Maxim Power Corp. Achieves Record Revenue and Generation in 2024

Maxim Power Corp. (TSX: MXG) has reported a remarkable financial and operating performance for the year 2024, with revenue soaring to $101.482 million and record annual generation from its M2 facility. The company's audited condensed consolidated financial statements, along with the accompanying notes and Management’s Discussion and Analysis (MD&A), were released on March 21, 2025, providing a comprehensive overview of its achievements and strategic initiatives.

Record Revenue and Generation

The 2024 financial performance of Maxim Power Corp. stands out with a revenue of $101.482 million, more than double the $41.458 million recorded in 2023. This significant increase can be attributed to several key factors, including the record annual generation from the M2 facility, which produced 1,733,267 MWh in 2024 compared to 516,849 MWh in 2023. The completion of the 300 MW Milner 2 (M2) Combined Cycle Gas Turbine (CCGT) in Q4 2023 played a pivotal role in this achievement, increasing the maximum generation capacity of the HR Milner site to 300 MW and enhancing operational efficiency.

Strategic Initiatives and Operational Improvements

Maxim Power Corp. has implemented several strategic initiatives and operational improvements to achieve this record performance. The CCGT expansion of M2 captures waste heat that would otherwise exhaust into the atmosphere and converts it into useful low carbon dispatchable electricity for the Alberta power grid. This not only enhances the efficiency of the plant but also aligns with environmental sustainability goals.

Additionally, the company has 600 MW of natural gas and wind development projects at various stages, including the Prairie Lights and Buffalo Atlee Wind projects. These projects are expected to further enhance the company's generation capacity and diversify its energy portfolio, making it more resilient to market fluctuations.

Financial Highlights



The company recorded net income and Adjusted EBITDA of $21.9 million and $38.5 million, respectively, in 2024, compared to $28.3 million and $50.7 million, respectively, in 2023. Although there was a decrease in net income and Adjusted EBITDA, this was primarily due to the cessation of business interruption insurance claims in 2024, partially offset by the net impacts of operations of M2 in 2024. The company's focus on operational efficiency and strategic investments in renewable energy projects suggests that these improvements are sustainable in the long term.

Liquidity and Capital Resources

On October 17, 2024, the Corporation voluntarily repaid the outstanding principal on both the Fixed Rate Construction Facility and the Bank Term Facility #1, for a total principal repayment of $49.9 million. This move eliminated any further amounts owing under the Senior Credit Facility. Additionally, on November 7, 2024, MAXIM received a notice of conversion from the lenders under the Convertible Loan Facility to convert amounts owing thereunder, being $29.4 million, into common shares of MAXIM. Under the terms of the Convertible Loan, the lenders under this facility received 13,083,735 Common Shares based on a conversion price of $2.25 per Common Share. The facility was then mutually agreed to be terminated.

On the same day, MAXIM’s Board of Directors approved the declaration and distribution of a special dividend of $0.50 per Common Share. The aggregate amount of the Special Dividend was $31.8 million, which was payable in cash and funded from surplus cash. The Special Dividend was paid on November 29, 2024. Furthermore, MAXIM amended its Senior Credit Facility to increase and merge the combined availability of Revolver Facility #1 and Letter of Credit Facility #1 from $19.1 million to $25.0 million, release $10.1 million of restricted cash, and modify other terms of the agreement to provide the Corporation with more flexibility to operate its business and permit a Special Dividend.

Development and Business Initiatives

On February 18, 2025, MAXIM entered into a Purchase and Sale Agreement (PSA) to sell the Corporation’s wholly-owned subsidiaries Summit Coal Limited Partnership and Summit Coal Inc. (collectively “Summit”) to Valory Resources Inc. (Valory). Under the terms of the PSA, Valory will pay a total purchase price of $14.2 million. This strategic move is part of MAXIM's ongoing efforts to optimize its portfolio and focus on high-growth opportunities.

Conclusion

Maxim Power Corp.'s 2024 financial and operating results highlight the company's strategic initiatives and operational improvements, which have led to record revenue and generation. The completion of the M2 CCGT expansion, along with the company's focus on renewable energy projects, positions MAXIM for sustained growth and success in the energy sector. As the company continues to optimize its portfolio and enhance its operational efficiency, it is well-positioned to capitalize on future opportunities and deliver value to its shareholders.