BROOKFIELD RENEWABLE ENERGY PARTNERS L.P. $28.64 (Toronto symbol BEP.UN; Units outstanding: 265.2 million; Market cap: $7.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.3%; www.brpfund.com) owns 196 hydroelectric generating stations, 11 wind farms and two natural-gas-fired plants. In all, it has 5,900 megawatts of generating capacity.
Roughly 35% of Brookfield Renewable’s generating capacity is in Canada, with another 50% in the U.S. and 15% in Brazil.
In the three months ended June 30, 2013, Brookfield’s revenue rose 43.6%, to $484 million from $337 million a year earlier. Cash flow jumped sharply, to $187 million, or $0.71 a share, from $87 million, or $0.33.
The gains resulted from a 52.8% increase in electricity generation due to favourable rain and wind conditions, compared to poorer conditions a year ago.
To further boost its power output, the company plans to keep acquiring or building hydroelectric plants and wind farms. To cut its risk, it sells virtually all of its electricity under long-term agreements that are an average of 24 years long.
The units trade at 12.5 times Brookfield’s forecast 2013 cash flow of $2.30 a share. The company raised its quarterly distribution by 5.1% in April 2013, to $0.3625 from $0.345. That gives the units a 5.3% yield.
Brookfield Renewable Power is still a buy.
