Brookfield Renewable Partners Share Forecast January 2022 – Time to Buy BEP?

Shares of publicly traded limited partnership Brookfield Renewable Partners (NYSE: BEP) are in the red today, after closing at $34.05. The company offers investors a one-stop-shop in the renewable power space and has 90% funds from operations pay-out ratio in the third quarter of 2021. The distribution of the company has also been increased annually at an average 6% rate for a decade.

Brookfield Renewable Partners – Technical Analysis

According to the financial statement released by Brookfield Renewable Partners, the market cap of the company is at $9.362 billion with total assets worth $49.814 billion. Revenue for 2020 was at $3.95 billion with a profit margin of -3.46% compared to $4.05 billion in 2019.

Oscillators such as Relative Strength Index (14)(40.29),  Stochastic %K (14, 3, 3)(58.39), Commodity Channel Index (20)(−53.81),  Average Directional Index (14)(19.31) and Awesome Oscillator(−0.07) are neutral.  Moving averages such as Exponential Moving Average (10)(35.03),  Simple Moving Average (10)(35.23),  Exponential Moving Average (20)(35.13),  Simple Moving Average (20)(34.66) and Exponential Moving Average (30)(35.42) are indicating a sell action.

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Recent Developments

Brookfield Renewable Partners invests in renewable power assets. Its portfolio consists of a large hydroelectric business, wind, solar and other assets. It operates across North America, Latin America, Europe, and Asia. It has become a one-stop shop for those looking to invest in diversified renewable power businesses.

Brookfield Renewable Partners has around 21 gigawatts of power in its portfolio, with a construction pipeline of 36 gigawatts. The company can acquire new assets and projects and sell completed ones if it believes it can get a good price, as it actively manages its portfolio. For instance, it has a long-term distribution goal of 5% to 9% distribution growth.

During the third quarter, Brookfield Renewable Partners generated $210 million, or $0.33 per share, of funds from operations (FFO) which is an increase of 32% year over year. Several catalysts bolstered Brookfield’s existing portfolio during the quarter. These include higher rates on new contracts, higher power prices across most of its markets because of inflation-linked contracts, and higher global power prices on uncontracted assets. It further boosted margins by taking several cost reduction initiatives.

Additionally, Brookfield Renewable Partners has added several assets to its portfolio during 2021. It has acquired an 845 MW wind farm in Oregon and a 360 MW portfolio of distributed generation assets in the U.S. In addition to this, Brookfield Renewable Partners completed over 670 megawatts (MW) of development assets that are now generating cash flow. Brookfield Renewable Partners has also signed 19 power purchase agreements for roughly 1,300 gigawatt-hours of renewable power generation with corporate customers.

Should You Buy BEP Shares?

As decarbonization of the global economy continues to move to the forefront, Brookfield Renewable Partners is well-positioned for years to come. Its management estimates around $3.3 billion in liquidity. It plans roughly $6 billion of capital investments over the next 5 years or about $1.2 billion per year. Brookfield Renewable Partners can use this liquidity to support its dividend even as its FFO fluctuates from quarter to quarter. The five-year investment plan will be funded by about $2.2 billion in asset sales.

BEP shares are ideal for generating income while also putting money to work in the clean energy space. So, this is why investors should keep an eye out for both the FFO payout ratio and the balance sheet to assess any risks. Considering this, you can easily add BEP shares to your portfolio at the moment.

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