TSE : SXI
VANCOUVER, Feb. 9 /CNW/ - Net income for the second quarter ended December 31, 2009 was $207,903 as compared to $274,300 for the corresponding period in fiscal 2009. The net income for the second quarter of fiscal 2010 included a recovery of income taxes of $160,000 as compared to a recovery of income taxes of $50,441 in the second quarter of fiscal 2009. Further, no payment by the First Nation of contractor fees was received in the second quarter of 2010 whereas, in fiscal 2009 a contractor fee of $150,000 was received as part of the payments towards the Kyuquot powerline.
There was a net loss for the six months ended December 31, 2009 of $270,148 as compared to net income of $202,582 for the corresponding period in the previous year. A net loss is expected in the first quarter of the fiscal year as generation from hydro plants in the first quarter normally represents less than 10% of annual forecast generation. The increased loss in the first quarter ended September 30, 2009 as compared to the previous year was mostly due to the amortization and interest costs associated with the commencement of operations of the Cypress Plant as well as reduced engineering assignments and drier than average runoff conditions.
Revenue for the six months ended December 31, 2009 decreased to $1,162,544 from $1,400,176 for the corresponding period in the previous year. The primary revenue sources were the Mears Plant, the Cypress Plant, the Kyuquot Utility and the Engineering Division and, except for the Cypress Plant, all operations had lower year over year revenues.
The Cypress Plant was the first plant to reach commercial operation under the BC Hydro Standing Offer Program. The Cypress Plant received approval from the BCUC on July 30, 2009 and the Commercial Operation Date under the Cypress EPA was set as July 31, 2009. During the second quarter of fiscal 2010, the Cypress Plant operated profitably.
On July 21, 2009, the Company announced that the Power Division had entered into an Amended and Restated Credit Agreement with the Canadian Western Bank, which provided for additional lending of $3,770,055, secured primarily by the Cypress Plant. As at December 31, 2009, an amount of $1,000,000 had been advanced and $2,770,055 of additional lending remained available.
The Company has over 25 water licence applications, mostly on Vancouver Island and in the Prince Rupert/Terrace area in British Columbia. The Company is actively advancing the 5MW McKelvie Creek Project and the 4.4MW Barr Creek Project as well as early studies on a number of different sites. It is expected that the McKelvie Project will apply for an electricity purchase agreement under the Standing Offer Program whereas the Barr Creek Project has an existing electricity purchase agreement from the BC Hydro 2006 Call for Proposals. The McKelvie Creek project and the Barr Creek project are both in advanced regulatory stages and construction is expected to commence on one of the projects before the end of fiscal 2010.
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.
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: Greg Sunell, President, 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