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Brookfield (BIP) Lags Q1 Earnings Estimates, Revenues Down

Published 05/05/2016, 10:42 PM
Updated 07/09/2023, 06:31 AM
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Brookfield Infrastructure Partners L.P.'s (NYSE:BIP) earnings per unit of 25 cents in the first quarter of 2016 lagged the Zacks Consensus Estimates of 98 cents by 75.5%. The reported figure also decreased 55.4% from 56 cents per unit a year ago.

Revenues

Brookfield Infrastructure posted revenues of $454 million during the quarter, down 2.6% year over year.

Highlights of the release

Direct operating costs during the quarter were $202 million, marginally down from $203 million spent in the year ago quarter.

Interest expenses in the reported quarter were up 5.6% year over year to $95 million.

Fund flow from operations in the reported quarter was $234 million compared with $186 million in the year-ago period.

Quarterly Segment Highlights

Utilities – The segment witnessed 5.2% year-over-year growth in the first-quarter 2016 FFO owing to investments in growth capital projects across the segment.

Transport – The segment generated FFO of $94 million, marginally lower than $96 million in the year-ago quarter.

Energy – The partnership witnessed 42.9% year-over-year growth in segment FFO mainly because of organic growth initiatives.

Communications Infrastructure – The segment generated FFO of $19 million in the first quarter.

Corporate and Other – This segment incurred a loss of $19 million in the reported quarter, narrower than a loss of $33 million in the year-ago quarter.

Financial Update

As of Mar 31, 2016, Brookfield Infrastructure’s cash and cash equivalents were $248 million compared with $199 million at 2015 end.

The partnership has currently almost $3 billion of total liquidity. Amid volatile credit market conditions, the company has taken some financial initiatives that improved its debt maturity profile.

Cash from operating activities was $162 million in the first quarter of 2016, down from $228 million in the year-ago quarter.

Other Releases

American Electric Power Co., Inc. (NYSE:AEP) reported first-quarter 2016 operating earnings of $1.02 per share, missing the Zacks Consensus Estimate of $1.06 by 3.8%.

DTE Energy Company (NYSE:DTE) reported first-quarter 2016 operating earnings per share of $1.52, in line with the Zacks Consensus Estimate.

FirstEnergy Corporation (NYSE:FE) announced first-quarter 2016 operating earnings of 80 cents per share, outpacing the Zacks Consensus Estimate of 76 cents by 5.3%

Zacks Rank

Brookfield Infrastructure currently holds a Zacks Rank #4 (Sell).

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AMER ELEC PWR (AEP): Free Stock Analysis Report

BROOKFIELD INFR (BIP): Free Stock Analysis Report

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DTE ENERGY CO (DTE): Free Stock Analysis Report

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Zacks Investment Research

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