Brookfield Infrastructure Reports First Quarter 2020 Results
www.bloomberg.com/press-releases/...irst-quarter-2020-results
For the three months
ended March 31
US$ millions (except per unit amounts), unaudited^1 2020 2019
Net income^2 $ 119 $ 30
– per unit^3,4 $ 0.13 $ (0.05 )
FFO^5 $ 358 $ 351
– per unit (pre-split)^6 $ 0.86 $ 0.88
– per unit (split-adjusted)^7 $ 0.77 $ 0.79
Net income for the period benefited from organic growth across most of our
operating groups, contributions from new investments completed in the last
year and gains on our corporate hedging program. These increases were
partially offset by a one-time item related to deferred taxes at our U.K.
operations, and the depreciation of the Brazilian Real relative to the U.S.
dollar.
Our business generated FFO of $358 million for the quarter, or $0.77 of FFO
per unit (equivalent to $0.86 prior to our unit split), which was in-line with
the prior year levels. FFO growth was primarily driven by organic growth of 6%
and earnings associated with $1.6 billion of capital deployed during the past
year. These positive factors were partially offset by the sale of four
businesses, impacts related to COVID-19 (“covid”) and the depreciation of
foreign currencies. Virus related impacts were primarily experienced at our
port and toll road operations, affecting results by $10 million, while the
lower Brazilian Real reduced results by $17 million.
“The first quarter of 2020 brought about extraordinary challenges on a global
scale. Our results were solid as every operating business we own was deemed an
essential service and has continued operating throughout this period,” said
Sam Pollock, Chief Executive Officer of Brookfield Infrastructure Partners.
“As the economic recovery unfolds over the coming quarters, we remain
confident that our highly-diversified business is well-positioned both
financially and operationally. This will give us the opportunity to take
advantage of market conditions to acquire high-quality assets for deep value,
as we have in the past during periods of dislocation.”
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