Brookfield Infrastructure Partners L.P. (NYSE:BIP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 09:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Brookfield Infrastructure Partners L.P. Second Quarter 2020 Results Conference Call. [Operator Instructions]
It is now my pleasure to introduce Managing Director Rene Lubianski.
Thank you, operator, and good morning. Thank you, all, for joining us for Brookfield Infrastructure Partners' second quarter earnings conference call for 2020.
On the call today is Bahir Manios, Chief Financial Officer; Sam Pollock, Chief Executive Officer; and Ben Vaughan, Chief Operating Officer. Following their remarks, we look forward to taking your questions and comments.
At this time, I'd like to remind you that, in responding to questions and in 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 would encourage you to review our annual report on Form 20-F, which is available on our website.
With that, I'll turn the call over to Bahir.
Thank you, Rene, and good morning, everyone.
I'm pleased to provide an update this morning on how our business performed this quarter. I'll start off by touching on a few macro level points before going through a review of our financial and operating results for the period, which were, on an overall basis, better than expected. And then I'll conclude my remarks with an update on our balance sheet and liquidity position. Sam will then take over and go through our strategic initiatives and provide an outlook for the company going forward.
The second quarter was obviously a very challenging period as the global economy experienced a sharp retraction due to the economic shutdowns imposed by governments. Over the past month or so, we have been very encouraged by the return of economic activity with the gradual reopening of economies. While many industries have been hard hit, the infrastructure sector has demonstrated one of its most coveted characteristics, being its highly resilient cash flows.
As we communicated previously, each of our businesses were deemed essential and, thus, provided largely uninterrupted service throughout this challenging period. Our results for the quarter reflect certain timing impacts that are expected to be recovered over time. These include delays recognizing earnings associated with the buildout of the contracted backlog of projects in our UK connections business and reduced traffic on our toll roads, for which we expect to be fully compensated on under force majeure provisions in our concession agreements.
Across all our geographies where we have GDP-sensitive revenues, we have seen strong recoveries in volumes once restrictions were lifted. While we are pleased with the faster-than-expected recovery of many economies around the world that we do business in, a number of our operations continue to operate at levels that are off pre-shutdown levels. This is due to certain safety protocols that continue to impact productivity at construction sites, in addition to commuter traffic levels that are still impacted by employees continuing to work