Brookfield Renewable (BEPC) 3 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Brookfield Renewable Partners Third Quarter 2023 Results Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Connor Teskey, Chief Executive Officer. Please go ahead.

operator. you, Thank and third everyone, for us joining Good XXXX thank conference our quarter call. for morning, you

Before we and begin, a we our would like to our can found release, website. unitholders copy remind news investor to supplement letter be on of you that

want risks, we make We may materially. and on future to forward-looking to subject you statements These results call. are remind known statements that also may this and unknown differ

on you information, on encouraged to website. regulatory our available and are review SEDAR, filings EDGAR For our more

On are current update Vice call and by how Jenny Wyatt today's on teams provide the on operating update growth financial our an position. discussing a an investment our call, we lastly, positioned will will activities. in conclude business and provide then results Toronto, President Li, market the we in our the will in environment. And

look your our to Following forward we remarks, taking questions.

strong execution Duke Jenny acquisitions to growth and our acquisition Electric, had as targets Origin disciplined Westinghouse approach closed formerly recently and We to of as Energy. advanced deliver well expect results. Renewables, of utilizing which our our X-Elio successful close Deriva to outperform another we highlight, we operating Energy, and Energy shortly, Furthermore, quarter, and our will as

XX%-plus are per closing of continue of these decade-long unit significant With to the and annual acquisitions, adding FFO positioning our FFO record track ourselves we growth. are incremental to on deliver

the tightening challenges market environment. benefit And strong environment on the between long-term interest the are traded said, has seemingly higher down, never on to the we insulated outlook for and in That a position back we others down share trading markets market, are also margins. public the even business impacting well major the is from been investors, share when sector and and note environment to the better. and and while the our global price. rates been industry we pleased to briefly focused our not touch the is tailwinds, we this lower renewable positioned It perceived in that we are are important our though that, themes The immune to sector want of our of never in sector, have price in overarching

on we execute targets continue our As to reflect priorities, intrinsic respond growth value our price strategic of and business. and deliver should the our the on share better

Most are generate. we in returns seeing are importantly, not reduction able any the we to

opposite. the quite fact, In

capital and for capabilities to The capital at We from power are target corporations of such as opportunities clean our for above seeing an fewer customers. or our for a deliver accelerating of with invest players pipeline of access with abundance projects demand to returns. ourselves favorable combination to environment a those creating and is

pipelines with development but This creating Notably, acquire attractive the we operating or to build to a opportunities particularly businesses virtuous strong capital and are lack these scale projects. is cycle. powerful to access capabilities seeing out

core in further demand our platforms at enhancing of partner energy capture the for We increased around capabilities capital capturing time, are using are while existing -- pipeline, and to add markets to increasing through the access capturing our we further same and the as demand corporations. to choice world, and leading our ourselves clean decarbonization future us positioning position the we even as capabilities in leading

on expect down. including these technology deliver slow plans time some our a And by costs. do amount and from buyers, has our these not solutions corporations for this Over and annually ability in fleet, to trend Access to looking the to is energy technologically our their of a key This combined translating clean that XX/X construction procured we the customers, strong by to signing projects segments. provide number from and past us execute is of financing compensate globally diversified into higher clean on leading credibility their highest contracts X to at companies, forward, years, demand energy constraint appropriately and prices growth with margin XXx. increased now of for growing power scale almost

pipeline, by terawatt As capabilities, signed power global serve existing hydro of their one example, agreement in marketing leveraging years U.S. the our a an our requirements facilities our over next total with the provide growing the to development to an recently of and leading companies technology X with we XX them hours

the as their tech to ourselves power providing for intelligence support companies, activities. and We the key artificial a continue critical centers growing them cloud large to establish data enabler and

approach our touch We on also want to development. to

opportunities We be returns. quickly risk-adjusted can that and derisk we on focused continue to deliver appropriately

agreements, we while spec to well purchase We principles CapEx before our the decades and localized and are leveraging our knowledge development, We construction taking are not simultaneously financing us that have by by enhance we development, basis are built capital. compromising meaning doing procurement we spend significant committing to customer this investments risk using our by a on and central served taking over the our past ever not globally. manage extensive approach more build secure do So and limit to risks and contracts power our capabilities construction in risks, not capabilities. point on reduce

offtakes highest the commercial in that the our flows. ensure regions, our renewable cost the the We cash on will mature derisked also growth source look most lowest focus always to to most quality high-quality to and teams and projects technologies power leverage highest produce

of have the largely continues for there U.S., while offshore and impacting projects. on in of the of announcements robust onshore position, to wind recent given attributes example, these its the the been wind increases the outlook back competitive cost be on subsidies, an development As reliance

end wind online the onshore States XXX over gigawatts are of United expected gigawatts of in to the There the by X capacity from come pipeline. including development decade, almost of our onshore

pipeline, this using nearly to stands are now our playbook gigawatts. global develop We XXX at large which

years, next approximately million deliver capacity FFO the year to this of expect of $XXX gigawatts X We contributing gigawatts XX approximately additional another over X new and annually.

the already like business, projects has And to for economics expected our these the given approach these rest deliver derisked of Much are our execution. to of attractive capital been invested. projects

our to call to over growth that, speak about will turn Jenny the With activities. we

approximately Thank you, This capital, our a everyone. by X,XXX development to we U.K.-based megawatts to XXX approximately of business also invest equity Banks agreed leading $X.X development agreement assets. energy XXX and projects. independent highlighted projects earlier-stage renewable morning, pipeline Renewables, onshore Connor, wind near-term with of past billion acquire good further of of quarter, approximately megawatts The and business a has megawatt

is end-to-end the U.K. access generally U.K., Banks been been ownership, has accelerate have operations. The across projects believe with expected recycling the capabilities the cycle, commercial The financing, by our developing capital to high-quality project Under but in in contracting, team life before strong and we capital. full-service entire development, and including M&A expand limited origination, close to platform can year-end. is the in fragmented a we organic via transaction successful market. business growth

We also which agreed partner and develop leading expect us of the Axis approximately almost our capacity joint is over Energy, the new XXX X,XXX have in next megawatts renewable past successfully previous we partnership to solar X capacity to megawatts megawatts venture to development developed a through over X,XXX India, a well-known platform -- partner with of developer years. already through in a which we Axis large-scale create X years. to wind

our announced This highly accretive previously M&A good transactions. closing quarter, we made progress

solar bringing remaining interest total to interest the XX% acquisition X-Elio, developer, in leading of closed a the our we ownership First, global XXX%.

synergies across generating pipeline, the diversified a [ closed leveraging of life. Renewables, is The of remaining FFO our other the with generating X,XXX renewable in largest Shepherds assets, portfolio experience add Deriva in contract wind, to cash solar ] and storage, average value contracted to repower construction significant with With operating XX-year with and Energy, acquisition approximately acquisition almost mid-teens, optionality immediately sizable acquisition, of one megawatts. over commercial scale are formerly the operating megawatts wind platform, also development the Energy we adding and time, executing this scale by with the a and of weighted Flat We powering the operating accretive, on renewable the strong a using recent Duke wind U.S. with opportunities platform X,XXX yields farm. operational flows, utility

half nuclear nearly highly approvals or recently a transaction provider nuclear industry approximately this from Approximately required services servicing of the adding generates of leading XX% retention and the contracted acquisition a Electric, with regulatory revenues Westinghouse's rate. cash close infrastructure-like global to flows, Westinghouse are expect our service products business next that we provision technology XXX% customer acquisition, long-term mission-critical With On fleet. we of week. and early received to all from recurring the come customer

being we acquisition, new a providing builds which for design its acquisition. our a outlook contracts new the seen X is nuclear growth growth power business reliable that to business, engineering Westinghouse's opportunities underwritten for growth is announced, view. renewables none essential to of services and our and net grid the for core number several of providing baseload as in of supports as awarded well was which resurgence a economy [indiscernible] by our in of Westinghouse, our power Since with technology announced a Nuclear to critical in zero-carbon have where

service historically been capturing all nuclear core which of also winning Eastern growth have contracts operating providers. to the served Russian is plants business, almost in in Westinghouse its Europe, by

which cash are FFO With double-digit the reliable based and acquisition, we on close of adding yields business visible a this highly flows.

time, underwriting returns, expect of and some significant as which The large leverage power. we contracting already clean, to dispatchable our upside baseload business Over to our capabilities to seeking provides allow our of also are commercial materialized. customers to grow further Westinghouse sources have

authorizations end having Australian a independent realize Competition from a moved forward opportunity Origin's top compelling for receiving Commission recommendation This our valuation Origin of to to we offer shareholders increased and also our investment. the of quarter, the their October, acquisition Origin Board and their value from the unanimous experts of Energy, Consumer with providing received range. in

November, to vote late in shareholder we scheduled a strategic the adding large-scale close platform in early acquisition for the XXXX, With Australia. expect

power large-scale serve we development generation and base fund and to renewables capacity the energy to this build grid integrated and out. Origin accelerate largest to time opportunity is Australia's crucial its at visibility decarbonize transition. energy the retail help have renewable customer Australian this cost the existing an energy flow the the model, retailer industry-leading acquisition, in of strong to margins generation cash With driving with

or Renewable, incremental around over billion to FFO. approximately billion have total, annual over expect $XXX equity $X.X adding net in transactions the accretive immediately Brookfield transactions, In months, deploying capital million totaling coming into to we $X closed

operating I will to to Wyatt results it over position. our and financial turn discuss now

Thank Jenny. you,

cash first to reflect platform, remarks, spoke inflation our strong diversified strong of we year. half highly and Connor build to index As the our on in all-in continue his flows Operating earlier results pricing.

our XX% X% per $XXX $X.XX year-to-date, year, positioned to generated equating for last FFO or be unit deliver unit plus We and to of million to year. FFO compared a the per to continue target growth increase

clean is with customers hydros for today's part backed buyers looking in unique is which high-quality valuable becoming hydro us environment solutions. that dispatchable portfolio, flows, clean perpetual by are partnering business power for where XX/X Our in power cash large our from power. in a our The of baseload provide generate advantage increasingly

We their pricing as environment, but are assets the low several also additional assets up-finance recontracting funding of the as growth only not next the accretive of will contribute debt. due over also these from many to act benefit highly set current FFO which a in source to levels for we years, strong

remains position Our financial strong.

rating. maintaining short our We and strategy. billion million available significant to nonrecourse $XX year, billion providing expect ended $XXX liquidity, just generating over in while credit with executing on of financing development to this financing up the strong flexibility quarter investment-grade continue $X.X growth of execute proceeds, We our of

past generated and appropriately returns XX Xx almost strong out average, been We environment contracts continue for being our proceeds derisked In rate which, on long-term crystallizing in months, asset have from $X.X proving with the capital. in asset we our a through we see program, have for also represents assets it to sized Despite billion and recycling. place. invested fixed scarcer capital, our demand financing recycling

of proceeds almost recently a XXX-megawatt we that agreed in million, example, to Xx of facility earlier Europe sale this commissioned year an we $XXX solar capital. for representing invested our the As

capital public strong the our we business our to of and and this growth million light conditions Starting in market course bid. we normal value issuer units shares. allocate almost trajectory, have repurchase X.X quarter, of In repurchased under intrinsic to also our conviction started

will continue on Looking seeing best and confident meaningful based capital the value risk-adjusted forward, where to continue remain we we we create allocate investors. our returns, are that will to for

and sources derisk for leveraging and closing, we capabilities enhance while operational disciplined total on funding remain to delivering XX% to our In focused XX% long-term allocators our returns deep investors our of business. remaining capital,

On behalf of thank ongoing and the the shareholders Board and all our unitholders management, support. we for

about the updating forward throughout Brookfield and remainder future of excited to Renewables the on you look progress are our We year.

And formal for I'll pass remarks that, our questions. operator to concludes for us call. you Thank morning. That joining back with this for today's our it

first Sean And Instructions] Steuart come TD question from [Operator Securities. our will from

guess, A contraction valuation for couple on, touched meltdown of seen an a And the wind. we've valuations, across questions. broadening sector. especially growth I set Connor, given you public opportunity in accelerating offshore

a any there? advantage asset updated Do You potentially to taken initiatives have that wind of have approach measured prospective you in offshore disconnect guys valuation thoughts class. as on you take growth

Thanks Sean. the question. morning, Good for

And grids It's differentiated returns. important in saw we it's quite offshore if We be in load mature we think that around therefore, risk-adjusted invest It that very the think a certain world. large-scale like provides here. pattern is I willingly it's energy We important a technology. clear right we offshore. the markets to would a technology.

Our lack not exposure the has to provided, or the it. millions, didn't offshore technology, -- out sorry, you would offshore years, billions, opportunities hundreds traditionally of buy or capital, you X not if significant upfront or rather X a or is to where the X traditionally to profile of building X of invest be amounts result investment build in for to the you environment a of that but project of dollars when the know had right right

remove try the costs CapEx investment development that execution pipeline. be disciplined is the very like we in costs know our basis that that. risk about didn't very, and pursue the financing we You opportunities and precisely And things or of or to

approach So nothing investment risk. remove simply the trying itself. We technology it of do basis because it was to our to offshore fit with didn't like profile with didn't

approvals As increasingly of today, is are number opportunities there or risk we when look where it project the ago a at win X we If needed that opportunity years or X eager has sellers basis a do is shrinking. that think well. now after, headwinds year going some with the sector, to risk might get built the of out there some And next materially. basis the year in be as to shrunk

more and with it would disciplined comfortable a say than I to So the feel us past. entering lot attractive it in do looks has approach we think our we to sector, the today

bit, valuations at public and across on just right And M&A in you speak since opportunities quite changed think can discrepancies prospects, you that, M&A following Day have as to now? about opportunities September, the even looking the between a Investor you're private

of those Certainly. continuing pipelines to attractive capabilities say it that high-quality, and that to will there's in I acquisitions, markets but in private pipelines of a capital I'd those they forward. that those is the continue buckets. probably of we've bases will in the X are been in have attractive assembled. simply asset number going put that is markets access been think number executing operating today. out a One and don't core the has and a have would or to projects remains and really scale, medium-sized private couple trend say, fantastic a developers that the build And And for value have years capture there I I

the years. public adjustments would side then mistake than terms active number target we very public the valuations, And think say the could value. names in we be there, increasingly couple public of execute markets, it. we of are on over strike therefore, zone tracking have I in last the couple going a given at attractive difficult about And of constantly there forward that And the for our in public been markets. do But entering of more make was are in We're the returns. years markets it no to market a

Hope question come from Scotiabank. next will Our Robert from

kind on call and prospective in environment, letter so public very the prospectives of spoken about In far, the that's private investment opportunities. you've favorably or the of kind whether

You number here have the acquisitions in months well. of a coming closing as

further your forward? access Or some liquidity of is about your to available the could in yourselves capital Is your set moving think opportunity sales While liquidity you accelerate in excess the to front see you bolster how you asset do profile? maybe of capital? strong,

Certainly.

I probably So to think X highlight. things there's

that's very asset-level approach a needed investment-grade us growth to of Wyatt financings for maintaining mentioned, fixed-rate meaningful credit in we've we've a our disclosures, done while had nonrecourse And active particular, manner. metrics provided of financing. really the our investment-grade very accretive up-financing. As we've some our in announced a all capital And of year in the and, and fund that component to very

other is, Westinghouse, forward. The undrawn can fund their ongoing going highlight come Origin, be access close large And they to therefore, and revolvers growth. I capital such our businesses our those have tremendous grows, transactions capital when and as would with used liquidity to such to you does thing access themselves. platform so potentially And that large as

of and at of If So we least and still attractive pipeline, us any our transactions dry billion we're closing that be of gives obviously, numbers, rough we'd this closed a billion $X.X transactions opportunities liquidity pursue that We're quarter. at at of plenty come number about way. $X.X large to all liquidity in our the powder today.

Given this we're see to make where mind. the environments as we is of such well very We we returns. environment, very to pursue top this growth sure keep positioned attractive that in always something want

risk-adjusted returns what your do of be areas of -- or your about attractive seeing share to buybacks. in about specifically, And thinking Appreciate maybe And Can intrinsic walk to us to how unit moving that. versus back of own how business? more just there? then very you you value you the other terms returns are the in appear and through buying you're capital, access think maybe share

Certainly.

saw for working our that clear clear, and our probably same want to our of be opportunity would And time we view to it decline and share do of would long So those be over daily use to We liquidity our of doing of continue shares what the back first in restrictions shares, in we're kind couple we're about weeks forward. and months, a capital. buy a number will disciplined for been number when a the the irrational And in likely as think of within back a value. always to as NCIB, we've the of the we with use I we volume last going of prices our investment way, for of some it buying say. the for it time, weeks the now

in think allocation But X, the capital of equally the that we our how as returns we make buying terms view back our weight make the in capital we in in about between own fungible. versus we returns we can investing And shares can growth.

has tilted But growth. in doing that years, heavily to For recent forward. sectors, be both balance the been going expect we the decline to with

Our next James. from come from question Quezada Raymond will David

is that starting closing well just Westinghouse. Maybe like soon. It with up pretty shaping out for sounds pretty

fitting that that microreactor beyond curious, Just maybe Westinghouse wondering technology. has future just be extend or how targeting I'm that market? of Westinghouse your us longer will will plans. your you you remind your nuclear I could if for just ambitions term into know see kind nuclear the vehicle

Certainly.

I a of hour We point within an actually last just on approval Westinghouse, call. got our maybe this for would before fun regulatory So everyone. say, color

good So do close we this and transaction to next we to all week. are expect go

the we same when top look at security. get nuclear and security. of I'll off some drivers the I solar, excited it's very they drivers look the at of And why details. decarbonization, electrification would the electrification terms wind are, growth When what energy things the thing: say Westinghouse, and of and X and are power decarbonization, clearly energy into you we're In then about so of

of power -- growing clean, dispatchable we say existing And always that favorable it's portfolio. of have nuclear our front dispatchable energy now, long then is that been of I number and we've row view baseload higher. we've not the incrementally, think energy of for I to tracking is the own clean, seat very had baseload The value through of a because dispatchable second hydro the years see value would thing inflecting a clean, it we

can you meaningful we And today, both. nuclear. there's going type energy of And leading and supply, hydro that's really get X that places where have positions and will forward, in

technology, APXXXX of supply coal get generation typically the I stack. well a to When Westinghouse and which model they thing technology, obviously products. module But small important a to major reactor, simply would for same it's also it's the or as important offers what countries comes power And about APXXX same same down. to is markets it support used about Westinghouse large, recognize suite design, It's the known the market-leading the its is reactor is full technology. APXXX utilities what's nuclear probably which say, thermal have in it's an the off APXXXX shrunk most is Westinghouse, is large

APXXX And result, the we will of that issues expect have. SMR as a don't first-of-its technologies other kind have to many the

fuel microreactor need technology, And ]. And energy high then and in carbon, diesel lastly, [ this Westinghouse are its projects and remote like Evinchi locations has for good that to businesses get is very oil. high-cost off

with the What energy is leading we leading Westinghouse's build-out really what supports of renewables it energy demand. countries, procure demand about as leading our the dispatchable to same to use that power the of corporate And to with to do can increase that world in products I are and the we able provide corporate would we now service large matches and will in grids corporates Westinghouse, excited the believe of But service amount that seeing huge very large already that typically looking customers. that profile using we're government. well baseload say, the we around clean, with utilities they demand today be get customer

in differentiated future. the really us our to differentiate to really think portfolio hydro We the similar adding us our to has continue So will nuclear past. how portfolio in

follow-up just hydro then And I'm commentary about thinking great That's the M&A, around Awesome. and kind maybe to a of specifically. color.

space the at hands shape Just seeing they've look there? where you grow wondering to if fleet -- Are historically, in hydro opportunities hydro higher you like traded your up any could multiples. M&A assets seems

Certainly.

less being assets. we world a question. simply perimeter around what a say is contained I less of And But monitor hydro fleet would our to going markets. world. the there's The there it's I in is be of therefore, deal the around activity. So it built hydro would all more say core is good much

hydro notably years, We America. the in And really last us. most over really, of South couple those have of have been investments for performed buyers well

we we But would But capital is at every seeing than returns at in no can acquisitions If we allocate for elsewhere, capital we're that other good I the what risk-adjusted hydro, acquisitions better buy technology. there. say look in away. different look value, we'll deploy obviously we'll if

way value And of I a value other is way. we portfolio, as point the that well. it asset as we the it asset renewable all similar is But we a the emotionlessly look our at same at the If offer hydro a sales look in the significantly. look would other very, consider at we technology. We what would that hydro exceeds asset asset far we selling look hydro someone think is value very classes. make to us increasingly at on We

National come next Our Rupert Merer question Instructions] from [Operator from will Bank.

you Connor, recycling by program? the to prices of comment and And vary on direction support can how might the that strong you appetite on asset are market? you're seeing seeing your market in recycling, still

still is important there it's into happening And we've the is question. recognize transition, a probably what's really I to right is can one share, is decarbonization now, thing which appropriate energy a say year, huge seen renewable which it's space. this market good color the power, that would really, capital influx of in we Rupert,

approach to that of well-sized seen would are is we've small I and to say opportunities derisked, where the vast for, But platforms opportunities scale for and intensity taken operating our that's very of that sales. we're flowing require market the buy terms and we've that derisked are is I majority capital more operational Selling asset would say, the that's that assets sell for value. where account looking medium-sized Larger segment more really into assets And seeing into of contracted. that to that value. in good to development, good are

as they in and for we've and our really attract are that to forward, medium-sized therefore, very And we focus And sales bid very a ones I look a -- see the the small continue on, pipeline capital. very, those derisked at low asset recently very say, completed assets cost would assets. of going we to strong can our

all I of general, those our still markets now a one my around aren't assets. really top the for we world. would the across contracted I bid say, In well-sized major seeing almost head, where of derisked Off robust can't think

deals So are they seeing with the available support writing in other investors investing checks your that other being partnerships from in the institutional sector capital in interest private how you and your space, Are the Brookfield? to made alongside through still partners?

our in example that of large is investors institutional, Brookfield's It, world transaction. business can but also around close come week Yes, few one, really to we're a And allows willingness into great. broader global us before. will absolutely. very of And Stronger co-investor continue a through our and highly the sophisticated a most alongside we some Renewable on of execute thesis. demand Westinghouse, basis, validates today investing opportunities our two, than next that's ever And that feel I we to investment match. the also it Brookfield very saw the at discretionary which to, transactions. to . We of look think attractive seeing scale significant largest to and co-invest And that that. great on only not larger funds a

for see -- space from very very, see to demand continue sophisticated robust large, institutional this So we to exposure investors.

of it but the Great. all comment on the support from And -- then the deal just finally, seems Origin not you want have this, doesn't to Energy shareholders. may

are have get line there. will Just or the next if wondering you Any on to thoughts over Origin. some what what that be the challenges your options steps deal

Certainly.

comment transaction involving it public on can't on this we a is company, live a unfortunately, So this call. so

Fair enough.

We And in our of our range above this between got to year the signing Board now. from very have slightly approval. top ACCC at earlier of price of the fairness by to We, a our we're increased did value transaction increased back end date outperformance provided we this third-party company get strong and past the the the or week, bid on the unanimous that the the opinion. support and a points

At the to point, so the coming we continue But work in I will and is say. weeks. do can that transaction this to execute all probably

Thank like Connor And turn from Teskey over back am our showing lines. further now no closing for phone you. to conference any questions I'd remarks. the I to

appreciate joining day. you Renewable, your quarter operator, forward you, a for we QX results. you, on Thank full look to and everyone, Great. call We of today. Brookfield next interest support the and Have year our thank continued fantastic and and updating

you. concludes participation. call. today's you Thank for your conference This Thank

You disconnect. have Everyone, a may day. wonderful now