Brookfield's Q4 Earnings: A Renewable Energy Powerhouse

As we wrap up the fourth quarter of 2024, let's take a closer look at Brookfield Renewable Partners' (BEP) earnings snapshot. BEP, a leading global renewable energy company, has been making waves in the industry with its impressive performance and strategic investments. So, buckle up as we dive into the numbers and explore what makes BEP a powerhouse in the renewable energy sector.



FFO Growth and Strong Performance

BEP generated record FFO of $1,217 million or $1.83 per Unit for the twelve months ended December 31, 2024, marking a 10% increase on a per Unit basis over the prior year. This impressive growth reflects the benefits of BEP's inflation-linked and contracted cash flows, as well as contributions from acquisitions and organic growth initiatives. After deducting non-cash depreciation and other expenses, BEP's net loss attributable to Unitholders for the twelve months ended December 31, 2024, was $464 million or $0.89 per unit.



Securing Contracts and Expanding Capacity

BEP secured contracts to deliver an incremental ~19,000 GWh per year of generation to its partners, including signing a landmark renewable energy framework agreement with Microsoft. The company also continued to scale its development activities, commissioning ~7,000 megawatts of new renewable energy capacity and is on track to reach a ~10,000-megawatt run rate per annum by 2027. These achievements demonstrate BEP's ability to capitalize on growing demand for clean power and strengthen its position in the market.

Strategic Investments and Asset Recycling

BEP deployed or committed to deploy $12.5 billion (net $1.8 billion to Brookfield Renewable) into growth, further diversifying its business and marking its largest year for investment ever. In December, the company closed its investments in Infinium, Ørsted, and Neoen, expanding its portfolio and accessing new markets and technologies. Additionally, BEP reached agreements to sell assets generating $2.8 billion (over $1 billion net to Brookfield Renewable), generating a 2.5x multiple on invested capital and ~25% IRR. This asset recycling strategy has allowed BEP to lock in strong returns and provide significant capital to fund further accretive growth.



Increasing Distributions and Liquidity

On the back of its strong results and solid liquidity, BEP is increasing its annual distribution to $1.492 per unit, an over 5% increase year-on-year. Since its public listing in 2011, BEP has delivered 14 consecutive years of annual distribution growth of at least 5% each year. The company also strengthened its balance sheet and liquidity by completing almost $27 billion in financings across the business, ending the year with over $4.3 billion of available liquidity at the corporate level.

Dislocated Markets Create Opportunity

Despite the renewables sector trading down in the public markets on weaker sentiment, BEP remains well-positioned to significantly benefit from this environment. The company's large-scale pipeline, leading global capabilities, and substantial liquidity enable it to capitalize on growing demand for clean power and continue delivering on its growth targets.

In conclusion, BEP's Q4 earnings snapshot paints a picture of a renewable energy powerhouse, with impressive FFO growth, strong performance, and strategic investments driving its success. As the company continues to secure contracts, expand its capacity, and recycle assets, it remains well-positioned to capitalize on the growing demand for clean power and deliver value to its unitholders. So, if you're looking for a stable, long-term investment in the renewable energy sector, BEP might just be the ticket you're looking for.