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Brookfield (BIP) Lags Q1 Earnings Estimates, Revenues Down

Brookfield Infrastructure Partners L.P.'s  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.  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 DTE reported first-quarter 2016 operating earnings per share of $1.52, in line with the Zacks Consensus Estimate.

FirstEnergy Corporation 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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