Q2 2024 Brookfield Business Partners LP Earnings Call Transcript
Key Points
- Brookfield Business Partners LP (BBU) made significant progress on value-creation initiatives, despite some one-time operational events.
- The company successfully refinanced over $11 billion of debt, reducing the spread by 50 basis points, which will lower annual interest expenses by approximately $15 million.
- BBU has a strong access to capital, enabling it to opportunistically manage maturities and support growth.
- The company has sold or reached agreements to sell 10 businesses, generating approximately $3 billion in total proceeds.
- BBU's advanced energy storage operation continues to perform strongly, benefiting from favorable pricing and improved mix driven by higher-margin advanced batteries.
- The cybersecurity incident at CDK Global had a one-time negative impact of $38 million on adjusted EBITDA.
- Increased costs on a project nearing completion in the construction operations negatively affected financial results.
- The industrial segment faced reduced contributions from the engineered components manufacturer due to lower market demand.
- The infrastructure services segment saw a decline in adjusted EBITDA, partly due to the sale of nuclear technology services.
- The global operating environment remains fluid, posing challenges to stable activity levels across operations.
Welcome to the Brookfield Business Partners second quarter 2024 results conference call and Webcast. (Operator Instructions).
Now I'd like to turn the conference over to Alan Fleming, Head of Investor Relations. Please go ahead, Mr. Fleming.
Thank you, operator, and good morning. Before we begin, I'd like to remind you that in responding to questions and talking about our growth initiatives and our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks and future results may differ materially. For further information on known risk factors. I encourage you to review our filings with the securities regulators in Canada and the US, which will be available on our website.
We'll begin the call today with a business update from Anuj Ranjan, our Chief Executive Officer. Anuj will then turn the call over to Paul Lepage, our Managing Director on our business operations team who will
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