Brookfield Renewable Reports Strong First Quarter Results

FOR: Brookfield Renewable Energy Partners L.P. 
MAY 2, 2014 
Brookfield Renewable Reports Strong First Quarter Results 
HAMILTON, BERMUDA--(Marketwired - May 2, 2014) -  
Investors, analysts and other interested parties can access Brookfield
Renewable's 2014 first quarter results as well as the Letter to
Shareholders and Supplemental Results on the web site under the Investor
Relations section at 
The 2014 first quarter results conference call can be accessed via webcast on
May 2, 2014 at 9:00 a.m. ET at 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
June 2, 2014. 
All amounts in U.S. dollars unless stated otherwise 
Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN)(NYSE: BEP)
("Brookfield Renewable") today announced strong results for the three
months ended March 31, 2014. 
"Our first quarter results reflect the strong performance from our
portfolio and provide an early indication of the strategic impact of
positioning the business for improving market fundamentals and expanding into
new markets," said Richard Legault, President and CEO. "We expect
these initiatives to grow and diversify our revenue streams and to support the
long-term growth of cash flows and distributions on a per-unit basis." 
Financial Results 
Three months ended
US$ millions (except per unit or otherwise noted)                   March 31
2014      2013
Generation (GWh)                                                            
- Total                                                      5,711     5,535
- Brookfield Renewable's share                               4,756     4,634
Revenues                                                 $     480 $     437
Adjusted EBITDA(1)                                       $     360 $     319
Funds from operations (FFO)(1)                           $     185 $     162
FFO per unit(1)(2)                                       $    0.70 $    0.61
(1)  Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non-  
IFRS Measures".                                                        
(2)  For the three months ended March 31, 2014 weighted average LP units,    
Redeemable/Exchangeable units and General partnership units totaled     
265.3 million (2013: 265.2 million).                                    
Review of Operations 
For the first quarter, adjusted EBITDA achieved a quarterly record of $360
million, an increase of 13% compared to $319 million in Q1 2013. Funds from
operations (FFO) increased 14% to $185 million or $0.70 per unit as compared
with $162 million or $0.61 per unit in the prior year. Results benefited from
higher electricity prices in the northeastern United States and Brazil, which
added $35 million to FFO in the quarter.  
Total generation for the three months ended March 31, 2014 was 5,711 GWh, an
increase of 176 GWh from the same period in the prior year.  
The hydroelectric portfolio generated 5,001 GWh, in-line with the long-term
average (LTA) of 4,916 GWh and an increase of 222 GWh as compared to the first
quarter of 2013. Generation from existing hydroelectric assets was 4,711 GWh
compared to 4,779 GWh for the prior year. Portfolios acquired in Maine during
the quarter and the first quarter of 2013 contributed another 231 GWh of
generation, and a facility commissioned in Brazil in the first quarter of 2013
contributed an additional 59 GWh. 
The wind portfolio generated 610 GWh as compared to LTA of 635 GWh, and an
increase of 71 GWh compared to the first quarter of 2013. Generation increased
over the prior year due to improved wind conditions and an incremental 27 GWh
from a full quarter's contribution from facilities acquired in California
in the first quarter of 2013. 
The tables below summarize generation by segment and region: 
Generation (GWh)(1)   Variance of Results  
For the three months ended      Actual  Actual     LTA   Actual  Actual vs. 
 March 31                         2014    2013    2014  vs. LTA  Prior Year 
Hydroelectric generation                                                    
  United States                  2,591   2,561   2,794     (203)         30 
  Canada                         1,311   1,282   1,193      118          29 
  Brazil (2)                     1,099     936     929      170         163 
5,001   4,779   4,916       85         222 
Wind Energy                                                                 
  United States                    273     216     311      (38)         57 
  Canada                           337     323     324       13          14 
610     539     635      (25)         71 
Other                              100     217     219     (119)       (117)
Total generation (3)             5,711   5,535   5,770      (59)        176 
(1)  For assets acquired or reaching commercial operation during the year,   
this figure is calculated from the acquisition or commercial operation  
(2)  In Brazil, assured generation levels are used as a proxy for LTA.      
(3)  Includes our share of generation in respect of those equity-accounted   
investments which we do not manage.                                     
Recent Highlights 
--  Brookfield Renewable and its institutional partners completed the 
acquisition of a 33% economic and 50% voting interest in the 417 MW Safe 
Harbor hydroelectric generating station on the Susquehanna River in 
Pennsylvania. The facility generates an average of 1,100 GWh annually, 
possesses storage capabilities supporting daily peaking and is one of 
the largest conventional hydroelectric facilities in the PJM market.  
--  Brookfield Renewable and its institutional partners agreed to acquire 
the wind portfolio of Bord Gais Energy for a total enterprise value of 
up to approximately EUR700 million ($960 million), subject to customary 
closing adjustments. The portfolio comprises 321 MW of operating wind 
capacity with an additional 125 MW currently in construction and an 
approximate 300 MW development pipeline. The transaction represents 
Brookfield's first renewable energy investment outside the Americas and 
provides a strong foundation to build a scalable renewable energy 
business in Europe.  
--  The 45 MW Kokish River hydroelectric facility in British Columbia 
entered commercial operation in April 2014. The project was developed by 
Brookfield Renewable and its partners, the 'Namgis First Nation.  
--  Brookfield Renewable and its institutional partners completed the 
acquisition of the 70 MW Black Bear hydroelectric portfolio in Maine.  
--  Liquidity at quarter-end was approximately $1.2 billion, providing the 
financial resources and flexibility to fund ongoing growth initiatives.  
--  On March 21, 2014, Brookfield Renewable was included in the S&P/TSX 
Composite Index, the benchmark index for the Canadian equity markets.   
--  The previously announced distribution increase of 7% to $1.55 on an 
annualized basis took effect with the March 31, 2014 payment.  
Distribution Increase and Declaration  
The Board of Directors has declared a quarterly distribution in the amount of
$0.3875 per limited partnership unit, payable on June 30, 2014 to unitholders
of record as at the close of business on May 30, 2014. This distribution is
consistent with Brookfield Renewable's policy of targeting a long-term,
sustainable distribution in the range of 60-70% of FFO and which increases on
average by 3% to 5% annually.  
The regular quarterly dividends on the Brookfield Renewable Power Preferred
Equity Inc. preferred shares have also been declared. 
Distribution Currency Option  
The quarterly distributions payable on limited partnership units of Brookfield
Renewable Energy Partners are declared in U.S. dollars. Registered and
beneficial shareholders who are resident in Canada or the United States may opt
to receive their distributions in either U.S. dollars or the Canadian dollar
equivalent. Unless they request the Canadian dollar equivalent, shareholders
will continue to receive distributions in U.S. dollars (which may be converted
for them by the broker or other intermediary, as may currently be the case).
The Canadian dollar equivalent of the quarterly distribution will be based on
the Bank of Canada noon exchange rate on the record date or, if the record date
falls on a weekend or holiday, on the Bank of Canada noon exchange rate of the
preceding business day.  
Registered shareholders wishing to receive the Canadian dollar distribution
equivalent should contact Brookfield Renewable's transfer agent,
Computershare Trust Company of Canada, in writing at 100 University Avenue, 8th
Floor, Toronto, Ontario M5J 2Y1 or by phone at 1-800-564-6253. Beneficial
unitholders (i.e., those holding their units in street name with their
brokerage) should contact the broker with whom their units are held. 
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  
Additional information on Brookfield Renewable's distributions and
preferred share dividends can be found on its website at under Investor Relations.  
Additional Information 
The Letter to Shareholders and the Supplemental Results for the period ended
March 31, 2014 contain further information on Brookfield Renewable's
strategy, operations and financial results. Shareholders are encouraged to read
these documents, which are available at 
Brookfield Renewable Energy Partners (TSX:BEP.UN)(NYSE:BEP) operates one of the
largest publicly-traded, pure-play renewable power platforms globally. Its
portfolio is primarily hydroelectric and totals over 6,000 megawatts of
installed capacity. Diversified across 71 river systems and 12 power markets in
the United States, Canada and Brazil, the portfolio's output is sold
predominantly under long-term contracts and generates enough electricity from
renewable resources to power more than three million homes on average each
year. With a 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 
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, contracted
portfolio, technology diversification, acquisition opportunities, expected
completion of acquisitions, future energy prices and demand for electricity,
economic recovery, achieving long-term average generation, project development
and capital expenditure costs, diversification of shareholder base, energy
policies, economic growth, growth potential of renewable asset class, 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", 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 are 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;
health, safety, security and environmental risks; disputes, governmental and
regulatory investigations and litigation;
our operations could be affected by local communities; losses resulting from
fraud, bribery, corruption, other illegal acts, inadequate or failed internal
processes or systems, or from external events; risks relating to our reliance
on computerized business systems; general industry risks relating to operating
in 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 sufficient investment opportunities and complete
transactions; risks related to the growth of our portfolio and our inability to
realize the expected benefits of our transactions; 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 our operations conducted through joint ventures, partnerships and
consortium arrangements; our ability to issue equity or debt for future
acquisitions and developments will be dependent on capital markets; foreign
laws or regulation to which we become subject as a result of future
acquisitions in new markets; and the departure of some or all of
Brookfield'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 May 2, 2014, 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 Form 20-F. 
This news release contains references to adjusted EBITDA, funds from operations
and adjusted funds from operations, which are not generally accepted accounting
measures under IFRS and therefore may differ from definitions of adjusted
EBITDA, funds from operations and adjusted funds from operations used by other
entities. We believe that these 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 adjusted funds from operations 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.  
References to Brookfield Renewable are to Brookfield Renewable Energy Partners
L.P. together with its subsidiary and operating entities unless the context
reflects otherwise.  
The following table reflects adjusted EBITDA, funds from operations, adjusted
funds from operations, and a reconciliation to net income for the three months
ended March 31: 
(MILLIONS, EXCEPT AS NOTED)                                   2014     2013 
Revenues                                                   $   480  $   437 
Other income                                                     3        2 
Share of cash earnings from equity-accounted investments         7        6 
Direct operating costs                                        (130)    (126)
Adjusted EBITDA(1)                                             360      319 
Interest expense - borrowings                                 (101)    (102)
Management service costs                                       (11)     (12)
Current income taxes                                            (8)      (3)
Less: cash portion of non-controlling interests                             
  Preferred equity                                              (9)      (7)
  Participating non-controlling interests - in operating                     
subsidiaries                                                (46)     (33)
Funds from operations(1)                                       185      162 
Less: sustaining capital expenditures(2)                       (14)     (14)
Adjusted funds from operations(1)                              171      148 
Add: cash portion of non-controlling interests                  55       40 
Add: sustaining capital expenditures                            14       14 
Other items:                                                                
  Depreciation                                                (126)    (128)
  Unrealized financial instrument gain                           -       16 
  Share of non-cash loss from equity-accounted investments      (6)      (2)
Deferred income tax recovery                                    (2)      (1)
Other                                                           19       (2)
Net income                                                 $   125  $    85 
Basic and diluted earnings per LP Unit(3)                  $  0.29  $  0.23 
(1)  Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS  
(2)  Based on long-term capital expenditure plans.                          
(3)  Average LP Units outstanding during the period totaled 133.0 million    
(2013: 132.9 million).                                                  
The following table illustrates generation results for the three months ended
March 31, 2014 on a proportionate basis, while adjusting for the share from
facilities in which we own less than 100%. 
Proportionate             interests Consolidated
Wholly- Partially-     Equity-                              
Generation        owned      owned   accounted                              
 (GWh)(1)        assets     assets investments  Total                       
  United States   1,283        531          66  1,880       711        2,591
  Canada          1,309          -           1  1,310         1        1,311
  Brazil(2)         978         17          27  1,022        77        1,099
3,570        548          94  4,212       789        5,001
Wind energy                                                                 
  United States      62         45           -    107       166          273
  Canada            337          -           -    337         -          337
399         45           -    444       166          610
Other               100          -           -    100         -          100
 -2014            4,069        593          94  4,756       955        5,711
 -2013            4,074        419         141  4,634       901        5,535
(1)  For assets acquired or reaching commercial operation during the year,   
this figure is calculated from the acquisition or commercial operation  
(2)  In Brazil, assured energy generation levels are used as a proxy for     
long-term average.                                                      
The following table illustrates our financial results for the three months
ended March 31, 2014, including revenues, adjusted EBITDA and funds from
operations on a proportionate basis, while adjusting for our share from
facilities in which we own less than 100%: 
Wholly-    Partially-       Equity-              
(MILLIONS, EXCEPT AS         owned         owned     accounted              
 NOTED)                     assets        assets   investments        Total 
Revenues              $        327  $         74  $          - $        401 
Other income                     3             -             -            3 
Share of cash                                                               
 earnings from                                                              
 investments                     -             -             7            7 
Direct operating                                                            
 costs                         (99)          (13)            -         (112)
Adjusted EBITDA(1)             231            61             7          299 
Interest expense -                                                          
 borrowings                    (70)          (16)            -          (86)
Management service                                                          
 costs                         (11)            -             -          (11)
Current income taxes            (7)           (1)            -           (8)
Preferred equity            (9)(2)             -             -           (9)
Participating non-                                                          
 interests - in                                                             
 subsidiaries                    -             -             -            - 
Funds from operations                                                       
 - 2014(1)            $        134  $         44  $          7 $        185 
Funds from operations                                                       
 - 2013(1)            $        124  $         32  $          6 $        162 
interests  Consolidated 
(MILLIONS, EXCEPT AS                             
Revenues              $         79  $        480 
Other income                     -             3 
Share of cash                                    
 earnings from                                   
 investments                     -             7 
Direct operating                                 
 costs                         (18)         (130)
Adjusted EBITDA(1)              61           360 
Interest expense -                               
 borrowings                    (15)         (101)
Management service                               
 costs                           -           (11)
Current income taxes             -            (8)
Preferred equity                 -            (9)
Participating non-                               
 interests - in                                  
 subsidiaries              (46)(2)           (46)
Funds from operations                            
 - 2014(1)            $          -  $        185 
Funds from operations                            
 - 2013(1)            $          -  $        162 
(1)  Non-IFRS measures. Refer to "Cautionary Statement Regarding Use of Non-     IFRS Measures".                                                        
(2)  Represents third party interests' funds from operations.                
Brookfield Renewable Energy Partners L.P.
Zev Korman
Vice President, Investor and Media Relations
INDUSTRY:  Energy and Utilities - Alternative Energy, Environment - Natural
Resource Management 
-0- May/02/2014 11:55 GMT
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