TSE : SXI
VANCOUVER, Sept. 17 /CNW/ - The Cypress Creek Hydro Plant (the "Cypress Plant") was the first facility to achieve its Commercial Operation Date ("COD") under the BC Hydro Standing Offer Program. The COD is July 31, 2009, which was subsequent to the fiscal year end. The required acceptance of the Cypress Electricity Purchase Agreement ("Cypress EPA") by the British Columbia Utilities Commission was received on July 30, 2009. As a result of delays in finalizing the Cypress EPA and COD, a failure of a pipe fitting and lower than average snowfall, the operating cost (including amortization and interest expense) exceeded the revenue from the Cypress Plant by $314,589 during fiscal 2009. The Company anticipates that during fiscal 2010 the Cypress Plant will operate profitably.
Revenue decreased to $2,688,811 in fiscal 2009 from $2,708,310 in fiscal 2008. The decrease in revenue is primarily a result of decreased external revenue from the Engineering Division offset mostly by the new electricity sales from the Cypress Plant.
Income before other items was $42,660 in fiscal 2009 as compared to $184,166 in fiscal 2008. For fiscal 2009 there was a net loss of $102,870 as compared to net income of $348,749 in fiscal 2008. The decrease in net income relates mostly to a decrease in investment income of $270,170 and an increase in amortization of $142,129. Investment income is primarily from sales of shares of NovaGold Resources Inc., which were acquired by the Company in fiscal 2006. The increase in amortization relates to amortization of the Cypress Plant commencing as at January 1, 2009. Earnings per share in fiscal 2009 were $0.00 per share as compared to $0.01 earnings per share in fiscal 2008.
As at June 30, 2009, the Company had loan agreements with Canadian Western Bank with total indebtedness of $7,447,145 of which $3,484,330 was primarily secured by the Mears Plant, $3,432,605 was primarily secured by the Cypress Plant and $530,210 was primarily secured by the Kyuquot Utility. Subsequent to fiscal year end, on July 21, 2009 the Company announced the signing of an Amended and Restated Credit Agreement with the Canadian Western Bank, which included additional lending of $3,770,055 primarily secured by the Cypress Plant. The new lending amount is intended to be used as part of the project equity for the Barr Creek Project, the McKelvie Creek Project and other development projects as well as general corporate purposes.
During Fiscal 2009, the Company received $1,263,680 from the Ka:'yu:'k't'h'/Che:k:tles7et'h' First Nation (the "KCFN") as a payment in respect of the Kyuquot powerline. The KCFN have entered into an agreement, whereby the KCFN may advance the Company a further $736,320 in exchange for further reductions in electricity rates.
The Company owns and operates two hydroelectric plants with a total installed capacity of 6.6 MW, an electrical utility and has a 12.5% ownership of the 6.5 MW China Creek hydroelectric plant, all located on Vancouver Island. Commencement of construction of either or both the Barr Creek and McKelvie Creek projects is expected to proceed in fiscal 2010, depending on the outcome of regulatory submissions.
The provincial government in British Columbia has endorsed the development by private industry of environmentally sound hydroelectric plants. The Company has over 25 water licence applications in various stages of development 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 engineering services for water resources, particularly for hydroelectric and other power facilities.
Greg Sunell, President
This 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.
SOURCE Synex International Inc.
For further information: For further information: 400 - 1444 Alberni Street, Vancouver, BC, V6G 2Z4, Phone (604) 688-8271 Ext. 372, Fax (604) 688-1286, E-mail: firstname.lastname@example.org, Web Site: www.synex.com