Brookfield Infrastructure Partners L.P. (BIP) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 3, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Thank you for standing by and welcome to the Brookfield Infrastructure Partners Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. [Operator Instructions]

I would like to hand the call over to, CFO, David Krant. Please go ahead.

David Krant

Thank you, operator and good morning everyone. Welcome to Brookfield Infrastructure Partners’ Second Quarter 2022 Earnings Conference Call. As introduced my name is David Krant, and I’m the Chief Financial Officer of Brookfield Infrastructure Partners. Joining me today is Sam Pollock, our Chief Executive Officer; and Matt Grimes, Senior Vice President of our investments team for the Infrastructure Group.

I will begin today with a discussion of our financial and operating results for the second quarter of 2022 as well as touch on the strength of our balance sheet and current liquidity position. I will then turn the call over to Matt who will walk through how decarbonization can influence capital allocation and new investment themes.

Finally, Sam will provide an update on strategic initiatives and provide concluding remarks. Following our commentary, we will be joined by Ben Vaughan, our Chief Operating Officer for our question and answer period.

At this time, I would like to remind you that in our remarks today, we may make Forward-Looking Statements. The statements are subject to known and unknown risks, and future results may differ materially. For further information on known risk factors, I would encourage you to review our annual report on Form 20-F, which is available on our website.

We are pleased to report another quarter of record financial results. Funds From Operations or FFO increased 30%, compared to the same period last year, while FFO per unit was 20% higher at $0.67.

Organic growth remained robust at 10%, reflecting the benefits of elevated inflation, as well as the commissioning of approximately $1 billion of new capital projects, and over $3billion of capital deployed and new investments over the last 12-months.

Taking a closer look at our operating results by segment, starting with utilities, adjusted EBITDA increased 14% relative to the prior year reflecting the benefits from inflation indexation, the commissioning of approximately $500 million of capital into rate base and the contribution from two Australian utility acquisitions completed earlier this year.