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Maxim Power Q4 results improve on sale of emissions credits

Maxim PowerCorp. on March 28 posted improved financial results for the fourthquarter of 2015, thanks to the sale of emissions credits.

The company's adjusted EBITDA for the most recent quartertotaled C$8.2 million, versus an adjusted EBITDA loss of C$1.4 million in thefourth quarter of 2014.

Funds from operations were C$4.4 million, or 8 Canadiancents per share, an increase from a negative C$90,000 during the same quarterof 2014. The company's fourth-quarter revenue went up to C$32.8 million fromC$30.4 million in the corresponding quarter of 2014. Revenue increased mainlydue to higher generation in the Northeast U.S. and France.

Maxim Power's realized power prices from the generating facility inAlberta dropped to C$22.52/MWh during the quarter, compared with C$36.49/MWhrealized for the same quarter of 2014. The decline was due mainly to theweakening in the Alberta pool price. The company received US$41.83/MWh fromnortheast U.S. in the fourth quarter, down from US$81.78/MWh in the fourthquarter of 2014.

Maxim Power's net loss attributable to shareholdersincreased to C$65.2 million, or C$1.20 per share, from a net loss of C$6.9million, or 13 cents per share, in same period of 2014.

In addition, the company temporarily suspended thegeneration of electricity at the Milner project due to record low power pricesin Alberta. After the suspension, 75% of the plant's staff was temporarily laidoff for an undetermined period.

On annual basis, Maxim Power's adjusted EBITDA rose toC$19.5 million in 2015, compared with C$15.0 million in 2014.

FFO for 2015 totaled C$10.3 million, or 19 cents per share,a decline from C$13.6 million, or 25 cents per share. In 2015, the company'srevenue slid to C$123.0 million from C$142.9 million in 2014. The change wasprimarily due to lower Alberta power prices and lower realized Northeast U.S.power prices.

The company realized C$64.33/MWh from Milner in 2015, comparedwith C$64.10/MWh in 2014, whereas the average Northeast U.S. realized powerprice in 2015 fell to US$61.85/MWh from US$139.51/MWh in 2014.

Maxim Power recorded a net loss attributable to shareholdersof C$77.4 million, or C$1.43 per share, from a net loss of C$9.1 million, or 17cents per share, in 2014.