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Brookfield Renewable Power Fund Announces First Quarter Results

^{Published on 2011-05-12 14:40:29 - Market Wire}
 

GATINEAU, QC, May 12 /CNW Telbec/ - (TSX: BRC.UN) - Brookfield Renewable Power Fund (the "Fund") reported today its financial and operating results for the first quarter ended March 31, 2011. Beginning with the first quarter of 2011, the Fund has adopted International Financial Reporting Standards ("IFRS"). All results are reported under IFRS, unless otherwise noted. 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 first quarter of 2011 was 1,500 gigawatt hours ("GWh") as compared to a long-term average of 1,579 GWh. Hydroelectric generation of 1,338 GWh was 5% below the long-term average largely due to lower inflows in Ontario; all other regions exceeded expectations. At quarter-end, reservoirs in each region were above their usual levels for this time of year. Wind generation of 162 GWh included 45 GWh from the Gosfield Wind farm, which continues to perform as expected since its commissioning in September 2010.

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 will be accounted for using the equity-method of accounting going forward.

First quarter revenues were $84.1 million as compared to $95.2 million, and net operating cash flow was $45.9 million as compared with $52.0 million in the same period last year, reflecting very strong hydroelectric generation in the first quarter of 2010.

First quarter distributions to unitholders were $34.0 million or 33 cents per unit as compared to $33.6 million or 32 cents per unit in the same period last year.

LIQUIDITY AND CAPITAL PROGRAM

At March 31, 2011, the Fund had total liquidity of $176.6 million, comprised of cash and cash equivalents of $28.1 million, an increase of $5.9 million since December 31, 2010, in addition to $108.5 million available under committed credit facilities and $40 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 quarter of 2011, the Fund invested $2.8 million in sustaining capital expenditures and $0.9 million in major maintenance. The Fund expects to invest $29.1 million and $10.7 million in sustaining capital expenditures and major maintenance, respectively, in 2011. Major ongoing projects include the Millinocket unit conversion and reconnection in New England, a transformer replacement in Quebec, a generator rewind in Ontario and a spill gate upgrade in British Columbia. Spending on these major projects will continue into 2012.

The construction of the Comber Wind project is progressing on schedule with turbine deliveries scheduled to commence mid-May and continue until the end of July. Construction of the substation and the overhead and underground cable systems are progressing well in a joint effort with the local utility. Construction of the remaining access roads and turbine foundations are expected to resume pace in the coming weeks following seasonal road restrictions in March and April. The project remains on track for a fall 2011 commissioning.

CONFERENCE CALL

A conference call for investors and media to review the first quarter results for 2011 will be held on Friday, May 13, 2011 at 10:00 a.m. (EDT). To participate in the conference call, please dial 416-644-3426 or 1-877-974-0445 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 May 15, 2011. To access this rebroadcast, please call 1-877-289-8525 toll-free in North America, and enter the passcode 4432927#. 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:

QUARTERLY PREFERRED SHARE DIVIDENDS

The 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 August 2, 2011 to shareholders of record as at the close of business on July 15, 2011. Information on the Fund's monthly distributions and preferred share quarterly dividends can be found on the company's web site under Investor Relations.

BASIS OF PRESENTATION

This 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 months ended March 31, 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 INFORMATION

This 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 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 "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; 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.