Three Months Ended Year Ended
December 31 December 31
------------------------------------
US$ millions (except per unit amounts),
unaudited 2016 2015 2016 2015
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Net income(1) $ 162 $ 25 $ 474 $ 298
- per unit(2) $ 0.40 $ 0.02 $ 1.13 $ 0.69
FFO(3) $ 245 $ 204 $ 944 $ 808
- per unit(4) $ 0.69 $ 0.59 $ 2.72 $ 2.39
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Brookfield Infrastructure reported net income for the year of
Our FFO of
"In 2016 we expanded our business and generated FFO growth of 17%. We deployed over
Segment Performance
Our utilities business generated FFO of
Our transport segment generated FFO of
Our energy segment generated FFO of
Our communications infrastructure operations acquired in March 2015 generated FFO of
The following table presents FFO by segment:
Three Months Ended Year Ended
December 31 December 31
----------------------------------------
US$ millions, unaudited 2016 2015 2016 2015
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FFO by segment
Utilities $ 97 $ 100 $ 399 $ 387
Transport 115 95 423 398
Energy 52 20 175 90
Communications Infrastructure 20 20 77 60
Corporate and other (39) (31) (130) (127)
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FFO $ 245 $ 204 $ 944 $ 808
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Update on Strategic Initiatives
A number of transactions are expected to close in the coming months:
(I) Brazil Gas Transmission - Our$1.3 billion investment in Nova Transportadora do Sudeste S.A. ("NTS") remains on track to close shortly. NTS owns the backbone natural gas transmission system that serves the core economic regions in the highly populated states ofSao Paulo ,Rio de Janeiro andMinas Gerais in South Central Brazil. (II) Indian Telecom Business - In the next few months, we will be investing upwards of$200 million to acquire a portfolio of 40,000 telecommunication towers from Reliance Telecom, representing approx. 10% of the country's towers. This is a high-quality business that is very similar to our existing tower business inFrance and generates secure and sustainable cash flows that will benefit from substantial growth in the industry. We are very excited about the prospect of quickly establishing a leading tower business inIndia . Several other opportunities are being evaluated that could add meaningful scale to our global towers portfolio in the coming year. (III) Peruvian Water Utility - We expect to close on the acquisition of a Peruvian water irrigation system with an investment of approximately$15 million , following receipt of customary regulatory approvals. While modest in size, it is a high quality business that is being acquired for good value and it will add another leg to our growing water business.
Balance Sheet Update
During the past three months, substantial progress was made on executing the funding plan for our strategic initiatives. In November, a total of 23.8 million units were issued at a gross price of
Distribution Increase
The Board of Directors has declared a quarterly distribution in the amount of
Additional Information
Brookfield Infrastructure's Letter to Unitholders and Supplemental Information are available at www.brookfieldinfrastructure.com.
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and communications infrastructure sectors across
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with approximately
Please note that BIP's previous audited annual and unaudited quarterly reports have been filed on SEDAR and can also be found in the investors section of its website at www.brookfieldinfrastructure.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure's Fourth Quarter 2016 Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Infrastructure's website under the Investor Relations section at www.brookfieldinfrastructure.com.
The conference call can be accessed via webcast on February 1, 2017 at 9:00 a.m. Eastern Time at www.brookfieldinfrastructure.com or via teleconference at 1-800-319-4610 toll free in
Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of Section 27A of the
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 favourable 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 ability to effectively complete new acquisitions in the competitive infrastructure space (including the ability to complete announced and potential acquisitions 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, including traffic volumes on our toll roads, 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
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 and general partnership units.
References to the Partnership are to Brookfield Infrastructure Partners L.P.
(1) Includes net income attributable to non-controlling interests-Redeemable Partnership Units held by
(2) Average number of limited partnership units outstanding on a time weighted average basis for the three and 12 months ended December 31, 2016 were 248.7 million and 244.7 million, respectively (2015 - 243.2 million and 238.9 million, respectively).
(3) FFO is defined as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, and non-cash valuation gains. A reconciliation of net income to FFO is available on page 8 of this release.
(4) Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by
(5) Payout ratio is defined as distributions paid (inclusive of GP incentive and preferred unit distributions) divided by FFO.
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Financial Position
As of
------------------
Dec 31, Dec 31,
US$ millions, unaudited 2016 2015
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Assets
Cash and cash equivalents $ 786 $ 199
Financial assets 92 279
Property, plant and equipment 8,656 7,632
Intangible assets 4,465 3,296
Investments in associates 4,727 2,973
Investment properties 154 153
Deferred income taxes and other 2,376 2,623
Assets classified as held for sale 19 580
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Total assets $ 21,275 $ 17,735
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Liabilities and partnership capital
Corporate borrowings $ 1,002 $ 1,380
Non-recourse borrowings 7,324 5,852
Financial liabilities 381 582
Deferred income taxes and other 2,924 2,470
Liabilities directly associated with assets classified as
held for sale - 275
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Total liabilities 11,631 10,559
Partnership capital
Limited partners 4,611 3,838
General partner 27 23
Non-controlling interest attributable to:
Redeemable partnership units held by Brookfield 1,860 1,518
Interest of others in operating subsidiaries 2,771 1,608
Preferred unitholders 375 189
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Total partnership capital 9,644 7,176
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Total liabilities and partnership capital $ 21,275 $ 17,735
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Brookfield Infrastructure Partners L.P.
Consolidated Statements of Operating Results
US$ millions, except per unit For the three months For the year
information, unaudited ended Dec 31 ended Dec 31
---------------------- ----------------------
2016 2015 2016 2015
----------------------------------------------------------------------------
Revenues $ 677 $ 455 $ 2,115 $ 1,855
Direct operating costs (396) (199) (1,063) (798)
General and administrative
expenses (44) (35) (166) (134)
Depreciation and amortization
expense (113) (82) (447) (375)
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124 139 439 548
Interest expense (98) (94) (392) (367)
Share of earnings from
associates 106 14 248 69
Revaluation gains (losses) on
hedging items 73 (26) 74 83
Other income (expense) 3 (28) 174 54
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Income before income tax 208 5 543 387
Income tax (expense) recovery
Current (13) (1) (33) (22)
Deferred (17) 30 18 26
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Net income 178 34 528 391
Non-controlling interest of
others in operating
subsidiaries (16) (9) (54) (93)
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Net income attributable to
partnership $ 162 $ 25 $ 474 $ 298
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Attributable to:
Limited partners 99 6 276 166
General partner 22 17 84 66
Non-controlling interest -
redeemable partnership units
held by Brookfield 41 2 114 66
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Basic and diluted earnings per
unit attributable to:
Limited partners(1) $ 0.40 $ 0.02 $ 1.13 $ 0.69
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(1) Average number of limited partnership units outstanding on a time weighted average basis for the three and 12 months ended December 31, 2016 were 248.7 million and 244.7 million, respectively (2015 - 243.2 million and 238.9 million, respectively).
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Cash Flows
For the three months For the year
US$ millions, unaudited ended Dec 31 ended Dec 31
---------------------- ----------------------
2016 2015 2016 2015
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Operating Activities
Net income $ 178 $ 34 $ 528 $ 391
Adjusted for the following
items:
Share of earnings from
associates, net of
distributions (92) 5 (202) 18
Depreciation and amortization
expense 113 82 447 375
Revaluation (gains) losses on
hedging items (73) 26 (74) (83)
Provisions and other items (8) 31 27 39
Deferred tax expense
(recovery) 17 (30) (18) (26)
Change in non-cash working
capital, net (46) (56) 45 (82)
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Cash from operating activities $ 89 $ 92 $ 753 $ 632
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Investing Activities
Disposition of (net investment
in):
Operating assets $ 245 $ (36) $ (167) $ (26)
Associates (171) (131) (887) (681)
Long-lived assets (218) (137) (683) (510)
Financial assets 107 (1,306) 536 (1,348)
Net settlement of foreign
exchange contracts 34 26 143 219
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Cash used by investing
activities $ (3) $ (1,584) $ (1,058) $ (2,346)
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Financing Activities
Distributions to limited and
general partners $ (162) $ (140) $ (628) $ (546)
Net borrowings:
Corporate (492) 784 (407) 899
Subsidiary 258 73 422 53
Other - 131 (38) 93
Issuance of preferred units - 93 186 189
Issuance of partnership units,
net of repurchases 736 (3) 749 865
Capital provided by non-
controlling interest, net of
distributions (69) 189 615 211
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Cash from financing activities $ 271 $ 1,127 $ 899 $ 1,764
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Cash and cash equivalents
Change during the period $ 357 $ (365) $ 594 $ 50
Impact of foreign exchange on
cash (12) (5) (7) (32)
Cash reclassified as held for
sale - (8) - (8)
Balance, beginning of period 441 577 199 189
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Balance, end of period $ 786 $ 199 $ 786 $ 199
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Brookfield Infrastructure Partners L.P.
Statements of Funds from Operations
For the three months For the year
ended Dec 31 ended Dec 31
---------------------- ----------------------
US$ millions, unaudited 2016 2015 2016 2015
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Adjusted EBITDA
Utilities $ 125 $ 133 $ 524 $ 524
Transport 156 131 597 555
Energy 74 42 276 166
Communications Infrastructure 24 22 91 66
Corporate and other (44) (35) (166) (134)
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Total 335 293 1,322 1,177
Financing costs (112) (101) (456) (396)
Other income 22 12 78 27
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Funds from operations (FFO) 245 204 944 808
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Depreciation and amortization (161) (162) (609) (506)
Deferred taxes and other items 78 (17) 139 (4)
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Net income attributable to the
partnership $ 162 $ 25 $ 474 $ 298
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Notes:
Funds from operations in this statement is on a segmented basis and represents the operations of Brookfield Infrastructure net of charges associated with related liabilities and non-controlling interests. Adjusted EBITDA is defined as FFO excluding the impact of interest expense and other income or expenses. Net income attributable to the partnership includes net income attributable to non-controlling interests - redeemable partnership units held by
The Statements of Funds from Operations above are prepared on a basis that is consistent with the Partnership's Supplemental Information and differs from net income as presented in Brookfield Infrastructure's Consolidated Statements of Operating Results on page 6 of this release, which is prepared in accordance with IFRS. Management uses funds from operations (FFO) as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructure's results.
Brookfield Infrastructure Partners L.P.
Statements of Funds from Operations per unit
For the three months For the year
ended Dec 31 ended Dec 31
----------------------- -----------------------
US$ millions, unaudited 2016 2015 2016 2015
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Earnings per limited
partnership unit(1) $ 0.40 0.02 $ 1.13 0.69
Add back or deduct the
following:
Depreciation and
amortization 0.46 0.47 1.75 1.50
Deferred taxes and other
items (0.17) 0.10 (0.16) 0.20
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FFO per unit(2) $ 0.69 $ 0.59 $ 2.72 $ 2.39
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1 Average number of limited partnership units outstanding on a time
weighted average basis for the three and 12 months ended December 31,
2016 were 248.7 million and 244.7 million, respectively (2015 - 243.2
million and 238.9 million, respectively).
2 Average number of partnership units outstanding on a fully diluted time
weighted average basis, assuming the exchange of redeemable partnership
units held by Brookfield for limited partnership units, for the three
and 12 months ended December 31, 2016 were 353.3 million and 347.2
million, respectively (2015 - 345.0 million and 337.4 million,
respectively).
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 6 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 Partners L.P.
Statements of Partnership Capital
As of
------------------
Dec 31, Dec 31,
US$ millions, unaudited 2016 2015
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Assets
Operating groups
Utilities $ 1,807 $ 2,002
Transport 3,549 3,220
Energy 1,564 1,009
Communications Infrastructure 541 438
Cash and cash equivalents 549 286
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$ 8,010 $ 6,955
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Liabilities
Corporate borrowings $ 1,002 $ 1,380
Other liabilities 510 196
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1,512 1,576
Capitalization
Partnership capital 6,498 5,379
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$ 8,010 $ 6,955
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Notes:
Partnership capital in these statements represents Brookfield Infrastructure's investments in its operations on a segmented basis, net of underlying liabilities and non-controlling interests, and includes partnership capital attributable to non-controlling interests - redeemable partnership units held by
The Statements of Partnership Capital above are prepared on a basis that is consistent with the Partnership's Supplemental Information and differs from the Brookfield Infrastructure's Consolidated Statements of Financial Position on page 5 of this release, which is prepared in accordance with IFRS. Readers are encouraged to consider both bases of presentation in assessing Brookfield Infrastructure's financial position.
Contacts: Media: Claire Holland Vice President, Communications (416) 369-8236 [email protected] Investors: Melissa Low Vice President, Investor Relations & Communications (416) 956-5239 [email protected] www.brookfieldinfrastructure.com
Source: Brookfield Infrastructure Partners L.P.
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