Brookfield Infrastructure Partners L.P. (BIP) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello and thank you for standing by. Welcome to the Brookfield Infrastructure Partners Second Quarter 2023 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

It is now my pleasure to introduce Chief Financial Officer, David Krant.

David Krant

Thank you, operator, and good morning, everyone. Welcome to Brookfield Infrastructure Partners second quarter 2023 earnings conference call.

As introduced, my name is David Krant, and I'm the Chief Financial Officer of Brookfield Infrastructure. I'm joined today by our Chief Executive Officer, Sam Pollock; and Udhay Mathialagan, Managing Director and CEO of our Global Data Centre platform. Udhay is joining our call from Mexico. So if we encounter any technical difficulties, we also have Ben Vaughan with us in the room today.

I'll begin with the discussion of our second quarter financial and operating results as well as our liquidity position and the recent success of our capital recoiling initiatives. I'll then turn the call over to Udhay, who will expand upon one of the 3D driving investment opportunities, digitalization through the lens of our Global Data Centre operations. Finally, Sam, will provide an update on our strategic initiatives and an outlook for our business.

At this time, I would like to remind you that in our remarks today, we may make forward-looking statements. These statements are subject to known and unknown risks, and future results may differ materially. For further information on our known Risk Factors, I would encourage you to review our Annual Report on Form 20-F, which is available on our website.

Beginning with our financial and operating results, we generated funds from operations or FFO of $552 million during the second quarter, an increase of 8% over the comparable period last year. Results were supported by the contribution of approximately $2.1 billion of capital deployed in new acquisitions over the past year, partially offset by the impact of asset sales and borrowing costs associated with financing these new investments.

Organic growth was near the high end of our target 6% to 9% range, reflecting the benefit of elevated inflation on tariff increases and the commissioning of approximately $1 billion in new capital projects during the last 12 months. Partially offsetting the strong underlying performance of our business was the normalization of market sensitive revenues as the prior year benefited from elevated commodity prices.