Currency woes weakened Q1, says Brookfield’s listed arm

Brookfield Infrastructure Partners noted foreign currency hedges led to less net income earned in Q1 2017 compared to the same period last year.

Brookfield Asset Management’s special purpose infrastructure division blamed currency volatility for a relatively weak start to the year.

Brookfield Infrastructure Partners, a public vehicle of the $227 billion asset manager, reported a $16 million net income, and a loss of 0.03 cents per unit, for Q1. This pace is slower than the $78 million net income and 0.17 cent per-unit increase over the same period last year.

The company said in a statement that “the impact of non-cash movements of foreign currency hedges” offset net income earned in utilities, transportation, energy and telecoms.

However, funds from operations (FFO) increased by 12 percent to $261 million, BIP’s results show.

“We started 2017 with another quarter of strong FFO growth, reflecting the contribution of new assets acquired over the last 12 months,” BIP chief executive Sam Pollock said. “Following the recent acquisition of our Brazilian natural gas transmission business, we expect to see meaningful growth in our financial results for the balance of the year.”

BIP highlighted a deal in April to acquire an interest in NTS for $1.3 billion.

The company said transactions such as its stake increase in a Brazilian toll road business, as well as toll road investments in India and Peru, led to transportation assets being its portfolio’s best performers, generating $123 million of FFO this quarter.

Last week, Brookfield Business Partners, another public vehicle Brookfield Asset Management owns, purchased a 26 percent stake in Brazil’s largest private water distribution company for $340 million.