Brookfield Infrastructure Reports First Quarter 2020 Results
https://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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