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.
"signed"
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.
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: [email protected], Web Site: www.synex.com
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