Brookfield Business Partners LP Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Just to maybe start with BRK Ambiental and Jaspreet touched on this, but I think there were some legislation passed in Brazil recently that was looking to leverage private capital to develop infrastructure, that would be including water and wastewater. Just can you give us a sense as to how that organic capital backlog at BRK looks now? And when do you expect to see a rise in RFPs for new concessions?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Maybe just switching gears to BrandSafway. Look, I think this is a business that was believed to be less cyclical than a lot of traditional construction firms. Now clearly, this downturn has been different. But just can you give us some thoughts around how this business is holding up in the current environment? With that EBITDA improvement, like how much can you -- do you think you can achieve and how that tuck-in M&A deal pipeline looks right now?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Are you able to provide a sense for where you see the EBITDA potential of the business?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : And maybe just one more for me. Just can you walk us through what you're seeing from a new investment perspective, how that pipeline looks in terms of geographies and sectors? And if you're starting to see some of those large [covered] opportunities come forward?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : More broadly. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2020 / 4:00PM, BBU_u.TO - Q2 2020 Brookfield Business Partners LP Earnings Call

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Just was wondering on Multiplex, I know you kind of talked about the second half in liquidity there. But thinking about it from the company EBITDA perspective, is that going to have implications from company EBITDA versus what we saw in Q2? And then the second part on Multiplex would be, obviously, it's hard to say for sure. But if we go under a scenario where there's kind of gradual improvements in terms of the industry environment for Multiplex. Like how long do you think it takes to get back to a run rate company EBITDA that you would consider a normalized level?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : I know you've talked about buying back the units. Just wondering how you're thinking about the relative investment return potential regarding buying back the units relative to outlaying cash for new investments? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2020 / 4:00PM, BBU_u.TO - Q2 2020 Brookfield Business Partners LP Earnings Call

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Yes. And I'm just kind of thinking like with where the unit price is right now, and you talked about with your data limits and whatnot, whether or not something like a substantial issuer bid would make sense at all to be thinking about?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : And maybe if I can ask 1 last question. I mean, obviously, it's a very dynamic environment that we're in right now. And maybe just focusing on your larger investments. The impact that COVID-19 has had on the investment thesis for these large investments, are there any of them that you'd say have kind of changed how you think about how you're going to be able to realize value from the investments? Or is it maybe more a little bit matter of it's going to take time to recover and get profitability to call it back to normal. And therefore, because of that incremental extra timing, the return that you get off that investment might be marginally lower or slightly lower?