Brookield Infrastructure Reports 2015 Year-End Results
2016 distributions increased by 7.5%
(firmenpresse) - BROOKFIELD, NEWS -- (Marketwired) -- 02/03/16 -- Brookfield Infrastructure (NYSE: BIP)(TSX: BIP.UN) today announced our results for the year ended December 31, 2015.
In 2015, Brookfield Infrastructure generated funds from operations ("FFO") totaling $808 million ($3.59 per unit), compared with $724 million ($3.45 per unit) in 2014. Results benefitted from the contribution of 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 year was 68%, which remains within our target range of 60-70%.
We reported net income of $298 million ($1.04 per unit) for the year ended December 31, 2015, compared to $184 million ($0.67 per unit) in the prior year. The increase in net income is attributable to higher earnings generated predominantly from our utilities and transport operations, the gain on the sale of our New England electricity transmission operation and revaluation gains associated with hedge positions, partially offset by the impact of foreign exchange.
"After a good year in 2015, our business is well positioned to prosper in 2016. Our operations are performing well, our balance sheet is strong and we have almost $3 billion of liquidity," said Sam Pollock, CEO of Brookfield Infrastructure. "With our unique internally generated organic growth and ability to recycle capital, we will continue to generate steady, predictable growth. We are also enthusiastic about the potential for value based transactions in Brazil and North American energy infrastructure in the years ahead that would be highly profitable for the business."
Segment Performance
Our utilities segment generated FFO of $387 million during 2015, an increase of 5% from the prior year. On a constant currency basis, results were up 9% driven by inflation indexation and investments in growth capital projects across the segment.
Our transport segment generated FFO of $398 million, an increase of $6 million from the prior year. 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 offset by a strong U.S. dollar, which reduced results in this segment by approximately $60 million.
Our energy segment generated FFO of $90 million for 2015, compared to $68 million in the prior year, mainly as a result of organic growth initiatives. Same-store growth for this segment was 18% for the year, driven primarily by improved volumes at our North American natural gas transmission business, and a more meaningful contribution from our district energy business that continues to execute on a multifaceted growth strategy.
Our French communications infrastructure business, acquired in March of this year, delivered FFO of $60 million in 2015. Results, so far, have been slightly ahead of underwriting.
The following table presents net income and FFO by segment:
Update on Strategic Initiatives
Over the past year we have continued to pursue investments to build out our operations. Weakness in commodity markets, parts of the capital markets, and certain economies around the world have created numerous opportunities to deploy the capital we raised during 2015.
Balance Sheet Update
Brookfield Infrastructure continues to focus on maintaining a solid balance sheet and ensuring we have ample liquidity to support our growth. In the fourth quarter we executed on several transactions that enhanced our overall liquidity position.
By completing these balance sheet initiatives, we currently have almost $3 billion of total liquidity in the system.
Distribution Increase
The Board of Directors has declared a quarterly distribution in the amount of $0.57 per unit, payable on March 31, 2016 to unitholders of record as at the close of business on February 29, 2016. This distribution represents a 7.5% increase compared to the prior year. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1 and Series 3 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 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 approximately $225 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 Year-End 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 February 3, 2016 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 9 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 8 of this release.
Contacts:
Media:
Andrew Willis
Senior Vice President, Communications and Media
(416) 369-8263
Investors:
Melissa Low
Vice President, Investor Relations & Communications
(416) 956-5239
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Datum: 03.02.2016 - 11:49 Uhr
Sprache: Deutsch
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