Brookfield Renewable (BEPC) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record FFO of $339 million ($0.51 per unit), up 9% year-over-year, with revenue rising to $1.48 billion and strong growth from M&A, organic expansion, and a diversified global portfolio.

• Deployed or committed nearly $9 billion in capital globally, expanding the development pipeline to over 230 GW, with 65 GW in advanced stages.

• Commissioned approximately 1.4 GW of new capacity in Q2, with plans to bring on 7 GW in 2024 and annual commissioning capacity expected to grow to 10 GW.

• Announced the proposed $6.7 billion acquisition of Neoen, adding significant operating and development assets in France, Australia, and the Nordics.

• Secured a framework agreement with Microsoft to deliver over 10.5 GW of new renewable capacity between 2026 and 2030.

Financial highlights

• FFO reached $339 million, up 9% year-over-year, with normalized FFO at $408 million ($0.62 per unit); revenue for Q2 was $1.48 billion.

• Asset sales generated over $400 million in proceeds ($250 million net), with a 2x multiple on invested capital; expecting $3 billion in total asset sale proceeds for 2024.

• Proportionate Adjusted EBITDA for Q2 2024 was $629 million, up from $586 million in Q2 2023.

• Available liquidity stood at $4.4 billion, with a best-in-class balance sheet and no material near-term maturities.

• Debt to capitalization: 14% corporate, 40% consolidated; 90% of debt is non-recourse, with average debt term extended beyond 12 years.

Outlook and guidance

• On track to deliver double-digit FFO per unit growth for 2024, targeting 12%-15% long-term total returns and 5–9% annual distribution growth.

• Plans to commission approximately 7 GW of new capacity in 2024, adding ~$90 million in annual incremental FFO, with pipeline exceeding 230 GW and 65 GW advanced.

• Asset recycling and robust demand for high-quality assets expected to support continued capital deployment and monetization.