Brookield Infrastructure Reports Strong 2015 Third Quarter Results
(firmenpresse) - HAMILTON, BERMUDA -- (Marketwired) -- 11/04/15 -- Brookfield Infrastructure (NYSE: BIP)(TSX: BIP.UN) today announced our results for the third quarter ended September 30, 2015.
Brookfield Infrastructure generated funds from operations ("FFO") totalling $210 million ($0.91 per unit) for the quarter, up from $178 million ($0.85 per unit) last year. Results benefitted from the contribution from our newly acquired communications infrastructure assets, in addition to solid organic growth across the business, which more than offset the impact of foreign exchange. Our payout ratio(4) for the quarter was 67%, which remains within our target range of 60-70%.
We reported net income for the quarter of $123 million ($0.46 per unit) compared to $72 million ($0.29 per unit) in the prior year. The increase in net income is attributable to higher earnings generated from operations and a gain on the sale of our New England electricity transmission operations, partially offset by depreciation from recently acquired operations.
"The culmination of many quarters of business development efforts resulted in reaching agreement on several exciting transactions during the quarter. Our ability to access significant amounts of capital earlier in the year provided the capacity to move quickly to secure these opportunities," said Sam Pollock, CEO of Brookfield Infrastructure. "For the balance of the year, our focus is to advance these initiatives towards completion and we expect they will meaningfully contribute to our cash flows in 2016."
Segment Performance
Our Utilities segment generated FFO of $99 million in the quarter, which is $6 million higher than the prior year. These results were driven by record connections activity at our UK regulated distribution operation, incremental earnings on growth capital commissioned into our rate base and inflation indexation across a number of our businesses.
Our Transport segment generated FFO of $103 million, which was roughly in line with results in the comparable period in 2014. Our results benefitted from tariff growth across the majority of our operations, higher volumes at our rail logistics business in Brazil and cost savings at our Australian rail operation. These positive results were affected predominantly by a strong U.S. dollar, which reduced results in this segment by $20 million.
Our Energy segment generated FFO of $19 million this period, compared to $10 million in the prior year. Results were higher due to increased volumes at our North American gas transmission operation and the addition of new district energy businesses.
Our French telecom infrastructure business, acquired in March of this year, delivered FFO of $20 million for the quarter. This is consistent with the prior quarter and is slightly ahead of underwriting.
The following table presents net income and FFO by segment:
Acquisitions and Divestitures Update
During the quarter and subsequent to quarter end we advanced a number of previously disclosed investment initiatives:
Balance Sheet Initiative
Brookfield Infrastructure is focused on maintaining a solid balance sheet and ensuring we have ample liquidity to support our growth. Subsequent to quarter end we completed a C$500 million corporate bond issuance. The issuance comprised two tranches - including C$375 million of five-year notes and C$125 million of three-year notes, with coupons of 3.538% and 3.034%, respectively. These notes were swapped into U.S. dollars on a matched maturity basis at an all-in weighted average rate of 3.79%. We currently have total liquidity of $3.3 billion which will be used to fund a portion of our new investments over the next three to six months.
Distributions
The Board of Directors has declared a quarterly distribution in the amount of $0.53 per unit, payable on December 31, 2015 to unitholders of record as at the close of business on November 30, 2015. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1 have also been declared.
Additional Information
Brookfield Infrastructure's Letter to Unitholders and the Supplemental Information are available at .
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and communications sectors across North and South America, Australia, Asia and Europe. We are focused on assets that generate stable cash flows and require minimal maintenance capital expenditures. Brookfield Infrastructure Partners is listed on the New York and Toronto stock exchanges. Further information is available at . Important information may be disseminated exclusively via the website; investors should consult the site to access this information.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with over $200 billion of assets under management. For more information, go to
Please note that BIP's previous audited annual and unaudited quarterly reports have been filed on SEDAR and can also be found in the investors section of its website at . Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please visit our website at .
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure's 2015 Third Quarter Results as well as the Letter to Unitholders and Supplemental Information on Brookfield Infrastructure's website under the Investor Relations section at .
The conference call can be accessed via webcast on November 4, 2015 at 9:00 a.m. Eastern Time at or via teleconference at 1-800-319-4610 toll free in North America. For overseas calls please dial 1-604-638-5340, at approximately 8:50 a.m. Eastern Time. A recording of the teleconference can be accessed at 1-855-669-9658 or 1-604-674-8052 (Password 9245#).
Note: This news release contains 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 "will", "target", "future", "growth", "expect", "believe", "plan", "should", "optimistic", "can", "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 include statements regarding expansion of Brookfield Infrastructure's business, the likelihood and timing of successfully completing the acquisitions 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, and the level of distribution growth over the next several years. 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 favourable commodity prices, 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 ability to effectively complete new acquisitions in the competitive infrastructure space (including the ability to complete announced and potential acquisitions 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, including traffic volumes on our toll roads, 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 and general partnership units.
Notes:
Funds from operations in this statement is on a segmented basis and represents the operations of Brookfield Infrastructure net of charges associated with related liabilities and non-controlling interests. Adjusted EBITDA is defined as FFO excluding the impact of interest expense and other income or expenses. Net income attributable to the partnership includes net income attributable to non-controlling interests - redeemable partnership units held by Brookfield, limited partners and the general partner.
The Statements of Funds from Operations above are prepared on a basis that is consistent with the Partnership's Supplemental Information and differs from net income as presented in Brookfield Infrastructure's Consolidated Statements of Operating Results on page 8 of this release, which is prepared in accordance with IFRS. Management uses funds from operations (FFO) as a key measure to evaluate operating performance. Readers are encouraged to consider both measures in assessing Brookfield Infrastructure's results.
Notes:
Partnership capital in these statements represents Brookfield Infrastructure's investments in its operations on a segmented basis, net of underlying liabilities and non-controlling interests, and includes partnership capital attributable to non-controlling interests - redeemable partnership units held by Brookfield, limited partners and the general partner.
Accordingly, the statements above differ from Brookfield Infrastructure's Consolidated Statements of Financial Position contained in its financial statements, which are prepared in accordance with IFRS. Readers are encouraged to consider both bases of presentation in assessing Brookfield Infrastructure's financial position on page 7 of this release.
Contacts:
Media:
Andrew Willis
Senior Vice President, Communications and Media
(416) 369-8263
Investors:
Tracey Wise
Senior Vice President, Investor Relations
(416) 956-5154
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Datum: 04.11.2015 - 11:54 Uhr
Sprache: Deutsch
News-ID 431832
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