Brookfield Renewable Announces 2012 Year-End Results

Brookfield Renewable Announces 2012 Year-End Results 
HAMILTON, BERMUDA -- (Marketwire) -- 02/07/13 -- Brookfield Renewable
Energy Partners L.P. (TSX:BEP.UN) ("Brookfield Renewable") - 


 
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Investors, analysts and other interested parties can access Brookfield      
Renewable's 2012 fourth quarter results as well as the Letter to            
Shareholders and Supplemental Results on the web site under the Investor    
Relations section at www.brookfieldrenewable.com.                           
                                                                            
The 2012 fourth quarter results conference call can be accessed via webcast 
on February 7, 2013 at 9:00 a.m. ET at www.brookfieldrenewable.com or via   
teleconference at 1-800-319-4610 toll free in North America. For overseas  
 
calls please dial 1-604-638-5340, at approximately 8:50 a.m. ET. The        
teleconference taped rebroadcast can be accessed at 1-800-319-6413          
(password: 1557#) until March 7, 2013.                                      
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All amounts in U.S. dollars unless stated otherwise 
Brookfield Renewable Energy Partners L.P. today reported its results
for the quarter and year ended December 31, 2012. 
"Brookfield Renewable experienced a very strong year in 2012," said
Richard Legault, President and CEO. "While our short-term financial
results were impacted by unfavourable hydrology conditions, our
successes were numerous and we have solidified our position as a
global leader in renewable power. Together with our institutional
partners, we announced the acquisition of nearly 1,000 MW of
renewable power assets, including two large scale hydroelectric
portfolios expected to add significant value in the coming years. We
meaningfully enhanced liquidity and reduced borrowing costs through
strategic financing activity."  
"On the strength of these initiatives and our prospects for 2013, we
recently announced a distribution increase - the second since our
launch in late 2011. We expect to benefit this year from the
continued progress of our growth plans, the completion of development
projects, as well as strategic initiatives to further enhance our
capital structure and cash flow profile," added Mr. Legault.  


 
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                                            Three Months Ended December 31  
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Unaudited                                                          Pro forma
US$ millions                                           Pro forma       Basis
(except per unit amounts)                                  Basis       (LTA)
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                                                2012     2011(1)        2012
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Generation (GWh)                               4,053       3,848       4,606
Revenues                                 $       317 $       295 $       363
Adjusted EBITDA(2)                       $       195 $       178 $       236
Funds from operations (FFO)(2)           $        74 $        52 $       113
FFO per unit(3)                          $      0.28 $      0.20 $      0.43
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                                                Year Ended December 31      
                                        ------------------------------------
                                                                            
Unaudited                                                          Pro forma
US$ millions                                           Pro forma       Basis
(except per unit amounts)                                  Basis       (LTA)
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                                                2012     2011(1)        2012
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Generation (GWh)                              15,942      15,877      18,202
Revenues                                 $     1,309 $     1,309 $     1,520
Adjusted EBITDA(2)                       $       852 $       926 $     1,053
Funds from operations (FFO)(2)           $       347 $       433 $       532
FFO per unit(3)                          $      1.32 $      1.65 $      2.03
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(1) Pro forma results reflect new contracts and contract amendments, along  
    with tax implications of the combination, as if each had occurred as of 
    January 1, 2011.                                                        
(2) Non-IFRS measures. Refer to "Cautionary Statement Regarding Use of Non- 
    IFRS Measures".                                                         
(3) Average redeemable/exchangeable partnership units held by Brookfield    
    Asset Management and LP units outstanding during the period totaled     
    262.5 million (2011: 262.5 million).                                    

 
Review of Operations 
Generation for the fourth quarter totaled 4,053 GWh, an increase of
205 GWh or 5% as compared to the same period of the prior year. This
was primarily due to increased generation from our Canadian
hydroelectric portfolio and contributions from our wind facilities
acquired or commissioned during the year. 
Generation from our hydroelectric portfolio totaled 3,325 GWh, a
decrease of 66 GWh as a result of lower inflows from the drier than
normal conditions in New York and the mid-western United States. This
was partly offset by additional generation from a recently acquired
portfolio in Tennessee and North Carolina and higher generation in
eastern Canada. Generation from our hydroelectric portfolio in Brazil
was slightly higher due to new facilities acquired or commissioned
during the year. 
Generation from our wind portfolio totaled 483 GWh, an increase of
228 GWh, as a result of the recently acquired or commissioned
facilities in California and New England, and from an Ontario
facility commissioned in 2011. Results were below long-term average
for the current period primarily due to lower wind conditions. 
For the fourth quarter of 2012, funds from operations were $74
million ($0.28 per unit) as compared with $52 million ($0.20 per
unit) in 2011 on a pro forma basis.  
For the full year, generation was 15,942 GWh as compared to 15,877
GWh in 2011. Long-term average for 2012 would have resulted in
generation of 18,202 GWh, as the actual results reflect the
below-average hydrology in the second and third quarters of 2012.
Funds from operations were $347 million ($1.32 per unit) as compared
with $433 million ($1.65 per unit) in 2011 on a pro forma basis.  
The tables below summarize generation by segment and region: 


 
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                             Generation (GWh)         Variance of Results   
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For the three months     Actual    Actual        LTA Actual vs.  Actual vs. 
 ended December 31         2012      2011       2012        LTA  Prior Year 
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Hydroelectric                                                               
 generation                                                                 
  United States           1,447     1,756      1,869       (422)       (309)
  Canada                    954       756      1,175       (221)        198 
  Brazil(1)                 924       879        924          -          45 
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                          3,325     3,391      3,968       (643)        (66)
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Wind Energy                                                                 
  Canada                    325       255        343        (18)         70 
  United States             158         -        191        (33)        158 
Other                       245       202        104        141  
        43 
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Total generation(2)       4,053     3,848      4,606       (553)        205 
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(1) In Brazil, assured generation levels are used as a proxy for long-term  
    average.                                                                
(2) Includes 100% of generation from equity-accounted investments.          
                                                                            
                                                                            
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                             Generation (GWh)         Variance of Results   
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For
 the year ended       Actual    Actual        LTA Actual vs.  Actual vs. 
 December 31               2012      2011       2012        LTA  Prior year 
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Hydroelectric                                                               
 generation                                                                 
  United States           5,913     7,150      7,205     (1,292)     (1,237)
  Canada                  3,953     4,056      4,972     (1,019)       (103)
  Brazil(1)               3,470     3,307      3,470          -         163 
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                         13,336    14,513     15,647     (2,319)     (1,177)
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Wind Energy                                                                 
  Canada                  1,090       662      1,197       (107)        428 
  United States             619         -        837       (218)        619 
Other                       897       702        521        376         195 
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Total generation(2)      15,942    15,877     18,202     (2,260)         65 
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 (1)In Brazil, assured generation levels are used as a proxy for long-term  
    average.                                                                
(2) Includes 100% of generation from equity-accounted investments.          

 
Growth Initiatives  
During the fourth quarter, we announced an agreement to acquire, with
our institutional partners, a 351 MW portfolio of 19 hydroelectric
generating stations in the northeastern United States for a total
enterprise value of $760 million. We will own an approximate 50%
interest, and will manage and integrate these assets into our North
American operating platform. The transaction is expected to close in
the first quarter of 2013. We also completed the previously announced
acquisition of a 378 MW hydroelectric generating portfolio consisting
of four generating stations located in Tennessee and North Carolina.
On a combined basis these portfolios are expected to add 3 million
MWh of generation annually. 
In Brazil, we completed the construction of a 19 MW hydroelectric
project facility which was commissioned during the quarter. Our 29 MW
hydroelectric project is progressing on scope, and remains scheduled
for completion in early 2013. The 45 MW Kokish River hydroelectric
project in British Columbia, remains on scope, schedule and budget
for its planned completion in mid-2014.  
Financial Position and Liquidity  
Total liquidity as at the date of this release is approximately $850
million, consisting of cash and cash equivalents and undrawn amounts
from our revolving credit facilities. Liquidity increased from
September 30, 2012 due to preferred share issuances completed in
October 2012 and January 2013 totaling C$425 million.  
During the fourth quarter, we also completed a C$175 million project
financing for the Kokish River hydroelectric project. 
Distribution Declaration 
As previously announced, the Board of Directors has declared a
quarterly distribution in the amount of US$0.3625 per unit, payable
on April 30, 2013 to unitholders of record as at the close of
business on March 31, 2013. This distribution represents an increase
from prior levels to $1.45 on an annualized basis and is consistent
with our distribution target in the range of 60-70% of FFO and target
growth in the distribution of 3% to 5% annually.  
The regular quarterly dividends on the preferred shares issued by
Brookfield Renewable Power Preferred Equity Inc. have also been
declared. 
Information on Brookfield Renewable's distributions and preferred
share dividends can be found on its website at
www.brookfieldrenewable.com under Investor Relations.  
Distribution Reinvestment Plan 
Brookfield Renewable maintains a Distribution Reinvestment Plan
("DRIP") which allows holders of its limited partnership units who
are resident in Canada to acquire additional units by reinvesting all
or a portion of their cash distributions without paying commissions.
Information on the DRIP, including details on how to enroll, is
available on Brookfield Renewable's website at
www.brookfieldrenewable.com/DRIP.  
Additional Information 
The Letter to Shareholders and the Supplemental Results for the
period ended December 31, 2012 contain further information on
Brookfield Renewable's strategy, operations and financial results.
Shareholders are encouraged to read these documents, which are
available at www.brookfieldrenewable.com. 
Brookfield Renewable Energy Partners (TSX:BEP.UN) operates one of the
largest publicly-traded, pure-play renewable power platforms
globally. Its portfolio is primarily hydroelectric and totals
approximately 5,300 megawatts of installed capacity. Diversified
across 69 river systems and 11 power markets in the United States,
Canada and Brazil, the portfolio generates enough electricity from
renewable resources to power more than two million homes on average
each year. With a predominantly contracted portfolio of high-quality
assets and strong growth prospects, the business is positioned to
generate stable, long-term cash flows supporting regular and growing
cash distributions to shareholders. For more information, please
visit www.brookfieldrenewable.com. 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 
This news release contains forward-looking statements and
information, within the meaning of Canadian securities laws, and
"forward-looking statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, "safe harbor" of the
United States Private Securities Litigation Reform Act of 1995 and in
any applicable Canadian securities regulations, concerning the
business and operations of Brookfield Renewable. Forward-looking
statements may include estimates, plans, expectations, opinions,
forecasts, projections, guidance or other statements that are not
statements of fact. Forward-looking statements in this news release
include statements regarding the quality of Brookfield Renewable's
assets and the resiliency of the cash flow they will generate,
Brookfield Renewable's anticipated financial performance, future
commissioning of assets, expected completion of acquisitions, listing
on the NYSE, future energy prices and demand for electricity, the
future growth prospects and distribution profile of Brookfield
Renewable, and Brookfield Renewable's access to capital.
Forward-looking statements can be identified by the use of words such
as "plans", "expects", "scheduled", "estimates", "intends",
"anticipates", "believes", "potentially", "tends", "continue",
"attempts", "likely", "primarily", "approximately", "endeavours",
"pursues", "strives", "seeks", "targets" or variations of such words
and phrases, or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Although we believe that our anticipated future results,
performance or achievements expressed or implied by the
forward-looking statements and information in this news release are
based upon reasonable assumptions and expectations, we cannot assure
you that such expectations will prove to have been correct. You
should not place undue reliance on forward-looking statements and
information as such statements and information involve known and
unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements to differ materially from
anticipated future results, performance or achievement expressed or
implied by such forward-looking statements and information. 
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include,
but are not limited to: our limited operating history; the risk that
we may be deemed an "investment company" under the Investment Company
Act; the fact that we are not subject to the same disclosure
requirements as a U.S. domestic issuer; the risk that the
effectiveness of our internal controls over financial reporting could
have a material effect on our business; changes to hydrology at our
hydroelectric stations or in wind conditions at our wind energy
facilities; the risk that counterparties to our contracts do not
fulfill their obligations, and as our contracts expire, we may not be
able to replace them with agreements on similar terms; increases in
water rental costs (or similar fees) or changes to the regulation of
water supply; volatility in supply and demand in the energy market;
our operations being highly regulated and exposed to increased
regulation which could result in additional costs; the risk that our
concessions and licenses will not be renewed; increases in the cost
of operating our plants; our failure to comply with conditions in, or
our inability to maintain, governmental permits; equipment failure;
dam failures and the costs of repairing such failures; exposure to
force majeure events; exposure to uninsurable losses; adverse changes
in currency exchange rates; availability and access to
interconnection facilities and transmission systems; occupational,
health, safety and environmental risks; disputes and litigation;
losses resulting from fraud, bribery, corruption, other illegal acts,
inadequate or failed internal processes or systems, or from external
events; general industry risks relating to the North American and
Brazilian power market sectors; advances in technology that impair or
eliminate the competitive advantage of our projects; 
newly developed technologies in which we invest not performing as
anticipated; labour disruptions and economically unfavourable
collective bargaining agreements; our inability to finance our
operations due to the status of the capital markets; the operating
and financial restrictions imposed on us by our loan, debt and
security agreements; changes in our credit ratings; changes to
government regulations that provide incentives for renewable energy;
our inability to identify and complete sufficient investment
opportunities; the growth of our portfolio; our inability to develop
existing sites or find new sites suitable for the development of
greenfield projects; risks associated with the development of our
generating facilities and the various types of arrangements we enter
into with communities and joint venture partners; Brookfield Asset
Management's election not to source acquisition opportunities for us
and our lack of access to all renewable power acquisitions that
Brookfield Asset Management identifies; our lack of control over all
our operations conducted through joint ventures, partnerships and
consortium arrangements; our ability to issue equity or debt for
future acquisitions and developments being dependent on capital
markets; foreign laws or regulation to which we become subject as a
result of future acquisitions in new markets; the departure of some
or all of Brookfield Asset Management's key professionals. 
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. The forward-looking
statements represent our views as of the date of this news release
and should not be relied upon as representing our views as of any
date subsequent to February 7, 2013, the date of this news release.
While we anticipate that subsequent events and developments may cause
our views to change, we disclaim any obligation to update the
forward-looking statements, other than as required by applicable law.
For further information on these known and unknown risks, please see
"Risk Factors" included in our Annual Information Form. 
CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES 
This news release contains references to Adjusted EBITDA, funds from
operations and net asset value which are not generally accepted
accounting measures under IFRS and therefore may differ from
definitions of Adjusted EBITDA, funds from operations and net asset
value used by other entities. We believe that Adjusted EBITDA, funds
from operations and net asset value are useful supplemental measures
that may assist investors in assessing the financial performance and
the cash anticipated to be generated by our operating portfolio.
Neither Adjusted EBITDA, funds from operations nor net asset value
should be considered as the sole measure of our performance and
should not be considered in isolation from, or as a substitute for,
analysis of our financial statements prepared in accordance with
IFRS. As a result of the Combination, we have presented these
measurements on a pro forma basis.  
References to Brookfield Renewable are to Brookfield Renewable Energy
Partners L.P. together with its subsidiary and operating entities
unless the context reflects otherwise. 


 
1   The unaudited pro forma financial results have been prepared based on   
    currently available information and assumptions deemed appropriate by   
    management. They are provided for information purposes only and may not 
    be indicative of the results that would have occurred had the           
    combination been effected on the date indicated.                        
2   Adjusted EBITDA means revenues less direct costs (including energy      
    marketing costs), plus our share of cash earnings from equity-accounted 
    investments and other income, before interest, current income taxes,    
    depreciation, amortization and management service costs and the cash    
    portion of non-controlling interests. Funds from operations is defined  
    as Adjusted EBITDA less interest, current income taxes and management   
    service costs, which is then adjusted for the cash portion of non-      
    controlling interests. A reconciliation of net income to funds from     
    operations is available in Brookfield Renewable's Supplemental Results  
    for the three and twelve months ended December 31, 2012 at              
    www.brookfieldrenewable.com.                                            
3   Average number of redeemable/exchangeable partnership units held by     
    Brookfield Asset Management and LP units outstanding on a fully diluted,
    weighted average basis totaled 262.5 million (2011 - 262.5 million).    
                                                                            
                                                                            
                              Net Asset Value                               
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                                    Total                Per Share(1)       
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(MILLIONS, EXCEPT AS NOTED)       2012        2011         2012        2011 
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Property, plant and                                                         
 equipment, at fair value                                                   
  Hydroelectric(2)         $    13,005 $    12,138  $     49.53 $     46.24 
  Wind energy                    2,244       1,400         8.55        5.33 
  Other                             71          86         0.27        0.33 
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                                15,320      13,624        58.35       51.90 
Development assets                 382         378         1.45        1.44 
Equity-accounted                                                            
 investments                       344         405         1.31        1.54 
Working capital and other,                                                  
 net                               180         380         0.69        1.45 
Long-term debt and credit                                                   
 facilities                     (6,119)     (5,519)      (23.31)     (21.02)
Participating non-                                                          
 controlling interests - in                                                 
 operating subsidiaries         (1,028)       (629)       (3.92)      (2.40)
Preferred equity                  (500)       (241)       (1.90)      (0.92)
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Net asset value(3)         $     8,579 $     8,398  $     32.67 $     31.99 
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 (1)Net asset value per share is based on the average                       
    Redeemable/Exchangeable partnership units held by Brookfield Asset      
    Management and LP Units outstanding during the period which totaled     
    262.5 million (2011: 262.5 million).                                    
(2) Includes $44 million of intangible assets (2011: $57 million).          
(3) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-  
    IFRS Accounting Measures".                                              
                                                                            
                                                                            
                                                                            
                      EBITDA and Funds from Operations                      
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                              Three Months Ended          Year Ended        
                                  December 31             December 31       
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                                                Pro                     Pro 
                                              forma                   forma 
                                           Basis(1)                Basis(1) 
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(MILLIONS, EXCEPT AS NOTED)        2012        2011        2012        2011 
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Generation (GWh)                  4,053       3,848      15,942      15,877 
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Revenues                     $      317  $      295  $    1,309  $    1,309 
Other income                          4           2          16          19 
Share of cash earnings from                                                 
 equity-accounted                                                           
 investments                          2           4          13          23 
Direct operating costs             (128)       (123)       (486)       (425)
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Adjusted EBITDA(2)                  195         178         852         926 
Interest expense -                                                          
 borrowings                         (98)       (107)       (411)       (411)
Management service costs            (11)         (7)        (36)        (22)
Current income taxes                 (2)         (1)        (14)         (8)
Cash portion of non-                                                        
 controlling interests - in                                                 
 operating entities                 (10)        (11)        (44)        (52)
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Funds from operations(2)     $       74  $       52  $      347  $      433 
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(1) Pro forma results reflect new contracts and contract amendments, along  
    with the tax implications of the Combination, as if each had occurred as
    of January 1, 2011.                                                     
(2) Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-  
    IFRS Accounting Measures".                                              

Contacts:
Brookfield Renewable Energy Partners L.P.
Zev Korman
Director, Investor Relations
416-359-1955
zev.korman@brookfield.com
www.brookfieldrenewable.com