Brookfield Infrastructure reported Q3 2024 financial results with FFO of $599 million, up 7% year-over-year, and FFO per unit of $0.76, representing a 4% increase. The company posted a net loss of $52 million compared to net income of $104 million in the prior year, primarily due to mark-to-market losses on corporate hedging activities. The company achieved its $2 billion capital recycling target for the year, including the sale of Mexican natural gas transmission business and recapitalization of North American gas storage platform. Strong performance was driven by new investments, organic growth, and inflation indexation across segments.
Brookfield Infrastructure ha riportato i risultati finanziari del terzo trimestre 2024 con un FFO di 599 milioni di dollari, in aumento del 7% rispetto all’anno precedente, e un FFO per unità di 0,76 dollari, che rappresenta un incremento del 4%. L’azienda ha registrato una perdita netta di 52 milioni di dollari rispetto a un utile netto di 104 milioni di dollari dell’anno precedente, principalmente a causa delle perdite di mark-to-market su attività di copertura aziendale. L’azienda ha raggiunto il suo obiettivo di riciclo di capitali da 2 miliardi di dollari per l’anno, inclusa la vendita dell’azienda di trasmissione di gas naturale messicano e la ricapitalizzazione della piattaforma di stoccaggio di gas nordamericana. Le forti performance sono state guidate da nuovi investimenti, crescita organica e indicizzazione all’inflazione in tutti i segmenti.
Brookfield Infrastructure reportó los resultados financieros del tercer trimestre de 2024, con FFO de 599 millones de dólares, un aumento del 7% en comparación con el año anterior, y un FFO por unidad de 0,76 dólares, lo que representa un incremento del 4%. La compañía publicó una pérdida neta de 52 millones de dólares en comparación con una ganancia neta de 104 millones de dólares en el año anterior, principalmente debido a pérdidas de marcado a mercado en actividades de cobertura corporativa. La compañía logró su objetivo de reciclaje de capital de 2 mil millones de dólares para el año, incluida la venta del negocio de transmisión de gas natural en México y la recapitalización de la plataforma de almacenamiento de gas en Norteamérica. El sólido rendimiento fue impulsado por nuevas inversiones, crecimiento orgánico e indexación por inflación en todos los segmentos.
브룩필드 인프라는 2024년 3분기 재무 결과를 발표했습니다. FFO는 5억 9,900만 달러로, 전년 대비 7% 증가했으며, 단위당 FFO는 0.76달러로 4% 증가했습니다. 회사는 전년도에 비해 1억 400만 달러의 순이익에 대해 5,200만 달러의 순손실을 기록했습니다. 이는 주로 기업 헤징 활동에서의 시장 가치 변동 손실 때문입니다. 회사는 멕시코의 천연 가스 전송 사업 매각과 북미 가스 저장 플랫폼의 자본 재조정을 포함하여 올해 20억 달러 규모의 자본 재활용 목표를 달성했습니다. 강력한 성과는 새로운 투자, 유기적 성장 및 모든 부문에서의 인플레이션 지수 조정에 의해 주도되었습니다.
Brookfield Infrastructure a publié ses résultats financiers pour le 3e trimestre 2024, avec un FFO de 599 millions de dollars, en hausse de 7 % d’une année sur l’autre, et un FFO par unité de 0,76 dollar, ce qui représente une augmentation de 4 %. L’entreprise a enregistré une perte nette de 52 millions de dollars par rapport à un bénéfice net de 104 millions de dollars l’année précédente, principalement en raison des pertes de mark-to-market liées aux activités de couverture d’entreprise. L’entreprise a atteint son objectif de recyclage de capital de 2 milliards de dollars pour l’année, y compris la vente de son activité de transmission de gaz naturel au Mexique et la recapitalisation de sa plateforme de stockage de gaz en Amérique du Nord. La forte performance a été soutenue par de nouveaux investissements, une croissance organique et une indexation à l’inflation dans tous les segments.
Brookfield Infrastructure hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem FFO von 599 Millionen US-Dollar, was einem Anstieg von 7% im Jahresvergleich entspricht, und einem FFO pro Einheit von 0,76 US-Dollar, was einer Steigerung von 4% entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 52 Millionen US-Dollar im Vergleich zu einem Nettogewinn von 104 Millionen US-Dollar im Vorjahr, hauptsächlich aufgrund von Mark-to-Market-Verlusten aus unternehmerischen Hedging-Aktivitäten. Das Unternehmen erreichte sein Ziel von 2 Milliarden Dollar an Kapitalrecycling für das Jahr, einschließlich des Verkaufs des mexikanischen Geschäfts mit der Übertragung von Erdgas und der Rekapitalisierung der nordamerikanischen Erdgaslagerplattform. Die starke Leistung wurde durch neue Investitionen, organisches Wachstum und Inflationsanpassungen in allen Segmenten vorangetrieben.
Positive
- FFO increased 7% to $599 million in Q3 2024
- Transport segment FFO up 50% to $308 million
- Data segment FFO grew 29% to $85 million
- Achieved $2 billion capital recycling target
- 6% increase in quarterly distribution to $0.405 per unit
Negative
- Net loss of $52 million compared to $104 million profit last year
- Utilities segment FFO declined due to asset sales
- Midstream segment FFO decreased to $147 million from $163 million
- Impact of higher borrowing costs affecting results
- Brazilian real depreciation negatively affecting performance
Insights
The acquisition of 76,000 telecom tower sites in India marks a significant strategic expansion, making Brookfield the largest tower operator in India and second globally with 250,000+ sites. The deal’s valuation at below 6x EBITDA is particularly attractive. The data segment shows strong momentum with 70 MW commissioned this quarter, bringing total capacity to over 900 MW. The portfolio rebalancing through strategic divestitures of mature assets (Mexican gas transmission) while investing in high-growth sectors (data centers, telecom) positions the company well for future growth, especially given the increasing infrastructure demands from AI and digital transformation.
BROOKFIELD, News, Nov. 06, 2024 (GLOBE NEWSWIRE) — Brookfield Infrastructure Partners L.P. (Brookfield Infrastructure, BIP, or the Partnership) (NYSE: BIP; TSX: BIP.UN) today announced its results for the third quarter ended September 30, 2024.
“Brookfield Infrastructure continues to deliver solid results while achieving its strategic objectives, including successfully reaching our
For the three months ended September 30 |
For the nine months ended September 30 |
||||||||||||
US$ millions (except per unit amounts), unaudited1 | 2024 | 2023 | 2024 | 2023 | |||||||||
Net (loss) income2 | $ | (52 | ) | $ | 104 | $ | 126 | $ | 505 | ||||
– per unit3 | $ | (0.18 | ) | $ | 0.03 | $ | (0.18 | ) | $ | 0.34 | |||
FFO4 | $ | 599 | $ | 560 | $ | 1,822 | $ | 1,666 | |||||
– per unit5 | $ | 0.76 | $ | 0.73 | $ | 2.31 | $ | 2.16 |
Brookfield Infrastructure reported a net loss of
Funds from operations (FFO) for the third quarter was
Segment Performance
The following table presents FFO by segment:
For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, unaudited1 | 2024 | 2023 | 2024 | 2023 | |||||||||||
FFO by segment | |||||||||||||||
Utilities | $ | 188 | $ | 229 | $ | 558 | $ | 661 | |||||||
Transport | 308 | 205 | 929 | 596 | |||||||||||
Midstream | 147 | 163 | 460 | 522 | |||||||||||
Data | 85 | 66 | 231 | 208 | |||||||||||
Corporate | (129 | ) | (103 | ) | (356 | ) | (321 | ) | |||||||
FFO4 | $ | 599 | $ | 560 | $ | 1,822 | $ | 1,666 |
The utilities segment generated FFO of
FFO for the transport segment was
Our midstream segment generated FFO of
FFO from the data segment was
Update on Strategic Initiatives
On September 12th we closed the tuck-in acquisition of 76,000 telecom tower sites in India. We are now the largest telecom tower operator in India and second largest globally, with over 250,000 tower sites. This acquisition is highly complementary to our existing operations, increasing and diversifying our tenancies from the country’s second and third largest mobile network operators, while offering significant operating synergies. The scale and benefits of the combined platform were all achieved at a value-based entry point below 6x EBITDA. Our total equity commitment was
During the quarter we secured approximately
We also completed the recapitalization of our North American gas storage platform, raising
Distribution and Dividend Declaration
The Board of Directors of BIP declared a quarterly distribution in the amount of
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure’s Third Quarter 2024 Results, as well as Letter to Unitholders and Supplemental Information, under the Investor Relations section at https://bip.brookfield.com.
To participate in the Conference Call today at 9:00am EST, please pre-register at https://register.vevent.com/register/BId0571f9a865e44d2bbf9e77964270a30. Upon registering, you will be emailed a dial-in number and unique PIN. The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/p/qgby5rtc.
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.
About Brookfield Infrastructure
Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. We are focused on assets that have contracted and regulated revenues that generate predictable and stable cash flows. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further information is available at https://bip.brookfield.com.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with over
Contact Information
Media: | Investors: |
Simon Maine | Stephen Fukuda |
Managing Director | Senior Vice President |
Corporate Communications | Corporate Development & Investor Relations |
Tel: +44 739 890 9278 | Tel: +1 416 956 5129 |
Email: simon.maine@brookfield.com | Email: stephen.fukuda@brookfield.com |
Cautionary Statement Regarding Forward-looking Statements
This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable securities laws. The words “will”, “target”, “future”, “growth”, “expect”, “believe”, “may”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release may include statements regarding expansion of Brookfield Infrastructure’s business, the likelihood and timing of successfully completing the transactions referred to in this news release, statements with respect to our assets tending to appreciate in value over time, the future performance of acquired businesses and growth initiatives, the commissioning of our capital backlog, the pursuit of projects in our pipeline, the level of distribution growth over the next several years and our expectations regarding returns to our unitholders as a result of such growth. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructure’s businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favorable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the impact of health pandemics on our business and operations, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions referred to in this press release as being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under “Risk Factors” in Brookfield Infrastructure’s most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure’s results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
Any statements contained herein with respect to tax consequences are of a general nature only and are not intended to be, nor should they be construed to be, legal or tax advice to any person, and no representation with respect to tax consequences is made. Unitholders and shareholders are urged to consult their tax advisors with respect to their particular circumstances.
References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure’s results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
References to the Partnership are to Brookfield Infrastructure Partners L.P.
- Please refer to page 11 for results of Brookfield Infrastructure Corporation.
- Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
- Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month periods ended September 30, 2024 was 461.7 million and 461.5 million, respectively (2023: 458.8 million and 458.6 million).
- We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market gains (losses) and other income (expenses) that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. FFO includes balances attributable to the Partnership generated by investments in associates and joint ventures accounted for using the equity method and excludes amounts attributable to non-controlling interests based on the economic interests held by non-controlling interests in consolidated subsidiaries. We believe that FFO, when viewed in conjunction with our IFRS results, provides a more complete understanding of factors and trends affecting our underlying operations. FFO is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by IFRS as issued by the International Accounting Standards Board. FFO is therefore unlikely to be comparable to similar measures presented by other issuers. A reconciliation of net income to FFO is available on page 9 of this release. Readers are encouraged to consider both measures in assessing our company’s results.
- Average number of partnership units outstanding on a fully diluted time weighted average basis for the three and nine-month periods ended September 30, 2024 was 792.2 million and 792.1 million, respectively (2023: 772.1 million and 771.7 million).
Brookfield Infrastructure Partners L.P. Consolidated Statements of Financial Position |
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As of | |||||
US$ millions, unaudited | Sept. 30, 2024 |
Dec. 31, 2023 |
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Assets | |||||
Cash and cash equivalents | $ | 1,602 | $ | 1,857 | |
Financial assets | 280 | 787 | |||
Property, plant and equipment and investment properties | 58,035 | 52,879 | |||
Intangible assets and goodwill | 29,426 | 30,333 | |||
Investments in associates and joint ventures | 5,642 | 5,402 | |||
Deferred income taxes and other | 10,259 | 9,526 | |||
Total assets | $ | 105,244 | $ | 100,784 | |
Liabilities and partnership capital | |||||
Corporate borrowings | $ | 5,156 | $ | 4,911 | |
Non-recourse borrowings | 47,622 | 40,904 | |||
Financial liabilities | 3,237 | 2,875 | |||
Deferred income taxes and other | 19,722 | 18,078 | |||
Partnership capital | |||||
Limited partners | 4,641 | 5,321 | |||
General partner | 26 | 28 | |||
Non-controlling interest attributable to: | |||||
Redeemable partnership units held by Brookfield | 1,903 | 2,190 | |||
Exchangeable units/shares1 | 1,400 | 1,605 | |||
Perpetual subordinated notes | 293 | 293 | |||
Interest of others in operating subsidiaries | 20,326 | 23,661 | |||
Preferred unitholders | 918 | 918 | |||
Total partnership capital | 29,507 | 34,016 | |||
Total liabilities and partnership capital | $ | 105,244 | $ | 100,784 |
- Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and Exchange LP units.
Brookfield Infrastructure Partners L.P. Consolidated Statements of Operating Results |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, except per unit information, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Revenues | $ | 5,270 | $ | 4,487 | $ | 15,595 | $ | 12,961 | |||||||
Direct operating costs | (3,897 | ) | (3,384 | ) | (11,685 | ) | (9,893 | ) | |||||||
General and administrative expense | (113 | ) | (100 | ) | (302 | ) | (312 | ) | |||||||
1,260 | 1,003 | 3,608 | 2,756 | ||||||||||||
Interest expense | (873 | ) | (640 | ) | (2,493 | ) | (1,775 | ) | |||||||
Share of earnings from associates and joint ventures | 56 | 96 | 192 | 472 | |||||||||||
Mark-to-market (losses) gains | (23 | ) | 34 | (61 | ) | 27 | |||||||||
Other (expense) income | (107 | ) | (99 | ) | 158 | 101 | |||||||||
Income before income tax | 313 | 394 | 1,404 | 1,581 | |||||||||||
Income tax (expense) recovery | |||||||||||||||
Current | (135 | ) | (142 | ) | (429 | ) | (418 | ) | |||||||
Deferred | 56 | 4 | 257 | 9 | |||||||||||
Net income | 234 | 256 | 1,232 | $ | 1,172 | ||||||||||
Non-controlling interest of others in operating subsidiaries | (286 | ) | (152 | ) | (1,106 | ) | (667 | ) | |||||||
Net (loss) income attributable to partnership | $ | (52 | ) | $ | 104 | $ | 126 | $ | 505 | ||||||
Attributable to: | |||||||||||||||
Limited partners | $ | (73 | ) | $ | 23 | $ | (55 | ) | $ | 184 | |||||
General partner | 73 | 66 | 220 | 198 | |||||||||||
Non-controlling interest | |||||||||||||||
Redeemable partnership units held by Brookfield | (30 | ) | 10 | (23 | ) | 76 | |||||||||
Exchangeable units/shares1 | (22 | ) | 5 | (16 | ) | 47 | |||||||||
Basic and diluted (losses) gains per unit attributable to: | |||||||||||||||
Limited partners2 | $ | (0.18 | ) | $ | 0.03 | $ | (0.18 | ) | $ | 0.34 |
- Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and Exchange LP units.
- Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month periods ended September 30, 2024 was 461.7 million and 461.5 million, respectively (2023: 458.8 million and 458.6 million).
Brookfield Infrastructure Partners L.P. Consolidated Statements of Cash Flows |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Operating activities | |||||||||||||||
Net income | $ | 234 | $ | 256 | $ | 1,232 | $ | 1,172 | |||||||
Adjusted for the following items: | |||||||||||||||
Earnings from investments in associates and joint ventures, net of distributions received | 22 | 30 | 24 | 191 | |||||||||||
Depreciation and amortization expense | 854 | 669 | 2,672 | 1,946 | |||||||||||
Mark-to-market, provisions and other | 92 | 156 | (192 | ) | 48 | ||||||||||
Deferred income tax recovery | (56 | ) | (4 | ) | (257 | ) | (9 | ) | |||||||
Change in non-cash working capital, net | 48 | (7 | ) | (387 | ) | (761 | ) | ||||||||
Cash from operating activities | 1,194 | 1,100 | 3,092 | 2,587 | |||||||||||
Investing activities | |||||||||||||||
Net (investments in) proceeds from: | |||||||||||||||
Operating assets | (1,673 | ) | (5,970 | ) | (2,304 | ) | (10,145 | ) | |||||||
Associates | — | 435 | (350 | ) | 405 | ||||||||||
Long-lived assets | (865 | ) | (616 | ) | (3,210 | ) | (1,612 | ) | |||||||
Financial assets | 246 | 69 | 363 | 245 | |||||||||||
Net settlements of foreign exchange contracts | (13 | ) | 2 | (22 | ) | 2 | |||||||||
Other investing activities | (4 | ) | (54 | ) | (132 | ) | (722 | ) | |||||||
Cash used by investing activities | (2,309 | ) | (6,134 | ) | (5,655 | ) | (11,827 | ) | |||||||
Financing activities | |||||||||||||||
Distributions to limited and general partners | (411 | ) | (377 | ) | (1,233 | ) | (1,130 | ) | |||||||
Net borrowings: | |||||||||||||||
Corporate | 37 | 652 | 299 | 1,610 | |||||||||||
Subsidiary | 2,251 | 777 | 7,209 | 3,323 | |||||||||||
Partnership units issued | 3 | 2 | 9 | 10 | |||||||||||
Net capital provided (to) by non-controlling interest | (141 | ) | 4,514 | (2,915 | ) | 6,758 | |||||||||
Lease liability repaid and other | (369 | ) | (545 | ) | (1,018 | ) | (1,326 | ) | |||||||
Cash from financing activities | 1,370 | 5,023 | 2,351 | 9,245 | |||||||||||
Cash and cash equivalents | |||||||||||||||
Change during the period | $ | 255 | $ | (11 | ) | $ | (212 | ) | $ | 5 | |||||
Cash reclassified as held for sale | — | — | — | (6 | ) | ||||||||||
Impact of foreign exchange and other on cash | 21 | (62 | ) | (43 | ) | 29 | |||||||||
Balance, beginning of period | 1,326 | 1,380 | 1,857 | 1,279 | |||||||||||
Balance, end of period | $ | 1,602 | $ | 1,307 | $ | 1,602 | $ | 1,307 |
Brookfield Infrastructure Partners L.P. Reconciliation of Net Income to Funds from Operations |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net income | $ | 234 | $ | 256 | $ | 1,232 | $ | 1,172 | |||||||
Add back or deduct the following: | |||||||||||||||
Depreciation and amortization | 854 | 669 | 2,672 | 1,946 | |||||||||||
Share of earnings from investments in associates and joint ventures | (56 | ) | (96 | ) | (192 | ) | (472 | ) | |||||||
FFO contribution from investments in associates and joint ventures1 | 238 | 225 | 708 | 709 | |||||||||||
Deferred tax recovery | (56 | ) | (4 | ) | (257 | ) | (9 | ) | |||||||
Mark-to-market losses (gains) | 23 | (34 | ) | 61 | (27 | ) | |||||||||
Other expense2 | 200 | 194 | 100 | 142 | |||||||||||
Consolidated Funds from Operations | $ | 1,437 | $ | 1,210 | $ | 4,324 | $ | 3,461 | |||||||
FFO attributable to non-controlling interests3 | (838 | ) | (650 | ) | (2,502 | ) | (1,795 | ) | |||||||
FFO | $ | 599 | $ | 560 | $ | 1,822 | $ | 1,666 |
- FFO contribution from investments in associates and joint ventures correspond to the FFO attributable to the partnership that are generated by its investments in associates and joint ventures accounted for using the equity method.
- Other expense corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other income/expenses excluded from FFO primarily includes gains on acquisitions and dispositions of subsidiaries, associates and joint ventures, gains or losses relating to foreign currency translation reclassified from accumulated comprehensive income to other expense, acquisition costs, gains/losses on remeasurement of borrowings, amortization of deferred financing costs, fair value remeasurement gains/losses, accretion expenses on deferred consideration or asset retirement obligations, impairment losses, and gains or losses on debt extinguishment.
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. By adjusting FFO attributable to non-controlling interests, our partnership is able to remove the portion of FFO earned at non-wholly owned subsidiaries that are not attributable to our partnership.
Brookfield Infrastructure Partners L.P. Statements of Funds from Operations per Unit |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||
(Losses) earnings per limited partnership unit1 | $ | (0.18 | ) | $ | 0.03 | $ | (0.18 | ) | $ | 0.34 | |||
Add back or deduct the following: | |||||||||||||
Depreciation and amortization | 0.52 | 0.46 | 1.58 | 1.36 | |||||||||
Deferred taxes and other items | 0.42 | 0.24 | 0.91 | 0.46 | |||||||||
FFO per unit2 | $ | 0.76 | $ | 0.73 | $ | 2.31 | $ | 2.16 |
- Average number of limited partnership units outstanding on a time weighted average basis for the three and nine-month periods ended September 30, 2024 was 461.7 million and 461.5 million, respectively (2023: 458.8 million and 458.6 million).
- Average number of partnership units outstanding on a fully diluted time weighted average basis for the three and nine-month periods ended September 30, 2024 was 792.2 million and 792.1 million, respectively (2023: 772.1 million and 771.7 million).
Notes:
The Statements of Funds from Operations per unit above are prepared on a basis that is consistent with the Partnership’s Supplemental Information and differs from net income per limited partnership unit as presented in Brookfield Infrastructure’s Consolidated Statements of Operating Results on page 7 of this release, which is prepared in accordance with IFRS. Management uses FFO per unit as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructure’s results.
Brookfield Infrastructure Corporation Reports Third Quarter 2024 Results
The Board of Directors of Brookfield Infrastructure Corporation (“BIPC” or our “company”) (NYSE, TSX: BIPC) today declared a quarterly dividend in the amount of
The previously announced proposed reorganization of BIPC, which is expected to be completed in December 2024, will not impact the payment of this dividend on December 31, 2024 to BIPC shareholders of record as at the close of business on November 29, 2024. After completion of the reorganization, it is expected that quarterly dividends will be declared and paid on the new shares held by BIPC shareholders at the same time as quarterly distributions are declared and paid to unitholders.
The Shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of Brookfield Infrastructure Partnership L.P. (“BIP” or the “Partnership”) (NYSE: BIP; TSX: BIP.UN). We believe economic equivalence is achieved through identical dividends and distributions on the Shares and BIP’s units and each Share being exchangeable at the option of the holder for one BIP unit at any time. Given the economic equivalence, we expect that the market price of the Shares will be significantly impacted by the market price of BIP’s units and the combined business performance of our company and BIP as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review BIP’s letter to unitholders, supplemental information and its other continuous disclosure filings. BIP’s letter to unitholders and supplemental information are available at https://bip.brookfield.com. Copies of the Partnership’s continuous disclosure filings are available electronically on EDGAR on the SEC’s website at https://sec.gov or on SEDAR+ at https://sedarplus.ca.
Results
The net income of BIPC is captured in the Partnership’s financial statements and results.
BIPC reported a net loss of
Cautionary Statement Regarding Forward-looking Statements
This news release may contain forward-looking information within the meaning of Canadian provincial 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” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words “believe”, “expect”, “will” derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding the impact of the market price of BIP’s units and the combined business performance of our company and BIP as a whole on the market price of the Shares. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructure’s businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favorable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the impact of health pandemics on our business and operations, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by BIPC with the securities regulators in Canada and the United States including “Risk Factors” in BIPC’s most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure Corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
Brookfield Infrastructure Corporation Consolidated Statements of Financial Position |
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As of | |||||||
US$ millions, unaudited | Sept. 30, 2024 |
Dec. 31, 2023 |
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Assets | |||||||
Cash and cash equivalents | $ | 245 | $ | 539 | |||
Due from Brookfield Infrastructure | 1,766 | 1,288 | |||||
Property, plant and equipment | 14,643 | 14,151 | |||||
Intangible assets | 3,306 | 3,699 | |||||
Goodwill | 1,670 | 1,726 | |||||
Deferred tax asset and other | 2,501 | 2,506 | |||||
Total assets | $ | 24,131 | $ | 23,909 | |||
Liabilities and equity | |||||||
Accounts payable and other | $ | 1,182 | $ | 1,099 | |||
Loans payable to Brookfield Infrastructure | 100 | 26 | |||||
Exchangeable and class B shares | 4,626 | 4,153 | |||||
Non-recourse borrowings | 13,336 | 12,028 | |||||
Financial liabilities | 36 | 75 | |||||
Deferred tax liabilities and other | 2,374 | 2,460 | |||||
Equity | |||||||
Equity in net assets attributable to the Partnership | (764 | ) | (399 | ) | |||
Non-controlling interest | 3,241 | 4,467 | |||||
Total equity | 2,477 | 4,068 | |||||
Total liabilities and equity | $ | 24,131 | $ | 23,909 |
Brookfield Infrastructure Corporation Consolidated Statements of Operating Results |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Revenues | $ | 912 | $ | 551 | $ | 2,722 | $ | 1,586 | |||||||
Direct operating costs | (339 | ) | (146 | ) | (1,007 | ) | (442 | ) | |||||||
General and administrative expenses | (21 | ) | (16 | ) | (56 | ) | (49 | ) | |||||||
552 | 389 | 1,659 | 1,095 | ||||||||||||
Interest expense | (269 | ) | (162 | ) | (767 | ) | (476 | ) | |||||||
Share of losses from investments in associates | — | (24 | ) | — | (20 | ) | |||||||||
Remeasurement of exchangeable and class B shares | (1,003 | ) | 917 | (468 | ) | 309 | |||||||||
Mark-to-market and other | (3 | ) | (16 | ) | (109 | ) | 22 | ||||||||
(Loss) income before income tax | (723 | ) | 1,104 | 315 | 930 | ||||||||||
Income tax expense | |||||||||||||||
Current | (80 | ) | (93 | ) | (275 | ) | (262 | ) | |||||||
Deferred | (5 | ) | (2 | ) | (8 | ) | (8 | ) | |||||||
Net (loss) income | $ | (808 | ) | $ | 1,009 | $ | 32 | $ | 660 | ||||||
Attributable to: | |||||||||||||||
Partnership | $ | (977 | ) | $ | 913 | $ | (458 | ) | $ | 338 | |||||
Non-controlling interest | 169 | 96 | 490 | 322 |
Brookfield Infrastructure Corporation Consolidated Statements of Cash Flows |
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For the three months ended September 30 |
For the nine months ended September 30 |
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US$ millions, unaudited | 2024 | 2023 | 2024 | 2023 | |||||||||||
Operating activities | |||||||||||||||
Net (loss) income | $ | (808 | ) | $ | 1,009 | $ | 32 | $ | 660 | ||||||
Adjusted for the following items: | |||||||||||||||
Earnings from investments in associates, net of distributions received | — | 24 | — | 23 | |||||||||||
Depreciation and amortization expense | 194 | 59 | 580 | 171 | |||||||||||
Mark-to-market and other | 14 | 37 | 93 | 32 | |||||||||||
Remeasurement of exchangeable and class B shares | 1,003 | (917 | ) | 468 | (309 | ) | |||||||||
Deferred income tax expense | 5 | 2 | 8 | 8 | |||||||||||
Change in non-cash working capital, net | 56 | (20 | ) | 72 | (136 | ) | |||||||||
Cash from operating activities | 464 | 194 | 1,253 | 449 | |||||||||||
Investing activities | |||||||||||||||
Disposal of associates | — | 435 | — | 435 | |||||||||||
Purchase of long-lived assets, net of disposals | (354 | ) | (122 | ) | (755 | ) | (381 | ) | |||||||
Acquisition of subsidiaries | — | (3,086 | ) | — | (3,086 | ) | |||||||||
Other investing activities | 19 | (53 | ) | 106 | (57 | ) | |||||||||
Cash used by investing activities | (335 | ) | (2,826 | ) | (649 | ) | (3,089 | ) | |||||||
Financing activities | |||||||||||||||
Net capital provided (to) by non-controlling interest | (281 | ) | 2,629 | (1,821 | ) | 2,466 | |||||||||
Net (repayments) borrowings | (70 | ) | (118 | ) | 946 | (60 | ) | ||||||||
Other financing activities | — | 16 | 18 | 16 | |||||||||||
Cash (used by) from financing activities | (351 | ) | 2,527 | (857 | ) | 2,422 | |||||||||
Cash and cash equivalents | |||||||||||||||
Change during the period | $ | (222 | ) | $ | (105 | ) | $ | (253 | ) | $ | (218 | ) | |||
Impact of foreign exchange on cash | 1 | (10 | ) | (41 | ) | 14 | |||||||||
Balance, beginning of period | 466 | 356 | 539 | 445 | |||||||||||
Balance, end of period | $ | 245 | $ | 241 | $ | 245 | $ | 241 |
FAQ
What was Brookfield Infrastructure’s (BIP) FFO in Q3 2024?
Brookfield Infrastructure reported FFO of $599 million in Q3 2024, representing a 7% increase from the same period last year.
How much did BIP’s transport segment FFO grow in Q3 2024?
BIP’s transport segment FFO increased by 50% to $308 million in Q3 2024, primarily due to the acquisition of global intermodal logistics operation.
What is BIP’s new quarterly distribution amount for Q3 2024?
BIP declared a quarterly distribution of $0.405 per unit, payable on December 31, 2024, representing a 6% increase compared to the prior year.
How much did BIP achieve in capital recycling in 2024?
BIP achieved its capital recycling target of $2 billion for the year, including proceeds from the sale of Mexican natural gas transmission business and other assets.