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Brookfield Misses on Q4 Earnings, Boosts Distribution

Brookfield Infrastructure Partners L.P. BIP reported fourth quarter 2015 funds from operations (FFO) of 89 cents per unit, missing the Zacks Consensus Estimates of 91 cents by 2.2%. The reported figure, however, increased by 3 cents from 86 cents a year ago.

In 2015, the partnership’s FFO was 3.59 per unit, up 4.1% year over year but short of the Street expectation of $3.63.

Revenues

Brookfield Infrastructure posted revenues of $455 million during the quarter, well below the Zacks Consensus Estimate of $578 million by 21.3% and down 2.2% year over year.

In 2015, the partnership’s revenues were $1,855 million, declining 3.6% from $1,924 million in 2014 and missing the Zacks Consensus Estimate of $2,197 million by 15.6%.

Distribution

Brookfield Infrastructure’s board of directors boosted its quarterly distribution by 7.5% year over year to 57 cents per unit. The distribution will be paid on Mar 31, 2016 to unit holders of record at the close of business on Feb 29, 2016.

Quarterly Segment Highlights

Utilities – The segment witnessed 7.5% year-over-year growth in its fourth quarter 2015 FFO owing to investments in growth capital projects across the segment.

Transport – The segment generated FFO of $95 million, down from $101 million a year ago, hit by a strong U.S. dollar.

Energy – The partnership witnessed 25% year-over-year growth in segment FFO mainly because of organic growth initiatives.

In 2015, same-store growth for this segment was 18%, driven by higher volumes at its North American natural gas transmission business, and impressive contribution from its district energy business.

Balance Sheet

Brookfield Infrastructure ended 2015 with $199 million in cash and cash equivalents, compared with $189 million at 2014 end.

The partnership has currently almost $3 billion of total liquidity.

Cash from operating activities was $94 million in the fourth quarter of 2015, down from $160 million a year ago. In 2015, it was $634 million, down from $691 million in 2014.

Zacks Rank

Brookfield Infrastructure currently holds a Zacks Rank #4 (Sell). Investors may consider better-ranked companies in the same space, including Atlantic Power Corporation AT, Calpine Corp. CPN and Korea Electric Power Corp. KEP, all with a Zacks Rank #1 (Strong Buy).

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BROOKFIELD INFR (BIP): Free Stock Analysis Report
 
KOREA ELEC PWR (KEP): Free Stock Analysis Report
 
CALPINE CORP (CPN): Free Stock Analysis Report
 
ATLANTIC PWR CP (AT): Free Stock Analysis Report
 
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