Brookfield Renewable Q4 Loss Shrinks; Dividend Rises

Brookfield Renewable Partners (TSE: BEP.UN) (NYSE: BEP.UN) reported higher revenues and a smaller loss in the fourth quarter compared to last year. The hydroelectric and wind power generation facilities operator also raised its quarterly dividend.

Revenue & Earnings

Revenue came in at nearly $1.09 billion for the quarter ended December 31, an increase of 14.6% from $952 million in the prior-year quarter.

Meanwhile, FFO was $214 million or $0.33 per unit in the fourth quarter, compared to $201 million or $0.31 per unit in the same period last year.

The company reported a net loss attributable to unitholders of $57 million (-$0.12 per share) in Q4 2021, compared to a loss of $120 million (-$0.22 per share) in Q4 2020. 

Dividend Hiked 5%

The next quarterly dividend of $0.32 per share is payable on March 31, 2022, to unitholders of record at the close of business on February 28, 2022. This represents a 5% increase, bringing the total annual distribution per unit to $1.28.

CEO Commentary

Brookfield Renewables CEO Connor Teskey said, “2021 was another strong year for our business as we achieved our highest ever FFO per unit, deployed capital in-line with our target, and continued to expand our development activities with over 15,000 megawatts of capacity under construction or in late-stage development and an overall global development pipeline of 62,000 megawatts.

“Looking ahead, decarbonization is now firmly established as an objective of the global economy, and as one of the pre-eminent global clean energy companies with deep operating capabilities and scale, we are uniquely positioned to execute on the most attractive decarbonization investment opportunities around the world.”

Wall Street’s Take

Two weeks ago, RBC Capital analyst Nelson Ng kept a Hold rating on BEP.UN, with a price target of $39.00 (C$49.45). This implies 20.8% upside potential. 

Overall, the consensus on the Street is that BEP.UN is a Moderate Buy based on seven Buys and four Holds.

The average Brookfield Renewable partners price target of C$47.31 implies 15.4% upside potential from current levels.  

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