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Brookfield Infrastructure (BIP) Incurs Q3 Loss, Revenues Top

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Brookfield Infrastructure Partners L.P. (BIP - Free Report) reported third-quarter 2017 loss of 4 cents per unit. The Zacks Consensus Estimate for the quarter was pegged at earnings of 82 cents per unit.

The partnership reported earnings of 16 cents per unit in the year-ago quarter. The net income of Brookfield Infrastructure was higher across all of its operating segments compared to the third quarter of 2016. However, the positives were offset by the impact of non-cash movements relating to foreign currency hedges.

Revenues

Brookfield Infrastructure’s revenues came in at $961 million in the quarter beating Zacks Consensus Estimate of $914 million by 5.1%. Revenues increased 84.1% year over year from $522 million.

Highlights of the Release

Direct operating costs in the reported quarter were $394 million, increasing 47.6% from $267 million in the year-ago period.

Interest expenses in the reported quarter increased 16.3% year over year to $114 million from $98 million.

Fund flow from operations (FFO) in the reported quarter was $301 million, up 28.1% from $235 million in the prior-year quarter.


Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise
 

Brookfield Infrastructure Partners LP Price, Consensus and EPS Surprise | Brookfield Infrastructure Partners LP Quote

Quarterly Segment Highlights

Utilities: FFO for the segment was $170 million, up 66.7% year over year. This increase was primarily due to sizable contribution from the newly acquired Brazilian regulated gas transmission operations, additions to rate base and upward inflation adjustments.

Transport: The segment generated FFO of $136 million, up 21.4% from $112 million in the year-ago quarter. This increase was primarily due to substantial volume growth, particularly in the toll road business.

Energy: This segment generated FFO of $48 million, up 20% year over year. This increase was due to higher gas transport volumes, new contracts and reduced leverage levels.

Communications Infrastructure: The segment generated FFO of $19 million in the third quarter, on par with prior-year quarter.

Corporate and Other: This segment incurred a loss of $72 million in the reported quarter, wider than the loss of $38 million in the year-ago quarter.

Financial Update

As of Sep 30, Brookfield Infrastructure’s cash and cash equivalents were $492 million compared with $786 million at the end of 2016.

Cash from operating activities was $972 million in the first nine months of 2017, increasing from $664 million in the year-ago period.

Zacks Rank

Brookfield Infrastructure has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.

Xcel Energy (XEL - Free Report) reported third-quarter 2017 adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%.

DTE Energy (DTE - Free Report) reported third-quarter 2017 earnings of $1.48 per share, lagging the Zacks Consensus Estimate of $1.53 by 3.3%.

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