Maxim Power Corp. announces fourth quarter 2021 financial results

CALGARY, Alberta, March 15, 2022 (GLOBE NEWSWIRE) — Maxim Power Corp. (“MAXIM” or the “Company”) (TSX: MXG) today announced the release of its financial and operating results for the fourth quarter ended December 31, 2021. The audited consolidated financial statements, accompanying notes and the MD&A will be available on SEDAR and MAXIM’s website on March 15, 2022. All figures herein are in Canadian dollars unless otherwise indicated.


Three months completed
The 31st of December,
Twelve month period ended
The 31st of December,
(in thousands of dollars, except per share amounts) 2021 2020 2021 2020
Income 37,418 17,282 156,014 46,726
Net revenue 4,402 8,923 78,509 9,260
Earnings per share – basic 0.09 0.18 1.57 0.19
Earnings per share – diluted 0.08 0.18 1.28 0.18
Adjusted EBITDA (1) 16,915 3,998 68,418 10,302
Total production – (MWh) (2) 317 813 338 201 1,449,915 837 760
Total fuel consumption – (GJ) (2) 3,366,505 3,713,241 15,491,739 9,840,790
Average price of electricity in the Alberta market ($ per MWh) 107.31 46.13 101.93 46.72
Average realized price of electricity ($ per MWh) (2) 117.74 51.10 107.60 55.77
Total net debt (1) 37,242 59,800 37,242 59,800
Total assets 312 437 239 310 312 437 239 310
(1) Certain financial information is derived from the consolidated financial statements and is prepared in accordance with GAAP, except for adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is provided to assist management and investors in determining the Company’s approximate operating cash flow before interest, income taxes, depreciation and amortization and certain other non-recurring income and expenses. Total net debt has been derived from the consolidated financial statements to include: loans and borrowings (including the convertible loan facility), current liabilities, other long-term liabilities, less total current assets.
(2) Total production, fuel consumption and average realized electricity prices for 2021 refer to Milner 2 (“M2”) and 2020 refer to both M2 and HR Milner (“Milner”)


During the fourth quarter and twelve months of 2021, revenue increased to $37 million and $156 million from $17 million and $47 million, respectively, during the same periods in 2020. This increase is a direct result of the activities of M2, which was commissioned in the second quarter of 2020. Realized electricity prices in the fourth quarter and year-to-date 2021 were $117.74 per MWh and $107 $.60 per MWh, respectively, compared to $51.10 per MWh and $55.77 per MWh, respectively, during the same periods in 2020.

During the fourth quarter and twelve months of 2021, adjusted EBITDA increased to $17 million and $68 million, respectively, from $4 million and $10 million, respectively, in the same periods in 2020. As expected, the capacity and high reliability of M2 increased revenues and reduced operating and maintenance costs per MWh. In addition, the benefits of the Government of Alberta’s technology innovation and emissions reduction program trickle down to revenue through the reduced carbon tax associated with M2. These favorable variances were partially offset by higher fuel costs due to higher production volumes, higher natural gas unit costs and net realized losses on commodity swaps in 2021 compared to the same periods in 2020 .

Net income increased in 2021 to $79 million from $9 million in the same period in 2020 primarily due to the same factors impacting Adjusted EBITDA and the receipt of payments of second and third line loss proceedings. These favorable variances were partially offset by the recognition of a deferred tax charge, the amortization of M2 and the impairment of the Deerland project.


During the fourth quarter of 2021, MAXIM continued to progress the engineering and construction of the M2 Combined Cycle Gas Turbine (“CCGT”) expansion and is pleased to report that the project remains on schedule for commissioning in December 2022. Recent milestones include over 90,000 construction hours spent and the completion of major foundations for the Heat Recovery Steam Generator (“HRSG”) and the remainder of the associated factory. Additional milestones during the fourth quarter of 2021 included the erection of HRSG heat transfer surfaces and HRSG enclosures. The estimated cost of the project is currently $136.0 million. As of December 31, 2021, MAXIM has committed $76.5 million in capital investments for the CCGT expansion of M2 and has funded these expenditures with existing cash and cash flow from operating activities. exploitation.

At this time, MAXIM expects to have sufficient cash on hand to complete the CCGT expansion of M2 and will finance the project using cash on hand, cash flow from operating revenues and funds available through through existing senior and subordinated credit facilities, as required.

When complete, the M2 CCGT expansion will capture waste heat that would otherwise be vented to the atmosphere and turn it into useful low-carbon electricity for Alberta’s power grid. M2’s CCGT expansion will reduce carbon emissions intensity by more than 60% compared to the former Milner coal plant.


On August 20, 2021, MAXIM announced that it had received approval from the Toronto Stock Exchange to proceed with a normal course issuer bid (“NCIB”) for 2021/2022. Under this issuer bid, the Company may purchase for cancellation up to 2,400,000 common shares of the Company. As of the date of this press release, the Company has purchased and canceled 121,955 ordinary shares under the 2021/2022 program.


Based in Calgary, Alberta, MAXIM is one of Canada’s largest truly independent power producers. MAXIM now focuses entirely on energy projects in Alberta. Its main asset – the 204 MW, M2, HR Milner Generating Station in Grande Cache, AB – is a state-of-the-art natural gas-fired power plant that was commissioned in the second quarter of 2020. MAXIM is currently increasing capacity to M2 for approximately 300 MW and will simultaneously achieve plant efficiency improvement by investing in heat recovery combined cycle technology. Additionally, MAXIM continues to explore other development options in Alberta, including its currently licensed gas-fired generation projects and the licensing of its wind power generation project. MAXIM trades on the TSX under the symbol “MXG”. For more information about MAXIM, visit our website at For more information, please contact:

Bob Emmott, President and Chief Operating Officer, (403) 263-3021

Kyle Mitton, CFO and Vice President, Corporate Development, (403) 263-3021

This press release contains forward-looking statements and forward-looking information (collectively “forward-looking information”) within the meaning of applicable securities laws relating to MAXIM’s plans and other aspects of MAXIM’s planned future operations, direction management, objectives, strategies, financial condition, results of operations and production. Forward-looking information typically uses words such as “anticipate”, “believe”, “project”, “expect”, “goal”, “plan”, “intend”, “may”, “would “, “could” or “will” or similar words suggesting future results, events or performance. The forward-looking statements contained in this press release speak only as of the date hereof and are expressly qualified by Specifically, this press release contains forward-looking information regarding, among other things, the expected completion date of the M2 CCGT Extension, emissions intensity, current estimates of the costs of the M2’s CCGT and MAXIM’s financing plans for the CCGT extension.

Management has included the above forward-looking statements and a summary of the assumptions and risks associated with the forward-looking statements provided in this press release in order to provide readers with a more complete perspective on MAXIM’s future plans and operations and such information may not not be appropriate. for other purposes.

MAXIM’s actual results, performance or achievements could differ materially from those expressed or implied by such forward-looking statements and, therefore, no assurance can be given that any of the events anticipated by the forward-looking statements will or will occur. , or if any of them do, what benefits will MAXIM derive from it. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release, and MAXIM disclaims any intention or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except if necessary. by applicable securities laws.

Luisa D. Fuller