- Brookfield Infrastructure Partners (BIP.UN) announced its results for the third quarter ended September 30, 2022
- Brookfield Infrastructure reported net income of $113 million for the three-month period ended September 30, 2022, compared to $413 million in the prior year
- Earlier this year, Brookfield signed agreements to sell three mature businesses for approximately $600 million
- Several sales processes are underway that, combined, are expected to generate approximately $1.5 billion in proceeds
- Brookfield Infrastructure is a global infrastructure company that owns and operates assets in the utilities, transport, midstream and data sectors
- Brookfield Infrastructure Partners LP (BIP.UN) is up 0.06 per cent on the day, trading at C$49.66 per share at 2 pm ET
Brookfield Infrastructure Partners (BIP.UN) announced its results for the third quarter ended September 30, 2022.
“Brookfield Infrastructure had record quarterly results as a function of our high-quality asset base, proven risk management approach and execution of our asset rotation strategy,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure.
“Our strategic and financial principles provide a basis to capitalize on deep value investments when these opportunities arise.”
Brookfield Infrastructure reported net income of $113 million for the three-month period ended September 30, 2022, compared to $413 million in the prior year. Current year results benefited from recent acquisitions and organic growth. After removing the impact of disposition gains, net income increased by $125 million relative to the prior year.
Funds from operations (FFO) for the third quarter was $525 million, increasing 24 per cent relative to the comparable period. Organic growth for the quarter was 10 per cent, reflecting the benefits of elevated inflation levels impacting tariffs and the commissioning of approximately $1.2 billion of capital projects in the last 12 months. Additionally, approximately $2 billion of capital was deployed in acquisitions over the same period that contributed to results.
Segment performance
FFO for the transport segment was $203 million for the quarter, an increase of 12 per cent compared to the prior year.
The midstream segment generated $172 million of FFO, an approximately 65 per cent increase over the prior year.
The highly contracted data businesses continue to perform well in the current environment, with FFO increasing to $60 million for the quarter.
For the balance of the year, Brookfield’s focus will be on closing the remaining two announced transactions, HomeServe and DFMG, in Q4 2022 and Q1 2023, respectively. Once closed, the focus will be repositioned to the execution of the company’s growth plans in both businesses.
- At HomeServe, the company is splitting U.S. and European operations to integrate them with existing portfolio businesses in each geography.
- At DFMG, Brookfield is acquiring a marquee portfolio of 36,000 towers in Germany and Austria that also includes a greenfield development portfolio of an additional 5,200 build-to-suit towers.
Earlier this year, Brookfield signed agreements to sell three mature businesses for approximately $600 million. These sales were in addition to the sale of a U.S. container terminal that closed earlier this year for approximately $350 million. Of the three secured sales, the New Zealand telecom tower portfolio sale closed November 1st, the Brazilian electricity transmission lines are expected to close in November, and the Indian toll roads are on track to close by year-end. In addition, several sales processes are underway that, combined, are expected to generate approximately $1.5 billion in proceeds.
Brookfield Infrastructure is a global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe.
Brookfield Infrastructure Partners LP (BIP.UN) is up 0.06 per cent on the day, trading at C$49.66 per share at 2 pm ET.