BROOKFIELD, NEWS,
“We successfully executed our business strategy and achieved all our capital allocation and performance targets during 2023,” said
| For the twelve months ended |
|||||
| US$ millions (except per unit amounts), unaudited1 | 2023 | 2022 | |||
| Net income attributable to the partnership2 | $ | 432 | $ | 407 | |
| – per unit3 | 0.14 | 0.14 | |||
| FFO4 | 2,288 | 2,087 | |||
| – per unit5 | 2.95 | 2.71 | |||
For the year ended
Funds from operations (FFO) for 2023 was
Segment Performance
The following table summarizes FFO by segment:
| For the twelve months ended |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| FFO by segment | |||||||
| Utilities | $ | 879 | $ | 739 | |||
| Transport | 888 | 794 | |||||
| Midstream | 684 | 743 | |||||
| Data | 275 | 239 | |||||
| Corporate | (438 | ) | (428 | ) | |||
| FFO | $ | 2,288 | $ | 2,087 | |||
The utilities segment generated FFO of
FFO for the transport segment was
FFO for the midstream segment totaled
The data segment generated FFO of
Update on Strategic Initiatives
It was another outsized year for new investments in 2023 where we deployed over
We completed an additional data center investment last month acquiring 40 sites out of bankruptcy from Cyxtera. This multi-faceted transaction included the acquisition of associated real estate underlying several of the sites from third-party landlords and the contribution of 10 retail colocation sites in the
Our confidence in the digitalization investment theme continues in 2024 with the acquisition of American Tower’s operations in
Following a successful year of dispositions in 2023, we commenced preparation for the next phase of our capital recycling plans. We recently completed several opportunistic asset level financings to right-size the capital structure at two mature pipeline operations in
Distribution and Dividend Declaration
The Board of Directors has declared a quarterly distribution in the amount of
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure’s Fourth Quarter 2023 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
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.
– ends –
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
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with over
Contact Information
| Media: | Investors: |
| Managing Director | Vice President |
| Corporate Communications | Corporate Development & Investor Relations |
| Tel: +44 739 890 9278 | Tel: +1 416 956 5129 |
| Email: [email protected] | Email: [email protected] |
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
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,
References to the Partnership are to
- 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 twelve-month period ended
December 31, 2023 was 459.4 million (2022: 458.1 million). - We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market and other income (expenses) that are not related to the revenue earning activities and are not normal, recurring cash operating items 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 twelve-month period ended
December 31, 2023 was 776.9 million (2022: 771.2 million).
| Consolidated Statements of Financial Position | |||||
| As of |
|||||
| US$ millions, unaudited | 2023 | 2022 | |||
| Assets | |||||
| Cash and cash equivalents | $ | 1,857 | $ | 1,279 | |
| Financial assets | 787 | 785 | |||
| Property, plant and equipment and investment properties | 52,879 | 37,991 | |||
| Intangible assets and goodwill | 30,333 | 20,611 | |||
| Investments in associates and joint ventures | 5,402 | 5,325 | |||
| Deferred income taxes and other | 9,526 | 6,978 | |||
| Total assets | $ | 100,784 | $ | 72,969 | |
| Liabilities and partnership capital | |||||
| Corporate borrowings | $ | 4,911 | $ | 3,666 | |
| Non-recourse borrowings | 40,904 | 26,567 | |||
| Financial liabilities | 2,875 | 2,067 | |||
| Deferred income taxes and other | 18,078 | 15,115 | |||
| Partnership capital | |||||
| Limited partners | 5,321 | 5,372 | |||
| General partner | 28 | 27 | |||
| Non-controlling interest attributable to: | |||||
| Redeemable partnership units held by Brookfield | 2,190 | 2,263 | |||
| Exchangeable units/shares1 | 1,605 | 1,361 | |||
| Perpetual subordinated notes | 293 | 293 | |||
| Interest of others in operating subsidiaries | 23,661 | 15,320 | |||
| Preferred unitholders | 918 | 918 | |||
| Total partnership capital | 34,016 | 25,554 | |||
| Total liabilities and partnership capital | $ | 100,784 | $ | 72,969 | |
- Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and
Exchange LP units.
| Consolidated Statements of Operating Results | |||||||
| For the twelve months ended |
|||||||
| US$ millions, except per unit information, unaudited | 2023 | 2022 | |||||
| Revenues | $ | 17,931 | $ | 14,427 | |||
| Direct operating costs | (13,470 | ) | (10,510 | ) | |||
| General and administrative expense | (413 | ) | (433 | ) | |||
| 4,048 | 3,484 | ||||||
| Interest expense | (2,501 | ) | (1,855 | ) | |||
| Share of earnings from associates and joint ventures | 459 | 12 | |||||
| Mark-to-market (losses) gains | (118 | ) | 173 | ||||
| Other income | 141 | 121 | |||||
| Income before income tax | 2,029 | 1,935 | |||||
| Income tax expense | |||||||
| Current | (576 | ) | (474 | ) | |||
| Deferred | (5 | ) | (86 | ) | |||
| Net income | 1,448 | 1,375 | |||||
| Non-controlling interest of others in operating subsidiaries | (1,016 | ) | (968 | ) | |||
| Net income attributable to partnership | $ | 432 | $ | 407 | |||
| Attributable to: | |||||||
| Limited partners | $ | 102 | $ | 101 | |||
| General partner | 265 | 240 | |||||
| Non-controlling interest | |||||||
| Redeemable partnership units held by Brookfield | 42 | 42 | |||||
| Exchangeable units/shares1 | 23 | 24 | |||||
| Basic and diluted earnings per unit attributable to: | |||||||
| Limited partners2 | $ | 0.14 | $ | 0.14 | |||
- 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 twelve-month period ended
December 31, 2023 was 459.4 million (2022: 458.1 million).
| Consolidated Statements of Cash Flows | |||||||
| For the twelve months ended |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| Operating Activities | |||||||
| Net income | $ | 1,448 | $ | 1,375 | |||
| Adjusted for the following items: | |||||||
| Earnings from investments in associates and joint ventures, net of distributions received | 323 | 563 | |||||
| Depreciation and amortization expense | 2,739 | 2,158 | |||||
| Mark-to-market, provisions and other | 201 | (147 | ) | ||||
| Deferred income tax expense | 5 | 86 | |||||
| Change in non-cash working capital, net | (638 | ) | (904 | ) | |||
| Cash from operating activities | 4,078 | 3,131 | |||||
| Investing Activities | |||||||
| Net (investments in) proceeds from: | |||||||
| Operating assets | (10,145 | ) | (281 | ) | |||
| Associates | 9 | (589 | ) | ||||
| Long-lived assets | (2,325 | ) | (2,734 | ) | |||
| Financial assets | 191 | 61 | |||||
| Net settlements of foreign exchange contracts | — | 178 | |||||
| Other investing activities | (720 | ) | — | ||||
| Cash used by investing activities | (12,990 | ) | (3,365 | ) | |||
| Financing Activities | |||||||
| Distributions to limited and general partners | (1,516 | ) | (1,418 | ) | |||
| Net borrowings: | |||||||
| Corporate | 1,164 | 1,124 | |||||
| Subsidiary | 4,490 | 2,493 | |||||
| Net preferred shares redeemed | — | (243 | ) | ||||
| Partnership units (repurchased) issued | (13 | ) | 13 | ||||
| Settlement of deferred consideration | — | (1,224 | ) | ||||
| Net capital provided by (to) non-controlling interest | 6,072 | (458 | ) | ||||
| Lease liability repaid and other | (778 | ) | (231 | ) | |||
| Cash from financing activities | 9,419 | 56 | |||||
| Cash and cash equivalents | |||||||
| Change during the period | $ | 507 | $ | (178 | ) | ||
| Cash reclassified as held for sale | — | (37 | ) | ||||
| Impact of foreign exchange on cash | 71 | 88 | |||||
| Balance, beginning of period | 1,279 | 1,406 | |||||
| Balance, end of period | $ | 1,857 | $ | 1,279 | |||
| Reconciliation of Net Income to Funds from Operations | |||||||
| For the twelve months ended |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| Net income | $ | 1,448 | $ | 1,375 | |||
| Add back or deduct the following: | |||||||
| Depreciation and amortization | 2,739 | 2,158 | |||||
| Share of earnings from investments in associates and joint ventures | (459 | ) | (12 | ) | |||
| FFO contribution from investments in associates and joint ventures1 | 923 | 886 | |||||
| Deferred tax expense | 5 | 86 | |||||
| Mark-to-market losses (gains) | 118 | (173 | ) | ||||
| Other expense2 | 183 | 115 | |||||
| Consolidated Funds from Operations | 4,957 | 4,435 | |||||
| FFO attributable to non-controlling interests3 | (2,669 | ) | (2,348 | ) | |||
| FFO | $ | 2,288 | $ | 2,087 | |||
- 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 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 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, 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.
| Statements of Funds from Operations per Unit | |||||
| For the twelve months ended |
|||||
| US$, unaudited | 2023 | 2022 | |||
| Earnings per limited partnership unit1 | $ | 0.14 | $ | 0.14 | |
| Add back or deduct the following: | |||||
| Depreciation and amortization | 1.84 | 1.66 | |||
| Deferred taxes and other items | 0.97 | 0.91 | |||
| FFO per unit2 | $ | 2.95 | $ | 2.71 | |
- Average number of limited partnership units outstanding on a time weighted average basis for the twelve-month period ended
December 31, 2023 was 459.4 million (2022: 458.1 million). - Average number of partnership units outstanding on a fully diluted time weighted average basis for the twelve-month period ended
December 31, 2023 was 776.9 million (2022: 771.2 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 Strong 2023 Year-End Results
& Announces Dividend Increase
The Board of Directors of
The Shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of
Results
The net income of BIPC is captured in the Partnership’s financial statements and results.
BIPC reported net income of
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
| Consolidated Statements of Financial Position | |||||||
| As of |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 539 | $ | 445 | |||
| Due from Brookfield Infrastructure | 1,288 | 566 | |||||
| Property, plant and equipment | 14,151 | 4,718 | |||||
| Intangible assets | 3,699 | 2,847 | |||||
| Investments in associates | — | 428 | |||||
| 1,726 | 518 | ||||||
| Deferred tax asset and other | 2,506 | 656 | |||||
| Total assets | $ | 23,909 | $ | 10,178 | |||
| Liabilities and Equity | |||||||
| Accounts payable and other | $ | 1,099 | $ | 781 | |||
| Loans payable to Brookfield Infrastructure | 26 | 26 | |||||
| Exchangeable and class B shares | 4,153 | 3,426 | |||||
| Non-recourse borrowings | 12,028 | 4,577 | |||||
| Financial liabilities | 75 | 72 | |||||
| Deferred tax liabilities and other | 2,460 | 1,657 | |||||
| Equity | |||||||
| Equity in net assets attributable to the Partnership | (399 | ) | (1,119 | ) | |||
| Non-controlling interest | 4,467 | 758 | |||||
| Total equity | 4,068 | (361 | ) | ||||
| Total liabilities and equity | $ | 23,909 | $ | 10,178 | |||
| Consolidated Statements of Operating Results | |||||||
| For the twelve months ended |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| Revenues | $ | 2,503 | $ | 1,886 | |||
| Direct operating costs | (778 | ) | (542 | ) | |||
| General and administrative expense | (67 | ) | (69 | ) | |||
| 1,658 | 1,275 | ||||||
| Interest expense | (697 | ) | (544 | ) | |||
| Share of (losses) earnings from investments in associates | (20 | ) | 4 | ||||
| Remeasurement of exchangeable and class B shares | 34 | 1,058 | |||||
| Mark-to-market and other | (1 | ) | 88 | ||||
| Income before income tax | 974 | 1,881 | |||||
| Income tax (expense) recovery | |||||||
| Current | (348 | ) | (341 | ) | |||
| Deferred | (20 | ) | 79 | ||||
| Net income | $ | 606 | $ | 1,619 | |||
| Attributable to: | |||||||
| Partnership | $ | 111 | $ | 1,094 | |||
| Non-controlling interest | 495 | 525 | |||||
| Consolidated Statements of Cash Flows | |||||||
| For the twelve months ended |
|||||||
| US$ millions, unaudited | 2023 | 2022 | |||||
| Operating Activities | |||||||
| Net income | $ | 606 | $ | 1,619 | |||
| Adjusted for the following items: | |||||||
| Earnings from investments in associates, net of distributions received | 23 | 29 | |||||
| Depreciation and amortization expense | 365 | 211 | |||||
| Mark-to-market and other | 73 | (2 | ) | ||||
| Remeasurement of exchangeable and class B shares | (34 | ) | (1,058 | ) | |||
| Deferred income tax expense (recovery) | 20 | (79 | ) | ||||
| Change in non-cash working capital, net | 6 | 173 | |||||
| Cash from operating activities | 1,059 | 893 | |||||
| Investing Activities | |||||||
| Disposal of (investments in) associates | 435 | (455 | ) | ||||
| Purchase of long-lived assets, net of disposals | (519 | ) | (521 | ) | |||
| Purchase of financial assets and other | (4 | ) | (71 | ) | |||
| Acquisition of subsidiaries | (3,086 | ) | — | ||||
| Cash used by investing activities | (3,174 | ) | (1,047 | ) | |||
| Financing Activities | |||||||
| Net capital provided by (to) non-controlling interest | 2,453 | (448 | ) | ||||
| Net (repayments) borrowings | (238 | ) | 1,550 | ||||
| Other financing activities | (32 | ) | — | ||||
| Settlement of deferred consideration | — | (1,106 | ) | ||||
| Cash from (used by) financing activities | 2,183 | (4 | ) | ||||
| Cash and cash equivalents | |||||||
| Change during the period | $ | 68 | $ | (158 | ) | ||
| Impact of foreign exchange on cash | 26 | 134 | |||||
| Balance, beginning of period | 445 | 469 | |||||
| Balance, end of period | $ | 539 | $ | 445 | |||
Source:
| Title | Document |
|---|---|
English |