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Press release from CNW Group

Brookfield Renewable Power Fund Announces Results for Second Quarter of 2011

Thursday, August 04, 2011

Brookfield Renewable Power Fund Announces Results for Second Quarter of 201117:35 EDT Thursday, August 04, 2011GATINEAU, QC, Aug. 4, 2011 /CNW Telbec/ - (BRC.UN) - Brookfield Renewable Power Fund (the "Fund") reported today its financial and operating results for the second quarter ended June 30, 2011. All results are reported under International Financial Reporting Standards ("IFRS"). Additional information on the Fund's strategy and results can be found in its Letter to Unitholders and Supplemental Information at www.brpfund.com under Investor Relations/Financial Highlights.Total generation in the second quarter of 2011 was 1,657 gigawatt hours ("GWh") as compared to 1,096 GWh in the second quarter of 2010 and a long-term average of 1,776 GWh. At quarter-end, reservoirs in each region were above their usual levels for this time of year, leaving the Fund well positioned for the second half of the year. Wind generation of 150 GWh included 37 GWh from the recently commissioned Gosfield Wind farm, which was in line with expectations.FINANCIAL AND OPERATING HIGHLIGHTSUnauditedThree months ended June 30Six months ended June 30CDN $ millions, except otherwise noted2011201020112010Revenues $  91.3$  49.9$175.4$145.1Net Operating Cash Flow               46.315.892.467.3Distributions to Unitholders               34.134.0 68.167.6 Per unit ($)       Net Operating Cash Flow 0.440.150.880.64Distributions to Unitholders 0.330.330.650.65Power generated (GWh) 1,6571,0963,1572,757Average price ($/MWh) 65626664Note: Under IFRS, the Fund no longer consolidates the results of the Prince Wind farm, Powell River and the Pingston Hydro joint venture, which are held through 50%-owned subsidiaries. These assets are accounted for using the equity-method. Second quarter revenues were $91.3 million as compared to $49.9 million, and net operating cash flow was $46.3 million as compared with $15.8 million in the same period last year, reflecting significantly improved hydroelectric generation relative to the second quarter of 2010, and the contribution of Gosfield Wind which entered commercial operation in September 2010.Second quarter distributions to unitholders were $34.1 million or 32.499 cents per unit, consistent with the same period last year. Effective with the second quarter, following unitholder approval, the Fund transitioned from monthly to quarterly unitholder distributions with no change to the annualized rate of $1.30 per unit.LIQUIDITY AND CAPITAL PROGRAM At June 30, 2011, the Fund had total liquidity of $183.4 million, comprised of cash and cash equivalents of $27.9 million, $115.5 million available under committed credit facilities and $40.0 million available under the hydrology reserve facility. Accordingly, the Fund's liquidity position remains strong and is expected to support its objectives with respect to growth, capital investment and cash distributions to unitholders.In the first half of 2011, the Fund invested $5.7 million in sustaining capital expenditures and $3.6 million in major maintenance. In 2011, the Fund expects to invest $27.6 million and $11.2 million in capital expenditures and major maintenance, respectively, excluding spending on the 166 MW Comber Wind project, which amounted to $112.2 million in the second quarter.The construction of Comber Wind is progressing on schedule. Turbine installation has commenced and nine of the 72 turbines have been installed. Mechanical connection of the main substation to the transmission grid is complete and energization of the substation is expected in the coming weeks. Construction of the collector system connecting the turbines to the main substation is progressing in a joint effort with the local utility. The remaining access roads and turbine foundations are expected to be completed through the end of August. The project remains on schedule to enter operations in the fall of 2011.The Fund expects to refinance $13.2 million of non-recourse project financing related to the Carmichael Falls facility prior to its maturity in November 2011.CONFERENCE CALLA conference call for investors and media to review the second quarter results for 2011 will be held on Friday, August 5, 2011 at 10:00 a.m. (EDT). To participate in the conference call, please dial 416-644-3425 or 1-800-732-1073 toll-free in North America, at 9:50 a.m. (EST). For those unable to participate in the conference call, a taped rebroadcast will also be available through August 7, 2011. To access this rebroadcast, please call 1-877-289-8525 toll-free in North America, and enter the passcode 4455526#. The conference call will also be webcast live on the Fund's website at www.brpfund.com, where it will be archived for three months.DISTRIBUTIONS The schedule below sets out the cash distribution history for the last twelve months:RECORD DATE   PAYMENT DATE         DISTRIBUTION PER UNITJune 30, 2011   March 31, 2011   February 28, 2011  January 31, 2011  December 31, 2010  November 30, 2010  October 31, 2010  September 30, 2010  August 31, 2010  July 31, 2010   July 29, 2011        April 29, 2011        March 31, 2011        February 28, 2011       January 31, 2011       December 31, 2010       November 30, 2010       October 29, 2010       September 30, 2010       August 31, 2010       32.499 cents10.833 cents10.833 cents10.833 cents10.833 cents10.833 cents10.833 cents10.833 cents10.833 cents10.833 centsQUARTERLY PREFERRED SHARE DIVIDENDSThe Board of Directors of Brookfield Renewable Power Preferred Equity Inc. has declared the quarterly dividend on its Class A Preference Shares, Series 1, payable on October 31, 2011 to shareholders of record as at the close of business on October 15, 2011. Information on the Fund's quarterly distributions and preferred share quarterly dividends can be found on the company's web site under Investor Relations.BASIS OF PRESENTATIONThis news release and accompanying financial statements make reference to net operating cash flow on a total and per share basis. The Fund focuses on net operating cash flow as the measure of its success as it best reflects its ability to generate cash flows to pay stable and sustainable distributions to our unitholders. Net operating cash flow is not a defined financial measure under International Financial Reporting Standards ("IFRS") and, as such, may not be comparable to similar measures presented by other issuers. Net operating cash flow consists of revenues, net of direct operating costs, the costs associated with financing, including dividends on the guaranteed preferred shares issued by a subsidiary, current income taxes and the cash portion of the Fund's share of profits in equity-accounted investments.The information in this news release is based primarily on information that has been extracted from the Fund's interim financial statements for the three and six months ended June 30, 2011, which have been prepared using the standards and interpretations currently issued under International Financial Reporting Standards and expected to be effective at the end of our first annual IFRS reporting period, which is intended to be December 31, 2011. The amounts have not been audited by our external auditor.CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATIONThis news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding the Fund's future generation position, the Comber Wind project, the anticipated growth and diversification of the Fund's portfolio, capital expenditures, and the Fund's financial and liquidity position. Forward-looking statements can be identified by the use of words such as "well positioned", "will", "plans", "expected", "intend", "continue", and "in the process", or variations of such words and phrases.  Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, it can give no assurance that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to the board's discretion to declare dividends, changes in hydrology and wind conditions; equipment failure; construction risks; refinancing risks; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc., Brookfield Asset Management Inc. and the Fund; failure by the Fund to discover liabilities associated with, and inability of the Fund to successfully integrate, acquisitions; risks associated with the Fund's proposed conversion from an income trust; our ability to execute our growth strategy; and other risks and factors detailed from time to time in the Fund's public filings including the Annual Information Form dated March 30, 2011 under the heading "Risk Factors" and Management's Discussion and Analysis of Financial Results in the 2010 Annual Report under the headings "Financial Instrument Risks" and "Business and Environmental Risks". We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as required by law, the Fund undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.About Brookfield Renewable Power Fund Brookfield Renewable Power Fund (www.brpfund.com) is a premier Canadian income fund and one of the largest power income funds in North America with more than 1,700 megawatts of power generating capacity and average annual production exceeding 6,500 gigawatt hours.The Fund produces electricity exclusively from environmentally friendly and renewable resources, including 42 high quality hydroelectric generating stations and two wind farms in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.Brookfield Renewable Power Inc., which comprises most of the power operations of Brookfield Asset Management, owns approximately 34% of the Fund's outstanding units on a fully exchanged basis.The Units are listed for trading on the TSX under the symbol BRC.UN.  For further information: For more information, please visit www.brpfund.com or contact: Zev Korman Director, Investor Relations and Communications Brookfield Renewable Power Fund Tel: (416) 359-1955 zev.korman@brookfield.com