Brookfield Infrastructure Partners

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Brookfield Infrastructure Partners L.P
Public
Traded as NYSEBIP
TSXBIP.UN
Industry Infrastructure asset management
Founded January 14, 2008 (2008-01-14)
Headquarters Toronto, Canada
Area served
Worldwide
Key people
Sam Pollock (CEO)
Revenue Increase US$2.12 billion (2016)
Decrease US$439 million (2016)
Profit Increase US$528 million (2016)
Total assets Increase US$21.3 billion (2016)
Total equity Increase US$9.6 billion (2016)
Parent Brookfield Asset Management
Subsidiaries Utilities
Transport
Energy
Communications
Infrastructure
Website www.brookfield.com
Footnotes / references
[1]

Brookfield Infrastructure Partners is a publicly traded (NYSE: BIP) (TSX: BIP.UN) limited partnershipwith corporate headquarters in Toronto, Canada, that engages in the acquisition and management of infrastructure assets on a global basis.[2]

Until a spin-off in January 2008, Brookfield Infrastructure was an operating unit of Brookfield Asset Management, which retains a 30 percent ownership and acts as the partnership's general manager.[3] The company's assets carried a book value of US$21.3 billion, on December 31, 2016.[4]

Brookfield Infrastructure Partners owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. It invests in transmission and telecommunication lines, toll roads, ports and pipelines. The company has an equity market capitalization of about US$11.8 billion with an investment-return target of 12 to 15 percent.[5] Its annualized total returns since inception have been 18% on the NYSE and 26% on the TSX.[4]

Sam Pollock is the chief executive officer of Brookfield Infrastructure Partners.[6] He has held this position since 2006, and has been with Brookfield Asset Management since 1994.[7]

Operations[edit]

After the spin-off from Brookfield Asset Management, Brookfield Infrastructure operated timber properties and electricity transmission lines. In September 2008, the company announced it would expand and diversify its global operations by buying infrastructure holdings from distressed Babcock & Brown, thus adding approximately US$8 billion of assets under management.[8][9]

In 2010 the company completed a merger with Australian company Prime Infrastructure in which it held a minority interest.[10]

In 2012, the company participated in a joint venture with Spain’s Abertis Infraestructuras to purchase 60 percent of toll operator Obrascon Huarte Lain Brasil in a deal valued at US$1.7 billion.[11]

Also in 2012, the company and its partners agreed to acquire the remaining 45% of the AVN toll road in Chile for a total purchase price of $590-million, after making an initial investment in 2011.[12]

In 2014, the company and its investment partners agreed to acquire 50% of the French telecommunications units of TDF for $2.2 billion.[13]

In 2016, the company announced an agreement with Qube Holdings and other investment partners to buy Asciano Ltd. an Australian rail and port operator, for US $6.55 billion, (A$8.9 billion.)[14] That same year, the company also announced that it and its investment partners would acquire a 90% stake in a Brazilian natural gas pipeline from Petroleo Brasileiro SA for US $5.2 billion.[15]

The company made over $2 billion of new investments in 2016, including its first ventures into businesses in Peru and India. The company also invested in organic projects valued at $850 million, growing the size of its utilities rate base, road and rail networks and energy systems.[16][17]

The following chart lists select completed and announced acquisitions by BIP.

Country Company Sector Ownership
Australia Asciano Limited[18] Rail and port logistics 50%[19]
Brazil Nova Transportadora do Sudeste S.A. ("NTS")[20] Gas transmission 90%[21] (Brookfield-led consortium stake)
Brazil Arteris, SA[22] Toll roads 50%[23]
Brazil VLI[24] Transmission 26.5%
Chile Transelec[25] Energy Transmission 30%
France TDF[23] Communication tower infrastructure 50%
North America (Canada and USA) Niska Gas Storage[26] Gas storage 100%[27]
Peru Rutas de Lima[28] Road concessions 57%
United States Natural Gas Pipleline Company of America[29] Gas storage and transmission 50%

References[edit]

  1. ^ "2016 Annual Report" (PDF). Brookfield Infrastructure Partners. 31 December 2016. Retrieved 14 May 2017. 
  2. ^ Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} Quote| Reuters.com". Reuters. Retrieved 2017-05-14. 
  3. ^ "Brookfield Infrastructure Partners (BIP): A High-Yield, Fast-Growing Utility". ValueWalk. 2017-03-13. Retrieved 2017-05-14. 
  4. ^ a b "2016 Brookfield Infrastructure Annual Report" (PDF). 31 December 2016. Retrieved 14 May 2017. 
  5. ^ Sanzillo, Tom; Chung, Yulanda; Buckley, Tim (February 2017). "Making the case for Norwegian Sovereign wealth fund investment in renewable energy infrastructure." (PDF). IEEFA.org. Institute for Energy Economics and Financial Analysis. Retrieved 14 May 2017. 
  6. ^ Editorial, Reuters. "Stock Quotes & Company News | Reuters.com". Reuters. Retrieved 2017-05-14. 
  7. ^ "Our Manager". Brookfield Infrastructure Partners. Retrieved 12 April 2016. 
  8. ^ "Brookfield Asset Management and Brookfield Infrastructure Partners Completes Recapitalization of Babcock & Brown Infrastructure". Marketwire. Retrieved 22 July 2010. 
  9. ^ Lindsay, Bill (9 October 2009). "Babcock & Brown Infrastructure Sets Plan". The Wall Street Journal. Retrieved 22 July 2010. 
  10. ^ "Brookfield Infrastructure Announces Closing of Merger With Prime Infrastructure and Implementation of Normal Course Issuer Bid". Retrieved 2017-05-14. 
  11. ^ "Brookfield Infrastructure bets on Brazil". Financial Post. Retrieved 2017-05-15. 
  12. ^ "Brookfield Infrastructure retooling its portfolio". The Globe and Mail. Retrieved 2017-05-15. 
  13. ^ "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 2017-11-06. Retrieved 2017-05-15. 
  14. ^ "Subscribe to read". www.ft.com. Retrieved 2017-05-15. 
  15. ^ "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B - Article - BNN". BNN. 2016-09-23. Retrieved 2017-05-15. 
  16. ^ Lawlor, John (2017-02-15). "Brookfield Infrastructure Partners Firing On All Cylinders". Seeking Alpha. Retrieved 2017-05-15. 
  17. ^ DiLallo, Matthew (2017-05-15). "Energy Acquisitions Fuel Brookfield Infrastructure Partners L.P.'s Fourth-Quarter Results -- The Motley Fool". The Motley Fool. Retrieved 2017-05-15. 
  18. ^ Wells, Peter (15 March 2016). "Qube and Brookfield consortium snare Asciano". Financial Times. Retrieved 14 May 2017. 
  19. ^ Wiggins, Jenny (15 March 2016). "Asciano board recommends formal $9.05b takeover bid from Qube and Brookfield". The Sydney Morning Herald. Retrieved 14 May 2017. 
  20. ^ "Brookfield Infrastructure Announces Closing of South American Natural Gas Transmission Utility Transaction". Market Watch. 4 April 2017. Retrieved 14 May 2017. 
  21. ^ "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B". BNN. 23 September 2016. Retrieved 14 May 2017. 
  22. ^ Bowen, Mick (19 May 2016). "Abertis, Brookfield boost stake in Arteris". Latin Finance. Retrieved 14 May 2017. 
  23. ^ a b "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 6 November 2014. Retrieved 14 May 2017. 
  24. ^ "Vale to sell some VLI shares to Brookfield for $842 mln". Reuters. 23 December 2013. Retrieved 14 May 2017. 
  25. ^ Biller, David (3 July 2006). "Brookfield-led consortium completes Transelec takeover". BNamericas. Retrieved 14 May 2017. 
  26. ^ "Niska Gas Storage to Be Acquired by Brookfield in $911.9M Deal (NKA) (BIP)". Street Insider. 15 June 2015. Retrieved 14 May 2017. 
  27. ^ "Niska Gas Storage Partners LLC Agrees To Be Acquired By Brookfield Infrastructure". Yahoo Finance News. 15 June 2015. Retrieved 14 May 2017. 
  28. ^ "Odebrecht sells 57% of Rutas de Lima to Brookfield". Valor International. 27 June 2016. Retrieved 14 May 2017. 
  29. ^ DiLallo, Matthew (26 September 2016). "Brookfield Infrastructure Partners L.P.'s Best Business Segment in 2016 so far". District Energy. Retrieved 14 May 2017.