BROOKFIELD, NEWS,
“2022 was another successful year for Brookfield Infrastructure. We achieved organic growth exceeding our target range, recorded our highest quarterly FFO per unit, secured outsized capital deployment and replenished our capital backlog,” said
| For the three months ended | For the twelve months ended | |||||||||||
| US$ millions (except per unit amounts), unaudited1 | 2022 | 2021 | 2022 | 2021 | ||||||||
| Net income attributable to the partnership2 | $ | 48 | $ | 138 | $ | 407 | $ | 1,093 | ||||
| – per unit3,4 | (0.03 | ) | 0.09 | 0.14 | 1.16 | |||||||
| FFO5 | 556 | 486 | 2,087 | 1,733 | ||||||||
| – per unit4,6 | 0.72 | 0.65 | 2.71 | 2.42 | ||||||||
For the year ended
Funds From Operations (or FFO) of
Segment Performance
The following table summarizes FFO by segment:
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| FFO by segment | |||||||||||||||
| Utilities | $ | 188 | $ | 167 | $ | 739 | $ | 705 | |||||||
| Transport | 207 | 185 | 794 | 701 | |||||||||||
| Midstream | 205 | 183 | 743 | 492 | |||||||||||
| Data | 61 | 60 | 239 | 238 | |||||||||||
| Corporate | (105 | ) | (109 | ) | (428 | ) | (403 | ) | |||||||
| FFO | $ | 556 | $ | 486 | $ | 2,087 | $ | 1,733 | |||||||
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
Capital deployment in 2022 built on the record deployment of 2021. Over this two-year period, Brookfield Infrastructure deployed over
With our 2022 deployment behind us, we have replenished our investment pipeline. In addition to evaluating several corporate carve outs, a large component of our investment pipeline is comprised of public-to-private opportunities.
On the capital recycling front, we are focused on closing the sale of our Indian toll road portfolio and the sale of our 50% owned freehold landlord port in
Distribution and Dividend Increase
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 2022 Results, as well as Letter to Unitholders and Supplemental Information, 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.
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
Brookfield Infrastructure is the flagship listed infrastructure company of
Contact Information
| Media Vice President, Communications Tel: +1 (416) 943-7937 Email: [email protected] | Investor Relations Vice President, Corporate Development & Investor Relations Tel: +1 (416) 956-5129 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 include statements regarding the three-for-two split of BIP and BIPC’s respective units and shares, and 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 three and twelve-month periods ended
December 31, 2022 were 458.3 million and 458.1 million, respectively (2021: 450.4 million and 445.1 million). - On
June 10, 2022 , Brookfield Infrastructure completed a three-for-two stock split of BIP units, BIPC exchangeable shares, Exchange LP Units, and BIPC exchangeable LP units, by way of a subdivision whereby unitholders/shareholders received an additional one-half of a unit/share for each unit/share held. Brookfield Infrastructure’s preferred units were not affected by the stock split. All historical unit and share counts, as well as per unit/share disclosures have been adjusted to effect for the change in units due to the stock split. - We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market on hedging items 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 three and twelve-month periods ended
December 31, 2022 were 771.3 million and 771.2 million, respectively (2021: 752.6 million and 714.8 million).
Consolidated Statements of Financial Position
| As of | |||||
| US$ millions, unaudited | 2022 | 2021 | |||
| Assets | |||||
| Cash and cash equivalents | $ | 1,279 | $ | 1,406 | |
| Financial assets | 785 | 477 | |||
| Property, plant and equipment and investment properties | 37,991 | 39,310 | |||
| Intangible assets and goodwill | 20,611 | 23,193 | |||
| Investments in associates and joint ventures | 5,325 | 4,725 | |||
| Deferred income taxes and other | 6,978 | 4,850 | |||
| Total assets | $ | 72,969 | $ | 73,961 | |
| Liabilities and partnership capital | |||||
| Corporate borrowings | $ | 3,666 | $ | 2,719 | |
| Non-recourse borrowings | 26,567 | 26,534 | |||
| Financial liabilities | 2,067 | 3,240 | |||
| Deferred income taxes and other | 15,115 | 15,077 | |||
| Partnership capital | |||||
| Limited partners | 5,372 | 5,702 | |||
| General partner | 27 | 31 | |||
| Non-controlling interest attributable to: | |||||
| Redeemable partnership units held by Brookfield | 2,263 | 2,408 | |||
| Exchangeable units/shares1 | 1,361 | 1,454 | |||
| Perpetual subordinated notes | 293 | — | |||
| Interest of others in operating subsidiaries | 15,320 | 15,658 | |||
| Preferred unitholders | 918 | 1,138 | |||
| Total partnership capital | 25,554 | 26,391 | |||
| Total liabilities and partnership capital | $ | 72,969 | $ | 73,961 | |
- Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and
Exchange LP units
Consolidated Statements of Operating Results
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, except per unit information, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Revenues | $ | 3,708 | $ | 3,252 | $ | 14,427 | $ | 11,537 | |||||||
| Direct operating costs | (2,702 | ) | (2,375 | ) | (10,510 | ) | (8,247 | ) | |||||||
| General and administrative expense | (95 | ) | (113 | ) | (433 | ) | (406 | ) | |||||||
| 911 | 764 | 3,484 | 2,884 | ||||||||||||
| Interest expense | (497 | ) | (383 | ) | (1,855 | ) | (1,468 | ) | |||||||
| Share of (losses) earnings from associates and joint ventures | (13 | ) | (13 | ) | 12 | 88 | |||||||||
| Mark-to-market on hedging items | (62 | ) | 84 | 202 | 80 | ||||||||||
| Other income | 91 | 91 | 92 | 1,749 | |||||||||||
| Income before income tax | 430 | 543 | 1,935 | 3,333 | |||||||||||
| Income tax (expense) recovery | |||||||||||||||
| Current | (104 | ) | (115 | ) | (474 | ) | (374 | ) | |||||||
| Deferred | (31 | ) | 36 | (86 | ) | (240 | ) | ||||||||
| Net income | 295 | 464 | 1,375 | 2,719 | |||||||||||
| Non-controlling interest of others in operating subsidiaries | (247 | ) | (326 | ) | (968 | ) | (1,626 | ) | |||||||
| Net income attributable to partnership | $ | 48 | $ | 138 | $ | 407 | $ | 1,093 | |||||||
| Attributable to: | |||||||||||||||
| Limited partners | $ | (7 | ) | $ | 50 | $ | 101 | $ | 556 | ||||||
| General partner | 60 | 56 | 240 | 210 | |||||||||||
| Non-controlling interest | |||||||||||||||
| Redeemable partnership units held by Brookfield | (3 | ) | 20 | 42 | 229 | ||||||||||
| Exchangeable units/shares1 | (2 | ) | 12 | 24 | 98 | ||||||||||
| Basic and diluted (loss) earnings per unit attributable to: | |||||||||||||||
| Limited partners2 | $ | (0.03 | ) | $ | 0.09 | $ | 0.14 | $ | 1.16 | ||||||
- 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 twelve-month periods ended
December 31, 2022 were 458.3 million and 458.1 million, respectively (2021: 450.4 million and 445.1 million). Earnings per limited partnership unit for the three and twelve-month periods endedDecember 31, 2021 were adjusted to reflect the impact of the stock split.
Consolidated Statements of Cash Flows
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Operating Activities | |||||||||||||||
| Net income | $ | 295 | $ | 464 | $ | 1,375 | $ | 2,719 | |||||||
| Adjusted for the following items: | |||||||||||||||
| Earnings from investments in associates and joint ventures, net of distributions received | 353 | 84 | 563 | 69 | |||||||||||
| Depreciation and amortization expense | 542 | 550 | 2,158 | 2,036 | |||||||||||
| Mark-to-market on hedging items, provisions and other | 96 | (168 | ) | (147 | ) | (1,768 | ) | ||||||||
| Deferred income tax expense (recovery) | 31 | (36 | ) | 86 | 240 | ||||||||||
| Change in non-cash working capital, net | (331 | ) | (329 | ) | (904 | ) | (524 | ) | |||||||
| Cash from operating activities | 986 | 565 | 3,131 | 2,772 | |||||||||||
| Investing Activities | |||||||||||||||
| Net (investments in) proceeds from: | |||||||||||||||
| Operating and held for sale assets | 32 | (53 | ) | (281 | ) | 361 | |||||||||
| Associates | — | — | (589 | ) | 412 | ||||||||||
| Long-lived assets | (660 | ) | (680 | ) | (2,734 | ) | (1,982 | ) | |||||||
| Financial assets | 34 | 229 | 61 | 17 | |||||||||||
| Net settlements of foreign exchange contracts | 65 | 28 | 178 | 19 | |||||||||||
| Cash used by investing activities | (529 | ) | (476 | ) | (3,365 | ) | (1,173 | ) | |||||||
| Financing Activities | |||||||||||||||
| Distributions to limited and general partners | (353 | ) | (331 | ) | (1,418 | ) | (1,257 | ) | |||||||
| Net (repayments) borrowings: | |||||||||||||||
| Corporate | (187 | ) | (713 | ) | 1,124 | (456 | ) | ||||||||
| Subsidiary | 883 | (64 | ) | 2,493 | 2,011 | ||||||||||
| Deposit repaid to parent | — | — | — | (545 | ) | ||||||||||
| Net preferred units redeemed | — | — | (243 | ) | (12 | ) | |||||||||
| Partnership units issued | 2 | 1,064 | 13 | 1,073 | |||||||||||
| Settlement of deferred consideration | — | — | (1,224 | ) | (191 | ) | |||||||||
| Net capital provided to non-controlling interest | (226 | ) | (163 | ) | (458 | ) | (843 | ) | |||||||
| Lease liability repaid and other | (464 | ) | (474 | ) | (231 | ) | (775 | ) | |||||||
| Cash (used by) from financing activities | (345 | ) | (681 | ) | 56 | (995 | ) | ||||||||
| Cash and cash equivalents | |||||||||||||||
| Change during the period | $ | 112 | $ | (592 | ) | $ | (178 | ) | $ | 604 | |||||
| Cash reclassified from (to) held for sale | 94 | 161 | (37 | ) | — | ||||||||||
| Impact of foreign exchange on cash | 20 | (3 | ) | 88 | (65 | ) | |||||||||
| Balance, beginning of period | 1,053 | 1,840 | 1,406 | 867 | |||||||||||
| Balance, end of period | $ | 1,279 | $ | 1,406 | $ | 1,279 | $ | 1,406 | |||||||
Reconciliation of Net Income to Funds from Operations
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Net income | $ | 295 | $ | 464 | $ | 1,375 | $ | 2,719 | |||||||
| Add back or deduct the following: | |||||||||||||||
| Depreciation and amortization | 542 | 550 | 2,158 | 2,036 | |||||||||||
| Share losses (earnings) from investments in associates and joint ventures | 13 | 13 | (12 | ) | (88 | ) | |||||||||
| FFO contribution from investments in associates and joint ventures1 | 238 | 202 | 886 | 745 | |||||||||||
| Deferred tax expense (recovery) | 31 | (36 | ) | 86 | 240 | ||||||||||
| Gain on disposition of subsidiaries, associates and joint ventures2 | (32 | ) | (246 | ) | (107 | ) | (2,118 | ) | |||||||
| Mark-to-market on hedging items | 62 | (84 | ) | (202 | ) | (80 | ) | ||||||||
| Other expense3 | 3 | 202 | 251 | 533 | |||||||||||
| Consolidated Funds from Operations | 1,152 | 1,065 | 4,435 | 3,987 | |||||||||||
| FFO attributable to non-controlling interests4 | (596 | ) | (579 | ) | (2,348 | ) | (2,254 | ) | |||||||
| FFO | $ | 556 | $ | 486 | $ | 2,087 | $ | 1,733 | |||||||
.
- 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.
- Gains on disposition of subsidiaries, associates, and joint ventures are presented net of gains/losses relating to foreign currency translation reclassified from accumulated comprehensive income to other income (expense) on the Consolidated Statement of Operating Results.
- 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 the disposition of subsidiaries, associates and joint ventures, 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 three months ended | For the twelve months ended | ||||||||||||
| US$, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||
| Earnings (loss) per limited partnership unit1 | $ | (0.03 | ) | $ | 0.09 | $ | 0.14 | $ | 1.16 | ||||
| Add back or deduct the following: | |||||||||||||
| Depreciation and amortization | 0.41 | 0.43 | 1.66 | 1.60 | |||||||||
| Deferred taxes and other items | 0.34 | 0.13 | 0.91 | (0.34 | ) | ||||||||
| FFO per unit2 | $ | 0.72 | $ | 0.65 | $ | 2.71 | $ | 2.42 | |||||
- Average number of limited partnership units outstanding on a time weighted average basis for the three and twelve-month periods ended
December 31, 2022 were 458.3 million and 458.1 million, respectively (2021: 450.4 million and 445.1 million). Earnings per limited partnership unit for the three and twelve-month periods endedDecember 31, 2021 were adjusted to reflect the impact of the stock split. - Average number of partnership units outstanding on a fully diluted time weighted average basis for the three and twelve-month periods ended
December 31, 2022 were 771.3 million and 771.2 million, respectively (2021: 752.6 million and 714.8 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 2022 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 and Funds from Operations1 (FFO) of BIPC are captured in the Partnership’s financial statements and results.
BIPC reported net income of
Our business generated FFO 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
- We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market on hedging items 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. We exclude from FFO dividends paid on the exchangeable shares of our company that are presented as interest expense, as well as the interest expense on loans payable to the partnership which represent the partnership’s investment in our company. We also exclude from FFO amounts attributable to non-controlling interests based on the economic interests held by non-controlling interests in consolidated subsidiaries. FFO 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 16 of this release. Readers are encouraged to consider both measures in assessing our company’s results.
Consolidated Statements of Financial Position
| As of | |||||||
| US$ millions, unaudited | 2022 | 2021 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 445 | $ | 469 | |||
| Due from Brookfield Infrastructure | 566 | 1,093 | |||||
| Property, plant and equipment | 4,718 | 4,803 | |||||
| Intangible assets | 2,847 | 2,687 | |||||
| Investments in associates | 428 | — | |||||
| 518 | 489 | ||||||
| Deferred tax asset and other | 656 | 545 | |||||
| Total assets | $ | 10,178 | $ | 10,086 | |||
| Liabilities and Equity | |||||||
| Accounts payable and other | $ | 781 | $ | 605 | |||
| Loans payable to Brookfield Infrastructure | 26 | 131 | |||||
| Exchangeable and class B shares | 3,426 | 4,466 | |||||
| Non-recourse borrowings | 4,577 | 3,556 | |||||
| Financial liabilities | 72 | 995 | |||||
| Deferred tax liabilities and other | 1,657 | 1,757 | |||||
| Equity | |||||||
| Equity in net assets attributable to the Partnership | (1,119 | ) | (2,127 | ) | |||
| Non-controlling interest | 758 | 703 | |||||
| Total equity | (361 | ) | (1,424 | ) | |||
| Total liabilities and equity | $ | 10,178 | $ | 10,086 | |||
Consolidated Statements of Operating Results
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Revenues | $ | 492 | $ | 414 | $ | 1,886 | $ | 1,643 | |||||||
| Direct operating costs | (156 | ) | (104 | ) | (542 | ) | (526 | ) | |||||||
| General and administrative expense | (15 | ) | (17 | ) | (69 | ) | (49 | ) | |||||||
| 321 | 293 | 1,275 | 1,068 | ||||||||||||
| Interest expense | (152 | ) | (86 | ) | (544 | ) | (294 | ) | |||||||
| Share of earnings from investments in associates | — | — | 4 | — | |||||||||||
| Remeasurement of exchangeable and class B shares | 542 | (279 | ) | 1,058 | (447 | ) | |||||||||
| Mark-to-market and other income (expense) | 24 | (9 | ) | 88 | 105 | ||||||||||
| Income (loss) before income tax | 735 | (81 | ) | 1,881 | 432 | ||||||||||
| Income tax (expense) recovery | |||||||||||||||
| Current | (88 | ) | (70 | ) | (341 | ) | (234 | ) | |||||||
| Deferred | 15 | (14 | ) | 79 | (171 | ) | |||||||||
| Net income (loss) | $ | 662 | $ | (165 | ) | $ | 1,619 | $ | 27 | ||||||
| Attributable to: | |||||||||||||||
| Partnership | $ | 565 | $ | (269 | ) | $ | 1,094 | $ | (368 | ) | |||||
| Non-controlling interest | 97 | 104 | 525 | 395 | |||||||||||
Consolidated Statements of Cash Flows
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Operating Activities | |||||||||||||||
| Net income (loss) | $ | 662 | $ | (165 | ) | $ | 1,619 | $ | 27 | ||||||
| Adjusted for the following items: | |||||||||||||||
| Earnings from investments in associates, net of distributions received | 7 | — | 29 | — | |||||||||||
| Depreciation and amortization expense | 52 | 26 | 211 | 236 | |||||||||||
| Mark-to-market on hedging items and other | 1 | 22 | (2 | ) | (77 | ) | |||||||||
| Remeasurement of exchangeable and class B shares | (542 | ) | 279 | (1,058 | ) | 447 | |||||||||
| Deferred income tax (recovery) expense | (15 | ) | 14 | (79 | ) | 171 | |||||||||
| Change in non-cash working capital, net | 159 | 44 | 173 | 35 | |||||||||||
| Cash from operating activities | 324 | 220 | 893 | 839 | |||||||||||
| Investing Activities | |||||||||||||||
| Disposal of subsidiaries, net of cash disposed | — | — | — | 817 | |||||||||||
| Investment in associates | — | — | (455 | ) | — | ||||||||||
| Purchase of long-lived assets, net of disposals | (146 | ) | (110 | ) | (521 | ) | (415 | ) | |||||||
| Purchase of financial assets and other | — | — | (71 | ) | (76 | ) | |||||||||
| Cash (used by) from investing activities | (146 | ) | (110 | ) | (1,047 | ) | 326 | ||||||||
| Financing Activities | |||||||||||||||
| Exchangeable shares issued | — | 128 | — | 128 | |||||||||||
| Net capital provided to non-controlling interest | (36 | ) | (52 | ) | (448 | ) | (708 | ) | |||||||
| Proceeds from borrowings, net of repayments | 30 | (114 | ) | 1,550 | (288 | ) | |||||||||
| Settlement of deferred consideration | — | — | (1,106 | ) | — | ||||||||||
| Cash (used by) from financing activities | (6 | ) | (38 | ) | (4 | ) | (868 | ) | |||||||
| Cash and cash equivalents | |||||||||||||||
| Change during the period | $ | 172 | $ | 72 | $ | (158 | ) | $ | 297 | ||||||
| Impact of foreign exchange on cash | 8 | (9 | ) | 134 | (20 | ) | |||||||||
| Balance, beginning of period | 265 | 406 | 469 | 192 | |||||||||||
| Balance, end of period | $ | 445 | $ | 469 | $ | 445 | $ | 469 | |||||||
Reconciliation of Net Income to Funds from Operations
| For the three months ended | For the twelve months ended | ||||||||||||||
| US$ millions, unaudited | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Net income (loss) | $ | 662 | $ | (165 | ) | $ | 1,619 | $ | 27 | ||||||
| Add back or deduct the following: | |||||||||||||||
| Depreciation and amortization | 52 | 26 | 211 | 236 | |||||||||||
| Share of earnings from investments in associates | — | — | (4 | ) | — | ||||||||||
| FFO contribution from investments in associates(1) | 13 | — | 52 | — | |||||||||||
| Deferred income tax (recovery) expense | (15 | ) | 14 | (79 | ) | 171 | |||||||||
| Mark-to-market on hedging items and foreign currency revaluation | (11 | ) | 9 | (49 | ) | 11 | |||||||||
| Gain on disposition of subsidiaries(2) | — | — | — | (175 | ) | ||||||||||
| Other (income) expenses(3) | (2 | ) | 11 | 22 | 74 | ||||||||||
| Remeasurement of exchangeable and class B shares | (542 | ) | 279 | (1,058 | ) | 447 | |||||||||
| Dividends classified as interest expense and interest expense on intercompany loans | 39 | 37 | 158 | 147 | |||||||||||
| Consolidated Funds from Operations | 196 | 211 | 872 | 938 | |||||||||||
| FFO attributable to non-controlling interests(4) | (77 | ) | (109 | ) | (416 | ) | (502 | ) | |||||||
| FFO | $ | 119 | $ | 102 | $ | 456 | $ | 436 | |||||||
1. FFO contribution from investments in associates correspond to the FFO attributable to our company that are generated by its investments in associates accounted for using the equity method.
2. Gains on disposition of subsidiaries are presented net of gains/losses relating to foreign currency translation reclassified from accumulated comprehensive income to other income (expense) on the Consolidated Statement of Operating Results.
3. Other (income) expenses correspond to amounts that are not related to the revenue earnings activities and are not normal, recurring cash operating items necessary for business operations. Other (income) expenses excluded from FFO primarily include fair value remeasurement gains/losses and accretion expense on deferred consideration.
4. 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 company is able to remove the portion of FFO earned at non-wholly owned subsidiaries that are not attributable to the partnership.
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