Brookfield Infrastructure Corp. — Form 6-K Summary
Business context and reporting period
Filed April 3, 2020, for the month of April 2020, by Brookfield Infrastructure Partners L.P. and Brookfield Infrastructure Corporation. The disclosure was provided in connection with a Canadian debt securities offering and addresses the COVID-19 pandemic and its potential effects on the business.
The Partnership operates a diversified portfolio across utilities, transport, energy and data infrastructure.
Financial metrics and liquidity
- The filing does not provide revenue, net income, cash flow, margin, debt, liquidity or other quantitative financial metrics.
- Management stated that the Partnership did not currently anticipate a material impact on first-quarter 2020 earnings from COVID-19.
- Contractual and regulated revenue frameworks across many businesses partially insulated current results from the pandemic.
Material changes versus the prior comparable period
No comparative financial information is provided. Management reported adverse effects on transport businesses, including reduced movement of goods and people and lower transport revenues. Other businesses were less affected or not affected because of regulated or contractual revenue arrangements.
Guidance, outlook, risks and unusual items
- The Partnership implemented continuity plans and preparedness measures to maintain operations and continues to evaluate further actions.
- Management could not estimate the medium-term impact of COVID-19 because of the uncertainty regarding its magnitude, duration and outcome.
- Potential effects include delays in development or construction activities, lower transport revenues, counterparty defaults and adverse effects on assets, liabilities, operations, financial condition and cash flow.
- Risks depend on the severity, duration and spread of COVID-19, government and community responses, restrictions on the movement of goods, services and capital, and broader economic disruption.
- The disclosure contains forward-looking statements regarding continuity plans and the expected effects of COVID-19. The Partnership cautioned investors not to place undue reliance on these statements and undertook no obligation to update them except as required by law.
Investor verification points
- Verify subsequent quarterly results for the actual impact of COVID-19 on transport revenues and consolidated earnings.
- Review liquidity, debt maturities, covenant compliance and access to capital, none of which are quantified in this filing.
- Assess whether regulated and contracted revenues continued to offset weakness in transport and other exposed businesses.
- Monitor construction and development delays, counterparty credit quality and any changes to distributions or investment plans.
- Review the latest annual report risk factors and subsequent filings for developments after April 3, 2020.