BROOKFIELD, NEWS, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (Brookfield Infrastructure, BIP, or the Partnership) (NYSE: BIP; TSX: BIP.UN) today announced its results for the year ended December 31, 2024.
"During 2024 we generated strong financial results and closed on all of our capital recycling initiatives, showcasing the resilience and durability of our business strategy” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. "2025 is off to a great start as we continue to capture elevated inflation in our results, secure meaningful proceeds from asset sales and add to our robust growth initiatives led by digitalization tailwinds.”
| For the twelve months ended December 31 | |||||
| US$ millions (except per unit amounts), unaudited1 | 2024 | 2023 | |||
| Net income attributable to the partnership2 | $ | 391 | $ | 432 | |
| - per unit3 | 0.04 | 0.14 | |||
| FFO4 | 2,468 | 2,288 | |||
| - per unit5 | 3.12 | 2.95 | |||
Funds from operations (FFO) for 2024 was $2.5 billion, representing an increase of approximately 8% compared to 2023. Organic growth for the year was 7%, driven by elevated levels of inflation in the countries where we operate, stronger volumes across our critical infrastructure networks and the commissioning of over $1 billion of new capital projects from our backlog. In addition, we deployed over $2 billion into new investments during the second half of 2023 and completed three accretive tuck-in acquisitions in 2024, all of which are now contributing to earnings. Results were partially offset by higher borrowing costs and the impact of foreign exchange.
Segment Performance
The following table summarizes FFO by segment:
| For the twelve months ended December 31 | |||||||
| US$ millions, unaudited | 2024 | 2023 | |||||
| FFO by segment | |||||||
| Utilities | $ | 760 | $ | 879 | |||
| Transport | 1,224 | 888 | |||||
| Midstream | 625 | 684 | |||||
| Data | 333 | 275 | |||||
| Corporate | (474 | ) | (438 | ) | |||
| FFO | $
| 2,468 | $ | 2,288 | |||
FFO for the transport segment was $1,224 million, representing a step change increase of nearly 40% over the prior year. This was primarily attributable to the acquisition of our global intermodal logistics company in the third quarter of 2023 and an incremental 10% stake in our Brazilian integrated rail and logistics operation in the first quarter of 2024. We continued to generate strong results across the remaining businesses, driven by higher volumes and average tariff increases of 7% across our rail networks and 6% across our toll road portfolio.
The midstream segment generated FFO of $625 million, which on a comparable basis had growth of 11% year over year. The growth reflects higher volumes across our midstream assets due to robust customer activity levels, particularly at our North American gas storage business. This elevated demand for long-term services was constant during the year, with several recent commercial wins across all our midstream assets. When considering the impact of asset sales and foreign exchange, total FFO decreased from $684 million in the prior year, primarily relating to capital recycling activities at our U.S. gas pipeline.
Lastly, FFO for the data segment was $333 million, representing a 21% increase over the prior year. The increase is attributable to strong organic growth and the contribution of several new investments completed over the last twelve months, including three data center platforms and a tower portfolio in India.
Update on Strategic Initiatives
In 2024, we achieved our targeted $2 billion of capital recycling proceeds in a challenging but improving asset sale environment. As we ended the year, we were seeing greater investor interest in high quality infrastructure assets and a larger universe of buyers able to transact. This momentum has accelerated into 2025, and we have already secured approximately $850 million in proceeds from asset sales (approximately $200 million net to BIP) one month into the new year.
In relation to our previously secured transactions, during the fourth quarter we closed the sale of our fiber platform within our French telecom infrastructure business, which generated approximately $100 million in proceeds and an IRR of 17%. We closed the sale of one of our Mexican regulated natural gas transmission pipelines and remain on track to close the second in the first quarter of 2025 for total net proceeds of approximately $500 million ($125 million net to BIP), locking in a strong IRR of 22% during our five-year ownership period.
We believe the level of asset sale activity we have experienced so far in 2025 will be indicative of the year ahead. We have several advanced transactions that are on track to be signed in the first half of the year, in-line with our expectations and we are very confident in our ability to deliver $5-6 billion in asset sale proceeds over the next two years. Supporting this confidence is the return of buyers for core assets, which many of our mature businesses attract from a risk/return perspective on exit. We have seen this activity firsthand in Brookfield's own super core infrastructure fund, which has been experiencing an influx of capital as fundraising at the end of 2024 increased to the highest levels in almost three years, and this momentum has continued into 2025.
Distribution and Dividend Increase
The Board of Directors has declared a quarterly distribution in the amount of $0.43 per unit, payable on March 31, 2025 to unitholders of record as at the close of business on February 28, 2025. This distribution represents a 6% increase compared to the prior year. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1, Series 3, Series 9, Series 11 has been declared, which will also be payable on March 31, 2025 to holders on February 28, 2025. The Series 13 and Series 14 regular quarterly dividends has also been declared and will be payable on March 17, 2025 to holders on February 28, 2025. In conjunction with the Partnership's distribution declaration, the Board of Directors of BIPC has declared an equivalent quarterly dividend of $0.43 per share, payable on March 31, 2025 to shareholders of record as at the close of business on February 28, 2025.
Conference Call and Quarterly Earnings Details
Investors, analysts and other interested parties can access Brookfield Infrastructure's Fourth Quarter 2024 Results, as well as Letter to Unitholders and Supplemental Information, at https://bip.brookfield.com.
To participate in the Conference Call today at 9:00am EST, please pre-register at https://register.vevent.com/register/BI5a2785ac493e4934a25c24cf9c29a8bb. Upon registering, you will be emailed a dial-in number and direct passcode. The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/p/g4b263i6/.
Additional Information
The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein.
About Brookfield Infrastructure
Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. We are focused on assets that have contracted and regulated revenues that generate predictable and stable cash flows. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation. Further information is available at https://bip.brookfield.com.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with over $1 trillion of assets under management. For more information, go to https://brookfield.com.
Contact Information
| Media
Simon Maine Managing Director, Corporate Communications Tel: +44 739 890-9278 Email: simon.maine@brookfield.com | Investor Relations
Stephen Fukuda Senior Vice President, Corporate Development & Investor Relations Tel: +1 (416) 956-5129 Email: stephen.fukuda@brookfield.com |
This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and "forward-looking statements” within the meaning of applicable securities laws. The words "will”, "target”, "future”, "growth”, "expect”, "believe”, "may”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release may include statements regarding expansion of Brookfield Infrastructure's business, the likelihood and timing of successfully completing the transactions referred to in this news release, statements with respect to our assets tending to appreciate in value over time, the future performance of acquired businesses and growth initiatives, the commissioning of our capital backlog, the pursuit of projects in our pipeline, the level of distribution growth over the next several years and our expectations regarding returns to our unitholders as a result of such growth. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructure's businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favorable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the impact of health pandemics on our business and operations, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions referred to in this press release as being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under "Risk Factors” in Brookfield Infrastructure's most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure's results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
Any statements contained herein with respect to tax consequences are of a general nature only and are not intended to be, nor should they be construed to be, legal or tax advice to any person, and no representation with respect to tax consequences is made. Unitholders and shareholders are urged to consult their tax advisors with respect to their particular circumstances.
References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure's results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
References to the Partnership are to Brookfield Infrastructure Partners L.P.
- Please refer to page 10 for results of Brookfield Infrastructure Corporation.
- Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares.
- Average number of limited partnership units outstanding on a time weighted average basis for the twelve-month period ended December 31, 2024 was 461.6 million (2023: 459.4 million).
- We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market gains (losses) and other income (expenses) that are not related to the revenue earning activities and are not normal, recurring cash operating items necessary for business operations. FFO includes balances attributable to the partnership generated by investments in associates and joint ventures accounted for using the equity method and excludes amounts attributable to non-controlling interests based on the economic interests held by non-controlling interests in consolidated subsidiaries. We believe that FFO, when viewed in conjunction with our IFRS results, provides a more complete understanding of factors and trends affecting our underlying operations. FFO is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by IFRS as issued by the International Accounting Standards Board. FFO is therefore unlikely to be comparable to similar measures presented by other issuers. A reconciliation of net income to FFO is available on page 8 of this release. Readers are encouraged to consider both measures in assessing our company's results.
- Average number of partnership units outstanding on a fully diluted time weighted average basis for the twelve-month period ended December 31, 2024 was 792.1 million (2023: 776.9 million).
| Brookfield Infrastructure Partners L.P. Consolidated Statements of Financial Position | |||||
| As of December 31 | |||||
| US$ millions, unaudited | 2024 | 2023 | |||
| Assets | |||||
| Cash and cash equivalents | $ | 2,071 | $ | 1,857 | |
| Financial assets | 255 | 787 | |||
| Property, plant and equipment and investment properties | 55,910 | 52,879 | |||
| Intangible assets and goodwill | 28,622 | 30,333 | |||
| Investments in associates and joint ventures | 5,672 | 5,402 | |||
| Assets held for sale | 1,958 | - | |||
| Deferred income taxes and other | 10,102 | 9,526 | |||
| Total assets | $ | 104,590 | $ | 100,784 | |
| Liabilities and partnership capital | |||||
| Corporate borrowings | $ | 4,542 | $ | 4,911 | |
| Non-recourse borrowings | 46,552 | 40,904 | |||
| Financial liabilities | 2,780 | 2,875 | |||
| Liabilities held for sale | 1,209 | - | |||
| Deferred income taxes and other | 19,654 | 18,078 | |||
| Partnership capital | |||||
| Limited partners | 4,704 | 5,321 | |||
| General partner | 27 | 28 | |||
| Non-controlling interest attributable to: | |||||
| Redeemable partnership units held by Brookfield | 1,926 | 2,190 | |||
| Exchangeable units/shares1 | 1,417 | 1,605 | |||
| Perpetual subordinated notes | 293 | 293 | |||
| Interest of others in operating subsidiaries | 20,568 | 23,661 | |||
| Preferred unitholders | 918 | 918 | |||
| Total partnership capital | 29,853 | 34,016 | |||
| Total liabilities and partnership capital | $ | 104,590 | $ | 100,784 | |
- Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and Exchange LP units.
| Brookfield Infrastructure Partners L.P. Consolidated Statements of Operating Results | |||||||
| For the twelve months ended December 31 | |||||||
| US$ millions, except per unit information, unaudited | 2024 | 2023 | |||||
| Revenues | $ | 21,039 | $ | 17,931 | |||
| Direct operating costs | (15,676 | ) | (13,470 | ) | |||
| General and administrative expense | (405 | ) | (413 | ) | |||
| 4,958 | 4,048 | ||||||
| Interest expense | (3,387 | ) | (2,501 | ) | |||
| Share of earnings from associates and joint ventures | 439 | 459 | |||||
| Mark-to-market losses | (26 | ) | (118 | ) | |||
| Other (loss) income | (31 | ) | 141 | ||||
| Income before income tax | 1,953 | 2,029 | |||||
| Income tax (expense) recovery | |||||||
| Current | (594 | ) | (576 | ) | |||
| Deferred | 324 | (5 | ) | ||||
| Net income | 1,683 | 1,448 | |||||
| Non-controlling interest of others in operating subsidiaries | (1,292 | ) | (1,016 | ) | |||
| Net income attributable to partnership | $ | 391 |
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