Brookfield Renewable Corporation (BEPC): history, ownership, mission, how it works & makes money

A Brief History of Brookfield Renewable Corporation

Company Overview

Brookfield Renewable Corporation (BEPC) is a leading global renewable energy company with a diversified portfolio of hydroelectric, wind, solar, and other renewable power assets. As of March 31, 2024, the total assets of Brookfield Renewable Corporation were valued at $75.11 billion, with total liabilities amounting to $61.08 billion, resulting in an equity of $14.03 billion.

Financial Performance

For the first quarter of 2024, Brookfield Renewable reported revenues of $1.125 billion, compared to $1.066 billion in the same period of 2023. The net income attributable to the partnership was $491 million, a significant recovery from a net loss of $920 million in Q1 2023.

Segment Performance

The company’s hydroelectric segment generated a Funds From Operations (FFO) of $193 million, driven by strong resources across the fleet, achieving generation at 105% of the long-term average. The wind and solar segments together contributed $148 million in FFO.

Capital Structure and Liquidity

Brookfield Renewable maintained a strong capital structure, executing approximately $6 billion in financings, which left the company with $4.4 billion in available liquidity. The corporate borrowings as of March 31, 2024, stood at $3.545 billion, reflecting a manageable debt profile in light of its substantial asset base.

Market Position and Strategic Initiatives

In 2024, Brookfield Renewable entered a landmark agreement with Microsoft to deliver over 10.5 gigawatts of renewable energy capacity, enhancing its position as a key provider for data centers. This partnership is expected to significantly contribute to future revenues, reflecting the growing demand for renewable energy in the technology sector.

Dividend Distribution

The Board of Directors declared a quarterly dividend of $0.355 per Class A exchangeable subordinate voting share, payable on June 28, 2024. This reflects the company's commitment to returning value to its shareholders while maintaining growth in its renewable energy portfolio.

Future Outlook

Brookfield Renewable is poised for continued growth, targeting a 10%+ increase in FFO per unit for the fiscal year. The company aims to bring on approximately 7,000 megawatts of new renewable capacity. The strategic focus on partnerships and asset recycling is expected to yield substantial returns and further strengthen its market position in the renewable energy sector.

A Who Owns Brookfield Renewable Corporation (BEPC)

Ownership Structure

Brookfield Renewable Corporation (BEPC) has a complex ownership structure primarily involving Brookfield Asset Management Inc. and various institutional investors. As of 2024, Brookfield Asset Management holds a significant stake in BEPC, which comprises a substantial portion of the company’s equity.

Key Shareholders

The following table outlines the major shareholders of Brookfield Renewable Corporation as of 2024:

Market Capitalization

As of mid-2024, Brookfield Renewable Corporation has a market capitalization of approximately $12 billion, reflecting its position as a significant player in the renewable energy sector.

Stock Performance

BEPC's stock has shown resilience with a year-to-date return of approximately 15%, outperforming many of its peers in the renewable energy space. The stock is traded on both the NYSE and TSX under the ticker symbol BEPC.

Recent Financial Highlights

For the first quarter of 2024, Brookfield Renewable reported:

• Funds From Operations (FFO) of $296 million, an increase of 8% year-over-year.
• Net income attributable to unitholders of $491 million, compared to a net loss of $1.065 billion in the same quarter of the previous year.
• Quarterly dividend of $0.355 per share, payable on June 28, 2024.

Debt and Liquidity

Brookfield Renewable maintains a robust balance sheet with $4.4 billion in available liquidity as of March 31, 2024. The company executed approximately $6 billion in financings, reflecting strong market conditions for renewable energy investments.

Future Outlook

The company is positioned for growth, with expectations to bring on approximately 7,000 megawatts of new renewable capacity in 2024, supported by strategic partnerships, including a significant agreement with Microsoft to deliver over 10.5 gigawatts of renewable energy capacity between 2026 and 2030.

Brookfield Renewable Corporation (BEPC) Mission Statement

Company Overview

Brookfield Renewable Corporation (BEPC) is a leading global renewable energy company, focused on delivering sustainable energy solutions. As of 2024, the company’s mission is to provide clean, renewable energy to support the digital economy and combat climate change while generating strong returns for its investors.

Mission Statement

The mission statement of Brookfield Renewable Corporation emphasizes the commitment to being a key enabler of the transition to a sustainable energy future. The company aims to:

• Develop and operate renewable energy assets across hydro, wind, and solar sectors.
• Drive innovation and sustainable practices within the renewable energy sector.
• Engage in partnerships that expand access to renewable energy, particularly for technology companies.
• Deliver long-term value to shareholders through disciplined capital allocation and operational excellence.

Financial Performance

In the first quarter of 2024, Brookfield Renewable Corporation reported the following financial highlights:

Strategic Partnerships

As part of its mission, Brookfield Renewable has formed significant partnerships, including a landmark agreement with Microsoft to deliver over 10,500 megawatts of renewable energy capacity between 2026 and 2030. This partnership is expected to facilitate the growth of Microsoft’s AI-powered cloud services.

Growth Initiatives

Brookfield Renewable is focused on expanding its renewable energy capacity, with expectations to bring on approximately 7,000 megawatts of new renewable capacity in 2024. The company has also targeted asset recycling activities to generate $3 billion in proceeds, netting $1.3 billion to Brookfield Renewable, which will be reinvested to enhance its operational capacity.

Environmental Commitment

Brookfield Renewable is committed to sustainability and reducing carbon emissions. The company’s operations are aligned with global decarbonization targets and it aims to be a leader in providing renewable energy solutions that are essential for a sustainable future.

Liquidity Position

As of March 31, 2024, Brookfield Renewable reported available liquidity of over $4.4 billion, positioning the company well to capitalize on growth opportunities in the renewable energy sector.

Dividend Policy

The Board of Directors has declared a quarterly dividend of $0.355 per share, payable on June 28, 2024, to shareholders of record as of May 31, 2024. This reflects the company’s commitment to providing sustainable distributions to its investors.

How Brookfield Renewable Corporation (BEPC) Works

Company Overview

Brookfield Renewable Corporation (BEPC) focuses on renewable energy generation, primarily through hydroelectric, wind, and solar power assets. As of 2024, it operates a diversified portfolio that spans several countries, enhancing its cash flow stability and growth potential.

Financial Performance

For the three months ended March 31, 2024, BEPC reported:

• Net income attributable to the partnership: $491 million
• Funds From Operations (FFO): $219 million
• Revenues: $1,125 million
• Direct operating costs: $484 million
• Interest expense: $363 million
• Net loss attributable to Unitholders: $120 million

Key Financial Metrics

The following table summarizes key financial metrics for Brookfield Renewable Corporation for Q1 2024:

Assets and Liabilities

As of March 31, 2024, Brookfield Renewable Corporation's consolidated statements of financial position showed:

• Total Assets: $44,240 million
• Total Liabilities: $28,125 million
• Total Equity: $16,115 million

Operational Highlights

During the first quarter of 2024, BEPC achieved several operational milestones:

• Secured contracts to deliver approximately 5,200 GWh of additional renewable energy generation.
• Advanced development activities expected to add around 7,000 megawatts of new renewable capacity in 2024.
• Executed asset recycling activities projected to generate $3 billion in proceeds.
• Strengthened the balance sheet with approximately $6 billion in financings.

Distribution Information

Brookfield Renewable Corporation declared a quarterly dividend of $0.355 per share, payable on June 28, 2024, to shareholders of record as of May 31, 2024. The company targets an average annual distribution increase of 5% to 9%.

Market Position and Future Outlook

Brookfield Renewable is positioned as a leading clean power provider amid growing global demand for renewable energy driven by trends in digitalization and cloud computing. The partnership with Microsoft to provide renewable energy capacity further enhances its strategic positioning in the market.

The company continues to leverage its extensive pipeline of advanced stage projects and strong access to capital to capitalize on the increasing need for sustainable energy solutions in the digital economy.

How Brookfield Renewable Corporation (BEPC) Makes Money

Revenue Streams

Brookfield Renewable Corporation generates revenue primarily through its diversified portfolio of renewable energy assets, which includes hydroelectric, wind, solar, and distributed energy resources. For the three months ended March 31, 2024, the company reported total revenues of $1,125 million, up from $1,066 million in the same period of 2023.

Funds From Operations (FFO)

Brookfield Renewable reported Funds From Operations (FFO) of $296 million for the first quarter of 2024, an increase of 8% compared to $275 million in the prior year. The FFO per unit was $0.45 in Q1 2024 versus $0.43 in Q1 2023.

Operational Performance

The company's operational resilience is bolstered by inflation-linked power purchase agreements and strong pricing in the power markets. The hydroelectric segment generated FFO of $193 million in Q1 2024, while wind and solar segments combined generated $148 million.

Partnerships and Contracts

In May 2024, Brookfield Renewable signed a significant agreement with Microsoft to deliver over 10,500 megawatts of renewable energy capacity between 2026 and 2030. This agreement is expected to enhance Brookfield's revenue by providing stable long-term cash flows.

Capital Structure and Financing

As of March 31, 2024, Brookfield Renewable had total assets of $44,240 million and total liabilities of $38,145 million, resulting in a net equity of $6,095 million. The company maintains a strong liquidity position with $4.4 billion available for growth investments.

Growth and Development Activities

Brookfield Renewable is actively engaged in expanding its operational capacity. The company is targeting to bring on approximately 7,000 megawatts of new renewable capacity in 2024, which will further enhance its revenue-generating capabilities.

Distribution Strategy

Brookfield Renewable has declared a quarterly dividend of $0.355 per share, payable on June 28, 2024. The company aims for sustainable distributions with annual increases targeted between 5% and 9%.

Market Context and Future Outlook

The renewable energy market is experiencing robust demand, particularly driven by trends in cloud computing and digitalization. Brookfield Renewable is positioned as a key player to meet this demand, leveraging its extensive portfolio and strategic partnerships to secure long-term contracts and enhance its revenue streams.