Q1 2024 Brookfield Infrastructure Corp Earnings Call Transcript
Key Points
- Brookfield Infrastructure Corp reported a strong start to the year with a 11% increase in funds from operations (FFO) to $615 million, driven by organic growth and recent capital deployments.
- The transport segment saw a significant 57% increase in FFO, largely due to the acquisition of Triton and increased global demand for containers.
- The utilities segment showed robust organic growth of 8%, primarily due to inflation indexation and substantial capital commissioning.
- Brookfield Infrastructure Corp's midstream segment maintained stable performance, with strong demand for North American gas storage operations enhancing business fundamentals.
- The company has a strong financial position with over 90% of its capital structure fixed rate and an average term of seven years, providing stability against interest rate fluctuations.
- The utilities segment experienced a decrease in FFO to $190 million from $208 million, primarily due to asset sales under capital recycling initiatives.
- Despite stable FFO in the data segment, the sale of a New Zealand integrated data distribution business offset gains from new data center acquisitions.
- The company anticipates several more quarters of market volatility as it adjusts to a potentially flat to lower interest rate environment and unresolved geopolitical issues in Europe and the Middle East.
- While the company is holding back on deploying capital fully, anticipating better opportunities, this could risk missing out on current viable investment opportunities.
- Brookfield Infrastructure Corp faces challenges in fully leveraging the trade flow information from Triton for broader strategic benefits in the global shipping business.
Hello and welcome to the Brookfield Infrastructure Partners first-quarter 2024 results conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded.
It is now my pleasure to introduce Chief Financial Officer, David Krant.
Thank you, operator, and good morning, everyone. Welcome to Brookfield Infrastructure Partners first-quarter 2024 earnings conference call. As introduced, my name is David Krant, and I am the Chief Financial Officer of Brookfield Infrastructure. I am joined today by our Chief Executive Officer, Sam Pollock; and our Chief Operating Officer, Ben Vaughan. I'll begin the call today with a discussion of our first-quarter 2024 financial and operating results followed by some brief remarks on our strong financial position. I'll then turn the call over to Sam who will provide an updated on our strategic initiatives before concluding with an outlook for the business.
At this time, I would like to remind you
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