TSE : SXI
VANCOUVER, Nov. 12 /CNW/ - For the three months ended September 30, 2008,
revenue grew by 15% to $577,737 from $502,363 in the corresponding period in
the previous year. The growth in revenue is a result of increased revenue from
the Engineering Division and increased electricity sales from the Mears Creek
Hydro Plant (the "Mears Plant") offset by slightly decreased sales from the
Kyuquot Utility.
The net loss for the three months ended September 30, 2008 increased to
$71,718 from a net loss of $68,083 in the corresponding period in the previous
year. Due to the drier summer months, generation at the Mears Plant during the
first quarter is expected to be only about 10% of annual generation. Loss per
share was $0.00 per share in each of the three months ended September 30, 2008
and September 30, 2007.
Construction of the 2.8 MW Cypress Creek Hydro Project (the "Cypress
Project") was mostly completed as at the end of the first quarter of fiscal
2009. The Company is advancing the process of securing an electricity purchase
agreement with BC Hydro under the Standing Offer Program ("SOP").
Commissioning of the plant is anticipated to commence during the second
quarter of fiscal 2009 and the Company is expecting that the electricity
purchase agreement with BC Hydro will be executed early in the third quarter.
The timing of the commissioning and execution of the BC Hydro electricity
purchase agreement are difficult to predict due to the nature of the work and
due to Synex Energy being the first applicant under the SOP process. On
October 22, 2007, the Company announced that the Power Division had entered
into a loan agreement with Canadian Western Bank. The amount advanced under
the loan at September 30, 2009 was $2,200,000 with a maximum lending of
$3,529,945. Subsequent to the end of the first quarter, during October 2008 a
further $750,000 was advanced under the loan.
The Company is continuing to advance the proposed McKelvie Creek, Barr
Creek and Victoria Lake hydroelectric projects as well as some other early
stage projects.
OUTLOOK
The Company owns and operates the 3.8 MW Mears Creek hydroelectric plant,
Kyuquot Power Ltd. an electrical utility and has a 12.5% ownership of the 6.5
MW China Creek hydroelectric plant, all located on Vancouver Island.
Construction of the 2.8 MW Cypress Creek hydroelectric plant, located near the
Mears Creek plant, is nearly completed and the Company is expecting to execute
an electricity purchase agreement with BC Hydro under the SOP program during
the early part of calendar 2009. The electricity purchase agreement for the
Cypress plant is expected to be the first agreement in the province executed
under the BC Hydro SOP program. Commencement of construction of both the
McKelvie Creek and Barr Creek projects is expected in late fiscal 2009.
The provincial government in British Columbia has endorsed the
development by private industry of environmentally sound hydroelectric plants.
The Company has over 25 water license applications in various stages of
development, including those pending for review, for various projects located
on Vancouver Island and the Prince Rupert/Terrace area in British Columbia The
Company is also pursuing other opportunities in respect of power developments.
Synex International Inc. is a public company trading on the Toronto Stock
Exchange (TSX) with businesses involved with the development, ownership and
operation of electrical generation facilities, as well as the provision of
consulting engineering services in water resources, particularly for
hydroelectric and other power facilities."signed"
Greg Sunell, PresidentThis press release contains forward-looking statements that involve risks
and uncertainties. These statements reflect our current expectations and are
subject to change. They are subject to a number of risks and uncertainties
including, but not limited to, changes in economic conditions, risks
associated with the construction and operation of hydroelectric facilities and
changes in government policies.
For further information: Greg Sunell, President, 400 - 1444 Alberni
Street, Vancouver, BC, V6G 2Z4, Phone (604) 688-8271 Ext. 372, Fax (604)
688-1286, E-mail: gsunell@synex.com, Web Site: www.synex.com
