Three Months Ended Six Months Ended
June 30 June 30
------------------------------------------------
US$ millions (except per
unit amounts), unaudited 2017 2016 2017 2016
----------------------------------------------------------------------------
Net income(1) $ 5 $ 156 $ 21 $ 234
- per unit(2,3) $ (0.06) $ 0.39 $ (0.09) $ 0.56
FFO(4) $ 295 $ 230 $ 556 $ 464
- per unit(5) $ 0.80 $ 0.67 $ 1.51 $ 1.35
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brookfield Infrastructure reported net income for the quarter of
FFO of
"2017 is shaping up to be another strong year for our business, with FFO per unit up 12% year-to-date," said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. "With a significant committed backlog of organic growth projects that currently stands at
Segment Performance
Our utilities business generated FFO of
The transport segment had a strong quarter with FFO of
Our energy business posted FFO of
The communications infrastructure segment also contributed in-line with the prior year, generating
Three Months Ended Six Months Ended
June 30 June 30
------------------------------------------------
US$ millions, unaudited 2017 2016 2017 2016
----------------------------------------------------------------------------
FFO by segment
Utilities $ 168 $ 100 $ 268 $ 200
Transport 134 102 257 196
Energy 43 43 105 83
Communications 19 19 38 38
Infrastructure
Corporate and other (69) (34) (112) (53)
----------------------------------------------------------------------------
FFO $ 295 $ 230 $ 556 $ 464
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Update on Strategic Initiatives
We are working on satisfying various conditions precedent in order to close two transactions which are expected to be accretive to the future results of the business. Additionally, we have completed several key asset management initiatives at our operations.
Pending Transactions
-- Indian telecom business - The previously announced$200 million investment (BIP's share) in a portfolio of over 40,000 towers from Reliance Telecom is conditional on, among other standard conditions, the merger of Reliance Communications with Aircel. These initiatives are still underway and as such, closing of the transaction is anticipated by the end of the year. -- Peruvian water utility - Closing of the acquisition of a Peruvian water irrigation system for an investment of approximately$15 million is expected to occur following receipt of customary regulatory approvals. While modest in size, this investment represents a high-quality business being acquired for good value, which will contribute to our growing presence in the water sector.
Key Highlights from our Operations
-- Significant refinancing initiative - We completed the final phase of a
plan to reduce leverage at our North American natural gas transmission
business by raising $1.4 billion of corporate bonds with an average term
of 7.5 years and an average rate of 4.625%. This follows the paydown of
the 2019 corporate notes in June, supported by a capital injection by
the company's shareholders (BIP's share - $200 million ). These
activities resulted in a significant upgrade to the company's credit
ratings.
-- French telecommunications deployment - During the quarter, our French
Telecom business secured its second fibre-to-the-home contract, bringing
our total contracted households to 195,000 for a total investment of $50
million (BIP's share). We are focused on securing additional concessions
currently up for tender by the French government which could lead to a
potential $200 million investment (BIP's share) and would further expand
our footprint in urban areas.
Distribution
The Board of Directors has declared a quarterly distribution in the amount of
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.
Brookfield Infrastructure's Letter to Unitholders and Supplemental Information are available at www.brookfield.com/infrastructure.
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 Brookfield Infrastructure'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.brookfield.com/infrastructure. 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 Second Quarter 2017 Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Infrastructure's website under the Investor Relations section at www.brookfield.com/infrastructure.
The conference call can be accessed via webcast on August 3, 2017 at 9:00 a.m. Eastern Time at http://services.choruscall.ca/links/bip20170803.html 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
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, 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 six-month periods ended June 30, 2017 was 259.6 million and 259.5 million, respectively (2016 - 243.2 million for the three and six-month periods).
3 Loss per LP unit as allocation of net income is reduced by preferred unit and incentive distributions paid during the period.
4 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 or losses. A reconciliation of net income to FFO is available on page 8 of this release.
5 Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by
6 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
----------------------------
June 30, Dec 31,
US$ millions, unaudited 2017 2016
----------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 468 $ 786
Financial assets 193 92
Property, plant and equipment 9,188 8,656
Intangible assets 9,874 4,465
Investments in associates 5,085 4,727
Investment properties 163 154
Deferred income taxes and other 3,313 2,376
Assets classified as held for sale 20 19
----------------------------------------------------------------------------
Total assets $ 28,304 $ 21,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and partnership capital
Corporate borrowings $ 2,356 $ 1,002
Non-recourse borrowings 7,751 7,324
Financial liabilities 1,358 381
Deferred income taxes and other 4,215 2,924
----------------------------------------------------------------------------
Total liabilities 15,680 11,631
Partnership capital
Limited partners 4,253 4,611
General partner 26 27
Non-controlling interest attributable to:
Redeemable partnership units held by
Brookfield 1,705 1,860
Interest of others in operating subsidiaries 6,045 2,771
Preferred unitholders 595 375
----------------------------------------------------------------------------
Total partnership capital 12,624 9,644
----------------------------------------------------------------------------
Total liabilities and partnership capital $ 28,304 $ 21,275
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Operating Results
US$ millions, except per For the three-month For the six-month
unit information, unaudited period ended June 30, period ended June 30,
------------------------------------------------
2017 2016 2017 2016
----------------------------------------------------------------------------
Revenues $ 934 $ 462 $ 1,590 $ 916
Direct operating costs (373) (198) (716) (400)
General and administrative
expenses (59) (40) (110) (77)
Depreciation and
amortization expense (206) (108) (326) (208)
----------------------------------------------------------------------------
296 116 438 231
Interest expense (107) (101) (201) (196)
Share of earnings from
associates 36 106 59 110
Revaluation (losses) gains
on hedging items (29) 32 (66) 40
Other (expense) income (5) 7 19 62
----------------------------------------------------------------------------
Income before income tax 191 160 249 247
Income tax (expense)
recovery
Current (38) (8) (50) (12)
Deferred (18) 7 (18) 12
----------------------------------------------------------------------------
Net income 135 159 181 247
Non-controlling interest of
others in operating
subsidiaries (130) (3) (160) (13)
----------------------------------------------------------------------------
Net income attributable to
partnership $ 5 $ 156 $ 21 $ 234
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:
Limited partners (16) 96 (24) 137
General partner 28 20 56 40
Non-controlling interest -
redeemable partnership
units held by Brookfield (7) 40 (11) 57
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted (loss)
earnings per unit
attributable to:
Limited partners(1) $ (0.06) $ 0.39 $ (0.09) $ 0.56
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Average number of limited partnership units outstanding on a time weighted average basis for the three and six-month periods ended June 30, 2017 were 259.6 million and 259.5 million, respectively (2016 - 243.2 million for the three and six-month periods).
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Cash Flows
For the three-month For the six-month
period period
US$ millions, unaudited ended June 30, ended June 30,
------------------------------------------------
2017 2016 2017 2016
----------------------------------------------------------------------------
Operating Activities
Net income $ 135 $ 159 $ 181 $ 247
Adjusted for the following
items:
Share of earnings from
associates, net of
distributions (16) (103) (21) (90)
Depreciation and
amortization expense 206 108 326 208
Market-to-market on
hedging items, provisions
and other 54 (16) 75 (32)
Deferred tax expense
(recovery) 18 (7) 18 (12)
Change in non-cash working
capital, net 22 18 18 -
----------------------------------------------------------------------------
Cash from operating
activities 419 159 597 321
----------------------------------------------------------------------------
Investing Activities
Investments, net of
disposals
Operating assets (4,203) (158) (4,203) (193)
Associates (269) (502) (318) (504)
Long-lived assets (176) (129) (310) (292)
Financial assets 72 11 (24) (7)
Net settlements of foreign
exchange contracts (10) (20) (40) 30
----------------------------------------------------------------------------
Cash used by investing
activities (4,586) (798) (4,895) (966)
----------------------------------------------------------------------------
Financing Activities
Distributions to limited and
general partners (196) (153) (390) (306)
Net borrowings:
Corporate 628 646 1,311 798
Subsidiary 250 20 209 55
Other - - - (38)
Issuance of preferred units - - 220 -
Issuance of partnership
units, net of repurchases 5 2 11 5
Capital provided by non-
controlling interest, net
of distributions 2,629 253 2,615 301
----------------------------------------------------------------------------
Cash from financing
activities 3,316 768 3,976 815
----------------------------------------------------------------------------
Cash and cash equivalents
Change during the period $ (851) $ 129 $ (322) $ 170
Impact of foreign exchange
on cash (4) 1 4 9
Balance, beginning of
period 1,323 248 786 199
----------------------------------------------------------------------------
Balance, end of period $ 468 $ 378 $ 468 $ 378
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Brookfield Infrastructure Partners L.P.
Statements of Funds from Operations
For the three-month For the six-month
period period
ended June 30, ended June 30,
------------------------------------------------
US$ millions, unaudited 2017 2016 2017 2016
----------------------------------------------------------------------------
Adjusted EBITDA
Utilities $ 205 $ 134 $ 333 $ 268
Transport 171 147 336 279
Energy 63 66 149 138
Communications
Infrastructure 23 23 45 44
Corporate and other (59) (40) (110) (77)
----------------------------------------------------------------------------
Total 403 330 753 652
Financing costs (110) (113) (220) (228)
Other income 2 13 23 40
----------------------------------------------------------------------------
Funds from operations (FFO) 295 230 556 464
----------------------------------------------------------------------------
Depreciation and
amortization (186) (150) (344) (290)
Deferred taxes and other
items (104) 76 (191) 60
----------------------------------------------------------------------------
Net income attributable to
the partnership $ 5 $ 156 $ 21 $ 234
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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-month For the six-month
period period
ended June 30, ended June 30,
------------------------------------------------
US$ millions, unaudited 2017 2016 2017 2016
----------------------------------------------------------------------------
(Loss) earnings per limited
partnership unit(1) $ (0.06) $ 0.39 $ (0.09) $ 0.56
Add back or deduct the
following:
Depreciation and
amortization 0.50 0.43 0.93 0.84
Deferred taxes and other
items 0.36 (0.15) 0.67 (0.05)
----------------------------------------------------------------------------
FFO per unit(2) $ 0.80 $ 0.67 $ 1.51 $ 1.35
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Average number of limited partnership units outstanding on a time weighted average basis for the three and six-month periods ended June 30, 2017 were 259.6 million and 259.5 million, respectively (2016 - 243.2 million for the three and six-month periods).
2. Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by
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
------------------------
June 30, Dec 31,
US$ millions, unaudited 2017 2016
----------------------------------------------------------------------------
Assets
Operating groups
Utilities $ 3,039 $ 1,807
Transport 3,709 3,549
Energy 1,800 1,564
Communications Infrastructure 556 541
Corporate cash and financial assets 130 549
----------------------------------------------------------------------------
$ 9,234 $ 8,010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Corporate borrowings $ 2,356 $ 1,002
Other liabilities 894 510
----------------------------------------------------------------------------
3,250 1,512
Capitalization
Partnership capital 5,984 6,498
----------------------------------------------------------------------------
$ 9,234 $ 8,010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 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 measures in assessing Brookfield Infrastructure's financial position.
Contacts: Media: Claire Holland Vice President, Communications (416) 369-8236 [email protected] Investors: Rene Lubianski Senior Vice President, Corporate Development (416) 956-5196 [email protected]
Source: Brookfield Infrastructure Partners L.P.
| Title | Document |
|---|---|
| Download this Press Release |