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Brookfield Renewable’s (TSX:BEP.UN) Q2 net loss holds silver lining

Renewable Energy
TSX:BEP
07 August 2020 13:15 (EDT)
Brookefield Renewables - Outgoing CEO, Sachin Shah

Source: Finance Colombia

Brookfield Renewable (BEP.UN) posted a net loss of C$58.86 million for the June quarter, but has achieved a number of key development milestones. 

The renewable energy investor recently closed the merger of Terraform Power and created the new entity Brookfield Renewable Corporation, which now trading on the TSX under the code BEPC.

Turning to the company’s financials, funds from operations during the quarter reached $310.54 million, a slight improvement compared to last year’s same period.

Brookfield invested approximately $776.13 million into acquisitions during the quarter, which included the purchase of 1,200-megawatt solar farm in Brazil.

Brookfield expects to see some real value out of this project, as the site’s power is already 75 per cent contracted.

To further boost the site’s prospects, the company is leveraging its energy marketing capabilities to contract the remaining power and intends to drive down equipment procurement, installation and operating costs.

During the last quarter, the total energy generation capacity of the company’s portfolio jumped from 14,252 gigawatt hours in 2019’s June quarter to 15,527 gigawatt hours in 2020, primarily due to new acquisitions.

The company’s quarterly dividend will be approximately 58 cents per share, matching the dividend of the newly created Brookfield Renewable Corporation.

CEO of Brookfield Renewable Sachin Shah said the company had a strong quarter, executing a number of key strategic priorities and bolstering its liquidity position to $4.55 billion.

“We are pleased to have completed the creation of Brookfield Renewable Corporation and closed the merger with TerraForm Power.

“Looking forward, we believe our global scale, operational depth and financial strength positions us well to benefit from global decarbonisation and continue to deliver on our target of 12 to 15 per cent long term retunes to equity holders,” he said. 

Brookfield Renewable (BEP.UN) is up 4.15 per cent and is trading at $60.76 per share at 12:30 pm EDT. 

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