Brookfield Renewable (NYSE: BEPC) (NYSE: BEP) continues to benefit from the clean energy transition. This momentum resulted in strong revenue growth for the company, which allowed it to continue growing its bottom line. It recently increased its fees by another 5.5%.
A leading renewable energy company with great potential for further growth. Take a look at last year's strong performance and the company.
Results after sun
Brookfield Renewable's earnings of $1 billion, or $1.56 per share, last year were up 8% from 2021.
Brookfield 's solar business led growth last year, with FFOs accounting for nearly 37% of utility-scale solar assets. The company benefited from acquisitions, recently completed solar plants and rising energy prices in Spain. Meanwhile, the FFO of distributed energy (ie, rooftop and community solar) and sustainable solutions increased by about 16%. The company benefited from the growth of this portfolio and the increase in energy prices.
These energies contributed to a slight decrease in hydro revenue and an 18 % decrease in wind FFO . However, the decline in the wind segment comes as the company made a significant gain from asset sales in 2021. Excluding this effect, wind FFOs increased by 12% over the past year. Brookfield wind assets faced headwinds from declining wind resources and asset sales, which benefited from higher prices and acquisitions.
What's next for Brookfield Renewable?
Last year was Brookfield's best year for new investments. It has agreed or agreed to invest US$12 billion over the next five years (of which US$2.8 billion and the remainder will be funded by partner financing). It has already confirmed half of its growth in this period. The company has created opportunities in all major areas of active carbonization, including wind, solar, nuclear, battery storage and transportation. These investments should generate growth in the coming years.
The company has further accelerated its development activities. Last year, 3.5GW projects totaled US$45 million, with another 19GW under construction or in advanced stages. It also has several sustainable solutions projects including carbon capture, storage and recycling and renewable natural gas.
These projects will provide approximately $235 million in additional FFO when they come online in the coming years. The company has additional plans in the early stages to expand the total renewable energy grid to 110 gigawatts, which is enough to power more than 15 million homes. It also has the opportunity to invest in more sustainable solution projects.
Brookfield has secured much of the financing needed to support its growth. The company raised $10 billion last year, had revenue of $2 billion ($1.2 billion net for the company) and increased its cash position to $3.7 billion. The Company has completed or is developing asset sales of up to $4.6 billion (approximately $1.6 billion net of the Company) to fund its expansion.
As a result, Brookfield has guaranteed and funded approximately 8% annual FFO growth through 2027. That forecast easily supports Brookfield's 5% to 9% annual growth plan.
Prepare for strong returns
Brookfield Renewable has been busy finding and funding new growth engines for the past year. Therefore, in the following years, it recorded a high growth rate as it provides additional energy sources with high potential.
Despite all of that success, the stock took a beating from market turmoil over the past year, boosting the dividend by more than 4%. This combination of low valuation gains and growth positions the company to generate double-digit returns for years to come. These factors make it a good investment opportunity right now.
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Matthew DeLallo is with Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool owns a local and recommends Brookfield Renewables. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
