BROOKFIELD, NEWS, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) today announced its results for the third quarter ended September 30, 2020.
“Our businesses continued to demonstrate their resilience during the third quarter, with each segment delivering solid operating results. We have also benefited from the completion of two highly cash-generative investments that align with our current strategic focus,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure Partners. “Looking ahead, we anticipate 2021 will be a year of meaningful growth for Brookfield Infrastructure. Our very strong liquidity position, along with the positive momentum being generated by our capital recycling program, should enhance our ability to execute on compelling opportunities.”
| For the three months ended September 30 |
For the nine months ended September 30 |
|||||||||
| US$ millions (except per unit amounts), unaudited1 | 2020 | 2019 | 2020 | 2019 | ||||||
| Net income2 | $ | 5 | $ | 82 | $ | 63 | $ | 210 | ||
| – per unit3,4 | $ | (0.12 | ) | $ | 0.06 | $ | (0.22 | ) | $ | 0.13 |
| FFO5 | $ | 365 | $ | 338 | $ | 1,056 | $ | 1,026 | ||
| – per unit (split-adjusted)6 | $ | 0.79 | $ | 0.73 | $ | 2.27 | $ | 2.29 | ||
Net income attributable to the partnership for the three-month period ended September 30, 2020 was $5 million, compared to
Funds from operations for the quarter grew by 8% on a year-over-year basis, primarily driven by strong performance within our utility, energy, and data infrastructure segments. Our business grew organically from inflation-indexation on 75% of our total revenues and the commissioning of
Segment Performance
Our utilities segment generated FFO of
FFO from our transport segment totaled
FFO from our energy segment totaled
Our fast-growing data infrastructure segment delivered FFO of
The following table presents FFO by segment:
| For the three months ended September 30 |
For the nine months ended September 30 |
|||||||||||
| US$ millions, unaudited | 2020 | 2019 | 2020 | 2019 | ||||||||
| FFO by segment | ||||||||||||
| Utilities | $ | 139 | $ | 145 | $ | 415 | $ | 425 | ||||
| Transport | 135 | 128 | 363 | 402 | ||||||||
| Energy | 115 | 100 | 336 | 303 | ||||||||
| Data Infrastructure | 50 | 36 | 135 | 94 | ||||||||
| Corporate | (74 | ) | (71 | ) | (193 | ) | (198 | ) | ||||
| FFO | $ | 365 | $ | 338 | $ | 1,056 | $ | 1,026 | ||||
Update on Strategic Initiatives
During the quarter, we closed two acquisitions that will contribute significantly to results going forward:
- Indian Telecom Towers – In August, we closed the acquisition of 135,000 operational telecom towers from Reliance Jio. We invested approximately
$3.4 billion of equity (BIP’s share – approximately $600 million). Reliance Jio is the anchor tenant under a 30-year Master Services Agreement, which provides a contracted cash flow profile with substantial downside protection. Our business plan involves building out the portfolio to 175,000 towers in the near term.
U.S. LNG Export Facility – In September, we acquired an interest in Cheniere Energy Partners L.P. (Cheniere) at an equity value of$1.5 billion (BIP’s share – approximately $425 million). Cheniere owns Sabine Pass Liquefaction, LLC, a world class LNG export facility with 85% of revenue generated under long-term contracts. These contracts are secured with globally diversified and highly creditworthy counterparties. The recently constructed facility has ample expansion capacity to meet rising demand for low-costU.S. LNG as global decarbonization efforts increase.
Distribution and Dividend Declaration
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 is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with approximately
Please note that Brookfield Infrastructure Partners’ previous audited annual and unaudited quarterly reports have been filed on SEDAR and Edgar, and can also be found in the shareholders 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.
For more information, please contact:
| Media: Claire Holland Senior Vice President, Communications Tel: (416) 369-8236 Email: [email protected] |
Investors: Kate White Manager, Investor Relations Tel: (416) 956-5183 Email: [email protected] |
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure’s Third Quarter 2020 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 November 9, 2020 at 9:00 a.m. Eastern Time at https://edge.media-server.com/mmc/p/3627oqw7 or via teleconference at 1-866-688-9459 toll free in
Note: 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
References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure’s results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, and class A shares of BIPC.
References to the Partnership are to Brookfield Infrastructure Partners L.P.
1. Please refer to page 11 for results of Brookfield Infrastructure Corporation.
2. Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield, Exchange LP Units, and class A shares of BIPC.
3. Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month period ended September 30, 2020 were 295.3 million and 294.5 million, respectively (2019 – 290.9 million and 282.9 million).
4. Results in a loss on a per unit basis for the three and nine-month periods ended September 30, 2020 as allocation of net income is reduced by preferred unit and incentive distributions.
5. 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.
6. Average number of partnership units outstanding on a fully diluted time weighted average basis, assuming the exchange of redeemable partnership units held by Brookfield, Exchange LP units, and class A shares of BIPC for limited partnership units, as if the special distribution had been completed prior to the periods presented, for the three and nine-month periods ended September 30, 2020 were 464.9 million and 464.9 million, respectively (2019 – 460.7 million and 448.9 million). Average number of units outstanding on a fully diluted time weighted average basis, excluding the impact of the special distribution, for the three and nine-month periods ended September 30, 2020 were 418.5 million and 418.4 million, respectively (2019 – 414.6 million and 404.0 million).
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Financial Position
| As of | ||||||
US$ millions, unaudited |
September 30, 2020 |
Dec 31, 2019 |
||||
| Assets | ||||||
| Cash and cash equivalents | $ | 1,012 | $ | 827 | ||
| Financial assets | 404 | 149 | ||||
| Property, plant and equipment and investment properties | 28,450 | 23,429 | ||||
| Intangible assets | 13,084 | 14,386 | ||||
| Investments in associates and joint ventures | 4,700 | 4,967 | ||||
| Goodwill | 6,269 | 6,553 | ||||
| Deferred income taxes and other | 4,221 | 5,997 | ||||
| Total assets | $ | 58,140 | $ | 56,308 | ||
| Liabilities and partnership capital | ||||||
| Corporate borrowings | $ | 2,882 | $ | 2,475 | ||
| Non-recourse borrowings | 20,604 | 18,544 | ||||
| Financial liabilities | 3,387 | 2,173 | ||||
| Deferred income taxes and other | 10,625 | 10,939 | ||||
| Partnership capital | ||||||
| Limited partners | 3,695 | 5,048 | ||||
| General partner | 17 | 24 | ||||
| Non-controlling interest attributable to: | ||||||
| Redeemable partnership units held by Brookfield | 1,466 | 2,039 | ||||
| Class A shares of BIPC and Exchange LP units | 566 | 18 | ||||
| Interest of others in operating subsidiaries | 13,768 | 14,113 | ||||
| Preferred unitholders | 1,130 | 935 | ||||
| Total partnership capital | 20,642 | 22,177 | ||||
| Total liabilities and partnership capital | $ | 58,140 | $ | 56,308 | ||
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Operating Results
| US$ millions, except per unit information, unaudited | For the three months ended September 30 |
For the nine months ended September 30 |
|||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Revenues | $ | 2,209 | $ | 1,664 | $ | 6,351 | $ | 4,942 | |||||
| Direct operating costs | (1,185 | ) | (850 | ) | (3,487 | ) | (2,488 | ) | |||||
| General and administrative expense | (86 | ) | (75 | ) | (219 | ) | (200 | ) | |||||
| Depreciation and amortization expense | (411 | ) | (317 | ) | (1,186 | ) | (932 | ) | |||||
| 527 | 422 | 1,459 | 1,322 | ||||||||||
| Interest expense | (278 | ) | (229 | ) | (807 | ) | (682 | ) | |||||
| Share of earnings from associates and joint ventures | 17 | 36 | 76 | 88 | |||||||||
| Mark-to-market on hedging items | (66 | ) | 70 | 57 | 104 | ||||||||
| Other income (expense) | 16 | (36 | ) | (218 | ) | (14 | ) | ||||||
| Income before income tax | 216 | 263 | 567 | 818 | |||||||||
| Income tax (expense) recovery | |||||||||||||
| Current | (70 | ) | (55 | ) | (183 | ) | (180 | ) | |||||
| Deferred | 2 | (3 | ) | (54 | ) | (14 | ) | ||||||
| Net income | 148 | 205 | 330 | 624 | |||||||||
| Non-controlling interest of others in operating subsidiaries | (143 | ) | (123 | ) | (267 | ) | (414 | ) | |||||
| Net income attributable to partnership | $ | 5 | $ | 82 | $ | 63 | $ | 210 | |||||
| Attributable to: | |||||||||||||
| Limited partners | (26 | ) | 29 | (41 | ) | 65 | |||||||
| General partner | 46 | 41 | 137 | 118 | |||||||||
| Non-controlling interest – redeemable partnership units held by Brookfield | (11 | ) | 12 | (19 | ) | 27 | |||||||
| Non-controlling interest – class A shares of Brookfield Infrastructure Corporation | (4 | ) | – | (14 | ) | – | |||||||
| Basic and diluted (loss) earnings per unit attributable to: | |||||||||||||
| Limited partners1 | $ | (0.12 | ) | $ | 0.06 | $ | (0.22 | ) | $ | 0.13 | |||
- Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month period ended September 30, 2020 were 295.3 million and 294.5 million, respectively (2019 – 290.9 million and 282.9 million). Earnings (loss) per limited partnership unit have been adjusted to reflect the dilutive impact of the special distribution.
Brookfield Infrastructure Partners L.P.
Consolidated Statements of Cash Flows
| US$ millions, unaudited | For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Operating Activities | ||||||||||||
| Net income | $ | 148 | $ | 205 | $ | 330 | $ | 624 | ||||
| Adjusted for the following items: | ||||||||||||
| Earnings from investments in associates and joint ventures, net of distributions received | 3 | 46 | 75 | 78 | ||||||||
| Depreciation and amortization expense | 411 | 317 | 1,186 | 932 | ||||||||
| Mark-to-market on hedging items, provisions and other | 130 | (4 | ) | 395 | 6 | |||||||
| Deferred income tax (recovery) expense | (2 | ) | 3 | 54 | 14 | |||||||
| Change in non-cash working capital, net | 86 | 22 | 73 | 76 | ||||||||
| Cash from operating activities | 776 | 589 | 2,113 | 1,730 | ||||||||
| Investing Activities | ||||||||||||
| Net investments in: | ||||||||||||
| Operating assets | (3,405 | ) | (22 | ) | (2,683 | ) | (2,212 | ) | ||||
| Associates | (309 | ) | (424 | ) | (309 | ) | (289 | ) | ||||
| Long-lived assets | (328 | ) | (302 | ) | (970 | ) | (815 | ) | ||||
| Financial assets | (52 | ) | (90 | ) | (308 | ) | (129 | ) | ||||
| Net settlements of foreign exchange contracts | — | 23 | 83 | 59 | ||||||||
| Cash used by investing activities | (4,094 | ) | (815 | ) | (4,187 | ) | (3,386 | ) | ||||
| Financing Activities | ||||||||||||
| Distributions to limited and general partners | (283 | ) | (263 | ) | (848 | ) | (764 | ) | ||||
| Net (repayments) borrowings: | ||||||||||||
| Corporate | (221 | ) | 578 | 444 | 68 | |||||||
| Subsidiary | 152 | 111 | 383 | 958 | ||||||||
| Deposit received from (repaid to) parent | 545 | (823 | ) | 545 | — | |||||||
| Net preferred units and preferred shares issued | 195 | — | 195 | 72 | ||||||||
| Net partnership units issued | 2 | 803 | 7 | 779 | ||||||||
| Net capital provided by non-controlling interest and other | 2,545 | (164 | ) | 1,587 | 726 | |||||||
| Cash from financing activities | 2,935 | 242 | 2,313 | 1,839 | ||||||||
| Cash and cash equivalents | ||||||||||||
| Change during the period | $ | (383 | ) | $ | 16 | $ | 239 | $ | 183 | |||
| Cash reclassified as held for sale | — | (16 | ) | — | (16 | ) | ||||||
| Impact of foreign exchange on cash | 15 | (38 | ) | (54 | ) | (30 | ) | |||||
| Balance, beginning of period | 1,380 | 715 | 827 | 540 | ||||||||
| Balance, end of period | $ | 1,012 | $ | 677 | $ | 1,012 | $ | 677 | ||||
Brookfield Infrastructure Partners L.P.
Statements of Funds from Operations
| For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||||
| US$ millions, unaudited | 2020 | 2019 | 2020 | 2019 | |||||||||
| Adjusted EBITDA | |||||||||||||
| Utilities | $ | 185 | $ | 190 | $ | 552 | $ | 561 | |||||
| Transport | 171 | 174 | 482 | 547 | |||||||||
| Energy | 150 | 128 | 441 | 378 | |||||||||
| Data Infrastructure | 65 | 46 | 174 | 121 | |||||||||
| Corporate | (86 | ) | (75 | ) | (219 | ) | (200 | ) | |||||
| Total | 485 | 463 | 1,430 | 1,407 | |||||||||
| Financing costs | (136 | ) | (145 | ) | (435 | ) | (439 | ) | |||||
| Other income | 16 | 20 | 61 | 58 | |||||||||
| Funds from operations (FFO) | 365 | 338 | 1,056 | 1,026 | |||||||||
| Depreciation and amortization | (239 | ) | (219 | ) | (708 | ) | (673 | ) | |||||
| Deferred taxes and other items | (121 | ) | (37 | ) | (285 | ) | (143 | ) | |||||
| Net income attributable to the partnership | $ | 5 | $ | 82 | $ | 63 | $ | 210 | |||||
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 limited partners, the general partner, and non-controlling interests – redeemable partnership units held by Brookfield, Exchange LP Units and class A shares of BIPC.
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 ended September 30 |
For the nine months ended September 30 |
||||||||||||||||||
| US$, unaudited | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
| Earnings per limited partnership unit1 | $ | (0.12 | ) | $ | 0.06 | $ | (0.22 | ) | $ | 0.13 | |||||||||
| Add back or deduct the following: | |||||||||||||||||||
| Depreciation and amortization | 0.51 | 0.48 | 1.52 | 1.50 | |||||||||||||||
| Deferred taxes and other items | 0.40 | 0.19 | 0.97 | 0.66 | |||||||||||||||
| FFO per unit2 | $ | 0.79 | $ | 0.73 | $ | 2.27 | $ | 2.29 | |||||||||||
| 1. | Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month periods ended September 30, 2020 was 295.3 million and 294.5 million, respectively (2019 – 290.9 million and 282.9 million). Earnings (loss) per limited partnership unit have been adjusted to reflect the dilutive impact of the special distribution. |
| 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, Exchange LP Units, and class A shares of BIPC for limited partnership units, as if the special distribution had been completed prior to the periods presented, for the three and nine-month periods ended September 30, 2020 was 464.9 million and 464.9 million, respectively (2019 – 460.7 million and 448.9 million). Average number of units outstanding on a fully diluted time weighted average basis, excluding the impact of the special distribution, for the three and nine-month period ended September 30, 2020, were 418.5 million and 418.4 million, respectively (2019 – 414.6 million and 404.0 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 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 | |||||
US$ millions, unaudited |
September 30, 2020 |
Dec 31, 2019 |
|||
| Assets | |||||
| Operating groups | |||||
| Utilities | $ | 1,802 | $ | 2,178 | |
| Transport | 3,578 | 3,991 | |||
| Energy | 2,953 | 3,128 | |||
| Data Infrastructure | 1,832 | 1,318 | |||
| Cash and cash equivalents | 435 | 273 | |||
| $ | 10,600 | $ | 10,888 | ||
| Liabilities | |||||
| Corporate borrowings | $ | 2,882 | $ | 2,475 | |
| Other liabilities | 1,974 | 1,284 | |||
| 4,856 | 3,759 | ||||
| Capitalization | |||||
| Partnership capital | 5,744 | 7,129 | |||
| $ | 10,600 | $ | 10,888 | ||
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 limited partners, the general partner and non-controlling interests – redeemable partnership units held by Brookfield, Exchange LP Units, and class A shares of BIPC.
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.
Brookfield Infrastructure Corporation Reports Third Quarter 2020 Results
The Board of Directors of Brookfield Infrastructure Corporation (“BIPC” or our “company”) (NYSE, TSX: BIPC) today has declared a quarterly dividend in the amount of
The Shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of Brookfield Infrastructure Partnership L.P. (“BIP” or the “Partnership”) (NYSE: BIP; TSX: BIP.UN). We believe economic equivalence is achieved through identical dividends and distributions on the Shares and BIP’s units and each Share being exchangeable at the option of the holder for one BIP unit at any time. Given the economic equivalence, we expect that the market price of the Shares will be significantly impacted by the market price of BIP’s units and the combined business performance of our company and BIP as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review BIP’s letter to unitholders, supplemental information and its other continuous disclosure filings. BIP’s letter to unitholders and supplemental information are available at www.brookfield.com/infrastructure. Copies of the Partnership’s continuous disclosure filings are available electronically on EDGAR on the SEC’s website at www.sec.gov or on SEDAR at www.sedar.com.
Results
The net income and Funds from Operations (FFO) of BIPC is fully attributed to the Partnership and the earnings of BIPC are fully captured in the Partnership’s financial statements and results.
| For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||
| US$ millions, unaudited1 | 2020 | 2019 | 2020 | 2019 | |||||||
| Net (loss) income attributable to the Partnership | $ | (301 | ) | $ | 50 | $ | (450 | ) | $ | 146 | |
| FFO2 | $ | 99 | $ | 109 | $ | 296 | $ | 322 | |||
BIPC reported net losses for the quarter of
Our business generated FFO of
Note: 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
1. Brookfield Infrastructure Corporation was established on August 30, 2019 by the Partnership. On March 30, 2020, the Partnership contributed its regulated utilities businesses in
2. 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. We also exclude from FFO dividends paid on exchangeable shares of our company that are presented as interest expense, as well as interest expense on loans payable to the Partnership which represent the Partnership’s investment in our company. A reconciliation of net income to FFO is available on page 16of this release.
Brookfield Infrastructure Corporation
Consolidated Statements of Financial Position
| As of | |||||||
US$ millions, unaudited |
September 30, 2020 |
Dec 31, 2019 |
|||||
| Assets | |||||||
| Cash and cash equivalents | $ | 250 | $ | 204 | |||
| Accounts receivable and other | 339 | 390 | |||||
| Financial assets | 44 | 29 | |||||
| Property, plant and equipment | 4,558 | 4,497 | |||||
| Intangible assets | 2,738 | 3,936 | |||||
| Goodwill | 488 | 667 | |||||
| Deferred tax asset and other | 142 | 130 | |||||
| Total assets | $ | 8,559 | $ | 9,853 | |||
| Liabilities and Equity | |||||||
| Accounts payable and other | $ | 478 | $ | 487 | |||
| Exchangeable and class B shares | 2,142 | – | |||||
| Non-recourse borrowings | 3,215 | 3,526 | |||||
| Loans payable to Brookfield Infrastructure | 1,130 | – | |||||
| Financial liabilities | 1,026 | 1,008 | |||||
| Deferred tax liabilities and other | 1,378 | 1,555 | |||||
| Equity | |||||||
| Equity in net assets attributable to the Partnership | (1,879 | ) | 1,654 | ||||
| Non-controlling interest | 1,069 | 1,623 | |||||
| Total equity | (810 | ) | 3,277 | ||||
| Total liabilities and equity | $ | 8,559 | $ | 9,853 | |||
Brookfield Infrastructure Corporation
Consolidated Statements of Operating Results
| US$ millions, unaudited | For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| Revenues | $ | 349 | $ | 406 | $ | 1,055 | $ | 1,213 | ||||||
| Direct operating costs | (60 | ) | (61 | ) | (176 | ) | (177 | ) | ||||||
| General and administrative expense | (9 | ) | (8 | ) | (23 | ) | (21 | ) | ||||||
| Depreciation and amortization expense | (69 | ) | (75 | ) | (212 | ) | (231 | ) | ||||||
| 211 | 262 | 644 | 784 | |||||||||||
| Interest expense | (59 | ) | (39 | ) | (153 | ) | (120 | ) | ||||||
| Mark-to-market on hedging items and foreign currency revaluation | (14 | ) | (3 | ) | (36 | ) | (4 | ) | ||||||
| Remeasurement of exchangeable and class B shares | (292 | ) | – | (432 | ) | – | ||||||||
| Other expense | (7 | ) | (11 | ) | (32 | ) | (32 | ) | ||||||
| (Loss) income before income tax | (161 | ) | 209 | (9 | ) | 628 | ||||||||
| Income tax expense | ||||||||||||||
| Current | (44 | ) | (44 | ) | (123 | ) | (131 | ) | ||||||
| Deferred | (17 | ) | (24 | ) | (83 | ) | (72 | ) | ||||||
| Net (loss) income | $ | (222 | ) | $ | 141 | $ | (215 | ) | $ | 425 | ||||
| Attributable to: | ||||||||||||||
| Partnership | (301 | ) | 50 | (450 | ) | 146 | ||||||||
| Non-controlling interest | 79 | 91 | 235 | 279 | ||||||||||
Brookfield Infrastructure Corporation
Consolidated Statements of Cash Flows
| US$ millions, unaudited | For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Operating Activities | ||||||||||||||||
| Net (loss) income | $ | (222 | ) | $ | 141 | $ | (215 | ) | $ | 425 | ||||||
| Adjusted for the following items: | ||||||||||||||||
| Depreciation and amortization expense | 69 | 75 | 212 | 231 | ||||||||||||
| Mark-to-market on hedging items and other | 25 | 7 | 73 | 34 | ||||||||||||
| Remeasurement of exchangeable and class B shares | 292 | – | 432 | – | ||||||||||||
| Deferred income tax expense | 17 | 24 | 83 | 72 | ||||||||||||
| Change in non-cash working capital, net | 56 | 91 | – | 95 | ||||||||||||
| Cash from operating activities | 237 | 338 | 585 | 857 | ||||||||||||
| Investing Activities | ||||||||||||||||
| Purchase of long-lived assets, net of disposals | (107 | ) | (110 | ) | (291 | ) | (308 | ) | ||||||||
| Cash used by investing activities | (107 | ) | (110 | ) | (291 | ) | (308 | ) | ||||||||
| Financing Activities | ||||||||||||||||
| Distributions to non-controlling interest | (75 | ) | (131 | ) | (263 | ) | (335 | ) | ||||||||
| Distributions to, net of contributions from, the Partnership | – | (64 | ) | (33 | ) | (136 | ) | |||||||||
| Proceeds from borrowings | 50 | 59 | 485 | 167 | ||||||||||||
| Repayments of borrowings | (3 | ) | – | (383 | ) | (41 | ) | |||||||||
| Cash used by financing activities | (28 | ) | (136 | ) | (194 | ) | (345 | ) | ||||||||
| Cash and cash equivalents | ||||||||||||||||
| Change during the period | $ | 102 | $ | 92 | $ | 100 | $ | 204 | ||||||||
| Impact of foreign exchange on cash | (13 | ) | (19 | ) | (54 | ) | (18 | ) | ||||||||
| Balance, beginning of period | 161 | 212 | 204 | 99 | ||||||||||||
| Balance, end of period | $ | 250 | $ | 285 | $ | 250 | $ | 285 | ||||||||
Brookfield Infrastructure Corporation
Statements of Funds from Operations
| For the three months ended September 30, |
For the nine months ended September 30 |
|||||||||||
| US$ millions, unaudited | 2020 | 2019 | 2020 | 2019 | ||||||||
| Adjusted EBITDA | ||||||||||||
| Utilities | $ | 135 | $ | 148 | $ | 401 | $ | 436 | ||||
| Corporate | (9 | ) | (8 | ) | (23 | ) | (21 | ) | ||||
| Total | 126 | 140 | 378 | 415 | ||||||||
| Financing costs | (17 | ) | (20 | ) | (53 | ) | (60 | ) | ||||
| Other income | (10 | ) | (11 | ) | (29 | ) | (33 | ) | ||||
| Funds from operations (FFO) | 99 | 109 | 296 | 322 | ||||||||
| Depreciation and amortization | (37 | ) | (35 | ) | (111 | ) | (109 | ) | ||||
| Deferred taxes and other items | (363 | ) | (24 | ) | (635 | ) | (67 | ) | ||||
| Net (loss) income attributable to the Partnership | $ | (301 | ) | $ | 50 | $ | (450 | ) | $ | 146 | ||
Notes:
Funds from operations in this statement is on a segmented basis and represents the operations of Brookfield Infrastructure Corporation 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 shareholders includes net income attributable to the Partnership prior to and after the special distribution.
The Statements of Funds from Operations above are prepared on a basis that differs from net income as presented in Brookfield Infrastructure Corporation’s Consolidated Statements of Operating Results on page 14 of this release, which is prepared in accordance with IFRS. Management uses FFO as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing our company’s results.
Source: Brookfield Infrastructure Partners LP; Brookfield Infrastructure Corporation
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