Remeasurement of BEPC exchangeable and class B shares | 10 | (1,063) | (909) | ||||||||||||||
Income tax expense | |||||||||||||||||
Current | 6 | (38) | (38) | ||||||||||||||
Deferred | 6 | (25) | — | ||||||||||||||
(63) | (38) | ||||||||||||||||
Net loss | $ | (920) | $ | (882) | |||||||||||||
Net loss attributable to: | |||||||||||||||||
Non-controlling interests | |||||||||||||||||
Participating non-controlling interests – in operating subsidiaries | 9 | $ | 143 | $ | 90 | ||||||||||||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 9 | 2 | 4 | ||||||||||||||
The partnership | (1,065) | (976) | |||||||||||||||
$ | (920) | $ | (882) |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 3 |
UNAUDITED (MILLIONS) | Three months ended March 31 | ||||||||||||||||
Notes | 2023 | 2022 | |||||||||||||||
Net loss | $ | (920) | $ | (882) | |||||||||||||
Other comprehensive income (loss) that will not be reclassified to net income: | |||||||||||||||||
Revaluations of property, plant and equipment | 7 | (49) | (2) | ||||||||||||||
Actuarial gain on defined benefit plans | — | 3 | |||||||||||||||
Deferred income taxes on above items | 3 | (2) | |||||||||||||||
Total items that will not be reclassified to net income | (46) | (1) | |||||||||||||||
Other comprehensive income (loss) that may be reclassified to net income: | |||||||||||||||||
Foreign currency translation | 246 | 689 | |||||||||||||||
Gains (losses) arising during the period on financial instruments designated as cash-flow hedges | 4 | 140 | (59) | ||||||||||||||
Unrealized loss on foreign exchange swaps net investment hedge | 4 | (16) | (43) | ||||||||||||||
Reclassification adjustments for amounts recognized in net income | 4 | (49) | 55 | ||||||||||||||
Deferred income taxes on above items | (12) | (12) | |||||||||||||||
Equity-accounted investments | 11 | 1 | 3 | ||||||||||||||
Total items that may be reclassified subsequently to net income | 310 | 633 | |||||||||||||||
Other comprehensive income | 264 | 632 | |||||||||||||||
Comprehensive loss | $ | (656) | $ | (250) | |||||||||||||
Comprehensive loss attributable to: | |||||||||||||||||
Non-controlling interests | |||||||||||||||||
Participating non-controlling interests – in operating subsidiaries | 9 | $ | 294 | $ | 380 | ||||||||||||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 9 | 7 | 32 | ||||||||||||||
The partnership | (957) | (662) | |||||||||||||||
$ | (656) | $ | (250) |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 4 |
Accumulated other comprehensive income | Non-controlling interests | ||||||||||||||||||||||||||||||||||||||||||||||
UNAUDITED THREE MONTHS ENDED MARCH 31 (MILLIONS) | The partnership | Foreign currency translation | Revaluation surplus | Other | Total | Participating non-controlling interests – in a holding subsidiary held by the partnership | Participating non-controlling interests – in operating subsidiaries | Total equity | |||||||||||||||||||||||||||||||||||||||
Balance, as at December 31, 2022 | $ | (3,186) | $ | (1,582) | $ | 10,615 | $ | 26 | $ | 5,873 | $ | 271 | $ | 10,680 | $ | 16,824 | |||||||||||||||||||||||||||||||
Net income (loss) | (1,065) | — | — | — | (1,065) | 2 | 143 | (920) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | 73 | (8) | 43 | 108 | 5 | 151 | 264 | |||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 52 | 52 | |||||||||||||||||||||||||||||||||||||||
Disposals (Note 3) | 34 | — | (34) | — | — | — | (388) | (388) | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | — | (144) | (144) | |||||||||||||||||||||||||||||||||||||||
Other | (3) | — | 6 | 1 | 4 | 1 | 18 | 23 | |||||||||||||||||||||||||||||||||||||||
Change in period | (1,034) | 73 | (36) | 44 | (953) | 8 | (168) | (1,113) | |||||||||||||||||||||||||||||||||||||||
Balance, as at March 31, 2023 | $ | (4,220) | $ | (1,509) | $ | 10,579 | $ | 70 | $ | 4,920 | $ | 279 | $ | 10,512 | $ | 15,711 | |||||||||||||||||||||||||||||||
Balance, as at December 31, 2021 | $ | (4,834) | $ | (1,568) | $ | 10,125 | $ | (56) | $ | 3,667 | $ | 261 | $ | 10,297 | $ | 14,225 | |||||||||||||||||||||||||||||||
Net income (loss) | (976) | — | — | — | (976) | 4 | 90 | (882) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | 318 | (2) | (2) | 314 | 28 | 290 | 632 | |||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | 61 | 61 | |||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | — | — | — | (165) | (165) | |||||||||||||||||||||||||||||||||||||||
Other | 2 | — | 7 | — | 9 | — | — | 9 | |||||||||||||||||||||||||||||||||||||||
Change in period | (974) | 318 | 5 | (2) | (653) | 32 | 276 | (345) | |||||||||||||||||||||||||||||||||||||||
Balance, as at March 31, 2022 | $ | (5,808) | $ | (1,250) | $ | 10,130 | $ | (58) | $ | 3,014 | $ | 293 | $ | 10,573 | $ | 13,880 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 5 |
UNAUDITED | Three months ended March 31 | ||||||||||||||||
(MILLIONS) | Notes | 2023 | 2022 | ||||||||||||||
Operating activities | |||||||||||||||||
Net loss | $ | (920) | $ | (882) | |||||||||||||
Adjustments for the following non-cash items: | |||||||||||||||||
Depreciation | 7 | 306 | 296 | ||||||||||||||
Unrealized financial instruments gain (loss) | 4 | (108) | 55 | ||||||||||||||
Share of earnings (loss) from equity-accounted investments | 11 | (2) | 2 | ||||||||||||||
Deferred income tax expense | 6 | 25 | — | ||||||||||||||
Other non-cash items | 24 | (12) | |||||||||||||||
Remeasurement of BEPC exchangeable shares and class B shares | 10 | 1,063 | 909 | ||||||||||||||
Dividends received from equity-accounted investments | 11 | 1 | — | ||||||||||||||
389 | 368 | ||||||||||||||||
Changes in due to or from related parties | 24 | 4 | |||||||||||||||
Net change in working capital balances | 179 | (120) | |||||||||||||||
592 | 252 | ||||||||||||||||
Financing activities | |||||||||||||||||
Proceeds from non-recourse borrowings | 8 | 350 | 681 | ||||||||||||||
Repayment of non-recourse borrowings | 8 | (345) | (665) | ||||||||||||||
Capital contributions from non-controlling interests | 9 | 52 | 61 | ||||||||||||||
Distributions paid: | |||||||||||||||||
To participating non-controlling interests | 9 | (133) | (165) | ||||||||||||||
Related party borrowings, net | (286) | 174 | |||||||||||||||
(362) | 86 | ||||||||||||||||
Investing activities | |||||||||||||||||
Acquisitions, net of cash and cash equivalents, in acquired entity | (81) | — | |||||||||||||||
Investment in property, plant and equipment | 7 | (162) | (168) | ||||||||||||||
Proceeds from disposal of assets | 3 | — | |||||||||||||||
Restricted cash and other | 13 | 13 | (2) | ||||||||||||||
(227) | (170) | ||||||||||||||||
Foreign exchange gain (loss) on cash | 12 | 1 | |||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Increase | 15 | 169 | |||||||||||||||
Balance, beginning of period | 642 | 525 | |||||||||||||||
Balance, end of period | $ | 657 | $ | 694 | |||||||||||||
Supplemental cash flow information: | |||||||||||||||||
Interest paid | $ | 270 | $ | 211 | |||||||||||||
Interest received | $ | 14 | $ | 5 | |||||||||||||
Income taxes paid | $ | 23 | $ | 6 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 6 |
Notes to the consolidated financial statements | Page | |||||||
1. | Basis of presentation and significant accounting policies | |||||||
2. | Acquisitions | |||||||
3. | Disposal of assets | |||||||
4. | Risk management and financial instruments | |||||||
5. | Segmented information | |||||||
6. | Income taxes | |||||||
7. | Property, plant and equipment | |||||||
8. | Borrowings | |||||||
9. | Non-controlling interests | |||||||
10. | BEPC Exchangeable shares, BEPC Class B shares and BEPC Class C shares | |||||||
11. | Equity-accounted investments | |||||||
12. | Cash and cash equivalents | |||||||
13. | Restricted cash | |||||||
14. | Trade receivables and other current assets | |||||||
15. | Accounts payable and accrued liabilities | |||||||
16. | Commitments, contingencies and guarantees | |||||||
17. | Related party transactions | |||||||
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 7 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 8 |
(MILLIONS) | Brazil Wind Portfolio | ||||
Cash and cash equivalents | $ | 10 | |||
Trade receivables and other current assets | 9 | ||||
Property, plant and equipment, at fair value | 125 | ||||
Other non-current assets | 19 | ||||
Accounts payable and accrued liabilities | (16) | ||||
Current portion of non-recourse borrowings | (4) | ||||
Non-recourse borrowings | (46) | ||||
Provisions | (2) | ||||
Fair value of net assets acquired | 95 | ||||
Purchase price | $ | 95 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 9 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(MILLIONS) | Level 1 | Level 2 | Level 3 | Total | Total | ||||||||||||||||||||||||
Assets measured at fair value: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 657 | $ | — | $ | — | $ | 657 | $ | 642 | |||||||||||||||||||
Restricted cash(1) | 55 | — | — | 55 | 68 | ||||||||||||||||||||||||
Financial instrument assets(1) | |||||||||||||||||||||||||||||
IFRS 9 PPAs | — | — | 3 | 3 | 1 | ||||||||||||||||||||||||
Energy derivative contracts | — | 58 | — | 58 | 33 | ||||||||||||||||||||||||
Interest rate swaps | — | 225 | — | 225 | 261 | ||||||||||||||||||||||||
Investments in equity securities | — | 297 | — | 297 | 292 | ||||||||||||||||||||||||
Property, plant and equipment | — | — | 38,264 | 38,264 | 37,828 | ||||||||||||||||||||||||
Liabilities measured at fair value: | |||||||||||||||||||||||||||||
Financial instrument liabilities(1) | |||||||||||||||||||||||||||||
IFRS 9 PPAs | — | — | (146) | (146) | (189) | ||||||||||||||||||||||||
Energy derivative contracts | — | (95) | — | (95) | (231) | ||||||||||||||||||||||||
Interest rate swaps | — | (13) | — | (13) | (14) | ||||||||||||||||||||||||
Foreign exchange swaps | — | (74) | — | (74) | (61) | ||||||||||||||||||||||||
Tax equity | — | — | (340) | (340) | (353) | ||||||||||||||||||||||||
Liabilities for which fair value is disclosed: | |||||||||||||||||||||||||||||
BEPC exchangeable and class B shares(2) | (5,427) | — | — | (5,427) | (4,364) | ||||||||||||||||||||||||
Non-recourse borrowing(1) | (1,807) | (11,912) | — | (13,719) | (12,847) | ||||||||||||||||||||||||
Total | $ | (6,522) | $ | (11,514) | $ | 37,781 | $ | 19,745 | $ | 21,066 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 10 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(MILLIONS) | Assets | Liabilities | Net Assets (Liabilities) | Net Assets (Liabilities) | |||||||||||||||||||
Energy derivative contracts | $ | 58 | $ | 95 | $ | (37) | $ | (198) | |||||||||||||||
IFRS 9 PPAs | 3 | 146 | (143) | (188) | |||||||||||||||||||
Interest rate swaps | 225 | 13 | 212 | 247 | |||||||||||||||||||
Foreign exchange swaps | — | 74 | (74) | (61) | |||||||||||||||||||
Investments in debt and equity securities | 297 | — | 297 | 292 | |||||||||||||||||||
Tax equity | — | 340 | (340) | (353) | |||||||||||||||||||
Total | 583 | 668 | (85) | (261) | |||||||||||||||||||
Less: current portion | 113 | 209 | (96) | (164) | |||||||||||||||||||
Long-term portion | $ | 470 | $ | 459 | $ | 11 | $ | (97) |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 11 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Energy derivative contracts | $ | 70 | $ | (140) | |||||||
IFRS 9 PPAs | 31 | 53 | |||||||||
Interest rate swaps | (2) | 22 | |||||||||
Foreign exchange swaps | (3) | 8 | |||||||||
Tax equity | 6 | 30 | |||||||||
Foreign exchange gain (loss) | 8 | (6) | |||||||||
$ | 110 | $ | (33) |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Energy derivative contracts | $ | 168 | $ | (186) | |||||||
IFRS 9 PPAs | 14 | 37 | |||||||||
Interest rate swaps | (38) | 100 | |||||||||
Foreign exchange swaps | (4) | (10) | |||||||||
140 | (59) | ||||||||||
Foreign exchange swaps - net investment | (16) | (43) | |||||||||
$ | 124 | $ | (102) | ||||||||
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Energy derivative contracts | $ | (49) | $ | 55 | |||||||
IFRS 9 PPAs | — | (2) | |||||||||
Interest rate swaps | — | 2 | |||||||||
$ | (49) | $ | 55 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 12 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 13 |
Attributable to the partnership | Contribution from equity-accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Utility-scale Solar | Distributed energy & sustainable solutions | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 349 | $ | 42 | $ | 40 | $ | 38 | $ | — | $ | 469 | $ | (15) | $ | 612 | $ | 1,066 | |||||||||||||||||||||||||||||||||||
Other income | 5 | 1 | 6 | 3 | — | 15 | (3) | 1 | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Direct operating costs | (111) | (10) | (12) | (13) | — | (146) | 6 | (164) | (304) | ||||||||||||||||||||||||||||||||||||||||||||
Share of revenue, other income and direct operating costs from equity-accounted investments | — | — | — | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||||||||||||||
243 | 33 | 34 | 28 | — | 338 | — | 449 | ||||||||||||||||||||||||||||||||||||||||||||||
Management service costs | — | — | — | — | (36) | (36) | — | — | (36) | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense(1) | (63) | (8) | (13) | (6) | — | (90) | 2 | (160) | (248) | ||||||||||||||||||||||||||||||||||||||||||||
Current income taxes | (9) | — | (1) | — | — | (10) | — | (28) | (38) | ||||||||||||||||||||||||||||||||||||||||||||
Share of interest and cash taxes from equity-accounted investments | — | — | — | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Share of Funds From Operations attributable to non-controlling interests | — | — | — | — | — | — | — | (261) | (261) | ||||||||||||||||||||||||||||||||||||||||||||
Funds From Operations | 171 | 25 | 20 | 22 | (36) | 202 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation | (127) | 3 | (182) | (306) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange and financial instrument gain (loss) | 39 | — | 71 | 110 | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income tax expense | (18) | — | (7) | (25) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | (40) | 4 | 2 | (34) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on BEPC exchangeable shares(1) | (58) | — | — | (58) | |||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | (1,063) | — | — | (1,063) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share of earnings from equity-accounted investments | — | (7) | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | 116 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to the partnership | $ | (1,065) | $ | — | $ | — | $ | (1,065) |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 14 |
Attributable to the partnership | Contribution from equity-accounted investments | Attributable to non- controlling interests | As per IFRS financials(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Utility-scale Solar | Distributed energy & sustainable solutions | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 266 | $ | 52 | $ | 39 | $ | 30 | $ | — | $ | 387 | $ | (13) | $ | 555 | $ | 929 | |||||||||||||||||||||||||||||||||||
Other income | 20 | 2 | 12 | 7 | — | 41 | — | 23 | 64 | ||||||||||||||||||||||||||||||||||||||||||||
Direct operating costs | (107) | (14) | (13) | (17) | — | (151) | 8 | (148) | (291) | ||||||||||||||||||||||||||||||||||||||||||||
Share of revenue, other income and direct operating costs from equity-accounted investments | — | — | — | — | — | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||
179 | 40 | 38 | 20 | — | 277 | — | 430 | ||||||||||||||||||||||||||||||||||||||||||||||
Management service costs | — | — | — | — | (52) | (52) | — | — | (52) | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense(1) | (38) | (7) | (11) | (5) | — | (61) | 2 | (114) | (173) | ||||||||||||||||||||||||||||||||||||||||||||
Current income taxes | (10) | — | (1) | — | — | (11) | — | (27) | (38) | ||||||||||||||||||||||||||||||||||||||||||||
Share of interest and cash taxes from equity-accounted investments | — | — | — | — | — | — | (2) | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Share of Funds From Operations attributable to non-controlling interests | — | — | — | — | — | — | — | (289) | (289) | ||||||||||||||||||||||||||||||||||||||||||||
Funds From Operations | 131 | 33 | 26 | 15 | (52) | 153 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation | (132) | 3 | (167) | (296) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange and financial instrument gain (loss) | (23) | 2 | (12) | (33) | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income tax recovery (expense) | 16 | — | (16) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | (26) | — | — | (26) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on BEPC exchangeable shares(1) | (55) | — | — | (55) | |||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | (909) | — | — | (909) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share of earnings from equity-accounted investments | — | (5) | — | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | 195 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to the partnership | $ | (976) | $ | — | $ | — | $ | (976) |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 15 |
Attributable to the partnership | Contribution from equity- accounted investments | Attributable to non- controlling interests | As per IFRS financials | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Utility-scale Solar | Distributed energy & sustainable solutions | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||
As at March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 128 | $ | 42 | $ | 36 | $ | 10 | $ | — | $ | 216 | $ | (10) | $ | 451 | 657 | ||||||||||||||||||||||||||||||||||||
Property, plant and equipment, at fair value | 13,872 | 1,457 | 1,318 | 1,071 | — | 17,718 | (694) | 21,240 | 38,264 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | 15,711 | 1,652 | 1,446 | 1,118 | 314 | 20,241 | (209) | 23,218 | 43,250 | ||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | 2,892 | 567 | 990 | 206 | — | 4,655 | (196) | 9,466 | 13,925 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 4,420 | 342 | 203 | 198 | 5,503 | 10,666 | (13) | 2,961 | 13,614 | ||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 70 | $ | 49 | $ | 60 | $ | 18 | $ | — | $ | 197 | $ | (7) | $ | 452 | 642 | ||||||||||||||||||||||||||||||||||||
Property, plant and equipment, at fair value | 13,709 | 1,400 | 1,310 | 1,084 | — | 17,503 | (557) | 20,882 | 37,828 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | 15,604 | 1,595 | 1,447 | 1,138 | 307 | 20,091 | (171) | 23,368 | 43,288 | ||||||||||||||||||||||||||||||||||||||||||||
Total borrowings | 2,894 | 613 | 1,025 | 371 | — | 4,903 | (161) | 8,973 | 13,715 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 4,363 | 342 | 138 | 38 | 4,436 | 9,317 | (10) | 3,442 | 12,749 | ||||||||||||||||||||||||||||||||||||||||||||
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 16 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Hydroelectric | $ | 695 | $ | 569 | |||||||
Wind | 171 | 183 | |||||||||
Utility-scale Solar | 147 | 128 | |||||||||
Distributed energy & sustainable solutions | 53 | 49 | |||||||||
Total | $ | 1,066 | $ | 929 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
North America | $ | 22,462 | $ | 22,478 | |||||||
Colombia | 8,569 | 8,264 | |||||||||
Brazil | 4,429 | 4,162 | |||||||||
Europe | 3,365 | 3,375 | |||||||||
$ | 38,825 | $ | 38,279 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 17 |
(MILLIONS) | Hydroelectric | Wind | Solar | Other(1) | Total(2) | ||||||||||||||||||||||||
Property, plant and equipment, at fair value | |||||||||||||||||||||||||||||
As at December 31, 2022 | $ | 25,139 | $ | 4,875 | $ | 6,481 | $ | 241 | $ | 36,736 | |||||||||||||||||||
Additions, net | 1 | 2 | — | — | 3 | ||||||||||||||||||||||||
Transfer from construction work-in-progress | 6 | 1 | 204 | — | 211 | ||||||||||||||||||||||||
Transfer to assets held for sale | — | — | — | — | — | ||||||||||||||||||||||||
Acquisitions through business combinations | — | 125 | — | — | 125 | ||||||||||||||||||||||||
Disposals | — | — | — | (5) | (5) | ||||||||||||||||||||||||
Items recognized through OCI: | |||||||||||||||||||||||||||||
Change in fair value | — | — | — | — | — | ||||||||||||||||||||||||
Foreign exchange | 369 | 25 | 55 | 3 | 452 | ||||||||||||||||||||||||
Items recognized through net income: | |||||||||||||||||||||||||||||
Depreciation | (131) | (74) | (94) | (7) | (306) | ||||||||||||||||||||||||
As at March 31, 2023 | $ | 25,384 | $ | 4,954 | $ | 6,646 | $ | 232 | $ | 37,216 | |||||||||||||||||||
Construction work-in-progress | |||||||||||||||||||||||||||||
As at December 31, 2022 | $ | 212 | $ | 497 | $ | 380 | $ | 3 | $ | 1,092 | |||||||||||||||||||
Additions | 9 | 95 | 47 | 1 | 152 | ||||||||||||||||||||||||
Transfer to property, plant and equipment | (6) | (1) | (204) | — | (211) | ||||||||||||||||||||||||
Items recognized through OCI: | |||||||||||||||||||||||||||||
Foreign exchange | 1 | 8 | 6 | — | 15 | ||||||||||||||||||||||||
As at March 31, 2023 | $ | 216 | $ | 599 | $ | 229 | $ | 4 | $ | 1,048 | |||||||||||||||||||
Total property, plant and equipment, at fair value | |||||||||||||||||||||||||||||
As at December 31, 2022(2) | $ | 25,351 | $ | 5,372 | $ | 6,861 | $ | 244 | $ | 37,828 | |||||||||||||||||||
As at March 31, 2023(2) | $ | 25,600 | $ | 5,553 | $ | 6,875 | $ | 236 | $ | 38,264 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 18 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average | Weighted-average | ||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS EXCEPT AS NOTED) | Interest rate (%) | Term (years)(3) | Carrying value | Estimated fair value | Interest rate (%) | Term (years) | Carrying value | Estimated fair value | |||||||||||||||||||||||||||||||||||||||
Non-recourse borrowings(1)(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Hydroelectric | 8.6 | 7 | $ | 6,725 | $ | 6,604 | 8.2 | 7 | $ | 6,612 | $ | 5,945 | |||||||||||||||||||||||||||||||||||
Wind | 5.5 | 8 | 2,468 | 2,415 | 5.2 | 8 | 2,331 | 2,230 | |||||||||||||||||||||||||||||||||||||||
Utility-scale Solar | 5.8 | 13 | 4,014 | 3,949 | 5.5 | 13 | 4,041 | 3,926 | |||||||||||||||||||||||||||||||||||||||
Distributed energy & sustainable solutions | 5.2 | 11 | 782 | 751 | 5.1 | 11 | 796 | 746 | |||||||||||||||||||||||||||||||||||||||
Total | 7.1 | 9 | $ | 13,989 | $ | 13,719 | 6.6 | 9 | $ | 13,780 | $ | 12,847 | |||||||||||||||||||||||||||||||||||
Add: Unamortized premiums(4) | 17 | 17 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Unamortized financing fees(4) | (81) | (82) | |||||||||||||||||||||||||||||||||||||||||||||
Less: Current portion | (1,475) | (1,299) | |||||||||||||||||||||||||||||||||||||||||||||
$ | 12,450 | $ | 12,416 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Non-controlling interests | |||||||||||
Participating non-controlling interests – in operating subsidiaries | $ | 10,512 | $ | 10,680 | |||||||
Participating non-controlling interests – in a holding subsidiary held by the partnership | 279 | 271 | |||||||||
$ | 10,791 | $ | 10,951 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 19 |
(MILLIONS) | Brookfield Americas Infrastructure Fund | Brookfield Infrastructure Fund II | Brookfield Infrastructure Fund III | Brookfield Infrastructure Fund IV | Brookfield Infrastructure Income Fund | Isagen Institutional partners | Isagen public non-controlling interests | The Catalyst Group | TerraForm Power | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2022 | $ | 477 | $ | 2,615 | $ | 3,061 | $ | 707 | $ | 233 | $ | 2,159 | $ | 13 | $ | 115 | $ | 832 | $ | 468 | $ | 10,680 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 33 | 44 | 30 | (7) | — | 35 | — | 4 | (4) | 8 | 143 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (30) | 37 | 43 | 20 | 2 | 84 | 1 | — | 8 | (14) | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | 42 | — | — | — | — | — | 10 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal | (388) | — | — | — | — | — | — | — | — | — | (388) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | (14) | (25) | (40) | (5) | (4) | (27) | — | — | (16) | (13) | (144) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 27 | 1 | (1) | (1) | — | 1 | — | — | (7) | (2) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As at March 31, 2023 | $ | 105 | $ | 2,672 | $ | 3,093 | $ | 756 | $ | 231 | $ | 2,252 | $ | 14 | $ | 119 | $ | 813 | $ | 457 | $ | 10,512 | |||||||||||||||||||||||||||||||||||||||||||
Interests held by third parties | 75% - 78% | 43% - 60% | 23% - 71% | 75 | % | 1.5% - 6.8% | 53 | % | 0.3 | % | 25 | % | 33 | % | 0.3% - 80% |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 20 |
BEPC exchangeable shares outstanding (units) | BEPC class B shares outstanding (units) | BEPC exchangeable and BEPC class B shares ($ million) | |||||||||||||||
Balance, as at December 31, 2022 | 172,218,098 | 165 | $ | 4,364 | |||||||||||||
Share issuance | 11,893 | — | — | ||||||||||||||
Share exchanges | (1,742) | — | — | ||||||||||||||
Remeasurement of liability | — | — | 1,063 | ||||||||||||||
Balance, as at March 31, 2023 | 172,228,249 | 165 | $ | 5,427 |
(MILLIONS) | March 31, 2023 | ||||
Opening balance | $ | 451 | |||
Investment | 107 | ||||
Share of net income | 3 | ||||
Share of other comprehensive income | 1 | ||||
Dividends received | (1) | ||||
Ending balance | $ | 561 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 21 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Cash | $ | 375 | $ | 433 | |||||||
Cash subject to restriction | 207 | 207 | |||||||||
Short-term deposit | 75 | 2 | |||||||||
$ | 657 | $ | 642 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Operations | $ | 32 | $ | 27 | |||||||
Credit obligations | 23 | 30 | |||||||||
Development projects | — | 11 | |||||||||
Total | 55 | 68 | |||||||||
Less: non-current | (27) | (24) | |||||||||
Current | $ | 28 | $ | 44 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Trade receivables | $ | 547 | $ | 506 | |||||||
Collateral deposits(1) | 284 | 603 | |||||||||
Prepaids and other | 68 | 53 | |||||||||
Income tax receivables | 54 | 66 | |||||||||
Inventory | 21 | 18 | |||||||||
Other short-term receivables | 96 | 75 | |||||||||
$ | 1,070 | $ | 1,321 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 22 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Operating accrued liabilities | $ | 198 | $ | 258 | |||||||
Accounts payable | 142 | 154 | |||||||||
Interest payable on non-recourse borrowings | 105 | 85 | |||||||||
Income tax payable | 81 | 74 | |||||||||
Current portion of lease liabilities | 26 | 26 | |||||||||
BEPC exchangeable shares distributions payable(1) | 15 | 14 | |||||||||
Other | 30 | 10 | |||||||||
$ | 597 | $ | 621 |
Region | Technology | Capacity | Consideration | The Company’s Economic Interest | Expected Close | |||||||||||||||||||||||||||
U.S | Distributed energy & sustainable solutions | 220 MW development | $14 million | 20 | % | Q4 2023 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 23 |
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 24 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Revenues | |||||||||||
Power purchase and revenue agreements | $ | 65 | $ | 39 | |||||||
Direct operating costs | |||||||||||
Energy purchases | $ | (7) | $ | (4) | |||||||
Energy marketing fee & other services | (3) | (5) | |||||||||
$ | (10) | $ | (9) | ||||||||
Interest expense | |||||||||||
Borrowings | $ | (4) | $ | (4) | |||||||
Other | |||||||||||
Interest income | $ | 2 | $ | 2 | |||||||
Dividend income | $ | 1 | — | ||||||||
Other related party services | $ | (1) | $ | (1) | |||||||
Management service agreement | $ | (36) | $ | (52) |
(MILLIONS) | Related party | March 31, 2023 | December 31, 2022 | ||||||||||||||
Current assets | |||||||||||||||||
Due from related parties | |||||||||||||||||
Amounts due from | Brookfield | $ | 39 | $ | 41 | ||||||||||||
The partnership | 896 | 563 | |||||||||||||||
Equity-accounted investments and other | 12 | 11 | |||||||||||||||
$ | 947 | $ | 615 | ||||||||||||||
Non-current assets | |||||||||||||||||
Due from related parties | |||||||||||||||||
Amounts due from | Equity-accounted investments and other | $ | 9 | $ | 9 | ||||||||||||
Current liabilities | |||||||||||||||||
Due to related parties | |||||||||||||||||
Amounts due to | Brookfield | $ | 41 | $ | 37 | ||||||||||||
The partnership | 380 | 315 | |||||||||||||||
Equity-accounted investments and other | 37 | 12 | |||||||||||||||
Brookfield Reinsurance and associates | 102 | $ | 100 | ||||||||||||||
$ | 560 | $ | 464 | ||||||||||||||
Non-recourse borrowings | Brookfield | 23 | 1 | ||||||||||||||
$ | 583 | $ | 465 | ||||||||||||||
Non-current liabilities | |||||||||||||||||
Brookfield Reinsurance and associates | 12 | 12 | |||||||||||||||
$ | 12 | $ | 12 | ||||||||||||||
Brookfield Renewable Corporation | Interim Consolidated Financial Statements and Notes | March 31, 2023 | ||||||
Page 25 |
GENERAL INFORMATION | ||||||||
Corporate Office 250 Vesey Street 15th Floor New York, NY, 10281 United States Tel: (212) 417-7000 https://bep.brookfield.com/bepc Officers of Brookfield Renewable Corporation Connor Teskey Chief Executive Officer Wyatt Hartley Chief Financial Officer Transfer Agent & Registrar Computershare Trust Company of Canada 100 University Avenue 9th floor Toronto, Ontario, M5J 2Y1 Tel Toll Free: (800) 564-6253 Fax Toll Free: (888) 453-0330 www.computershare.com | Directors of Brookfield Renewable Corporation Jeffrey Blidner Eleazar de Carvalho Filho Scott Cutler Nancy Dorn David Mann Lou Maroun Patricia Zuccotti Stephen Westwell Randy MacEwen Dr. Sarah Deasley Exchange Listing NYSE: BEPC (share unit) TSX: BEPC (share unit) Investor Information Visit Brookfield Renewable Corporation online at https://bep.brookfield.com/bepc for more information. For detailed and up-to-date news and information, please visit the News Release section. Additional financial information is filed electronically with various securities regulators in United States and Canada through EDGAR at www.sec.gov and through SEDAR at www.sedar.com. Shareholder enquiries should be directed to the Investor Relations Department at (416) 649-8172 or enquiries@brookfieldrenewable.com |
Management’s Discussion and Analysis for | ||
the three months ended March 31, 2023 |
Part 1 – Overview | Part 5 – Liquidity and Capital Resources Continued | |||||||||||||
Consolidated statements of cash flows | ||||||||||||||
Part 2 – Financial Performance Review on Consolidated Information | Shares and units outstanding | |||||||||||||
Contractual obligations | ||||||||||||||
Off-statement of financial position arrangements | ||||||||||||||
Part 3 – Additional Consolidated Financial Information | ||||||||||||||
Summary consolidated statements of financial position | Part 6 – Selected Quarterly Information | |||||||||||||
Related party transactions | ||||||||||||||
Part 7 – Critical Estimates, Accounting Policies, and Internal Controls | ||||||||||||||
Part 4 – Financial Performance Review on Proportionate Information | ||||||||||||||
Part 8 – Presentation to Stakeholders and Performance Measurement | ||||||||||||||
Proportionate results for the three months ended March 31 | ||||||||||||||
Reconciliation of non-IFRS measures | Part 9 – Cautionary Statements | |||||||||||||
Part 5 – Liquidity and Capital Resources | ||||||||||||||
Available liquidity | ||||||||||||||
Dividend policy | ||||||||||||||
Borrowings | ||||||||||||||
Capital expenditure |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 3 |
Three months ended March 31 | |||||||||||
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Revenues | $ | 1,066 | $ | 929 | |||||||
Direct operating costs | (304) | (291) | |||||||||
Management service costs | (36) | (52) | |||||||||
Interest expense | (306) | (228) | |||||||||
Depreciation | (306) | (296) | |||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | (1,063) | (909) | |||||||||
Income tax expense | (63) | (38) | |||||||||
Net loss | $ | (920) | $ | (882) | |||||||
Average FX rates to USD | |||||||||||
€ | 0.93 | 0.89 | |||||||||
R$ | 5.19 | 5.23 | |||||||||
COP | 4,762 | 3,914 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 4 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | |||||||||
Assets held for sale | $ | — | $ | 698 | |||||||
Current assets | 2,815 | 3,426 | |||||||||
Equity-accounted investments | 561 | 451 | |||||||||
Property, plant and equipment, at fair value | 38,264 | 37,828 | |||||||||
Total assets | 43,250 | 43,288 | |||||||||
Liabilities directly associated with assets held for sale | — | 217 | |||||||||
Non-recourse borrowings | 13,925 | 13,715 | |||||||||
Deferred income tax liabilities | 5,408 | 5,263 | |||||||||
BEPC exchangeable shares and class B shares | 5,427 | 4,364 | |||||||||
Total equity in net assets | 15,711 | 16,824 | |||||||||
Total liabilities and equity | 43,250 | 43,288 | |||||||||
Spot FX rates to USD | |||||||||||
€ | 0.92 | 0.93 | |||||||||
R$ | 5.08 | 5.22 | |||||||||
COP | 4,627 | 4,810 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 5 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Revenues | |||||||||||
Power purchase and revenue agreements | $ | 65 | $ | 39 | |||||||
Direct operating costs | |||||||||||
Energy purchases | $ | (7) | $ | (4) | |||||||
Energy marketing fee & other services | (3) | (5) | |||||||||
$ | (10) | $ | (9) | ||||||||
Interest expense | |||||||||||
Borrowings | $ | (4) | $ | (4) | |||||||
Other | |||||||||||
Interest income | $ | 2 | $ | 2 | |||||||
Distribution income | 1 | — | |||||||||
Other related party services | $ | (1) | $ | (1) | |||||||
Management service agreement | $ | (36) | $ | (52) |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 6 |
(MILLIONS) | Related party | March 31, 2023 | December 31, 2022 | ||||||||||||||
Current assets | |||||||||||||||||
Due from related parties | |||||||||||||||||
Amounts due from | Brookfield | $ | 39 | $ | 41 | ||||||||||||
The partnership | 896 | 563 | |||||||||||||||
Equity-accounted investments and other | 12 | 11 | |||||||||||||||
$ | 947 | $ | 615 | ||||||||||||||
Non-current assets | |||||||||||||||||
Due from related parties | |||||||||||||||||
Amounts due from | Equity-accounted investments and other | $ | 9 | $ | 9 | ||||||||||||
Current liabilities | |||||||||||||||||
Due to related parties | |||||||||||||||||
Amounts due to | Brookfield | $ | 41 | $ | 37 | ||||||||||||
The partnership | 380 | 315 | |||||||||||||||
Equity-accounted investments and other | 37 | 12 | |||||||||||||||
Brookfield Reinsurance and associates | 102 | $ | 100 | ||||||||||||||
$ | 560 | $ | 464 | ||||||||||||||
Non-recourse borrowings | Brookfield | 23 | 1 | ||||||||||||||
$ | 583 | $ | 465 | ||||||||||||||
Non-current liabilities | |||||||||||||||||
Non-recourse borrowings | Brookfield Reinsurance and associates | 12 | 12 | ||||||||||||||
$ | 12 | $ | 12 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 7 |
(GWh) | (MILLIONS) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Generation | Revenues | Adjusted EBITDA(2) | Funds From Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Hydroelectric | 4,396 | 3,911 | $ | 349 | $ | 266 | $ | 243 | $ | 179 | $ | 171 | $ | 131 | ||||||||||||||||||||||||||||||||||||||||||
Wind | 312 | 521 | 42 | 52 | 33 | 40 | 25 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Utility-scale solar | 253 | 147 | 40 | 39 | 34 | 38 | 20 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributed energy & sustainable solutions(1) | 145 | 158 | 38 | 30 | 28 | 20 | 22 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | (36) | (52) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | 5,106 | 4,737 | $ | 469 | $ | 387 | $ | 338 | $ | 277 | $ | 202 | $ | 153 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 8 |
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Revenue | $ | 349 | $ | 266 | |||||||
Other income | 5 | 20 | |||||||||
Direct operating costs | (111) | (107) | |||||||||
Adjusted EBITDA(1) | 243 | 179 | |||||||||
Interest expense | (63) | (38) | |||||||||
Current income taxes | (9) | (10) | |||||||||
Funds From Operations | $ | 171 | $ | 131 | |||||||
Generation (GWh) - actual | 4,396 | 3,911 |
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Revenue | $ | 42 | $ | 52 | |||||||
Other income | 1 | 2 | |||||||||
Direct operating costs | (10) | (14) | |||||||||
Adjusted EBITDA(1) | 33 | 40 | |||||||||
Interest expense | (8) | (7) | |||||||||
Current income taxes | — | — | |||||||||
Funds From Operations | $ | 25 | $ | 33 | |||||||
Generation (GWh) - actual | 312 | 521 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 9 |
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Revenue | $ | 40 | $ | 39 | |||||||
Other income | 6 | 12 | |||||||||
Direct operating costs | (12) | (13) | |||||||||
Adjusted EBITDA(1) | 34 | 38 | |||||||||
Interest expense | (13) | (11) | |||||||||
Current income taxes | (1) | (1) | |||||||||
Funds From Operations | $ | 20 | $ | 26 | |||||||
Generation (GWh) – actual | 253 | 147 |
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Revenue | $ | 38 | $ | 30 | |||||||
Other income | 3 | 7 | |||||||||
Direct operating costs | (13) | (17) | |||||||||
Adjusted EBITDA(1) | 28 | 20 | |||||||||
Interest expense | (6) | (5) | |||||||||
Current income taxes | — | — | |||||||||
Funds From Operations | $ | 22 | $ | 15 | |||||||
Generation (GWh) – actual (2) | 145 | 158 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 10 |
Attributable to the partnership | |||||||||||||||||||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Utility-scale Solar | Distributed energy & sustainable solutions | Corporate | Total | |||||||||||||||||||||||||||||
Net income (loss) | $ | 251 | $ | 26 | $ | (28) | $ | (6) | $ | (1,163) | $ | (920) | |||||||||||||||||||||||
Add back or deduct the following: | |||||||||||||||||||||||||||||||||||
Depreciation | 132 | 73 | 78 | 23 | — | 306 | |||||||||||||||||||||||||||||
Deferred income tax expense (recovery) | 22 | 3 | 3 | (3) | — | 25 | |||||||||||||||||||||||||||||
Foreign exchange and financial instrument loss (gain) | (97) | (20) | 3 | 4 | — | (110) | |||||||||||||||||||||||||||||
Other(1) | 18 | 14 | 4 | 3 | 5 | 44 | |||||||||||||||||||||||||||||
Dividends on BEPC exchangeable shares(2) | — | — | — | — | 58 | 58 | |||||||||||||||||||||||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | — | — | — | — | 1,063 | 1,063 | |||||||||||||||||||||||||||||
Management service costs | — | — | — | — | 36 | 36 | |||||||||||||||||||||||||||||
Interest expense(2) | 148 | 33 | 52 | 15 | — | 248 | |||||||||||||||||||||||||||||
Current income tax expense | 34 | 2 | 2 | — | — | 38 | |||||||||||||||||||||||||||||
Amount attributable to equity accounted investments and non-controlling interests(3) | (265) | (98) | (80) | (8) | 1 | $ | (450) | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 243 | $ | 33 | $ | 34 | $ | 28 | $ | — | $ | 338 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 11 |
Attributable to the partnership | |||||||||||||||||||||||||||||||||||
(MILLIONS) | Hydroelectric | Wind | Utility-scale Solar | Distributed energy & sustainable solutions | Corporate | Total | |||||||||||||||||||||||||||||
Net income (loss) | $ | 100 | $ | (3) | $ | 17 | $ | 22 | $ | (1,018) | $ | (882) | |||||||||||||||||||||||
Add back or deduct the following: | |||||||||||||||||||||||||||||||||||
Depreciation | 127 | 82 | 62 | 25 | — | 296 | |||||||||||||||||||||||||||||
Deferred income tax expense (recovery) | (7) | 13 | (6) | — | — | — | |||||||||||||||||||||||||||||
Foreign exchange and financial instrument loss (gain) | 52 | (2) | (10) | (7) | — | 33 | |||||||||||||||||||||||||||||
Other(1) | 6 | 23 | 20 | 3 | (2) | 50 | |||||||||||||||||||||||||||||
Dividends on BEPC exchangeable shares(2) | — | — | — | — | 55 | 55 | |||||||||||||||||||||||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | — | — | — | — | 909 | 909 | |||||||||||||||||||||||||||||
Management service costs | — | — | — | — | 52 | 52 | |||||||||||||||||||||||||||||
Interest expense(2) | 94 | 29 | 37 | 9 | 4 | 173 | |||||||||||||||||||||||||||||
Current income tax expense | 36 | 2 | — | — | — | 38 | |||||||||||||||||||||||||||||
Amount attributable to equity accounted investments and non-controlling interests(3) | (229) | (104) | (82) | (32) | — | $ | (447) | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 179 | $ | 40 | $ | 38 | $ | 20 | $ | — | $ | 277 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 12 |
(MILLIONS, EXCEPT AS NOTED) | 2023 | 2022 | |||||||||
Net loss | $ | (920) | $ | (882) | |||||||
Add back or deduct the following: | |||||||||||
Depreciation | 306 | 296 | |||||||||
Foreign exchange and financial instruments loss (gain) | (110) | 33 | |||||||||
Deferred income tax expense | 25 | — | |||||||||
Other(1) | 44 | 50 | |||||||||
Dividends on BEPC exchangeable shares | 58 | 55 | |||||||||
Remeasurement of BEPC exchangeable and BEPC class B shares | 1,063 | 909 | |||||||||
Amount attributable to equity accounted investments and non-controlling interest(2) | (264) | (308) | |||||||||
Funds From Operations | $ | 202 | $ | 153 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 13 |
(MILLIONS) | March 31, 2023 | December 31, 2022 | ||||||||||||
Our company's share of cash and cash equivalents | $ | 216 | $ | 197 | ||||||||||
Authorized credit facilities | 2,375 | 2,375 | ||||||||||||
2,591 | 2,572 | |||||||||||||
Available portion of subsidiary credit facilities | 125 | 134 | ||||||||||||
Brookfield Renewable group liquidity on a proportionate basis | 1,143 | 989 | ||||||||||||
Available liquidity | $ | 3,859 | $ | 3,695 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 14 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Weighted-average | Weighted-average | ||||||||||||||||||||||||||||||||||
(MILLIONS EXCEPT AS NOTED) | Interest rate (%)(1) | Term (years) | Total | Interest rate (%)(1) | Term (years) | Total | |||||||||||||||||||||||||||||
Proportionate non-recourse borrowings(2) | |||||||||||||||||||||||||||||||||||
Hydroelectric | 6.8 | % | 7 | $ | 2,892 | 6.9 | % | 7 | $ | 2,894 | |||||||||||||||||||||||||
Wind | 5.5 | % | 8 | 575 | 5.0 | % | 9 | 613 | |||||||||||||||||||||||||||
Utility-scale Solar | 5.2 | % | 13 | 1,006 | 5.2 | % | 13 | 1,025 | |||||||||||||||||||||||||||
Distributed energy & sustainable solutions | 4.6 | % | 8 | 363 | 4.8 | % | 8 | 371 | |||||||||||||||||||||||||||
6.1 | % | 8 | 4,836 | 6.1 | % | 9 | 4,903 | ||||||||||||||||||||||||||||
Proportionate unamortized financing fees, net of unamortized premiums | (30) | (45) | |||||||||||||||||||||||||||||||||
4,806 | 4,858 | ||||||||||||||||||||||||||||||||||
Equity-accounted borrowings | (196) | (161) | |||||||||||||||||||||||||||||||||
Non-controlling interests | 9,315 | 9,018 | |||||||||||||||||||||||||||||||||
As per IFRS Statements | $ | 13,925 | $ | 13,715 |
(MILLIONS) | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
Debt Principal repayments | ||||||||||||||||||||||||||||||||||||||||||||
Non-recourse borrowings | ||||||||||||||||||||||||||||||||||||||||||||
Hydroelectric | 16 | 111 | 266 | 208 | 123 | 1,086 | 1,810 | |||||||||||||||||||||||||||||||||||||
Wind | 8 | 27 | — | — | — | 217 | 252 | |||||||||||||||||||||||||||||||||||||
Utility-scale solar | 16 | — | — | — | — | 197 | 213 | |||||||||||||||||||||||||||||||||||||
Distributed energy & sustainable solutions | — | — | 144 | — | — | 74 | 218 | |||||||||||||||||||||||||||||||||||||
40 | 138 | 410 | 208 | 123 | 1,574 | 2,493 | ||||||||||||||||||||||||||||||||||||||
Amortizing debt principal repayments | ||||||||||||||||||||||||||||||||||||||||||||
Non-recourse borrowings | ||||||||||||||||||||||||||||||||||||||||||||
Hydroelectric | 76 | 106 | 100 | 106 | 88 | 606 | 1,082 | |||||||||||||||||||||||||||||||||||||
Wind | 27 | 35 | 36 | 34 | 34 | 157 | 323 | |||||||||||||||||||||||||||||||||||||
Utility-scale solar | 41 | 52 | 54 | 54 | 54 | 538 | 793 | |||||||||||||||||||||||||||||||||||||
Distributed energy & sustainable solutions | 15 | 15 | 17 | 9 | 9 | 80 | 145 | |||||||||||||||||||||||||||||||||||||
159 | 208 | 207 | 203 | 185 | 1,381 | 2,343 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 199 | $ | 346 | $ | 617 | $ | 411 | $ | 308 | $ | 2,955 | $ | 4,836 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 15 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Cash flow provided by (used in): | |||||||||||
Operating activities before changes in due to or from related parties and net working capital change | $ | 389 | $ | 368 | |||||||
Changes in due to or from related parties | 24 | 4 | |||||||||
Net change in working capital balances | 179 | (120) | |||||||||
592 | 252 | ||||||||||
Financing activities | (362) | 86 | |||||||||
Investing activities | (227) | (170) | |||||||||
Foreign exchange gain on cash | 12 | 1 | |||||||||
Increase in cash and cash equivalents | $ | 15 | $ | 169 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 16 |
Three months ended March 31 | |||||||||||
(MILLIONS) | 2023 | 2022 | |||||||||
Trade receivables and other current assets | $ | 269 | $ | (104) | |||||||
Accounts payable and accrued liabilities | (46) | (20) | |||||||||
Other assets and liabilities | (44) | 4 | |||||||||
$ | 179 | $ | (120) |
(UNITS) | March 31, 2023 | ||||
BEPC exchangeable shares | 172,228,249 | ||||
BEPC class B shares | 165 | ||||
BEPC class C shares | 189,600,000 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 17 |
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 18 |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT AS NOTED) | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,331 | $ | 1,196 | $ | 1,105 | $ | 1,274 | $ | 1,136 | $ | 1,091 | $ | 966 | $ | 1,019 | |||||||||||||||||||||||||||||||
Net income (loss) to Unitholders | (32) | (82) | (136) | 1 | (78) | (57) | (115) | (63) | |||||||||||||||||||||||||||||||||||||||
Basic and diluted loss per LP unit | (0.09) | (0.16) | (0.25) | (0.03) | (0.16) | (0.12) | (0.21) | (0.13) | |||||||||||||||||||||||||||||||||||||||
Funds From Operations | 275 | 225 | 243 | 294 | 243 | 214 | 210 | 268 | |||||||||||||||||||||||||||||||||||||||
Funds From Operations per Unit | 0.43 | 0.35 | 0.38 | 0.46 | 0.38 | 0.33 | 0.33 | 0.42 | |||||||||||||||||||||||||||||||||||||||
Distribution per LP Unit | 0.34 | 0.32 | 0.32 | 0.32 | 0.32 | 0.30 | 0.30 | 0.30 |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT AS NOTED) | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,066 | $ | 956 | $ | 896 | $ | 997 | $ | 929 | $ | 905 | $ | 806 | $ | 817 | |||||||||||||||||||||||||||||||
Net income (loss) | (920) | 1,078 | 517 | 1,137 | (882) | 180 | 153 | 659 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to the partnership | (1,065) | 953 | 480 | 1,046 | (976) | 130 | 214 | 611 | |||||||||||||||||||||||||||||||||||||||
Brookfield Renewable Corporation | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 19 |
Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 20 |
Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 21 |
Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
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Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
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Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 24 |
Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 25 |
Brookfield Renewable Corporation. | Management's Discussion and Analysis | March 31, 2023 | ||||||
Page 26 |
Date: May 5, 2023 | |||||
/s/ Connor Teskey | |||||
Name: | Connor Teskey | ||||
Title: | Chief Executive Officer of Brookfield Renewable Corporation | ||||
(Principal Executive Officer) |
Date: May 5, 2023 | |||||
/s/ Wyatt Hartley | |||||
Name: | Wyatt Hartley | ||||
Title: | Chief Financial Officer of Brookfield Renewable Corporation | ||||
(Principal Executive Officer) |
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