Editing Brookfield Renewable Partners L.P.
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Brookfield Renewable's business model is to acquire and develop high quality renewable power below intrinsic value, finance on a long term low risk basis and optimise cash flows by applying their operating expertise and knowledge to enhance value. | Brookfield Renewable's business model is to acquire and develop high quality renewable power below intrinsic value, finance on a long term low risk basis and optimise cash flows by applying their operating expertise and knowledge to enhance value. | ||
== '''<u>Products</u>''' == | == '''<u>Products</u>''' == | ||
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Hydroelectric power capacity is the highest, followed by Wind and DE&SS, with Solar making up the smallest proportion of energy production. | Hydroelectric power capacity is the highest, followed by Wind and DE&SS, with Solar making up the smallest proportion of energy production. | ||
[[File:Allocation split by technology.png|left|thumb|287x287px|Brookfield total portfolio allocation split by technology]] | |||
[[File:Allocation by region.png|left|thumb|Brookfield total portfolio allocation split by region]] | |||
== '''<u>Projects</u>''' <ref name=":1" /> == | == '''<u>Projects</u>''' <ref name=":1" /> == | ||
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=== Westinghouse === | === Westinghouse === | ||
Brookfield Renewable Partners formed a strategic partnership with Cameco to acquire Westinghouse, one of the world's largest nuclear services businesses. The company believes that nuclear power and hydroelectricity are the only clean forms of baseload power generation. | Brookfield Renewable Partners formed a strategic partnership with Cameco to acquire Westinghouse, one of the world's largest nuclear services businesses. The company believes that nuclear power and hydroelectricity are the only clean forms of baseload power generation. Expected total equity to be invested is around $4.5 billion, and the company along with it's partners will own 51% interest. The transaction is expected to close in the second half of 2023. | ||
=== Other Investments === | === Other Investments === | ||
Brookfield Renewable has invested in a number of asset classes complementary to | Brookfield Renewable has invested in a number of asset classes complementary to core renewable assets, such as carbon capture and storage, recycling and renewable natural gas (RNG). This includes an investment in California Bioenergy, a leading developer, operator and owner of RNG. The company has invested an initial $150 million in a downside protected convertible structure, and have a priority right to invest an additional $350 million to support the development of new agriculture RNG assets. | ||
== '''<u>Management</u>''' <ref>https://www.brookfield.com/about-us/leadership?filter=49</ref> == | == '''<u>Management</u>''' <ref>https://www.brookfield.com/about-us/leadership?filter=49</ref> == | ||
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=== General Counsel - Jennifer Mazin: === | === General Counsel - Jennifer Mazin: === | ||
On the board since 2015. Mazin is responsible for transaction execution and public company matters, including corporate governance and public disclosure. Prior to joining Brookfield in 2014, Mazin was Assistant General Counsel at a large global mining company and worked at a New York-based law firm, where she focused on cross-border corporate finance transactions, mergers and acquisitions as well as governance and disclosure requirements. | On the board since 2015. Mazin is responsible for transaction execution and public company matters, including corporate governance and public disclosure. Prior to joining Brookfield in 2014, Mazin was Assistant General Counsel at a large global mining company and worked at a New York-based law firm, where she focused on cross-border corporate finance transactions, mergers and acquisitions as well as governance and disclosure requirements. | ||
== '''<u>Ownership</u>''' <ref>https://simplywall.st/stocks/ca/utilities/tsx-bep.un/brookfield-renewable-partners-shares/ownership</ref> == | == '''<u>Ownership</u>''' <ref>https://simplywall.st/stocks/ca/utilities/tsx-bep.un/brookfield-renewable-partners-shares/ownership</ref> == | ||
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The top 10 stakeholders in Brookfield Renewable Partners make up 72.2% of the entire ownership. Other notable investors include Scotiabank (0.48%) and Morgan Stanley (0.39%). | The top 10 stakeholders in Brookfield Renewable Partners make up 72.2% of the entire ownership. Other notable investors include Scotiabank (0.48%) and Morgan Stanley (0.39%). | ||
== '''<u>Financials</u>''' == | |||
The table below shows the reported revenue of the previous 5 years for Brookfield Renewable Partners, other financial information required in the calculation of EBIT is also shown. All units are given in USD millions. | The table below shows the reported revenue of the previous 5 years for Brookfield Renewable Partners, other financial information required in the calculation of EBIT is also shown. All units are given in USD millions. | ||
{| class="wikitable" | {| class="wikitable" | ||
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Total Solar revenue for 2022 - $374 million, and $348 million for 2021. Total DE&SS revenue for 2022 - $290 million, and $242 million for 2021. A breakdown by location is not possible. Hydroelectric revenue increased by 13% compared to 2021, wind declined by 3.2%, but solar and DE&SS increased by 7.5% and 19.8% respectively. | Total Solar revenue for 2022 - $374 million, and $348 million for 2021. Total DE&SS revenue for 2022 - $290 million, and $242 million for 2021. A breakdown by location is not possible. Hydroelectric revenue increased by 13% compared to 2021, wind declined by 3.2%, but solar and DE&SS increased by 7.5% and 19.8% respectively. | ||
[[File:Revenue by segment .png]] | [[File:Revenue by segment.png]] | ||
=== Forecasts === | === Forecasts === | ||
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|- | |- | ||
| '''FCF''' | | '''FCF''' | ||
| '''1,994.97''' | | ''' 1,994.97''' | ||
| '''1,796.75''' | | ''' 1,796.75''' | ||
| '''2,004.69''' | | ''' 2,004.69''' | ||
| '''1,946.44''' | | ''' 1,946.44''' | ||
| '''2,156.77''' | | ''' 2,156.77''' | ||
| '''2,100.91''' | | ''' 2,100.91''' | ||
| '''2,313.63''' | | ''' 2,313.63''' | ||
| '''2,260.17''' | | ''' 2,260.17''' | ||
| '''2,475.28''' | | ''' 2,475.28''' | ||
| '''2,424.21''' | | ''' 2,424.21''' | ||
|- | |- | ||
|'''Discount Factor''' | |'''Discount Factor''' | ||
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|- | |- | ||
|'''Present Value of FCF''' | |'''Present Value of FCF''' | ||
| '''1,926.16''' | | ''' 1,926.16''' | ||
| '''1,608.35''' | | ''' 1,608.35''' | ||
| '''1,663.72''' | | ''' 1,663.72''' | ||
| '''1,497.65''' | | ''' 1,497.65''' | ||
| '''1,538.56''' | | ''' 1,538.56''' | ||
| '''1,389.49''' | | ''' 1,389.49''' | ||
| '''1,418.67''' | | ''' 1,418.67''' | ||
| '''1,284.89''' | | ''' 1,284.89''' | ||
| '''1,304.63''' | | ''' 1,304.63''' | ||
| '''1,184.60''' | | ''' 1,184.60''' | ||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
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! rowspan="7" |'''Growth Rate''' | ! rowspan="7" |'''Growth Rate''' | ||
!'''2.0%''' | !'''2.0%''' | ||
|$ 94.76 | |$ 94.76 | ||
|$ 75.06 | |$ 75.06 | ||
|$ 59.31 | |$ 59.31 | ||
|$ 46.42 | |$ 46.42 | ||
|$ 35.68 | |$ 35.68 | ||
|$ 26.60 | |$ 26.60 | ||
|$ 18.82 | |$ 18.82 | ||
|$ 12.08 | |$ 12.08 | ||
|- | |- | ||
!'''2.5%''' | !'''2.5%''' | ||
|$ 113.07 | |$ 113.07 | ||
|$ 88.75 | |$ 88.75 | ||
|$ 69.83 | |$ 69.83 | ||
|$ 54.70 | |$ 54.70 | ||
|$ 42.32 | |$ 42.32 | ||
|$ 32.00 | |$ 32.00 | ||
|$ 23.27 | |$ 23.27 | ||
|$ 15.79 | |$ 15.79 | ||
|- | |- | ||
!'''3.0%''' | !'''3.0%''' | ||
|$ 137.48 | |$ 137.48 | ||
|$ 106.34 | |$ 106.34 | ||
|$ 82.98 | |$ 82.98 | ||
|$ 64.81 | |$ 64.81 | ||
|$ 50.27 | |$ 50.27 | ||
|$ 38.38 | |$ 38.38 | ||
|$ 28.46 | |$ 28.46 | ||
|$ 20.07 | |$ 20.07 | ||
|- | |- | ||
!'''3.5%''' | !'''3.5%''' | ||
|$ 171.66 | |$ 171.66 | ||
|$ 129.80 | |$ 129.80 | ||
|$ 99.89 | |$ 99.89 | ||
|$ 77.45 | |$ 77.45 | ||
|$ 60.00 | |$ 60.00 | ||
|$ 46.03 | |$ 46.03 | ||
|$ 34.59 | |$ 34.59 | ||
|$ 25.06 | |$ 25.06 | ||
|- | |- | ||
!'''4.0%''' | !'''4.0%''' | ||
|$ 222.92 | |$ 222.92 | ||
|$ 162.64 | |$ 162.64 | ||
|$ 122.44 | |$ 122.44 | ||
|$ 93.71 | |$ 93.71 | ||
|$ 72.15 | |$ 72.15 | ||
|$ 55.38 | |$ 55.38 | ||
|$ 41.95 | |$ 41.95 | ||
|$ 30.96 | |$ 30.96 | ||
|- | |- | ||
!'''4.5%''' | !'''4.5%''' | ||
|$ 308.36 | |$ 308.36 | ||
|$ 211.90 | |$ 211.90 | ||
|$ 154.00 | |$ 154.00 | ||
|$ 115.38 | |$ 115.38 | ||
|$ 87.78 | |$ 87.78 | ||
|$ 67.07 | |$ 67.07 | ||
|$ 50.95 | |$ 50.95 | ||
|$ 38.04 | |$ 38.04 | ||
|- | |- | ||
!'''5.0%''' | !'''5.0%''' | ||
|$ 479.25 | |$ 479.25 | ||
|$ 294.01 | |$ 294.01 | ||
|$ 201.35 | |$ 201.35 | ||
|$ 145.73 | |$ 145.73 | ||
|$ 108.62 | |$ 108.62 | ||
|$ 82.10 | |$ 82.10 | ||
|$ 62.19 | |$ 62.19 | ||
|$ 46.69 | |$ 46.69 | ||
|} | |} | ||
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{| class="wikitable" | {| class="wikitable" | ||
|+Relative Valuation Table<ref>All financial data was taken from the financial times stock price pages.</ref> | |+Relative Valuation Table<ref>All financial data was taken from the financial times stock price pages.</ref> | ||
|'''Stock''' | |||
|'''Price to Earnings Ratio''' | |||
|'''Return on Equity''' | |||
|'''Earnings Per Share''' | |||
|'''Dividend Yield''' | |||
|'''Annual Dividend''' | |||
|'''Return on Assets''' | |||
|'''Dividend Growth''' | |||
|- | |- | ||
|'''BRP''' | |'''BRP''' | ||
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[[File:EPS.png|thumb|841x841px|center]] | [[File:EPS.png|thumb|841x841px|center]] | ||
The relative valuation shows that Brookfield Renewable Partners pays out the second highest dividend amongst it's competitors, behind only General Electric. Brookfield Renewable is also top 3 for dividend growth, with General Electric having seen massive declines in dividend pay-out, meaning that Brookfield Renewable is a stock with good income prospects. | The relative valuation shows that Brookfield Renewable Partners pays out the second highest dividend amongst it's competitors, behind only General Electric. Brookfield Renewable is also top 3 for dividend growth, with General Electric having seen massive declines in dividend pay-out, meaning that Brookfield Renewable is a stock with good income prospects. | ||
== '''<u>Risks</u>'''<ref name=":1" /> == | == '''<u>Risks</u>'''<ref name=":1" /> == | ||