• Funds From Operations (FFO): $315 million or $0.48 per unit.
• FFO Per Unit Growth: Adjusted FFO per unit increased by 15% year-over-year; all-in basis increased 7% per unit year-over-year.
• Contracted Cash Flows: 90% contracted for approximately 14 years with 70% of revenue indexed to inflation.
• Hydroelectric Segment: Strong demand with 6,000 gigawatt hours available for recontracting over the next five years.
• New Capacity Commissioned: Approximately 800 megawatts of renewable energy capacity in the quarter.
• Development Pipeline: Expect to bring approximately 8 gigawatts online in 2025.
• Acquisitions: Committed or deployed $4.6 billion, including the privatization of Neoen and acquisition of National Grid Renewables.
• Liquidity: Ended the quarter with $4.5 billion of available liquidity.
• Debt Issuance: Issued CAD450 million of 10-year notes at the lowest coupon in the past five years.
• Unit Buyback: Approximately $35 million worth of units repurchased year-to-date.

• Warning! GuruFocus has detected 7 Warning Signs with BEP.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Brookfield Renewable Partners LP (NYSE:BEP) reported a 15% year-over-year increase in FFO per unit, showcasing strong financial performance.
• The company successfully commissioned approximately 800 megawatts of renewable energy capacity in the quarter, with plans to bring approximately 8 gigawatts online in 2025.
• BEP has a diversified global platform with 45,000 megawatts of operating capacity, generating resilient and inflation-linked cash flows.
• The company has secured contracts to deliver an incremental 4,500 gigawatt hours per year of generation, indicating strong commercial progress.
• BEP's acquisition of Neoen and National Grid Renewables is expected to drive value creation through accelerated development activities and asset rotation programs.

Negative Points

• The recently announced tariffs on goods have created volatility in the market, potentially impacting development project returns and cash flows.
• There is an elevated level of uncertainty in the public markets for the renewable sector, affecting investor sentiment.
• Permitting delays in the US, particularly for projects requiring federal permits, could impact the pace of development.
• Despite strong fundamentals, lower public market valuations for renewable energy companies present challenges.
• The company faces potential risks from cost inflation and tariffs, although it claims to have limited exposure.

Q & A Highlights

Q: Can you discuss the impact of tariffs and permitting delays on your US projects? A: Connor Teskey, CEO, explained that the tariff impact is not material due to their procurement strategies. Permitting delays are minimal as most projects are not on federal lands, and any delays are not expected to significantly impact growth plans.

Q: Is Microsoft the only company with a framework agreement, and are there plans for more such agreements? A: Connor Teskey confirmed Microsoft is their largest framework agreement, and there is significant interest from other corporates. They expect to execute similar agreements in 2025.

Q: How is the Asia Pacific development pipeline growing, and what are the main drivers? A: The growth is mainly due to the Neoen acquisition, with significant operations in Australia focusing on wind and batteries. The Indian market is also performing well, contributing to pipeline growth.

Q: What percentage of your US solar projects have secured equipment costs, and how are you managing tariff risks? A: Connor Teskey stated that the vast majority of their US solar pipeline has secured equipment costs, minimizing exposure to recent tariff announcements. About 60% of their advanced-stage capacity in North America is US solar.

Q: How are you approaching hydro capacity recontracting given increased demand? A: Connor Teskey highlighted the opportunity to recontract at higher rates, which could lead to low-cost financing opportunities. They are flexible in their approach, considering both individual and grouped contracts based on market conditions.

Q: Are you seeing more opportunities to acquire platforms due to weak public valuations? A: Connor Teskey noted that most opportunities are in North America, driven by market volatility and the capital-intensive nature of renewable development. They are exploring both take-private and carve-out opportunities.

Q: How are you managing tariff risks in your contracts with suppliers and offtakers? A: Hannah Labuschagne explained that contracts often include clauses to pass through tariff changes, and strong supplier relationships help mitigate risks. They have seen quick resolutions to any renegotiations.

Q: What are your integration priorities for the Neoen acquisition? A: Connor Teskey outlined plans to accelerate development activities, integrate Neoen into Brookfield's broader platform for scale benefits, and monetize mature assets to reinvest in growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.