Maxim Power Corp. Announces 2021 Fourth Quarter Financial and Operating Results, and Reports Significant Earnings with $156 million of Revenues, $79 million of Net Income and Record Adjusted EBITDA of $68 million in 2021
15 März 2022 - 10:52PM
Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX: MXG)
announced today the release of financial and operating results for
the fourth quarter ended December 31, 2021. The audited
consolidated financial statements, accompanying notes and
Management’s Discussion and Analysis (“MD&A”) will be available
on SEDAR and on MAXIM's website on March 15, 2022. All figures
reported herein are Canadian dollars unless otherwise stated.
FINANCIAL HIGHLIGHTS
|
Three Months EndedDecember 31, |
Twelve Months Ended December
31, |
($ in
thousands except per share amounts) |
2021 |
2020 |
2021 |
2020 |
Revenue |
37,418 |
17,282 |
156,014 |
46,726 |
Net income |
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 generation – (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 Alberta market power price ($ per
MWh) |
107.31 |
46.13 |
101.93 |
46.72 |
Average realized power price ($ 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) |
Select financial information was derived from the consolidated
financial statements and is prepared in accordance with GAAP,
except adjusted Earnings before Interest, Income Taxes,
Depreciation and Amortization (“Adjusted EBITDA”). Adjusted EBITDA
is provided to assist management and investors in determining the
Corporation's approximate operating cash flows before interest,
income taxes, and depreciation and amortization and certain other
non-recurring income and expenses. Total net debt was derived from
the consolidated financial statements to include: loans and
borrowings (including the convertible loan facility), current
liabilities, other long-term liability, less total current
assets. |
(2) |
Total generation, fuel consumption and average realized power
prices for 2021 relate to Milner 2 (“M2”) and 2020 relate to both
M2 and HR Milner (“Milner”) |
OPERATING RESULTS
During the fourth quarter and twelve months of
2021, revenues increased to $37 million and $156 million, as
compared to $17 million and $47 million, respectively, in the same
periods in 2020. The increase is the direct result of the
operations of M2, which was commissioned in the second quarter of
2020. Realized power prices in the fourth quarter and twelve months
of 2021 were $117.74 per MWh and $107.60 per MWh, respectively, as
compared to $51.10 per MWh and $55.77 per MWh, respectively, in the
same periods in 2020.
During the fourth quarter and twelve months of
2021, Adjusted EBITDA increased to $17 million and $68 million,
respectively, as compared to $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
operations and maintenance costs on a per MWh basis. Additionally,
the Government of Alberta Technology Innovation and Emissions
Reduction program benefits accrue to earnings through reduced
carbon tax associated with M2. These favourable variances were
partially offset by higher fuel costs due to higher generation
volumes, higher per unit natural gas costs and net realized losses
on commodity swaps in 2021 as 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 second and
third Line Loss Proceeding payments. These favourable variances
were partially offset by the recognition of a deferred tax expense,
depreciation of M2 and impairment of the Deerland project.
M2 CCGT PROJECT UPDATE
During the fourth quarter of 2021, MAXIM
continued progress on the engineering and construction of the
Combined Cycle Gas Turbine (“CCGT”) expansion of M2 and is pleased
to report that the project remains on schedule to commission in
December 2022. Recent milestones include over 90,000 construction
hours expended and the completion of major foundations for the Heat
Recovery Steam Generator (“HRSG”) and associated balance of plant.
Additional milestones during the fourth quarter of 2021 included
the erection of the HRSG heat transfer surfaces and HRSG casings.
The estimated project cost is currently $136.0 million. As at
December 31, 2021, MAXIM has incurred $76.5 million of capital
investment in relation to the CCGT expansion of M2 and has funded
this spending with existing cash on hand and cash flow from
operating activities.
At this time, MAXIM forecasts it has sufficient
liquidity to complete the CCGT expansion of M2 and will fund the
project using cash on hand, cash flow from operating revenues and
available funds through the existing senior and subordinated credit
facilities, as required.
Upon completion, the CCGT expansion of M2 will
capture waste heat that would otherwise exhaust into the atmosphere
and turn it into useful low carbon electricity for the Alberta
power grid. The CCGT expansion of M2 will reduce the intensity of
carbon emissions by more than 60% compared to the legacy coal-fired
Milner facility.
NORMAL COURSE ISSUER BID
On August 20, 2021, MAXIM announced that it has
received approval from the Toronto Stock Exchange to proceed with a
normal course issuer bid ("NCIB") for 2021/2022. Under this NCIB,
the Corporation may purchase for cancellation up to 2,400,000
common shares of the Corporation. As of the date of this press
release, the Corporation has repurchased and cancelled 121,955
common shares under the 2021/2022 program.
About MAXIM
Based in Calgary, Alberta, MAXIM is one of
Canada’s largest truly independent power producers. MAXIM is now
focused entirely on power projects in Alberta. Its core asset – the
204 MW H.R. Milner Plant, M2, in Grande Cache, AB – is a
state-of-the-art natural gas-fired power plant that commissioned in
Q2, 2020. MAXIM is currently increasing the capacity of M2 to
approximately 300 MW and concurrently will realize an improvement
in the efficiency of the plant by investing in heat recovery
combined cycle technology. In addition, MAXIM continues to explore
additional development options in Alberta including its currently
permitted gas-fired generation projects and the permitting of its
wind power generation project. MAXIM trades on the TSX under the
symbol “MXG”. For more information about MAXIM, visit our website
at www.maximpowercorp.com. For further information please
contact:
Bob Emmott, President and COO, (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
anticipated future operations, management focus, objectives,
strategies, financial, operating and production results.
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 outcomes, events or performance. The
forward-looking statements contained in this press release speak
only as of the date thereof and are expressly qualified by this
cautionary statement. Specifically, this press release contains
forward-looking information concerning, among other things, the
expected completion date of the CCGT expansion of M2, emissions
intensity, the current cost estimates for the CCGT expansion of M2
and MAXIM’s financing plans with respect to the CCGT expansion.
Management has included the forward-looking
statements above and a summary of assumptions and risks related to
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 be
appropriate for other purposes.
MAXIM's actual results, performance or
achievement could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that MAXIM will derive there from.
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 intent or
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities
laws.
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