Brookfield Renewable Power Fund Reports Strong First Quarter Results
GATINEAU, QC, May 12 /CNW Telbec/ - (BRC.UN) - Brookfield Renewable Power Fund (the "Fund") today reported its financial and operating results for the first quarter ended March 31, 2010. The Fund provides additional information on its strategy and results in its Letter to Unitholders and Supplemental Information available at www.brpfund.com under Investor Relations/Financial Highlights.
Hydroelectric generation in the quarter totaled 1,558 gigawatt hours (GWh), 11% higher than the long-term average of 1,406 GWh. Generation was above average in all regions. Wind generation of 103 GWh in the quarter was below the expected amount, however revenues were not affected due to the long-term wind levelization agreement. Hydroelectric assets acquired last year continued to perform very well and generated 519 GWh, or one-third of generation in the quarter.
First quarter revenues increased to $111.2 million from $58.0 million in the same period last year, while income before non-cash items rose to $54.3 million from $29.8 million. The Fund's first quarter results reflect the impact of prior year acquisitions and contract amendments which increased the rate the Fund receives for generation at its Lièvre and Mississagi facilities.
"We are very pleased with our first quarter results and solid start to the year," said Richard Legault, President and CEO. "We continue to generate strong cash flows from our high-quality assets, which together with the anticipated cash flows from our Gosfield Wind project, allowed us to increase our monthly distribution during the quarter by four percent to $1.30 per unit annually. We also completed a successful $250 million preferred share offering which has further enhanced our capital structure and cash position. Construction of Gosfield Wind is proceeding on budget and schedule and we look forward to its completion this fall. The Fund remains very well positioned from a strategic, operating and financial perspective."
FINANCIAL AND OPERATING HIGHLIGHTS
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Unaudited 3 months ended March 31
CDN $ millions, except otherwise noted 2010 2009
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Revenues $ 111.2 $ 58.0
Income before non-cash items 54.3 29.8
Distributions to Unitholders 33.6 16.7
Per unit ($)
Income before non-cash items 0.52 0.56
Distributions to Unitholders 0.32 0.31
Power generated (GWh) 1,661 1,161
Average price ($/MWh) 67 50
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First quarter distributions to unitholders and on the exchangeable shares were $34.9 million or 32 cents per unit as compared to $17.5 million or 31 cents per unit in the first quarter of 2009. Distributions increased year-over-year as a result of the additional units and exchangeable shares issued in connection with 2009 acquisitions. The Fund increased its monthly distribution from $0.10417 to $0.10833 in February 2010.
In the first quarter of 2010, the Fund invested $3.8 million in sustaining capital expenditures and $0.6 million in major maintenance. Work continued on the unit rewind and rotor pole refurbishment at the Aubrey Falls generating station in Ontario. The Fund currently expects to invest a total of $27.6 million in sustaining capital expenditures and $7.4 million in major maintenance during 2010.
At March 31, 2010, the Fund had a strong liquidity position with cash and short-term investments of almost $103 million, an increase of $69 million from the balance at 2009 year-end. Together with available credit and hydrology reserve facilities, the Fund has total liquidity of more than $152 million and is well positioned from a liquidity perspective.
QUARTERLY PREFERRED SHARE DIVIDENDS
The Board of Directors of Brookfield Renewable Power Preferred Equity Inc. has declared the quarterly dividend on its Class A Preference Shares, Series 1, payable on August 3, 2010 to shareholders of record as at the close of business on July 15, 2010.
Information on the Fund's monthly distributions and preferred share quarterly dividends can be found on the company's web site under Investor Relations.
CONFERENCE CALL
A conference call for investors and media to review the first quarter results for 2010 will be held on Thursday, May 13, 2010 at 10:00 a.m. (EDT). To participate in the conference call, please dial 647-427-7450 or 1-888-231-8191 toll-free in North America, at 9:50 a.m. (EDT). For those unable to participate in the conference call, a taped rebroadcast will also be available through May 15, 2010. To access this rebroadcast, please call 1-800-642-1687 toll-free in North America, and enter the passcode 68268134. The conference call will also be webcast live on the Fund's website at www.brpfund.com, where it will be archived for three months.
DISTRIBUTIONS
The schedule below sets out the cash distribution history for the last twelve months:
RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT
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March 31, 2010 April 30, 2010 10.833 cents
February 28, 2010 March 31, 2010 10.833 cents
January 31, 2010 February 26, 2010 10.417 cents
December 31, 2009 January 29, 2010 10.417 cents
November 30, 2009 December 31, 2009 10.417 cents
October 31, 2009 November 30, 2009 10.417 cents
September 30, 2009 October 30, 2009 10.417 cents
August 31, 2009 September 30, 2009 10.417 cents
July 31, 2009 August 31, 2009 10.417 cents
June 30, 2009 July 31, 2009 10.417 cents
May 31, 2009 June 30, 2009 10.417 cents
April 30, 2009 May 29, 2009 10.417 cents
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward looking statements in this news release include statements regarding expected revenues and cash flows, expected investing and expenses, the anticipated commissioning of the Gosfield Wind project, and the impact of the 2009 acquisitions on the business, operations and financial condition of the Fund. Forward-looking statements can be identified by the use of words such as "will", "continued", "positions", "expects", "look forward", "anticipated", "have positioned" or variations of such words and phrases. Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, it can give no assurance that such expectations will prove to have been correct. The reader should not place undue reliance on forward looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to changes in hydrology and wind conditions; equipment failure; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc., Brookfield Asset Management Inc. and the Fund; failure by the Fund to discover liabilities associated with, and inability of the Fund to successfully integrate, acquisitions; risks associated with the Fund's proposed conversion to a corporation; our ability to execute our growth strategy; and other risks and factors detailed from time to time in the Fund's public filings including the Annual Information Form dated March 26, 2010 under the heading "Risk Factors" and Management's Discussion and Analysis of Financial Results for the fiscal year ended December 31, 2009 under the headings "Business Environment" and "Risk Factors". We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as required by law, the Fund undertakes no obligation to publicly update or revise any forward looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
About Brookfield Renewable Power Fund
Brookfield Renewable Power Fund (www.brpfund.com) is a premier Canadian income fund and one of the largest power income funds in North America with more than 1,600 megawatts of power generating capacity and average annual production exceeding 6,350 gigawatt hours.
The Fund produces electricity exclusively from environmentally friendly and renewable resources. The Fund indirectly owns or holds interests in 42 high quality hydroelectric generating stations and one wind farm in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.
Brookfield Renewable Power Inc., which comprises all of the power operations of Brookfield Asset Management, owns 50.01% of the Fund's outstanding units on a fully exchanged basis.
The Units are listed for trading on the TSX under the symbol BRC.UN.
%SEDAR: 00013106EF
For further information: Zev Korman, Director, Investor Relations and Communications, Brookfield Renewable Power Fund, (416) 359-1955, [email protected]; www.brpfund.com
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