Brookfield Infrastructure Partners L.P. (Brookfield Infrastructure,
BIP, or the Partnership) (NYSE: BIP; TSX: BIP.UN) today announced
its results for the second quarter ended June 30, 2024.
"We delivered strong second-quarter results
driven by robust organic growth and the positive impact of several
years of outsized capital deployment,” said Sam Pollock, Chief
Executive Officer of Brookfield Infrastructure Partners. “The
outlook for growth is very favorable as the surge in AI adoption is
generating substantial capital deployment opportunities across our
data, electric utility and natural gas sectors.”
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions (except per unit amounts), unaudited1 |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income (loss)2 |
$ |
8 |
|
|
$ |
378 |
|
|
$ |
178 |
|
|
$ |
401 |
|
|
– per unit3 |
$ |
(0.10 |
) |
|
$ |
0.38 |
|
|
$ |
— |
|
|
$ |
0.31 |
|
| FFO4 |
$ |
608 |
|
|
$ |
552 |
|
|
$ |
1,223 |
|
|
$ |
1,106 |
|
|
– per unit5 |
$ |
0.77 |
|
|
$ |
0.72 |
|
|
$ |
1.55 |
|
|
$ |
1.44 |
|
Brookfield Infrastructure reported net income of
$8 million for the three-month period ended June 30, 2024 compared
to $378 million in the prior year. Current quarter results
benefited from contributions at our global intermodal logistics
operation, but some of that was offset by increased borrowing
costs, and the prior comparative period included gains on our
capital recycling program.
Funds from operations (FFO) for the second
quarter was $608 million, a 10% increase over the prior year
period. The current quarter benefited from organic growth that was
at the midpoint of our target range, as well as recent acquisitions
that contributed to results. This included a continuation of the
strong performance at our global intermodal logistics operation,
higher contributions from our increased stake in our Brazilian
integrated rail and logistics provider and three data center
platform investments. The strong underlying performance in the
second quarter was also driven by inflationary rate increases
across our utilities and transport assets, higher revenues in our
midstream operations and the commissioning of over $1 billion at
our share of new capital from our backlog over the last 12 months.
These positive drivers were partially offset by assets sold last
year that are no longer contributing income, higher interest costs
and foreign exchange.
Segment Performance
The following table presents FFO by segment:
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions, unaudited1 |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
FFO by segment |
|
|
|
|
|
|
|
|
Utilities |
$ |
180 |
|
|
$ |
224 |
|
|
$ |
370 |
|
|
$ |
432 |
|
|
Transport |
|
319 |
|
|
|
199 |
|
|
|
621 |
|
|
|
391 |
|
|
Midstream |
|
143 |
|
|
|
161 |
|
|
|
313 |
|
|
|
359 |
|
|
Data |
|
78 |
|
|
|
72 |
|
|
|
146 |
|
|
|
142 |
|
|
Corporate |
|
(112 |
) |
|
|
(104 |
) |
|
|
(227 |
) |
|
|
(218 |
) |
|
FFO4 |
$ |
608 |
|
|
$ |
552 |
|
|
$ |
1,223 |
|
|
$ |
1,106 |
|
The utilities segment generated FFO of $180
million, compared to $224 million in the same period last year. The
decline is primarily attributable to capital recycling activity,
which includes the sale of our interest in an Australian regulated
utility business and additional interest associated with a
financing completed at our Brazilian regulated gas transmission
business in the first quarter. The base business performed well
during the quarter due to the continued benefit of inflation
indexation and the commissioning of over $450 million of capital
into the rate base over the last twelve months.
The transport segment generated FFO of $319
million, which represents a 60% increase over the same period in
the prior year. The increase is primarily attributable to our
acquisition of a global intermodal logistics operation and an
incremental 10% stake in our Brazilian integrated rail and
logistics operation that closed in the first quarter. The remaining
businesses also performed well, achieving organic growth of 9%,
which was primarily driven by inflationary tariff increases across
the portfolio.
Our midstream segment generated FFO of $143
million, which is ahead of the prior year after excluding the
impact of capital recycling initiatives. Strong demand and customer
activity levels across our critical midstream assets continue to
benefit results, most prevalent at our North American gas storage
business where we continue to add contract duration and execute
these contracts at much higher rates compared to the prior years.
Overall segment results were impacted by the financing of our U.S.
gas pipeline, as well as the impact of turnaround activity within
our Canadian diversified midstream operation.
FFO from our data segment was $78 million,
representing an 8% increase over the same period last year. These
results reflect the contribution from recently completed
acquisitions, including the purchase of 40 retail colocation sites.
This growth was partially offset by the loss of income due to the
sale of our New Zealand integrated distribution business in June
2023.
Update on Strategic Initiatives
One of the benefits of our business is that we
have many avenues to deploy capital. In periods where large-scale
M&A activity is lower, we focus heavily on tuck-in, follow-on
and organic growth opportunities embedded in our portfolio. In 2024
alone, we secured or completed seven follow-on acquisitions
comprising nearly $4 billion of enterprise value. This included the
acquisition of 40 data center sites due to a previous owner
mismanaging their capital structure and ending up in bankruptcy. It
also included the follow-on acquisition of a 10% stake in our
Brazilian integrated rail and port logistics operation and the
bolt-on acquisition of a tower portfolio in India, which remains on
track to close early in the fourth quarter or sooner.
We also maintain a large organic growth project
backlog, which has increased by 15% from this time last year to
$7.7 billion. In our midstream sector, we are supporting increased
producer activity through contracted infrastructure projects
including pipeline expansions and incremental gathering and
processing facility capacity. Combined, these projects represent
almost $800 million in capital, which will generate over $115
million in EBITDA on a 100% basis and fully contribute to results
in the next two years. In our data segment, we are commercializing
our existing land bank and investing over $1 billion in near-term
growth capital to build data centers for our hyperscale customers,
while supporting their growth ambitions through the strategic
acquisition of land parcels in Athens, Chicago, Frankfurt, Milan
and Phoenix.
With respect to new investments, market
conditions are trending positively, and as a result we expect the
back half of 2024 to be active for M&A. Much of this is driven
by the improved interest rate environment as the Bank of Canada and
the European Central Bank are leading the way with a loosening of
their monetary policies. Additionally, the large industry tailwinds
such as AI are creating opportunities for well capitalized
businesses like ours where we are an obvious partner of choice for
technology companies that are seeking alternative access to private
capital. Our novel transaction with Intel from several years ago is
providing the blueprint for similar large-scale opportunities,
which are gaining
momentum. Lastly, on
capital recycling, we are extremely active and have three advanced
processes in a number of areas. We have six further asset sales
progressing that, when combined with our advanced processes, are
expected to generate almost $2.5 billion in proceeds on a net to
BIP basis over the coming quarters. This quarter, we monetized
assets totaling approximately $210 million, which brings our total
capital recycling for the year to $1.4 billion.
Distribution and Dividend Declaration
The Board of Directors of BIP declared a
quarterly distribution in the amount of $0.405 per unit, payable on
September 27, 2024 to unitholders of record as at the close of
business on August 30, 2024. This distribution represents a 6%
increase compared to the prior year. The regular quarterly
dividends on the Cumulative Class A Preferred Limited Partnership
Units, Series 1, Series 3, Series 9, Series 11, Series 13 and
Series 14 have also been declared, as well as the capital gains
dividend for BIP Investment Corporation Senior Preferred Shares,
Series 1. In conjunction with the Partnership’s distribution
declaration, the Board of Directors of BIPC has declared an
equivalent quarterly dividend of $0.405 per share, also payable on
September 27, 2024 to shareholders of record as at the close
of business on August 30, 2024.
Conference Call and Quarterly Earnings
Details
Investors, analysts and other interested parties
can access Brookfield Infrastructure’s Second Quarter 2024 Results,
as well as Letter to Unitholders and Supplemental Information,
under the Investor Relations section at
https://bip.brookfield.com.
To participate in the Conference Call today at
9:00am Eastern Time, please pre-register at
https://register.vevent.com/register/BI4860b3b9fc604060aa9c603b7c0c75c1.
Upon registering, you will be emailed a dial-in number, direct
passcode and unique PIN. The Conference Call will also be Webcast
live at https://edge.media-server.com/mmc/p/bgb8zp3y.
Additional Information
The Board has reviewed and approved this news
release, including the summarized unaudited financial information
contained herein.
About Brookfield
Infrastructure
Brookfield Infrastructure is a leading global
infrastructure company that owns and operates high-quality,
long-life assets in the utilities, transport, midstream and data
sectors across the Americas, Asia Pacific and Europe. We are
focused on assets that have contracted and regulated revenues that
generate predictable and stable cash flows. Investors can access
its portfolio either through Brookfield Infrastructure Partners
L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership,
or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a
Canadian corporation. Further information is available at
https://bip.brookfield.com.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with over $925 billion of assets under
management. For more information, go to https://brookfield.com.
Contact Information
|
Media: |
Investors: |
|
Simon Maine |
Stephen Fukuda |
|
Managing Director |
Senior Vice President |
|
Corporate Communications |
Corporate Development & Investor Relations |
|
Tel: +44 739 890 9278 |
Tel: +1 416 956 5129 |
|
Email: simon.maine@brookfield.com |
Email: stephen.fukuda@brookfield.com |
Cautionary Statement Regarding Forward-looking
Statements
This news release may contain forward-looking
information within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of
applicable securities laws. The words “will”, “target”, “future”,
“growth”, “expect”, “believe”, “may”, 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 may include
statements regarding expansion of Brookfield Infrastructure’s
business, the likelihood and timing of successfully completing the
transactions referred to in this news release, statements with
respect to our assets tending to appreciate in value over time, the
future performance of acquired businesses and growth initiatives,
the commissioning of our capital backlog, the pursuit of projects
in our pipeline, the level of distribution growth over the next
several years and our expectations regarding returns to our
unitholders as a result of such growth. Although Brookfield
Infrastructure believes that these forward-looking statements and
information are based upon reasonable assumptions and expectations,
the reader 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 Infrastructure are
subject to a number of known and unknown risks and uncertainties.
Factors that could cause actual results of Brookfield
Infrastructure to differ materially from those contemplated or
implied by the statements in this news release include general
economic conditions in the jurisdictions in which we operate and
elsewhere which may impact the markets for our products and
services, the ability to achieve growth within Brookfield
Infrastructure’s businesses and in particular completion on time
and on budget of various large capital projects, which themselves
depend on access to capital and continuing favorable commodity
prices, and our ability to achieve the milestones necessary to
deliver the targeted returns to our unitholders, the impact of
market conditions on our businesses, the fact that success of
Brookfield Infrastructure is dependent on market demand for an
infrastructure company, which is unknown, the availability of
equity and debt financing for Brookfield Infrastructure, the impact
of health pandemics on our business and operations, the ability to
effectively complete transactions in the competitive infrastructure
space (including the ability to complete announced and potential
transactions that may be subject to conditions precedent, and the
inability to reach final agreement with counterparties to
transactions referred to in this press release as being currently
pursued, given that there can be no assurance that any such
transaction will be agreed to or completed) and to integrate
acquisitions into existing operations, the future performance of
these acquisitions, changes in technology which have the potential
to disrupt the business and industries in which we invest, the
market conditions of key commodities, the price, supply or demand
for which can have a significant impact upon the financial and
operating performance of our business and other risks and factors
described in the documents filed by Brookfield Infrastructure with
the securities regulators in Canada and the United States including
under “Risk Factors” in Brookfield Infrastructure’s most recent
Annual Report on Form 20-F and other risks and factors that are
described therein. Except as required by law, Brookfield
Infrastructure undertakes no obligation to publicly update or
revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise. References
to Brookfield Infrastructure are to the Partnership together with
its subsidiaries and operating entities. Brookfield
Infrastructure’s results include limited partnership units held by
public unitholders, redeemable partnership units, general
partnership units, Exchange LP units, BIPC exchangeable LP units
and BIPC exchangeable shares.
Any statements contained herein with respect to
tax consequences are of a general nature only and are not intended
to be, nor should they be construed to be, legal or tax advice to
any person, and no representation with respect to tax consequences
is made. Unitholders and shareholders are urged to consult their
tax advisors with respect to their particular circumstances.
References to Brookfield Infrastructure are to
the Partnership together with its subsidiaries and operating
entities. Brookfield Infrastructure’s results include limited
partnership units held by public unitholders, redeemable
partnership units, general partnership units, Exchange LP units,
BIPC exchangeable LP units and BIPC exchangeable shares.
References to the Partnership are to Brookfield
Infrastructure Partners L.P.
- Please
refer to page 11 for results of Brookfield Infrastructure
Corporation.
-
Includes net income attributable to limited partners, the general
partner, and non-controlling interests ‒ Redeemable Partnership
Units held by Brookfield, Exchange LP units, BIPC exchangeable LP
units and BIPC exchangeable shares.
-
Average number of limited partnership units outstanding on a time
weighted average basis for the three and six-month periods ended
June 30, 2024 was 461.5 million and 461.4 million,
respectively (2023: 458.7 million and
458.5 million).
-
We define FFO as net income excluding the impact of depreciation
and amortization, deferred income taxes, mark-to-market gains
(losses) and other income (expenses) that are not related to the
revenue earning activities and are not normal, recurring cash
operating expenses necessary for business operations. FFO includes
balances attributable to the Partnership generated by investments
in associates and joint ventures accounted for using the equity
method and excludes amounts attributable to non-controlling
interests based on the economic interests held by non-controlling
interests in consolidated subsidiaries. We believe that FFO, when
viewed in conjunction with our IFRS results, provides a more
complete understanding of factors and trends affecting our
underlying operations. FFO is a measure of operating performance
that is not calculated in accordance with, and does not have any
standardized meaning prescribed by IFRS as issued by the
International Accounting Standards Board. FFO is therefore unlikely
to be comparable to similar measures presented by other issuers. A
reconciliation of net income to FFO is available on page 9 of this
release. Readers are encouraged to consider both measures in
assessing our company’s results.
-
Average number of partnership units outstanding on a fully diluted
time weighted average basis for the three and six-month periods
ended June 30, 2024 was 792.1 million and
792.1 million, respectively (2023: 771.6 million and
771.5 million).
Brookfield Infrastructure Partners
L.P.Consolidated Statements of Financial
Position
| |
As of |
| US$
millions, unaudited |
June 30,2024 |
|
|
Dec. 31,2023 |
|
|
|
|
|
|
| Assets |
|
|
|
|
Cash and cash equivalents |
$ |
1,326 |
|
|
$ |
1,857 |
|
| Financial assets |
|
481 |
|
|
|
787 |
|
| Property, plant and equipment
and investment properties |
|
54,865 |
|
|
|
52,879 |
|
| Intangible assets and
goodwill |
|
28,295 |
|
|
|
30,333 |
|
| Investments in associates and
joint ventures |
|
5,635 |
|
|
|
5,402 |
|
|
Deferred income taxes and other |
|
10,290 |
|
|
|
9,526 |
|
|
Total assets |
$ |
100,892 |
|
|
$ |
100,784 |
|
|
|
|
|
|
| Liabilities and
partnership capital |
|
|
|
| Corporate borrowings |
$ |
5,084 |
|
|
$ |
4,911 |
|
| Non-recourse borrowings |
|
44,675 |
|
|
|
40,904 |
|
| Financial liabilities |
|
2,763 |
|
|
|
2,875 |
|
| Deferred income taxes and
other |
|
18,261 |
|
|
|
18,078 |
|
| |
|
|
|
| Partnership
capital |
|
|
|
| Limited partners |
|
4,898 |
|
|
|
5,321 |
|
| General partner |
|
27 |
|
|
|
28 |
|
| Non-controlling interest
attributable to: |
|
|
|
|
Redeemable partnership units held by Brookfield |
|
2,011 |
|
|
|
2,190 |
|
|
Exchangeable units/shares1 |
|
1,477 |
|
|
|
1,605 |
|
|
Perpetual subordinated notes |
|
293 |
|
|
|
293 |
|
|
Interest of others in operating subsidiaries |
|
20,485 |
|
|
|
23,661 |
|
|
Preferred unitholders |
|
918 |
|
|
|
918 |
|
|
Total partnership capital |
|
30,109 |
|
|
|
34,016 |
|
|
Total liabilities and partnership capital |
$ |
100,892 |
|
|
$ |
100,784 |
|
- Includes non-controlling interest
attributable to BIPC exchangeable shares, BIPC exchangeable LP
units and Exchange LP units.
| |
|
Brookfield Infrastructure Partners
L.P.Consolidated Statements of Operating
Results |
| |
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions, except per unit information, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
5,138 |
|
|
$ |
4,256 |
|
|
$ |
10,325 |
|
|
$ |
8,474 |
|
| Direct operating costs |
|
(3,875 |
) |
|
|
(3,280 |
) |
|
|
(7,788 |
) |
|
|
(6,509 |
) |
| General
and administrative expense |
|
(92 |
) |
|
|
(109 |
) |
|
|
(189 |
) |
|
|
(212 |
) |
|
|
|
1,171 |
|
|
|
867 |
|
|
|
2,348 |
|
|
|
1,753 |
|
| Interest expense |
|
(826 |
) |
|
|
(567 |
) |
|
|
(1,620 |
) |
|
|
(1,135 |
) |
| Share of earnings from
associates and joint ventures |
|
95 |
|
|
|
273 |
|
|
|
136 |
|
|
|
376 |
|
| Mark-to-market (losses)
gains |
|
(42 |
) |
|
|
87 |
|
|
|
(38 |
) |
|
|
(7 |
) |
| Other
(expense) income |
|
(133 |
) |
|
|
295 |
|
|
|
265 |
|
|
|
200 |
|
|
Income before income tax |
|
265 |
|
|
|
955 |
|
|
|
1,091 |
|
|
|
1,187 |
|
| Income tax (expense)
recovery |
|
|
|
|
|
|
|
|
Current |
|
(132 |
) |
|
|
(144 |
) |
|
|
(294 |
) |
|
|
(276 |
) |
|
Deferred |
|
51 |
|
|
|
(38 |
) |
|
|
201 |
|
|
|
5 |
|
|
Net income |
|
184 |
|
|
|
773 |
|
|
|
998 |
|
|
$ |
916 |
|
|
Non-controlling interest of others in operating subsidiaries |
|
(176 |
) |
|
|
(395 |
) |
|
|
(820 |
) |
|
|
(515 |
) |
|
Net income attributable to partnership |
$ |
8 |
|
|
$ |
378 |
|
|
$ |
178 |
|
|
$ |
401 |
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
Limited partners |
$ |
(38 |
) |
|
$ |
186 |
|
|
$ |
18 |
|
|
$ |
161 |
|
|
General partner |
|
73 |
|
|
|
67 |
|
|
|
147 |
|
|
|
132 |
|
|
Non-controlling interest |
|
|
|
|
|
|
|
|
Redeemable partnership units held by Brookfield |
|
(16 |
) |
|
|
77 |
|
|
|
7 |
|
|
|
66 |
|
|
Exchangeable units/shares1 |
|
(11 |
) |
|
|
48 |
|
|
|
6 |
|
|
|
42 |
|
|
Basic and diluted gains (losses) per unit attributable to: |
|
|
|
|
|
|
|
|
Limited partners2 |
$ |
(0.10 |
) |
|
$ |
0.38 |
|
|
$ |
— |
|
|
$ |
0.31 |
|
- Includes non-controlling interest
attributable to BIPC exchangeable shares, BIPC exchangeable LP
units and Exchange LP units.
- Average number of limited
partnership units outstanding on a time weighted average basis for
the three and six-month periods ended June 30, 2024 was 461.5
million and 461.4 million, respectively (2023:
458.7 million and 458.5 million).
| |
|
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Cash Flows |
| |
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
|
| Net income |
$ |
184 |
|
|
$ |
773 |
|
|
$ |
998 |
|
|
$ |
916 |
|
| Adjusted for the following
items: |
|
|
|
|
|
|
|
|
Earnings from investments in associates and joint ventures, net of
distributions received |
|
(11 |
) |
|
|
109 |
|
|
|
2 |
|
|
|
161 |
|
|
Depreciation and amortization expense |
|
882 |
|
|
|
632 |
|
|
|
1,818 |
|
|
|
1,277 |
|
|
Mark-to-market, provisions and other |
|
69 |
|
|
|
(309 |
) |
|
|
(284 |
) |
|
|
(108 |
) |
|
Deferred income tax recovery |
|
(51 |
) |
|
|
38 |
|
|
|
(201 |
) |
|
|
(5 |
) |
| Change
in non-cash working capital, net |
|
(16 |
) |
|
|
(273 |
) |
|
|
(435 |
) |
|
|
(754 |
) |
|
Cash from operating activities |
|
1,057 |
|
|
|
970 |
|
|
|
1,898 |
|
|
|
1,487 |
|
|
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
| Net proceeds from (investments
in): |
|
|
|
|
|
|
|
|
Operating assets |
|
27 |
|
|
|
524 |
|
|
|
(631 |
) |
|
|
(4,175 |
) |
|
Associates |
|
(350 |
) |
|
|
672 |
|
|
|
(350 |
) |
|
|
(30 |
) |
|
Long-lived assets |
|
(862 |
) |
|
|
(507 |
) |
|
|
(2,345 |
) |
|
|
(996 |
) |
|
Financial assets |
|
94 |
|
|
|
55 |
|
|
|
117 |
|
|
|
176 |
|
| Net settlements of foreign
exchange contracts |
|
(14 |
) |
|
|
1 |
|
|
|
(9 |
) |
|
|
— |
|
| Other
investing activities |
|
(82 |
) |
|
|
15 |
|
|
|
(128 |
) |
|
|
(668 |
) |
|
Cash (used by) from investing activities |
|
(1,187 |
) |
|
|
760 |
|
|
|
(3,346 |
) |
|
|
(5,693 |
) |
|
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
| Distributions to limited and
general partners |
|
(411 |
) |
|
|
(377 |
) |
|
|
(822 |
) |
|
|
(753 |
) |
| Net borrowings: |
|
|
|
|
|
|
|
|
Corporate |
|
176 |
|
|
|
60 |
|
|
|
262 |
|
|
|
958 |
|
|
Subsidiary |
|
1,429 |
|
|
|
12 |
|
|
|
4,958 |
|
|
|
2,546 |
|
| Partnership units issued |
|
3 |
|
|
|
2 |
|
|
|
6 |
|
|
|
8 |
|
| Net capital provided (to) by
non-controlling interest |
|
(1,137 |
) |
|
|
(761 |
) |
|
|
(2,774 |
) |
|
|
2,244 |
|
| Lease
liability repaid and other |
|
(136 |
) |
|
|
(851 |
) |
|
|
(649 |
) |
|
|
(781 |
) |
|
Cash (used by) from financing activities |
|
(76 |
) |
|
|
(1,915 |
) |
|
|
981 |
|
|
|
4,222 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Change during the period |
$ |
(206 |
) |
|
$ |
(185 |
) |
|
$ |
(467 |
) |
|
$ |
16 |
|
|
Cash reclassified as held for sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
Impact of foreign exchange and other on cash |
|
(48 |
) |
|
|
50 |
|
|
|
(64 |
) |
|
|
91 |
|
|
Balance, beginning of period |
|
1,580 |
|
|
|
1,515 |
|
|
|
1,857 |
|
|
|
1,279 |
|
|
Balance, end of period |
$ |
1,326 |
|
|
$ |
1,380 |
|
|
$ |
1,326 |
|
|
$ |
1,380 |
|
| |
|
Brookfield Infrastructure Partners L.P.
Reconciliation of Net Income to Funds from
Operations |
| |
| |
For the three monthsended June 30 |
|
For the six months ended June 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Net
income |
$ |
184 |
|
|
$ |
773 |
|
|
$ |
998 |
|
|
$ |
916 |
|
|
Add back or deduct the following: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
882 |
|
|
|
632 |
|
|
|
1,818 |
|
|
|
1,277 |
|
|
Share of earnings from investments in associates and joint
ventures |
|
(95 |
) |
|
|
(273 |
) |
|
|
(136 |
) |
|
|
(376 |
) |
|
FFO contribution from investments in associates and joint
ventures1 |
|
245 |
|
|
|
245 |
|
|
|
470 |
|
|
|
484 |
|
|
Deferred tax (recovery) expense |
|
(51 |
) |
|
|
38 |
|
|
|
(201 |
) |
|
|
(5 |
) |
|
Mark-to-market losses (gains) |
|
42 |
|
|
|
(87 |
) |
|
|
38 |
|
|
|
7 |
|
|
Other expense (income)2 |
|
209 |
|
|
|
(215 |
) |
|
|
(100 |
) |
|
|
(52 |
) |
|
Consolidated funds from operations |
$ |
1,416 |
|
|
$ |
1,113 |
|
|
$ |
2,887 |
|
|
$ |
2,251 |
|
|
FFO attributable to non-controlling interests3 |
|
(808 |
) |
|
|
(561 |
) |
|
|
(1,664 |
) |
|
|
(1,145 |
) |
|
FFO |
$ |
608 |
|
|
$ |
552 |
|
|
$ |
1,223 |
|
|
$ |
1,106 |
|
- FFO contribution from investments
in associates and joint ventures correspond to the FFO attributable
to the partnership that are generated by its investments in
associates and joint ventures accounted for using the equity
method.
- Other expense (income)
corresponds to amounts that are not related to the revenue earning
activities and are not normal, recurring cash operating expenses
necessary for business operations. Other income/expenses excluded
from FFO primarily includes gains on acquisitions and dispositions
of subsidiaries, associates and joint ventures, gains or losses
relating to foreign currency translation reclassified from
accumulated comprehensive income to other expense, acquisition
costs, gains/losses on remeasurement of borrowings, amortization of
deferred financing costs, fair value remeasurement gains/losses,
accretion expenses on deferred consideration or asset retirement
obligations, impairment losses, and gains or losses on debt
extinguishment.
- Amounts attributable to
non-controlling interests are calculated based on the economic
ownership interests held by non-controlling interests in
consolidated subsidiaries. By adjusting FFO attributable to
non-controlling interests, our partnership is able to remove the
portion of FFO earned at non-wholly owned subsidiaries that are not
attributable to our partnership.
| |
|
Brookfield Infrastructure Partners
L.P.Statements of Funds from Operations per
Unit |
| |
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| (Losses) earnings per limited
partnership unit1 |
$ |
(0.10 |
) |
|
$ |
0.38 |
|
|
$ |
— |
|
|
$ |
0.31 |
|
| Add back or deduct the
following: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
0.52 |
|
|
|
0.45 |
|
|
|
1.06 |
|
|
|
0.90 |
|
|
Deferred taxes and other items |
|
0.35 |
|
|
|
(0.11 |
) |
|
|
0.49 |
|
|
|
0.23 |
|
|
FFO per unit2 |
$ |
0.77 |
|
|
$ |
0.72 |
|
|
$ |
1.55 |
|
|
$ |
1.44 |
|
- Average
number of limited partnership units outstanding on a time weighted
average basis for the three and six-month periods ended
June 30, 2024 was 461.5 million and 461.4 million,
respectively (2023: 458.7 million and
458.5 million).
- Average
number of partnership units outstanding on a fully diluted time
weighted average basis for the three and six-month periods ended
June 30, 2024 was 792.1 million and 792.1 million,
respectively (2023: 771.6 million and
771.5 million).
Notes:The Statements of Funds
from Operations per unit above are prepared on a basis that is
consistent with the Partnership’s Supplemental Information and
differs from net income per limited partnership unit as presented
in Brookfield Infrastructure’s Consolidated Statements of Operating
Results on page 7 of this release, which is prepared in accordance
with IFRS. Management uses funds from operations per unit (FFO per
unit) as a key measure to evaluate operating performance. Readers
are encouraged to consider both measures in assessing Brookfield
Infrastructure’s results.
Brookfield Infrastructure Corporation
Reports Second Quarter 2024 Results
The Board of Directors of Brookfield
Infrastructure Corporation (“BIPC” or our “company”) (NYSE, TSX:
BIPC) today declared a quarterly dividend in the amount of $0.405
per class A exchangeable subordinate voting share of BIPC (a
“Share”), payable on September 27, 2024 to shareholders of
record as at the close of business on August 30, 2024. This
dividend is identical in amount per Share and has identical record
and payment dates to the quarterly distribution announced today by
Brookfield Infrastructure Partners L.P. (“BIP” or the
“Partnership”) on its units.
The Shares of BIPC are structured with the
intention of being economically equivalent to the non-voting
limited partnership units of Brookfield Infrastructure Partnership
L.P. (“BIP” or the “Partnership”) (NYSE: BIP; TSX: BIP.UN). We
believe economic equivalence is achieved through identical
dividends and distributions on the Shares and BIP’s units and each
Share being exchangeable at the option of the holder for one BIP
unit at any time. Given the economic equivalence, we expect that
the market price of the Shares will be significantly impacted by
the market price of BIP’s units and the combined business
performance of our company and BIP as a whole. In addition to
carefully considering the disclosure made in this news release in
its entirety, shareholders are strongly encouraged to carefully
review BIP’s letter to unitholders, supplemental information and
its other continuous disclosure filings. BIP’s letter to
unitholders and supplemental information are available at
https://bip.brookfield.com. Copies of the Partnership’s continuous
disclosure filings are available electronically on EDGAR on the
SEC’s website at https://sec.gov or on SEDAR+ at
https://sedarplus.ca.
Results
The net income of BIPC is captured in the
Partnership’s financial statements and results.
BIPC reported net income of $643 million
for the three-month period ended June 30, 2024, compared to a
net loss of $154 million in the prior year. After removing the
impact of the revaluation on our own Shares that are classified as
liabilities under IFRS and the impact of foreign exchange on loans
with BIP denominated in Canadian dollars, underlying earnings were
18% higher than the prior year. Current period results benefited
from the acquisition of Triton International, our global logistics
operation, and capital commissioned into rate base at our U.K.
regulated distribution business. These benefits were partially
offset by higher financing costs at our businesses as a result of
incremental borrowings. Additionally offsetting results was an
increase in dividends paid on our exchangeable shares, which are
classified as interest expense, due to the 6% increase in our
quarterly dividend compared to the prior year and approximately
21.1 million exchangeable shares issued in connection with our
acquisition of Triton.
Cautionary Statement Regarding
Forward-looking Statements
This news release may contain forward-looking
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 “believe”, “expect”, “will” 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 impact of the market price
of BIP’s units and the combined business performance of our company
and BIP as a whole on the market price of the Shares. Although
Brookfield Infrastructure believes that these forward-looking
statements and information are based upon reasonable assumptions
and expectations, the reader 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 Infrastructure are subject to a number of known and
unknown risks and uncertainties. Factors that could cause actual
results of Brookfield Infrastructure to differ materially from
those contemplated or implied by the statements in this news
release include general economic conditions in the jurisdictions in
which we operate and elsewhere which may impact the markets for our
products and services, the ability to achieve growth within
Brookfield Infrastructure’s businesses and in particular completion
on time and on budget of various large capital projects, which
themselves depend on access to capital and continuing favorable
commodity prices, and our ability to achieve the milestones
necessary to deliver the targeted returns to our unitholders, the
impact of market conditions on our businesses, the fact that
success of Brookfield Infrastructure is dependent on market demand
for an infrastructure company, which is unknown, the availability
of equity and debt financing for Brookfield Infrastructure, the
impact of health pandemics on our business and operations, the
ability to effectively complete transactions in the competitive
infrastructure space (including the ability to complete announced
and potential transactions that may be subject to conditions
precedent, and the inability to reach final agreement with
counterparties to transactions being currently pursued, given that
there can be no assurance that any such transaction will be agreed
to or completed) and to integrate acquisitions into existing
operations, the future performance of these acquisitions, changes
in technology which have the potential to disrupt the business and
industries in which we invest, the market conditions of key
commodities, the price, supply or demand for which can have a
significant impact upon the financial and operating performance of
our business and other risks and factors described in the documents
filed by BIPC with the securities regulators in Canada and the
United States including “Risk Factors” in BIPC’s most recent Annual
Report on Form 20-F and other risks and factors that are described
therein. Except as required by law, Brookfield Infrastructure
Corporation undertakes no obligation to publicly update or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise.
| |
|
Brookfield Infrastructure
CorporationConsolidated Statements of Financial
Position |
| |
| |
As of |
| US$
millions, unaudited |
June 30,2024 |
|
|
Dec. 31,2023 |
|
|
|
|
|
|
| Assets |
|
|
|
|
Cash and cash equivalents |
$ |
466 |
|
|
$ |
539 |
|
| Due from Brookfield
Infrastructure |
|
1,684 |
|
|
|
1,288 |
|
| Property, plant and
equipment |
|
14,001 |
|
|
|
14,151 |
|
| Intangible assets |
|
3,261 |
|
|
|
3,699 |
|
| Goodwill |
|
1,658 |
|
|
|
1,726 |
|
|
Deferred tax asset and other |
|
2,587 |
|
|
|
2,506 |
|
|
Total assets |
$ |
23,657 |
|
|
$ |
23,909 |
|
|
|
|
|
|
| Liabilities and
equity |
|
|
|
| Accounts payable and
other |
$ |
965 |
|
|
$ |
1,099 |
|
| Loans payable to Brookfield
Infrastructure |
|
100 |
|
|
|
26 |
|
| Exchangeable and class B
shares |
|
3,622 |
|
|
|
4,153 |
|
| Non-recourse borrowings |
|
13,088 |
|
|
|
12,028 |
|
| Financial liabilities |
|
47 |
|
|
|
75 |
|
| Deferred tax liabilities and
other |
|
2,305 |
|
|
|
2,460 |
|
| |
|
|
|
| Equity |
|
|
|
| Equity in net assets
attributable to the Partnership |
|
149 |
|
|
|
(399 |
) |
|
Non-controlling interest |
|
3,381 |
|
|
|
4,467 |
|
|
Total equity |
|
3,530 |
|
|
|
4,068 |
|
|
Total liabilities and equity |
$ |
23,657 |
|
|
$ |
23,909 |
|
| |
|
Brookfield Infrastructure
CorporationConsolidated Statements of Operating
Results |
| |
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
908 |
|
|
$ |
538 |
|
|
$ |
1,810 |
|
|
$ |
1,035 |
|
| Direct operating costs |
|
(329 |
) |
|
|
(149 |
) |
|
|
(668 |
) |
|
|
(296 |
) |
| General
and administrative expenses |
|
(17 |
) |
|
|
(17 |
) |
|
|
(35 |
) |
|
|
(33 |
) |
|
|
|
562 |
|
|
|
372 |
|
|
|
1,107 |
|
|
|
706 |
|
| |
|
|
|
|
|
|
|
| Interest expense |
|
(259 |
) |
|
|
(161 |
) |
|
|
(498 |
) |
|
|
(314 |
) |
| Share of earnings from
investments in associates |
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
4 |
|
| Remeasurement of exchangeable
and class B shares |
|
498 |
|
|
|
(301 |
) |
|
|
535 |
|
|
|
(608 |
) |
|
Mark-to-market and other |
|
(59 |
) |
|
|
28 |
|
|
|
(106 |
) |
|
|
38 |
|
|
Income (loss) before income tax |
|
742 |
|
|
|
(59 |
) |
|
|
1,038 |
|
|
|
(174 |
) |
| Income tax expense |
|
|
|
|
|
|
|
|
Current |
|
(94 |
) |
|
|
(89 |
) |
|
|
(195 |
) |
|
|
(169 |
) |
|
Deferred |
|
(5 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
|
Net income (loss) |
$ |
643 |
|
|
$ |
(154 |
) |
|
$ |
840 |
|
|
$ |
(349 |
) |
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
|
|
|
Partnership |
$ |
491 |
|
|
$ |
(274 |
) |
|
$ |
519 |
|
|
$ |
(575 |
) |
|
Non-controlling interest |
|
152 |
|
|
|
120 |
|
|
|
321 |
|
|
|
226 |
|
| |
|
Brookfield Infrastructure
CorporationConsolidated Statements of Cash
Flows |
| |
| |
For the three monthsended June 30 |
|
For the six monthsended June 30 |
|
US$ millions, unaudited |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Operating
activities |
|
|
|
|
|
|
|
| Net income (loss) |
$ |
643 |
|
|
$ |
(154 |
) |
|
$ |
840 |
|
|
$ |
(349 |
) |
| Adjusted for the following
items: |
|
|
|
|
|
|
|
|
Earnings from investments in associates, net of distributions
received |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
Depreciation and amortization expense |
|
191 |
|
|
|
57 |
|
|
|
386 |
|
|
|
112 |
|
|
Mark-to-market and other |
|
34 |
|
|
|
(10 |
) |
|
|
79 |
|
|
|
(5 |
) |
|
Remeasurement of exchangeable and class B shares |
|
(498 |
) |
|
|
301 |
|
|
|
(535 |
) |
|
|
608 |
|
|
Deferred income tax expense |
|
5 |
|
|
|
6 |
|
|
|
3 |
|
|
|
6 |
|
| Change
in non-cash working capital, net |
|
136 |
|
|
|
65 |
|
|
|
16 |
|
|
|
(116 |
) |
|
Cash from operating activities |
|
511 |
|
|
|
265 |
|
|
|
789 |
|
|
|
255 |
|
|
|
|
|
|
|
|
|
|
| Investing
activities |
|
|
|
|
|
|
|
| Purchase of long-lived assets,
net of disposals |
|
(304 |
) |
|
|
(134 |
) |
|
|
(401 |
) |
|
|
(259 |
) |
| Other
investing activities |
|
56 |
|
|
|
— |
|
|
|
87 |
|
|
|
(4 |
) |
|
Cash used by investing activities |
|
(248 |
) |
|
|
(134 |
) |
|
|
(314 |
) |
|
|
(263 |
) |
|
|
|
|
|
|
|
|
|
| Financing
activities |
|
|
|
|
|
|
|
| Net capital provided to
non-controlling interest |
|
(177 |
) |
|
|
(48 |
) |
|
|
(1,540 |
) |
|
|
(163 |
) |
| Net borrowings
(repayments) |
|
59 |
|
|
|
(53 |
) |
|
|
1,016 |
|
|
|
58 |
|
| Other
financing activities |
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
|
Cash used by financing activities |
|
(118 |
) |
|
|
(101 |
) |
|
|
(506 |
) |
|
|
(105 |
) |
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Change during the period |
$ |
145 |
|
|
$ |
30 |
|
|
$ |
(31 |
) |
|
$ |
(113 |
) |
|
Impact of foreign exchange on cash |
|
(34 |
) |
|
|
17 |
|
|
|
(42 |
) |
|
|
24 |
|
|
Balance, beginning of period |
|
355 |
|
|
|
309 |
|
|
|
539 |
|
|
|
445 |
|
|
Balance, end of period |
$ |
466 |
|
|
$ |
356 |
|
|
$ |
466 |
|
|
$ |
356 |
|
Brookfield Infrastructur... (TSX:BIP.UN)
過去 株価チャート
から 7 2024 まで 8 2024
Brookfield Infrastructur... (TSX:BIP.UN)
過去 株価チャート
から 8 2023 まで 8 2024
