Brookfield Renewable Partners LP, a leading renewable power platform with a vast portfolio of over 31.5 GW in assets, has reported a 4.1% year-on-year increase in its third-quarter funds from operations (FFO). This growth is attributed to more favorable pricing dynamics and inflation-linked cash flows.
The company's FFO for the third quarter reached USD 253 million (EUR 235.7 million), benefiting from its diversified operating platform and the successful completion of several acquisitions, including X-Elio and Deriva Energy (formerly Duke Energy Renewables). As the listed renewable power company of Brookfield Asset Management, Brookfield Renewable expressed confidence on Friday that it would continue to deliver annual FFO growth of at least 10% per unit.
Approximately 50% of the FFO generated in the July-September period, equivalent to USD 129 million, came from the hydroelectric segment. This sector demonstrated strong cash flow resilience and benefited from robust power prices due to inflation-linked power purchase agreements (PPAs). The wind and solar segments combined contributed USD 145 million to the total FFO, driven by acquisitions and a diversified asset portfolio. The distributed energy and sustainable solutions segment added USD 39 million to FFO. However, the corporate segment reported a negative contribution of USD 60 million.
In addition to the increase in FFO, the third-quarter net attributable loss was reduced by half, totaling USD 64 million.
Brookfield Renewable's CEO, Connor Teskey, expressed optimism about the company's prospects, stating, “The prospects for our business are as strong as ever. Our recent investments are performing well, and we are seeing historical levels of demand for our product. With access to capital becoming increasingly scarce for some market participants, we are seeing many opportunities to invest significant capital at very attractive risk-adjusted returns.”
At the end of September, Brookfield Renewable had an extensive development pipeline totaling 143.4 GW. The company anticipates that 5 GW of capacity will come online this year, with an additional 15 GW slated for delivery in 2024 and 2025, underscoring its commitment to continued growth and expansion in the renewable energy sector.