Overview
Brookfield Renewable Partners L.P. (BRP), stock ticker BEP, is a publicly traded limited partnership that owns a diversified portfolio of renewable power and sustainable solutions assets. Headquartered are in Hamilton, Bermuda, the BEP stock is listed on the New York Stock Exchange (NYSE). Brookfield Renewable Partners was founded in 1999 as Brookfield Renewable Power Inc., a subsidiary of Brookfield Asset Management, and rebranded in 2013.
BRP's portfolio includes hydroelectric, wind, solar, distributed energy and sustainable solutions across five continents, 98% of the business is made up of renewable power assets. The company's largest market is the United States, which accounts for approximately 40% of its total capacity. BRP'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.
Currently, BRP has an estimated operating capacity of 25,400 MW, and an estimated 110,000 MW of future operating capacity. 1 MW can power around 1,000 homes in the US, it is currently one of the largest decarbonisation businesses globally.
The company's stock is classified as a "dividend aristocrat" by S&P Global, meaning that it has increased its dividend for 25 consecutive years.
Products
Management Team
Risks
Financial Risks
Electricity Price - Exposure to movements in the market price of energy.
Foreign Currency - Exposed to foreign currency risk including the Canadian dollar, Brazilian real, Euro, British pound sterling, Colombian peso, Indian rupee, Chinese yuan, and Malaysian ringgit. The risk is related to operations, anticipated transactions and certain foreign currency debt.
Interest Rate - Exposed to interest rate risk on the interest rates for variable rate debt.
Credit - Exposed to credit risk from operating activities and certain financing activities. The risk is due to counterparties not being able to meet their obligations on energy contracts, interest rate swaps, forward foreign exchange contracts, physical electricity and gas transactions as well as trade receivables.
Liquidity - Exposed to liquidity risk for financial liabilities. Also subject to internal liquidity risk as they conduct business activities through separate legal entities, and are dependent on receipt of cash from those entities to pay off corporate expenses and make dividend payments to shareholders.
Industry and Operational Risks
Natural resource availability - Revenues generated by renewable power facilities are correlated to amount of electricity produced, which are dependent on available water flows, wind and irradiance. The generation facilities are susceptible to damage during extreme weather events, climate change may increase the frequency of extreme weather events, as well as cause a shift in the existing weather patterns.
Contract Expiration - Certain power purchasing agreements in the portfolio will be subject to re-contracting in the future, if the price of electricity in power markets is declining at the time of re-contracting, it will impact the ability of the company to be able to re-negotiate at favourable terms.
Concession renewal - The company holds concessions and has rights to operate facilities, e.g. for hydroelectric facilities, include the rights to the land and water required for power generation, if renewal rights are not granted or an additional cost is imposed, it could significantly impact operational capacity.
Dam failures - Occurrence of dam failures at any hydroelectric generation stations would result in loss of generating capacity until the failure has been repaired, harm to third parties or the environment could expose the company to liability costs.
Other Risks
Cyber Attacks - The business may be subject to cyber security risks or other breaches of information technology security intended to obtain unauthorised access to proprietary information and that of business partners, destroy data or disable systems through cyber attacks. Any such breach of information could go undetected for some time.
Development Failures - Large development pipeline that includes projects at different levels of advancement, there is no guarantee that all project will be successfully delivered, or delivered on time.
Employee Retention - The business depends on the skill of the professionals employed, future success will depend on the continued service of these individuals, which could impact the ability of the company to achieve its objectives.