Brookfield Renewable is a globally diversified operator and owner of renewable energy platforms.
Its portfolio consists of approximately 19,400 MW of capacity and 5,318 generating facilities in North America, South America, Europe, and Asia. It is a global leader in hydroelectric power. The company engages in acquiring, building, financing assets, and actively managing them, and also in distributed generation, and storage.
Hydroelectric assets comprise 64% of its portfolio in 27 markets across 17 countries. Other assets include global wind (25% of the portfolio), solar (11%). The company’s segments are Hydroelectric, wind, solar, storage and other, and corporate. North America (62%) is its largest market by long-term average generation, followed by Latin America & Asia (32%) and Europe (4%).
- Opportunity Score: 47
- Ticker: TSE:BEP.UN
- Sector: Utilities
- Industry: Utilities - Renewable
- Market Cap: 12.08B
- P/E: 0.00
- Dividend Yield: 3.35%
- Payout Ratio (Earnings): 100.00%
- Canadian Dividend Aristocrat: NO
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 4/10
- Dividend Income Fit: 4/10
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Revenue Growth & Market Exposure
As one of the premier renewable energy companies, Brookfield Renewable produces and delivers clean, renewable energy to a customer base comprising primarily of over 600 public power authorities and utilities around the world under long-term power purchase agreements. The creditworthiness of its customers further adds to cash flow visibility. The company’s revenue is highly diversified and stable.
Brookfield Renewable Partners is backed by Brookfield Asset Management which is a leading global alternative asset management company having a large global presence in over 30 countries and a good history of generating strong cash flow.
Over the years, Brookfield Renewable has become the partner of choice to support governments and businesses in achieving their decarbonization goals. Its relationships with global turbine manufacturers should also enable easy equipment procurement and installation.
Brookfield Renewable completed the merger with its subsidiary, TerraForm Power, and strengthened its foothold in North America and Europe. It also agreed to invest ~$4.6 billion of equity across ten transactions in all its major markets.
The company’s current project pipeline represents a combined portfolio of over 2,000MW of long-term contracted wind and solar assets, more than doubling its renewable energy capacity in Brazil. Its diversified operating platforms on four continents and across five technologies also grants it local operating and marketing expertise.
Brookfield Renewable successfully reported a 6% YoY increase in FFO supported by contributions from growth initiatives and strong asset availability during the year. It also secured contracts to deliver 3,500 GWh of clean energy annually.
The company continues to invest in the expansion of its operations through both acquisitions and organic initiatives. In December, it announced the acquisition of Exelon Generation Company’s U.S. distributed generation business, which is one of the largest, with a generation capacity of 360MW. It also agreed to acquire an 845MW Shepherds Flat wind farm, in Oregon.
Trends like decarbonization and transition of global electricity grids are major tailwinds for Brookfield Renewable Partners.
Brookfield Renewable has a 20-year track record of delivering stable and growing dividends. The company has compounded its payout at more than 6% annually, over the last decade. It last raised its dividend by 5% and offers a dividend yield of more than 3% currently.
Brookfield Renewable’s investment objective is to deliver long-term annualized total returns of 12%-15% on a per-unit basis, including annual distribution increases of 5%-9%. The company has a strong track record of growing its FFO at 10% CAGR in the last decade. It expects to deliver total annual returns of ~12%-15% over the long term.
Creditworthy counterparties and long-term PPAs with a weighted-average remaining contract tenure of 15 years, ensure stable and secure cash flows. The company’s operations are highly diversified across more than 600 investment-grade counterparties and with no single market accounting for more than 10% of total cash flows. Growing development activities further enhance the visibility of organic cash flow growth over the next five years.
Brookfield Renewable’s wind and solar segments continue to generate stable revenues and benefit from the fleet diversification and highly contracted cash flows with long-term PPAs. The company’s development pipeline consists of 23,000 MW which should contribute to future FFO on an annualized basis. Brookfield Renewable delivered on almost $40 million in cost saving initiatives during the year.
Brookfield Renewable stands a good chance to benefit from a growing demand for renewable energy as climate change concerns loom over the world. Wind and solar have become the most economic sources of bulk power with prices now being competitive with conventional sources of power.
A strong investment-grade balance sheet and high levels of liquidity should support future dividend distribution.
Brookfield Renewable is one of the largest public pure-play renewable businesses globally. TransAlta Renewables, Algonquin Power & Utilities Corp, Northland Power are Brookfield Renewable Partners’ strong competitors.
TransAlta Renewables is one of the largest generators of wind power in Canada while Algonquin Power & Utilities is a diversified generation, transmission and distribution utility based in North America, and Northland Power is another power producer operating clean and green power infrastructure assets in Canada, Europe, and a few other geographies.
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|TSE:BEPC||BEPC||Brookfield Renewable Partners L.P.||Utilities||Utilities - Renewable||0.39||47.62||14.26||0.00||0.00||0.00||0.0309||3.09||1.0000||4||1.22||0.0309||3||3||Tollbooth - Unregulated||NO||NO||NO||NO||Canada||1|
|TSE:BEP.UN||BEP.UN||Brookfield Renewable Partners L.P.||Utilities||Utilities - Renewable||0.47||43.94||12.08||0.00||0.00||-1.29||0.0335||3.35||1.0000||4||1.22||0.0973||4||4||Tollbooth - Unregulated||NO||NO||NO||NO||Canada||1|
|TSE:AQN||AQN||Algonquin Power & Utilitties Corp||Utilities||Utilities - Renewable||0.83||18.60||11.38||11.11||11.11||1.67||0.0444||4.44||0.4948||4||0.68||0.1346||8||9||Tollbooth - Unregulated||NO||YES||YES||NO||Canada||1|
|TSE:NPI||NPI||Northland Power Inc.||Utilities||Utilities - Renewable||0.49||38.36||8.64||31.78||31.78||1.21||0.0313||3.13||0.9917||12||1.20||0.0419||3||4||Tollbooth - Unregulated||NO||NO||NO||NO||Canada||1|
|TSE:RNW||RNW||TransAlta Renewables Inc.||Utilities||Utilities - Renewable||0.48||18.72||5.01||35.36||35.36||0.53||0.0502||5.02||1.7728||12||0.94||0.0628||2||4||Tollbooth - Unregulated||NO||NO||NO||NO||Canada||1|
|TSE:BLX||BLX||Boralex Inc.||Utilities||Utilities - Renewable||0.41||35.00||3.59||75.81||75.81||0.46||0.0189||1.89||1.4348||4||0.66||0.0511||4||2||Tollbooth - Unregulated||NO||NO||YES||NO||Canada||1|
|TSE:INE||INE||Innergex Renewable Energy Inc||Utilities||Utilities - Renewable||0.55||19.20||3.35||0.00||0.00||-1.14||0.0375||3.75||1.0000||4||0.72||0.0551||5||6||Tollbooth - Unregulated||NO||NO||YES||NO||Canada||1|
Brookfield Renewable ranks amongst the largest renewable independent power producers in North America. It has a strong core business with a proven track record and is in a good position to leverage its knowledge and customer relationships to develop new platforms and capabilities.
Brookfield Renewable’s scale across multiple technologies and depth of operating and development expertise are significant differentiators for future growth opportunities.
The company continues to benefit from increased demand for on-site generation driven by cost declines in solar technology and decarbonization trends.